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Fortuna Reports Results for the Fourth Quarter and Full Year 2024
VANCOUVER, British Columbia, March 05, 2025 (GLOBE NEWSWIRE) -- Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) ("Fortuna" or the "Company") today reported its financial and operating results for the fourth quarter and full year of 2024.
Fourth Quarter and Full Year 2024 highlights
Cash and Cashflow
- Record free cash flow1 of $95.6 million in Q4, a quarter over quarter ("QoQ") improvement of 69%; $202.9 million in 2024
- Net cash from operations of $141.6 million before working capital or $0.46 per share in Q4, a QoQ increase of 21%; $438.2 million or $1.42 per share in 2024
- Quarter-end cash of $231.3 million, a QoQ increase of $50.7 million from strong growth in free cash flow. Liquidity was $381.3 million and the Company achieved a positive net cash1 position of $58.8 million
Profitability
- Attributable net income of $11.3 million or $0.04 per share in Q4 after non-cash charges of $26.3 million; attributable net income of $128.7 million or $0.42 per share in 2024
- Attributable adjusted net income1 of $37.0 million or $0.12 per share in Q4 including unrealized foreign exchange loss and higher effective tax rate from Euro devaluation of $0.05 per share; $144.0 million, or $0.47 per share in 2024
Return to Shareholders
- Returned $30.6 million to shareholders in Q4 through the repurchase of 6.4 million shares and an additional $1.8 million for 0.4 million shares in January 2025
Operational
- Gold equivalent production of 116,358 ounces3 in Q4; record gold equivalent production of 455,958 ounces 3 in 2024, meeting the low end of annual guidance
- Consolidated cash cost per gold equivalent ounce ("GEO1")of $1,015 in Q4; $987 in 2024, within annual guidance
- Consolidated AISC per GEO1 of $1,772 for Q4; $1,640 in 2024, within annual guidance
- Strong safety performance in 2024 with a TRIFR of 1.36, and a LTIFR of 0.48 achieving the same level of top industry standard as in 2023
Growth and Development
- $49.0 million invested in mineral exploration and project development in 2024 and a budget of $51.0 million for 2025. Some of the high-value targets include Kingfisher and Sunbird deep deposits at the Seguela mine, the Tongon North prospect in northern Cote d'Ivoire, and the Diamba Sud project in Senegal.
- The flagship Seguela mine delivered 137,781 ounces at an AISC of $1,153 per ounce in 2024, in its first full year of gold production. Two-year gold production guidance for 2025 and 2026 has been provided for Seguela, with incremental production planned to reach 160,000 to 180,000 ounces in 2026 at an AISC in the range of $1,260 to $1,390 per ounce.
Jorge A. Ganoza, President and CEO, commented, "Q4 was a record quarter of free cash-flow at $95.6 million. Quarter over quarter, we realized 7% higher gold prices and 10% higher revenue, while keeping cash cost per ounce flat, leading to expanded operating cash flow margin from 33% to 50%. With the growth in cash flow over the year and a sound balance sheet we returned $30.6 million to shareholders via share buybacks in Q4." Mr. Ganoza continued "Cost and capital optimization initiatives across the portfolio remains top of mind for management with various opportunities successfully implemented in 2024 and continuing into 2025. The sale of the non-core asset San Jose mine will remove our highest cost ounces and refocuses capital and management's attention to high-value opportunities in the portfolio. Additionally, the successful optimization of the Seguela mine is enabling us to plan for increased rates of annual gold production of 160,000 to 180,000 ounces at industry leading costs by 2026, unlocking significant value."
