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Fortuna Reports Results for the First Quarter of 2025
VANCOUVER, British Columbia, May 07, 2025 (GLOBE NEWSWIRE) -- Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) ("Fortuna" or the "Company") today reported its financial and operating results for the first quarter of 2025.
(Results from the Company's San Jose Mine have been excluded from its Q1 2025 continuing results, along with the comparative figures due to the classification of the asset as held for sale as at March 31, 2025.)
First Quarter 2025 Highlights
Cash and Cashflow
- Record free cash flow1 from ongoing operations of $111.3 million in Q1, a quarter over quarter ("QoQ") increase of 30%. QoQ free cash flow margin over sales improved to 38% from 31%
- Net cash from operations before working capital of $138.1 million or $0.45 per share. Adjusting for cash outflows related to discontinued operations of $8.6 million, net cash from operations before working capital was $146.7 million, a QoQ increase of 4%
- Quarter-end cash and short-term investments of $309.4 million, a QoQ increase of $78.1 million from strong growth in free cash flow
- Liquidity was $459.4 million, and the Company increased its positive net cash1 position to $136.9 million (including short-term investments), from $58.8 million in Q4 2024
Profitability
- Attributable net income from continuing operations of $61.7 million or $0.20 per share, a QoQ increase of $0.13 per share
- Attributable adjusted net income1 of $62.1 million or $0.20 per share, a QoQ increase of $0.08 per share
Return to Shareholders
- Returned $4.2 million to shareholders in Q1 through the repurchase of 0.9 million shares
Operational
- Gold equivalent production ("GEO") of 103,459 ounces3 in Q1
- Consolidated cash cost per GEO1 from continuing operations of $929 in Q1, down from $1,015 in Q4 2024 (excluding San Jose from the comparative period cash cost is up from $888 in Q4 2024)
- Consolidated AISC per GEO1 from continuing operations of $1,640 for Q1 down from $1,772 in Q4 2024 (excluding San Jose from the comparative period AISC is down from $1,690 in Q4 2024)
- Safety performance indicator for TRIFR down to 0.98 compared to 1.33 in Q4 2024. The Company had zero lost time injuries. Despite sustained improvement in safety indicators, the Company reported the fatal accident of a sub-contractor employee at the Seguela Mine in February. Fortuna remains fully committed to a zero-harm work environment
Growth and Business Development
- At the Kingfisher prospect at the Seguela Mine the Company intersected 7.2 g/t gold over 31.5 meters. For full details refer to our News Release titled "Fortuna intersects 7.2g/t Au over 31.5 meter at Kingfisher , Seguela Mine, Cote d'Ivoire" dated March 13, 2025"
- In April the Company closed the sale of the San Jose Mine in Mexico and announced entering into a share purchase agreement to sell its interest in Roxgold Sanu SA, owner of the Yaramoko mine in Burkina Faso. The sale of the Yaramoko Mine provides for cash consideration of $70 million and is subject to the payment of a cash dividend by Roxgold Sanu to Fortuna in the amount of $57.5 million prior to closing. Taken together, these two sales allow us to reallocate approximately $50 million in capital and management focus away from mine closures and toward higher-value opportunities that align more closely with our long-term strategy
Jorge A. Ganoza, President and CEO, commented, "Following a strong end to 2024, the Company delivered a new record quarter of free cash-flow from operations at $111.3 million. Quarter over quarter, we realized 8% higher gold prices with lower all-in-sustaining-costs, leading to an expanded free cash flow margin from ongoing operations of 38% compared to 31%." Mr. Ganoza continued, "Furthermore, we are streamlining our portfolio by divesting high cost, short-life assets allowing us to direct capital and management's focus towards higher-value opportunities, such as growing production at our most profitable mines."
