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Introduction & Market Context
Fortuna Silver Mines Inc (NYSE:FSM) (TSX:FVI) presented its Q1 2025 financial and operational results on May 8, 2025, showcasing record financial performance amid rising precious metal prices. The company, celebrating its 20th anniversary, reported substantial year-over-year growth across all major financial metrics while continuing to optimize its portfolio through strategic divestitures.
The quarter’s performance was bolstered by strong gold and silver prices, with realized gold prices reaching $2,883/oz and silver prices at $31.77/oz. Precious metals accounted for 92% of the company’s total sales, with gold contributing 89% of revenue.
Quarterly Performance Highlights
Fortuna Mining delivered solid production of 103,459 gold equivalent ounces (GEO) in Q1 2025, with improved cost metrics compared to the previous quarter. The company reported cash costs of $929/GEO, down from $1,015 in Q4 2024, and all-in sustaining costs (AISC) of $1,640/GEO, compared to $1,772 in Q4 2024.
As shown in the following operational overview, production was distributed across the company’s key assets:
The Séguéla Mine in Côte d’Ivoire emerged as the standout performer with 38,500 ounces of gold production at a cash cost of $650/oz and AISC of $1,290/oz. The Yaramoko Mine in Burkina Faso contributed 33,073 ounces of gold, while the Lindero Mine in Argentina produced 20,320 ounces. The Caylloma Mine in Peru focused on silver production with 242,993 ounces, alongside zinc and lead production.
Detailed Financial Analysis
Fortuna reported exceptional financial results for Q1 2025, highlighted by record free cash flow from operations of $111.3 million, representing a remarkable 545% increase year-over-year. The company’s sales reached $290.1 million, up 44% compared to Q1 2024, driven by higher production and favorable metal prices.
The following slide illustrates the company’s impressive financial performance:
Operating income surged 90% year-over-year to $91.9 million, while attributable net income from continuing operations more than doubled to $61.7 million, representing a 131% increase. Earnings per share from continuing operations reached $0.20, up 122% from the same period last year. The company maintained a strong adjusted EBITDA margin of 52%, with adjusted EBITDA increasing 56% year-over-year to $150.1 million.
The sales breakdown reveals the company’s heavy reliance on gold, which accounted for 89% of total revenue:
Fortuna’s financial position strengthened considerably during the quarter, with cash and cash equivalents increasing by $78 million to $309 million. The company reported a positive net cash position of $137 million, up from $59 million in the previous quarter, and total liquidity of $459 million, as illustrated below:
The company’s debt profile improved significantly, with a total debt to adjusted EBITDA ratio below 0.32, indicating minimal leverage and strong financial flexibility.
Strategic Initiatives
Fortuna Mining continued to execute its portfolio optimization strategy during Q1 2025. The company completed the sale of the San Jose Mine and expects to close the Yaramoko sale in mid-May 2025, realigning its asset portfolio to focus on higher-margin operations.
The company maintained disciplined capital allocation, with total capital expenditure of $39.5 million in Q1 2025, consisting of $33.3 million in mine site capital and $6.2 million in projects and greenfield exploration. This represents a significant decrease from the $61.6 million spent in Q4 2024, as shown in the following chart:
Fortuna also continued its share buyback program, repurchasing 0.9 million shares for $4.2 million during the quarter, demonstrating its commitment to returning value to shareholders while maintaining financial flexibility.
Forward-Looking Statements
Looking ahead, Fortuna Mining provided its 2025 annual guidance, projecting consolidated production of 380,000 to 422,000 GEO at an estimated AISC of between $1,550 and $1,680 per GEO. The guidance reflects the company’s portfolio changes following the divestiture of San Jose and the pending sale of Yaramoko.
The company remains focused on its ESG commitments, tracking performance against specific KPIs including fatalities, lost time injury frequency rate, significant spills, energy efficiency, and freshwater use intensity. Fortuna also monitors employee-related metrics such as local community employment and gender diversity in its workforce and management positions.
With $459 million in liquidity and a strong operational foundation, Fortuna Mining appears well-positioned to continue its growth trajectory while maintaining its focus on cost discipline and strategic portfolio optimization throughout 2025.
Full presentation:
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