Fourth Quarter and Full Year 2024 Consolidated Results
Three months ended, Years ended December 31,
(Expressed in millions) December September December 2024 2023 % Change
31, 2024 30, 2024 31, 2023
Sales 302.2 274.9 265.3 1,062.0 842.4 26 %
Mine operating income 106.8 86.9 51.9 343.6 190.0 81 %
Operating income (loss) 52.8 72.7 (77.4 ) 228.0 (0.4 ) 57,100 %
Attributable net income (loss) 11.3 50.5 (92.3 ) 128.7 (50.8 ) 353 %
Attributable income (loss) per share - basic 0.04 0.16 (0.30 ) 0.42 (0.17 ) 347 %
Adjusted attributable net income1 37.0 49.9 20.6 144.0 64.9 122 %
Adjusted EBITDA1 137.9 131.3 120.3 476.9 335.1 42 %
Net cash provided by operating activities 150.3 92.9 105.1 365.7 296.9 23 %
Free cash flow from ongoing operations1 95.6 56.6 66.2 202.9 153.5 32 %
Cash cost ($/oz Au Eq)1 1,015 1,059 840 987 874 13 %
All-in sustaining cash cost ($/oz Au Eq)1,2 1,772 1,668 1,416 1,640 1,480 11 %
Capital expenditures2
Sustaining 48.1 38.4 46.8 142.2 136.1 4 %
Non-sustaining3 12.0 12.3 1.8 50.8 5.2 877 %
Seguela construction - - - - 50.0 (100 %)
Brownfields 1.3 (0.5 ) 4.8 10.4 16.1 (35 %)
As at December December % Change
31, 2024 31, 2023
Cash and cash equivalents 231.3 128.1 81 %
Net liquidity position (excluding letters of credit) 381.3 213.1 79 %
Shareholder's equity attributable to Fortuna shareholders 1,403.9 1,238.4 13 %
1 Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis
3 Non-sustaining expenditures include greenfields exploration
4 The composition of AISC was revised in Q4 2024 and the comparative periods were adjusted to reflect the change. Refer to "Non-IFRS Financial Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" for a description of the calculation and the reason for the change
Figures may not add due to rounding
Fourth Quarter 2024 Results
Q4 2024 vs Q3 2024
Cash cost per ounce and AISC
Cash cost per ounce of gold equivalent ("GEO") sold was $1,015 in Q4 2024, an improvement of 4% compared to $1,059 over the prior quarter. All-in sustaining costs per GEO was $1,772 in Q4 compared to $1,668 in Q3 2024 due mainly to higher capex in mine development and infrastructure in the quarter related to the expansion of life of mine at Yaramoko and the planned expansion of annual gold production at Seguela to 160,000 - 180,000 oz by 2026, and timing of capital expenditures.
Attributable Net Income and Adjusted Net Income
Attributable net income for the period was $11.3 million compared to an attributable net income of $50.5 million in Q3 2024. The fourth quarter of 2024 was impacted by non-cash charges of $26.3 million as follows.
- A write-down of $14.5 million related to the Boussoura mineral property in Burkina Faso. The majority of the write-down corresponds to the purchase price assigned to Boussoura as part of the Roxgold acquisition and reflects the Company's view as to Boussoura's exploration prospects.
- A $7.2 million mine closure provision associated with the scheduled closure of the San Jose Mine. Subsequent to the end of the quarter, the Company entered into a binding letter of intent to divest of the San Jose mine. The associated closure provision is expected to unwind upon completion of the sale.
- A write-down of low-grade ore stockpiles of $4.6 million at the Lindero Mine.
After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $37.0 million or $0.12 per share compared to $49.9 million or $0.16 per share in Q3 2024. The decrease was explained by a foreign exchange ("FX") loss of $10.4 million in Q4 2024 compared to a gain of $3.4 million in Q3 2024, and by a higher effective tax rate ("ETR") representing approximately $16 million of additional income tax provision over the prior quarter. The main cause of the FX loss and the higher ETR in Q4 was the 8% devaluation of the Euro versus the USD which had an estimated combined impact on earnings per share of 5 cents. This was partially offset by higher sales of $27.3 million, related to a higher realized gold price quarter over quarter and 4% higher gold sold. Realized gold price in Q4 2024 was $2,662 per ounce compared to $2,490 in Q3 2024.
Other items impacting the quarter compared to Q3 2024 were higher Corporate G&A expenditures of $4.4 million related to timing of expenses.