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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 Excluding letters of credit
3 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $2,882/oz Au, $31.8/oz Ag, $1,971/t Pb, and $2,841/t Zn for Q1 2025.; $2,490/oz Au, $29.4/oz Ag, $2,040/t Pb, and $2,782/t Zn for Q4 2024; $1,990/oz Au, $23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn for Q1 2024
First Quarter 2025 Consolidated Results
Three months ended
(Expressed in millions) December 31, March 31, March 31, % Change
2024 2025 2024
Sales 274.0 290.1 200.9 44 %
Mine operating income 107.2 115.9 69.6 67 %
Operating income 62.1 91.9 48.3 90 %
Attributable net income 11.3 58.5 26.3 122 %
Net income from continuing operations 24.8 68.0 29.6 130 %
Attributable net income from continuing operations 21.1 61.7 26.7 131 %
Attributable earnings per share from continuing operations - basic 0.07 0.20 0.09 122 %
Attributable earnings per share - basic 0.04 0.19 0.09 111 %
Adjusted attributable net income1 37.9 62.1 27.5 126 %
Adjusted EBITDA1 136.0 150.1 96.3 56 %
Net cash provided by operating activities 150.3 126.4 48.9 158 %
Free cash flow from ongoing operations1 85.5 111.3 17.3 545 %
Cash cost ($/oz Au Eq)1 888 929 744 25 %
All-in sustaining cash cost ($/oz Au Eq)1,2 1,690 1,640 1,385 18 %
Capital expenditures2
Sustaining 49.5 24.1 32.4 (26 %)
Sustaining leases 5.7 5.8 4.8 21 %
Growth capital 12.1 15.4 5.4 185 %
March 31, December 31, % Change
2025 2024
Cash and cash equivalents and short term investments 309.4 231.3 34 %
Net liquidity position (excluding letters of credit) 459.4 381.3 20 %
Shareholder's equity attributable to Fortuna shareholders 1,460.2 1,403.9 4 %
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
Figures may not add due to rounding
Discontinued operations have been removed where applicable
First Quarter 2025 Results
Q1 2025 vs Q4 2024
Cash cost per ounce and AISC
Cash cost per GEO sold from continuing operations was $929 in Q1 2025, an increase compared to $888 in Q4 2024. The increase is related to higher cost per ounce at Yaramoko due to lower head grades and higher cost per ounce at Lindero associated with lower production.
All-in sustaining costs per GEO from continuing operations was $1,640 in Q1 2025 compared to $1,690 in Q4 2024. AISC decreased $50 per GEO quarter over quarter mainly due to lower capital expenditures, partially offset by higher royalties from higher gold prices and higher share-based compensation driven by the increase in our share price in Q1 2025.
Attributable Net Income and Adjusted Net Income
Attributable net income from continuing operations for the period was $61.7 million compared to $21.1 million in Q4 2024. The fourth quarter of 2024 was impacted by non-cash charges of $26.3 million related to a write-down of the Boussoura mineral property in Burkina Faso and a write-down of low-grade stockpiles at the Lindero Mine.
After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $62.1 million or $0.20 per share compared to $37.9 million or $0.12 per share in Q4 2024. The increase was explained mainly by higher metal prices and a lower effective tax rate ("ETR"). The realized gold price in Q1 2025 was $2,883 per ounce compared to $2,662 in Q4 2024. The ETR for the quarter was 25% compared to 46% in Q4 2024 due to a 4% appreciation of the Euro vs the US Dollar in Q1 2025 compared to an 8% devaluation in Q4 2024. Other items impacting the quarter compared to Q4 2024 were higher general and administration expenses of $5.8 million, explained by an increase in share-based payments related to a 42% rise in our share price in Q1 2025. This was offset by a foreign exchange gain of $2.1 million compared to a loss of $10.4 million in Q4 2024.
Cash flow
Net cash generated by operations before working capital adjustments was $138.1 million or $0.45 per share. After adjusting for changes in working capital, net cash generated by operations for the quarter was $126.4 million compared to $150.3 million in Q4 2024. The decrease is mainly explained by negative changes in working capital in Q1 2025 of $11.6 million compared to positive $8.6 million in Q4 2024, total cash outflows associated with discontinued operations at San Jose in Q1 2025 of $9.9 million and higher taxes paid in Q1 2025.
Free cash flow from ongoing operations in Q1 2025 was $111.3 million, an increase of $25.8 million over the $85.5 million reported in Q4 2024. The increase was mainly due to lower sustaining capital expenditures of $20 million. Free cash flow, which includes growth capital and other one-time items was, $80.8 million.
Q1 2025 vs Q1 2024
Cash cost per ounce and AISC
Consolidated cash cost per GEO increased to $929, compared to $744 in Q1 2024. This increase was mainly driven by higher cash costs at Seguela and Yaramoko. The increase in cash cost at Seguela was primarily due to higher stripping costs, consistent with the mine plan. At Yaramoko, the increase was mainly attributable to lower head grades. Additionally, cash costs rose at Lindero due to lower production volumes and the impact of the Argentine peso's appreciation over 2024.
All-in sustaining costs per gold equivalent ounce from continuing operations increased to $1,640 in Q1 2025 from $1,385 in Q1 2024. This increase primarily resulted from the higher cash cost per ounce discussed above, increased royalties due to the higher gold price, and higher share-based compensation driven by the rise in our share price in Q1 2025. These increases were partially offset by lower sustaining capital.
Attributable Net Income and Adjusted Net Income
Attributable net income from continuing operations for the period was $61.7 million or $0.20 per share, compared to $26.7 million or $0.09 per share in Q1 2024.
The increase was primarily due to higher realized gold prices, which averaged $2,883 per ounce in Q1 2025 compared to $2,089 per ounce in Q1 2024, and higher sales volumes at Seguela (up 12%) and Yaramoko (up 22%), driven by increased processed ore at both mines. This positive impact was partially offset by higher cash cost per ounce, mainly at Seguela and Yaramoko.
Other factors influencing the net income compared to Q1 2024 included higher depletion per ounce at Seguela and Yaramoko, and higher general and administration expenses of $8.5 million, which were driven by an increase in share-based payments related to a 42% rise in our share price during Q1 2025.
Depreciation and Depletion
Depreciation and depletion increased by $11.8 million to $61.3 million compared to $49.5 million in the comparable period of 2024. The increase was primarily due to higher ounces sold at Seguela and Yaramoko. Depreciation and depletion in the period included $18.5 million related to the purchase price allocation from the Roxgold acquisition.
Cash Flow
Net cash generated by operations for the quarter was $126.4 million compared to $48.9 million in Q1 2024. The increase is mainly explained by higher gold prices and higher volume sold at Seguela and Yaramoko, and a lower negative change in working capital in Q1 2025 compared to Q1 2024.
Free cash flow from ongoing operations in Q1 2025 was $111.3 million, compared to $17.3 million reported in Q1 2024. The increase was mainly due to higher net cash from operations as discussed above and lower sustaining capital expenditures of $7.6 million which reflect lower sustaining capital requirements in 2025.
Seguela Mine, Cote d'Ivoire
Three months ended March 31,
2025 2024
Mine Production
Tonnes milled 444,004 394,837
Average tonnes crushed per day 4,933 4,339
Gold
Grade (g/t) 2.76 2.79
Recovery (%) 93 94
Production (oz) 38,500 34,556
Metal sold (oz) 38,439 34,450
Realized price ($/oz) 2,888 2,095
Unit Costs
Cash cost ($/oz Au)1 650 459
All-in sustaining cash cost ($/oz Au)1 1,290 948
Capital Expenditures ($000's)2
Sustaining 8,613 7,923
Sustaining leases 3,639 2,265
Growth capital 9,207 1,035
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 Operating and Financial Highlights
During the first quarter of 2025, mine production totaled 477,333 tonnes of ore, averaging 2.53 g/t Au, and containing an estimated 38,869 ounces of gold from the Antenna, Ancien, and Koula pits. Movement of waste during the quarter totaled 5,467,358 tonnes, for a strip ratio of 11.5:1. Mining continued to be focused on the Antenna, Koula, and Ancien Pits.
In the first quarter of 2025, Seguela processed 444,004 tonnes of ore, producing 38,500 ounces of gold, at an average head grade of 2.76 g/t Au, a 12% increase and a 1% decrease, respectively, compared to the first quarter of 2024. Higher gold production was the result of higher tonnes processed due to throughput achievements in previous quarters. Mill throughput averaged 216 t/hr, 40% above name plate capacity.
Cash cost per gold ounce sold was $650 for the first quarter of 2025 compared to $459 for the first quarter of 2024. The increase in cash costs was a result of higher mining costs due to higher stripping requirements in line with the mine plan, and higher processing costs incurred.