Cash flow
Net cash generated by operations before working capital adjustments was $141.6 million or $0.46 per share. After adjusting for working capital changes, net cash generated by operations for the quarter was $150.3 million compared to $92.9 million in Q3 2024. The increase of $57.4 million reflects higher sales and positive change in working capital in Q4 2024 of $8.6 million compared to negative $26.4 million in Q3 2024, and lower-income tax paid of $7.1 million.
Free cash flow from ongoing operations in Q4 2024 increased $39 million over Q3 2024 to $95.6 million. The increase was due to higher cash generated by operations partially offset by higher capital expenditures of $15.9 million. Free cash flow in Q4 2024, after growth capex of $12.0 million, was $83.6 million.
Q4 2024 vs Q4 2023
Cash cost per ounce and AISC
Consolidated cash cost per equivalent gold ounce was $1,015, compared to the $840 reported in Q4 2023. The increase in cash cost was driven mainly by higher cash cost at Seguela, and the San Jose Mine operating in its last year of Mineral Reserves. The increase in cash cost at Seguela is explained mainly by lower head grades in 2024, as per the mine plan, and lower stripping and mining costs during Seguela's first semester of operations in 2023. Cash cost also increased at Lindero due to lower production and the impact of the appreciation of the Argentine peso.
All-in sustaining costs per gold equivalent ounce was $1,772 in Q4 2024 compared to $1,416 in Q4 2023. AISC in the quarter includes the $1.4 million annual investment gain (Q4 2023: $12.4 million) from cross border, Argentine pesos denominated bond trades. This is a benefit granted to exporters by the Argentine Government whereby 20% of export proceeds is allowed to be converted into pesos at a preferential exchange rate. This benefit is intended to alleviate exporters for the impact of the overvaluation of the official exchange rate on input costs. The increase in AISC was primarily the result of higher cash cost per ounce as described above and higher sustaining capital at Lindero related to the expansion of the leach-pad. The composition of AISC was revised in Q4 2024 and the comparative periods were updated to reflect the change. Refer to "Non-IFRS Financial Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" on page 27 in the 2024 MD&A for a description of the calculation and the reason for the change.
Attributable Net Income and Adjusted Net Income
Attributable net income for the period was $11.3 million compared to an attributable net loss of $92.3 million in Q4 2023. The fourth quarter of 2024 was impacted by non-cash charges of $26.3 million compared to $118.4 million in the fourth quarter of 2023.
After adjusting for write-downs and other non-recurring items, adjusted attributable net income was $37.0 million or $0.12 per share compared to $20.6 million or $0.07 per share in Q4 2023. The increase was primarily due to higher gold prices. The realized gold price was $2,662 per ounce in Q4 2024 compared to $1,990 per ounce in Q4 2023. This was partially offset by lower gold sales volume and higher cost per ounce. Lower gold sales volume was mainly due to lower production at Seguela, San Jose, and Lindero. The decrease in production at Seguela and Lindero was due to lower head grades, in accordance with the mine plan, partially offset by higher processed ore. The higher cost per ounce was explained mainly by the lower head grades at Seguela and Lindero, lower stripping and mining costs during Seguela's second quarter of operations in Q4 2023, and the impact of the appreciation of the Argentine peso at Lindero.
Other items impacting the adjusted net income for the quarter compared to Q4 2023 were a higher unrealized foreign exchange loss of $8.5 million mostly explained by an 8% devaluation of the Euro versus the USD in the period, and lower investment income of $11.0 million related to cross-border, Argentine peso denominated bond trades.
Depreciation and Depletion
Depreciation and depletion decreased $9.0 million to $62.6 million in the fourth quarter of 2024 compared to $71.6 million in the comparable period of 2023. The decrease was primarily due to lower accounting balances at San Jose after a $90.6 million impairment at year end 2023. Depreciation and depletion in the period include $18.2 million related to the purchase price allocation from the Roxgold acquisition at Seguela.
Cash Flow
Net cash generated by operations for the quarter was $150.3 million compared to $105.1 million in Q4 2023. The increase of $45.2 million reflects higher sales and positive change in working capital in Q4 2024 of $8.7 million compared to nil in Q4 2023, and lower interest paid of $3.2 million.
Free cash flow from ongoing operations for the quarter was $95.6 million compared to $66.2 million in Q4 2023. The increase reflects higher net cash generated by operations.
Full Year 2024 Results
Cash cost per ounce and AISC
Cash cost per equivalent gold ounce was $987, compared to $874 reported in 2023. The increase in cash cost is explained mainly by lower head grades at Seguela in 2024, and lower stripping and mining costs during Seguela's first semester of operations in the second half of 2023, as well as higher cost at San Jose as explained earlier. Cash cost for the full year also increased at Lindero due to lower production and the impact of the appreciation of the Argentine peso.
All-in sustaining costs per gold equivalent ounce was $1,640 in 2024 compared to the $1,4804 recorded in the prior year due mainly to higher cash cost per ounce as described above and higher capex mostly at Lindero. AISC for 2024 includes the $9.7 million annual investment gain (FY 2023: $12.4 million) from cross border, Argentine peso denominated bond trades. (See discussion above).
Attributable Net Income and Adjusted Net Income
Attributable net income for the year was $128.7 million, compared to an attributable net loss of $50.8 million in 2023. The loss in 2023 was explained by impairment charges of $90.6 million at the San Jose Mine.
After adjusting for write-downs and other non-recurring items, attributable adjusted net income for 2024 was $144.0 million or $0.47 per share, compared to $64.9 million or $0.22 per share in 2023. The increase was primarily due to higher gold prices and higher gold sales volume. The realized gold price was $2,401 per ounce in 2024 compared to $1,948 per ounce in 2023. Higher gold sales volume was mainly due to the full year contribution of Seguela upon successful commissioning and ramp-up in Q2 2023, partially offset by lower production at Lindero, aligned with the grade profile in the mine plan, and lower head grades and processed ore at San Jose, in its last year of mineral reserves.
Depreciation and Depletion
Depreciation and depletion for 2024 increased $10.3 million to $230.0 million compared to $219.6 million in 2023. The increase was primarily due to an increase in ounces sold at Seguela and partially offset by lower depletion expenses at San Jose. Depreciation and depletion in the period include $71.6 million related to the purchase price allocation from the Roxgold acquisition at Seguela.
Cash Flow
Net cash generated by operations before working capital changes was $438.2 million or $1.42 per share. After adjusting for working capital changes, net cash generated by operations for 2024 was $365.7 million compared to $296.9 million in 2023. The increase of $68.8 million is explained by higher sales partially offset by negative changes in working capital of $72.5 million in 2024 from an increase in receivables of $46.4 million due to timing and delays in repayments of VAT in Burkina Faso and an increase in inventories of $24.5 million related to an increase in ore stockpiles at Lindero and Seguela. This compares to a negative working capital adjustment of $9.7 million in 2023. Higher taxes paid of $17.7 million was due to Seguela paying income taxes for the first time in 2024 after initiating commercial production in the second half of 2023.
Free cash flow from ongoing operations for 2024 was $202.9 million compared to $153.5 million in 2023. The increase of $49.4 million reflects higher net cash generated by operations, partially offset by higher sustaining capital expenditures of $14.6 million. Free cash flow in 2024, after growth capex of $44.3 million and the Seguela NSR repurchase of $6.5 million, was $150.5 million.
Seguela Mine, Cote d'Ivoire
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes milled 430,117 387,624 1,561,800 807,617
Average tonnes crushed per day 4,727 4,123 4,279 3,282
Gold
Grade (g/t) 2.95 3.62 2.95 3.42
Recovery (%) 92 95 93 94
Production (oz) 35,244 43,096 137,781 78,617
Metal sold (oz) 36,384 43,018 137,753 78,521
Realized price ($/oz) 2,658 1,994 2,399 1,963
Unit Costs
Cash cost ($/oz Au)1 653 323 584 357
All-in sustaining cash cost ($/oz Au)1 1,376 737 1,153 760
Capital Expenditures ($000's)2
Sustaining 13,626 7,765 28,488 10,912
Sustaining leases 3,347 2,285 10,381 5,329
Non-sustaining 5,021 - 19,458 -
Brownfields 423 - 6,696 -
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.