All-in sustaining cash cost per gold ounce sold was $1,290 for the first quarter of 2025 compared to $948 in the same period of the previous year. The increase for the quarter was primarily the result of higher cash costs and higher sustaining capital from stripping and advancement of the stage 3 tailings lift to support higher production at Seguela, as well as higher royalties due to higher gold prices and a 2% increase in the royalty rate effective January 10, 2025.
Higher growth capital expenditures for the first quarter of 2025 compared to 2024 was primarily the result of relocation of a government communications antenna on the property at the mine site.
Yaramoko Mine, Burkina Faso
Three months ended March 31,
2025 2024
Mine Production
Tonnes milled 134,692 107,719
Gold
Grade (g/t) 7.81 8.79
Recovery (%) 97 98
Production (oz) 33,073 27,177
Metal sold (oz) 33,013 27,171
Realized price ($/oz) 2,881 2,095
Unit Costs
Cash cost ($/oz Au)1 1,059 752
All-in sustaining cash cost ($/oz Au)1 1,411 1,373
Capital Expenditures ($000's)2
Sustaining 1,517 10,983
Sustaining leases 982 1,050
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 Operating and Financial Highlights
In the first quarter of 2025, the Yaramoko Mine treated 134,692 tonnes of ore and produced 33,073 ounces of gold with an average gold head grade of 7.81 g/t, a 22% increase and 11% decrease, respectively, when compared to the same period in 2024. Lower grades were the result of stope sequencing which was offset by higher tonnes from increased underground production and the start of mining at the 109 Zone open pit.
The cash cost per ounce of gold sold for the quarter ended March 31, 2025, was $1,059 compared to $752 in the same period in 2024. Higher cash costs were the result of stripping and underground development costs being expensed as the mine is in its last year of production.
The all-in sustaining cash cost per gold ounce sold was $1,411 for the quarter ended March 31, 2025, compared to $1,373 in the same period of 2024, the increase is mainly due to higher cash costs and an increase in royalties from higher gold prices.
Subsequent to quarter end, the Company entered into a share purchase agreement to sell the Yaramoko Mine. The sale is expected to be completed in the second quarter of 2025.
Lindero Mine, Argentina
Three months ended March 31,
2025 2024
Mine Production
Tonnes placed on the leach pad 1,753,016 1,547,323
Gold
Grade (g/t) 0.55 0.60
Production (oz) 20,320 23,262
Metal sold (oz) 18,655 21,719
Realized price ($/oz) 2,877 2,072
Unit Costs
Cash cost ($/oz Au)1 1,147 1,008
All-in sustaining cash cost ($/oz Au)1,3 1,911 1,511
Capital Expenditures ($000's)2
Sustaining 12,362 9,807
Sustaining leases 582 598
Growth Capital 307 154
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 Operating and Financial Highlights
In the first quarter of 2025, a total of 1,753,016 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.55 g/t, containing an estimated 30,943 ounces of gold. Ore mined was 1.46 million tonnes, with a stripping ratio of 1.8:1.
Lindero's gold production for the quarter was 20,320 ounces, comprised of 18,983 ounces in dore bars, 615 ounces contained in rich fine carbon, 39 ounces contained in copper precipitate, and 683 ounces contained in precipitated sludge. The 13% decrease in production compared to Q1 2024 was a result of lower grades and timing of leach kinetics.
The cash cost per ounce of gold for the quarter was $1,147 compared to $1,008 in the same period of 2024. The increase in cash cost per ounce of gold for the quarter was primarily due to the impact on operating costs of the appreciation of the Argentine peso over 2024 and lower ounces sold.
AISC per gold ounce sold during Q1 2025 was $1,911, compared to $1,511 in Q1 2024. Higher AISC was the result of higher cash costs as described above and higher sustaining capital as the site completed work on the leach pad expansion. AISC includes a $1.3 million investment gain (Q1 2024: $2.6 million) from cross border Argentine pesos denominated bond trades.
As of March 31, 2025, the leach pad expansion project was completed, with minor close-out activities and demobilization now taking place.