2 Capital expenditures are presented on a cash basis
Quarterly and Annual Operating and Financial Highlights
During the fourth quarter of 2024, mine production totaled 715,008 tonnes of ore, averaging 2.34 g/t Au, and containing an estimated 53,796 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste during the quarter totaled 3,670,138 tonnes, for a strip ratio of 5.1:1. Production was mainly focused from the Antenna pit, which produced 530,651 tonnes of ore, with the balance of production sourced from the Koula and Ancien pits.
In the fourth quarter of 2024, Seguela processed 430,117 tonnes of ore, producing 35,244 ounces of gold, at an average head grade of 2.95 g/t Au, an 18% decrease and a 19% decrease, respectively, compared to the fourth quarter of 2023. The decrease in gold production was due to lower head grades and lower recovery and partially offset by higher milled tonnes. Plant throughput for the quarter was 208 tonnes per hour (TPH) surpassing the name plate design capacity of 154 TPH by 35%.
Gold production in 2024 totaled 137,781 ounces, achieving the higher end of the annual guidance range. A 75% increase in ounces of gold produced during the year ended December 31, 2024 was mainly due to a full year of production in 2024 compared to only six months in 2023.
Cash cost per gold ounce sold was $653 for the fourth quarter of 2024 and $584 for the full year, compared to $323 for the fourth quarter of 2023 and $357 for the full year of 2023. The increase in cash costs is explained mainly by lower head grades in 2024, as per the mine plan, and lower stripping and mining costs during Seguela's first six months of operation in the second half of 2023.
All-in sustaining cash cost per gold ounce sold was $1,376 for the fourth quarter of 2024 compared to $737 in the same period of the previous year. For the full year, the all-in sustaining cash cost was $1,153, compared to $760 in 2023. The increase for the quarter was primarily the result of higher cash costs, higher sustaining capital from higher stripping and the purchase of capital spares as well as lower volume of metal sold. The increase for the year was due to higher cash costs, increased royalties due to higher realized metal prices and higher sustaining capital expenditures.
Brownfields capital expenditures were $6.7 million for the full year in 2024, compared to $nil in 2023, as a result of drilling activities to define the geometry of mineral deposits.
Yaramoko Mine, Burkina Faso
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes milled 102,105 110,445 454,969 531,578
Gold
Grade (g/t) 9.18 7.16 8.21 6.81
Recovery (%) 98 98 98 98
Production (oz) 29,576 28,235 116,206 117,711
Metal sold (oz) 29,509 28,229 116,130 117,676
Realized price ($/oz) 2,669 1,984 2,397 1,945
Unit Costs
Cash cost ($/oz Au)1 812 949 860 809
All-in sustaining cash cost ($/oz Au)1 1,302 1,720 1,359 1,499
Capital Expenditures ($000's)2
Sustaining 8,035 12,620 28,147 49,938
Sustaining leases 1,002 1,077 4,071 4,758
Non-sustaining 1,649 - 5,654 -
Brownfields 393 1,261 1,936 4,917
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis.
Quarterly and Annual Operating and Financial Highlights
In the fourth quarter of 2024, the Yaramoko Mine treated 102,105 tonnes of ore and produced 29,576 ounces of gold with an average gold head grade of 9.18g/t, 5% and 28% increases when compared to the same period in 2023. Lower tonnage milled was due to 16 days of lost milling time as a consequence of an equipment failure. Higher production in the fourth quarter of 2024 was due to higher grades; partially offset by lower tonnes processed.
Gold production in 2024 totaled 116,206 ounces, achieving the higher end of the annual guidance range.
The cash cost per ounce of gold sold for the quarter ended December 31, 2024, was $812 compared to $949 in the same period in 2023. The decrease for the quarter is mainly attributed to lower mining costs and higher grades. For the year ending December 31, 2024, the cash cost per ounce of gold sold was $860, an increase from $809 in 2023. The full year increase is mainly due to higher mining costs during prior quarters.
The all-in sustaining cash cost per gold ounce sold was $1,302 for the quarter ended December 31, 2024, compared to $1,720 in the same period of 2023. The decrease is mainly due to lower sustaining capital costs, lower cash costs, and an administrative penalty paid in the fourth quarter of 2023. For the full year, the all-in sustaining cash cost was $1,359 in 2024, compared to $1,499 in 2023. The decrease in AISC was mainly the result of lower sustaining capital costs.
Lindero Mine, Argentina
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes placed on the leach pad 1,757,290 1,556,000 6,367,505 6,005,049
Gold
Grade (g/t) 0.60 0.63 0.62 0.64
Production (oz) 26,806 29,591 97,287 101,238
Metal sold (oz) 26,840 29,308 96,726 103,503
Realized price ($/oz) 2,659 1,993 2,411 1,942
Unit Costs
Cash cost ($/oz Au)1 1,063 934 1,051 920
All-in sustaining cash cost ($/oz Au)1,3 1,873 1,127 1,793 1,444
Capital Expenditures ($000's)2
Sustaining 19,240 10,607 65,876 39,358
Sustaining leases 629 598 2,400 2,393
Non-sustaining 1,448 1,302 2,016 1,978
1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis.
3 The composition of AISC was revised in Q4 2024 and the comparative periods were updated to reflect the change. Refer to "Non-IFRS Financial Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" for a description of the calculation and the reason for the change.
Quarterly and Annual Operating and Financial Highlights
In the fourth quarter of 2024, a total of 1,757,290 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.60 g/t, containing an estimated 34,151 ounces of gold. Gold production for the fourth quarter of 2024 totaled 26,806 ounces. This represents a 9% decrease in total ounces compared to fourth quarter of 2023 as a result of lower grades and lower ounces contained in fine carbon. The mine started placing the first lift of ore on the new leach pad expansion area in the second half of October 2024.
Gold production was comprised of 24,679 ounces in dore bars, 2,086 ounces of gold contained in rich fine carbon, and 41 ounces contained in copper precipitate. Ore mined was 2.1 million tonnes, with a stripping ratio of 1.54:1. For the full year 2024 gold production totaled 97,287 ounces, achieving midpoint of annual production guidance.
The cash cost per ounce of gold for the quarter ending December 31, 2024, was $1,063 compared to $934 in the same period of 2023. For the year ending December 31, 2024, the cash cost per ounce was $1,051, an increase from $920 in 2023. The increase in cash cost per ounce of gold for both the quarter and the full year was primarily due to the impact of appreciation of the Argentine peso, lower gold production and lower by-product credits from copper sales. The increase in cash costs was partially offset by operational efficiency initiatives including a change in the hauling and loading fleet, reduction in cyanide consumption and crushing throughput.
AISC per gold ounce sold during Q4 2024 was $1,873, compared to $1,127 in Q4 2023. AISC in the quarter includes $1.4 million investment gain (Q4 2023: $12.4 million) from cross border, Argentine pesos denominated bond trades. This is a benefit granted to exporters by the Argentine Government whereby 20% of export proceeds are allowed to be converted into pesos at a preferential exchange rate. This benefit is intended to alleviate the impact of the overvaluation of the official exchange rate on input costs. The increase in AISC is explained by higher cash cost and capex in Q4 2024, partially offset by the elimination of the 8% export duty in 2024, and lower investment gains recorded in Q4 2024. The composition of AISC was revised in Q4 2024 and the comparative period was updated to reflect the change. Refer to "Non-IFRS Financial Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" in the 2024 MD&A for a description of the calculation and the reason for the change.
AISC per gold ounce sold in 2024 was $1,793, compared to $1,444 in 2023. AISC for 2024 includes the $9.7 million annual investment gain (FY 2023: $12.4 million) from cross border, Argentine pesos denominated bond trades. AISC per ounce for 2024 was higher due mainly to higher cost per ounce and sustaining capital expenditures related to the leach pad expansion, partially offset by the elimination of export duties in 2024 as described above. The composition of AISC was revised in Q4 2024 and the comparative periods were updated to reflect the change. Refer to "Non-IFRS Financial Measures - All-in Sustaining Cost Per Gold Equivalent Ounce Sold" in the 2024 MD&A for a description of the calculation and the reason for the change.