Caylloma Mine, Peru
Three months ended March 31,
2025 2024
Mine Production
Tonnes milled 136,659 137,096
Average tonnes milled per day 1,553 1,540
Silver
Grade (g/t) 67 87
Recovery (%) 83 82
Production (oz) 242,993 315,460
Metal sold (oz) 250,284 325,483
Realized price ($/oz) 31.77 23.34
Gold
Grade (g/t) - 0.12
Recovery (%) - 29
Production (oz) - 150
Metal sold (oz) - 63
Realized price ($/oz) - 2,024
Lead
Grade (%) 3.21 3.48
Recovery (%) 91 91
Production (000's lbs) 8,836 9,531
Metal sold (000's lbs) 9,199 9,825
Realized price ($/lb) 0.89 0.95
Zinc
Grade (%) 5.01 4.46
Recovery (%) 91 90
Production (000's lbs) 13,772 12,183
Metal sold (000's lbs) 13,826 12,466
Realized price ($/lb) 1.29 1.11
Unit Costs
Cash cost ($/oz Ag Eq)1,2 12.80 11.61
All-in sustaining cash cost ($/oz Ag Eq)1,2 18.74 17.18
Capital Expenditures ($000's)3
Sustaining 1,615 3,735
Sustaining leases 631 906
Growth Capital 249 -
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 Operating and Financial Highlights
In the first quarter of 2025, the Caylloma Mine produced 242,993 ounces of silver at an average head grade of 67 g/t, a 23% decrease when compared to the same period in 2024.
Lead and zinc production for the quarter was 8.8 million pounds and 13.8 million pounds, respectively. Head grades averaged 3.21% and 5.01%, an 8% decrease and 12% increase, respectively, when compared to the same quarter in 2024. Production was lower due to lower head grades and was in line with the mine plan.
The cash cost per silver equivalent ounce sold in the first quarter of 2025 was $12.80 compared to $11.61 in the same period in 2024. The higher cost per ounce for the quarter was primarily the result of lower silver production and the impact of higher realized silver prices on the calculation of silver equivalent ounce sold.
The all-in sustaining cash cost per ounce of payable silver equivalent in the first quarter of 2025 increased 9% to $18.74, compared to $17.18 for the same period in 2024. The increase for the quarter was the result of higher cash costs per ounce and lower silver equivalent ounces due to higher silver prices and higher workers' participation costs.
Qualified Person
Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company's Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board, and are not disclosed in the Company's financial statements, including but not limited to: all-in costs; cash cost per ounce of gold sold; all-in sustaining costs; all-in sustaining cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold sold; production cash cost per ounce of gold equivalent; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; sustaining capital; growth capital; free cash flow from ongoing operations; adjusted net income; adjusted attributable net income; adjusted EBITDA and working capital.
These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company's performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company's performance prepared in accordance with IFRS.
To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition see "Non-IFRS Financial Measures" in the Company's management's discussion and analysis for the three months ended March 31, 2025 ("Q1 2025 MDA"), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor. The Q1 2025 MD&A may be accessed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar under the Company's profile.
The Company has calculated these measures consistently for all periods presented with the exception of the following:
- The calculation of All-in Sustaining Costs was adjusted in Q4 2024 to include blue-chip swaps in Argentina. Please refer to the 2024 MD&A for details of the change.
- The calculations of Adjusted Net Income and Adjusted Attributable Net Income were revised to no longer remove the income statement impact of right of use amortization and accretion and add back the right of use payments from the cash flow statement. Management elected to make this change to simplify the reconciliation from net income to adjusted net income to improve transparency and because the net impact was immaterial.
- Where applicable the impact of discontinued operations have been removed from the comparable figures. The method of calculation has not been changed except as described above.