As of December 31, 2024, the leach pad expansion project was approximately 89% complete. The leach pad expansion remains on schedule for completion during the first half of 2025.
San Jose Mine, Mexico
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes milled 190,063 241,035 735,591 930,200
Average tonnes milled per day 2,437 2,678 2,138 2,643
Silver
Grade (g/t) 118 145 125 171
Recovery (%) 83 91 86 91
Production (oz) 594,373 1,023,525 2,548,402 4,656,631
Metal sold (oz) 622,108 1,040,888 2,568,745 4,659,611
Realized price ($/oz) 31.25 23.35 28.12 23.36
Gold
Grade (g/t) 0.85 0.91 0.89 1.06
Recovery (%) 82 90 85 90
Production (oz) 4,239 6,345 17,811 28,559
Metal sold (oz) 4,440 6,406 17,851 28,524
Realized price ($/oz) 2,661 1,983 2,386 1,942
Unit Costs
Cash cost ($/oz Ag Eq)1,2 26.01 20.45 25.25 14.28
All-in sustaining cash cost ($/oz Ag Eq)1,2 29.94 21.98 28.22 19.40
Capital Expenditures ($000's)3
Sustaining - 3,190 - 14,018
Sustaining leases 171 246 846 878
Non-sustaining 602 505 8,927 1,682
Brownfields - 1,257 - 4,215
1 Cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.
2 Cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of silver equivalent are non-IFRS financial measures, refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.
3 Capital expenditures are presented on a cash basis
Quarterly and Annual Operating and Financial Highlights
In the fourth quarter of 2024, San Jose produced 594,373 ounces of silver and 4,239 ounces of gold, 42% and 33% decreases respectively, at average head grades for silver and gold of 118 g/t and 0.85 g/t, 19% and 7% decreases respectively, when compared to the same period in 2023. The decrease in silver and gold production for the quarter is explained by the lower extracted mineral and head grades, mainly due to the decreasing grade profile of Mineral Reserves in the mine plan. Annual production in 2024 totaled 2,548,402 ounces of silver and 17,811 ounces of gold, which were 18% and 6% below the lower end of annual guidance range, respectively. Approximately 5% of the lower production for both metals was due to the effect of the iron oxide in the metallurgical recovery. Head grades for the year were aligned with the geological model, albeit slightly lower than expected.
The cash cost per silver equivalent ounce in the fourth quarter of 2024, was $26.01, an increase from $20.45 in the same period of 2023. For the year ended December 31, 2024, the cash cost per silver equivalent ounce sold was $25.25 compared to $14.28 in the same period of 2023. The higher cost per ounce was primarily the result of lower production and silver equivalent ounces sold and previously capitalized costs being expensed.
The all-in sustaining cash cost of payable silver equivalent ounce in the fourth quarter of 2024 increased by 36% to $29.94, and full year 2024 increased 45% to $28.22, compared to $21.98 and $19.40 for the same periods in 2023. These increases were mainly driven by higher cash costs and lower volume of metal sold.
Caylloma Mine, Peru
Three months ended December 31, Years ended December 31,
2024 2023 2024 2023
Mine Production
Tonnes milled 139,761 140,800 551,430 543,876
Average tonnes milled per day 1,553 1,564 1,549 1,528
Silver
Grade (g/t) 67 88 80 85
Recovery (%) 83 83 83 83
Production (oz) 249,238 330,478 1,176,543 1,227,060
Metal sold (oz) 247,441 353,935 1,179,260 1,229,298
Realized price ($/oz) 31.27 23.06 27.88 23.37
Gold
Grade (g/t) 0.11 0.11 0.13 0.14
Recovery (%) 25 21 22 22
Production (oz) 128 109 552 513
Metal sold (oz) - - 169 40
Realized price ($/oz) - - 2,233 1,902
Lead
Grade (%) 3.36 3.84