Reconciliation of Debt to total net debt and net debt to adjusted EBITDA ratio for March 31, 2025
(Expressed in millions except Total net debt to Adjusted EBITDA ratio) As at March 31, 2025 2024 Convertible Notes 172.5 Less: Cash and Cash Equivalents and Short Term Investments (309.4 ) Total net debt1 (136.9 ) Adjusted EBITDA (last four quarters) 529.0 Total net debt to adjusted EBITDA ratio (0.3):1 1 Excluding letters of credit
Reconciliation of net income to adjusted attributable net income for the three months ended December 31, 2024, and for the three months ended March 31, 2025 and 2024
Consolidated (in millions of US dollars) December 31, 2024 March 31, 2025 March 31, 2024 Net income attributable to shareholders 11.3 58.5 26.3 Adjustments, net of tax: Discontinued operations 9.7 3.2 0.5 Write off of mineral properties 12.9 - - Inventory adjustment 3.6 (0.1 ) - Other non-cash/non-recurring items 0.4 0.5 0.7 Attributable Adjusted Net Income 37.9 62.1 27.5 1 Amounts are recorded in Cost of sales 2 Amounts are recorded in General and Administration Figures may not add due to rounding
Reconciliation of net income to adjusted EBITDA for the three months ended December 31, 2024 and the three months ended March 31, 2025 and 2024
Consolidated (in millions of US dollars) December 31, 2024 March 31, 2025 March 31, 2024
Net income 15.1 64.8 29.1
Adjustments:
Discontinued operations 9.7 3.2 0.5
Inventory adjustment 3.2 (0.1 ) -
Net finance items 5.7 3.0 5.8
Depreciation, depletion, and amortization 60.0 51.7 49.9
Income taxes 32.8 22.2 15.4
Write off of mineral properties 14.5 - -
Other non-cash/non-recurring items (5.0 ) 5.3 (4.4 )
Adjusted EBITDA 136.0 150.1 96.3
Figures may not add due to rounding
Reconciliation of net cash from operating activities to free cash flow from ongoing operations for the three months ended December 31, 2024 and the three months ended March 31, 2025 and 2024
Consolidated (in millions of US dollars) December 31, 2024 March 31, 2025 March 31, 2024
Net cash provided by operating activities 150.3 126.4 48.9
Additions to mineral properties, plant and equipment (61.9 ) (39.6 ) (41.3 )
Payments of lease obligations (5.7 ) (6.0 ) (4.7 )
Free cash flow 82.7 80.8 2.9
Growth capital 10.3 15.4 5.5
Discontinued operations (6.7 ) 11.4 8.4
Closure and rehabilitation provisions 0.3 - -
Gain on blue chip swap investments 1.4 1.3 2.6
Other adjustments (2.5 ) 2.4 (2.1 )
Free cash flow from ongoing operations 85.5 111.3 17.3
Figures may not add due to rounding
Reconciliation of cost of sales to cash cost per ounce of gold equivalent sold for the three months ended December 31, 2024 and the three months ended March 31, 2025 and 2024
Cash Cost Per Gold Equivalent Ounce Sold - Q4 2024 Lindero Yaramoko Seguela Caylloma GEO Cash Costs Cost of sales 47,380 40,610 58,956 19,866 166,814 Inventory adjustment (4,704 ) 1,487 -- -- (3,217 ) Depletion, depreciation, and amortization (13,314 ) (12,783 ) (28,828 ) (4,295 ) (59,220 ) Royalties and taxes (79 ) (5,346 ) (6,377 ) (222 ) (12,024 ) By-product credits (973 ) -- -- -- (973 ) Other -- -- -- (1,624 ) (1,624 ) Treatment and refining charges -- -- -- 2,965 2,965 Cash cost applicable per gold equivalent ounce sold 28,310 23,968 23,751 16,690 92,719 Ounces of gold equivalent sold 26,629 29,509 36,384 11,863 104,385 Cash cost per ounce of gold equivalent sold ($/oz) 1,063 812 653 1,407 888 Gold equivalent was calculated using the realized prices for gold of $2,661/oz Au, $31.3/oz Ag, $2,009/t Pb, and $3,046/t Zn for Q4 2024. Figures may not add due to rounding
Cash Cost Per Gold Equivalent Ounce Sold - Q1 2025 Lindero Yaramoko Seguela Caylloma GEO Cash Costs Cost of sales 31,805 59,577 65,425 17,463 174,272 Depletion, depreciation, and amortization (9,799 ) (16,900 ) (30,310 ) (4,369 ) (61,378 ) Royalties and taxes (94 ) (7,729 ) (10,133 ) (240 ) (18,196 ) By-product credits (731 ) - - - (731 ) Other 123 - - (659 ) (536 ) Treatment and refining charges - - - 50 50 Cash cost applicable per gold equivalent ounce sold 21,304 34,948 24,982 12,245 93,479 Ounces of gold equivalent sold 18,580 33,013 38,439 10,542 100,574 Cash cost per ounce of gold equivalent sold ($/oz) 1,147 1,059 650 1,162 929 Gold equivalent was calculated using the realized prices for gold of $2,882/oz Au, $31.8/oz Ag, $1,971/t Pb, and $2,841/t Zn for Q1 2025. Figures may not add due to rounding
Cash Cost Per Gold Equivalent Ounce Sold - Q1 2024 Lindero Yaramoko Seguela Caylloma GEO Cash Costs Cost of sales 34,049 34,951 45,209 17,105 131,314 Depletion, depreciation, and amortization (11,580 ) (10,215 ) (23,916 ) (3,824 ) (49,535 ) Royalties and taxes (253 ) (4,293 ) (5,472 ) (354 ) (10,372 ) By-product credits (424 ) - - - (424 ) Other 1 - - (331 ) (330 ) Treatment and refining charges - - - 1,231 1,231 Cash cost applicable per gold equivalent ounce sold 21,793 20,443 15,821 13,827 71,884 Ounces of gold equivalent sold 21,628 27,171 34,450 13,306 96,556 Cash cost per ounce of gold equivalent sold ($/oz) 1,008 752 459 1,039 744 Gold equivalent was calculated using the realized prices for gold of $1,990/oz Au, $23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn Figures may not add due to rounding
Reconciliation of cost of sales to all-in sustaining cash cost per ounce of gold equivalent sold for the three months ended March 31, 2024 and the three and twelve months ended March 31, 2025 and 2024
AISC Per Gold Equivalent Ounce Sold - Q4 2024 Lindero Yaramoko Seguela Caylloma Corporate GEO AISC Cash cost applicable per gold equivalent ounce sold 28,310 23,968 23,751 16,690 -- 92,719 Inventory net realizable value adjustment -- (829 ) -- -- -- (829 ) Royalties and taxes 79 5,346 6,377 222 -- 12,024 Worker's participation -- -- -- 1,733 -- 1,733 General and administration 3,026 503 2,549 1,391 9,666 17,135 Total cash costs 31,415 28,988 32,677 20,036 9,666 122,782 Sustaining capital1 19,869 9,430 17,396 8,338 -- 55,033 Blue chips gains (investing activities)1 (1,406 ) -- -- -- -- (1,406 ) All-in sustaining costs 49,878 38,418 50,073 28,374 9,666 176,409 Gold equivalent ounces sold 26,629 29,509 36,384 11,863 -- 104,385 All-in sustaining costs per ounce 1,873 1,302 1,376 2,392 -- 1,690 Gold equivalent was calculated using the realized prices for gold of $2,661/oz Au, $31.3/oz Ag, $2,009/t Pb, and $3,046/t Zn for Q4 2024. Figures may not add due to rounding 1 Presented on a cash basis
AISC Per Gold Equivalent Ounce Sold - Q1 2025 Lindero Yaramoko Seguela Caylloma Corporate GEO AISC Cash cost applicable per gold equivalent ounce sold 21,304 34,948 24,982 12,245 - 93,479 Royalties and taxes 94 7,729 10,133 240 - 18,196 Worker's participation - - - 739 - 739 General and administration 2,480 1,394 2,224 2,455 15,374 23,927 Total cash costs 23,878 44,071 37,339 15,679 15,374 136,341 Sustaining capital1 12,944 2,499 12,252 2,246 - 29,941 Blue chips gains (investing activities)1 (1,319 ) - - - - (1,319 ) All-in sustaining costs 35,503 46,570 49,591 17,925 15,374 164,963 Gold equivalent ounces sold 18,580 33,013 38,439 10,542 - 100,574 All-in sustaining costs per ounce 1,911 1,411 1,290 1,700 - 1,640 Gold equivalent was calculated using the realized prices for gold of $2,882/oz Au, $31.8/oz Ag, $1,971/t Pb, and $2,841/t Zn for Q1 2025. Figures may not add due to rounding 1 Presented on a cash basis
AISC Per Gold Equivalent Ounce Sold - Q1 2024 Lindero Yaramoko Seguela Caylloma Corporate GEO AISC Cash cost applicable per gold equivalent ounce sold 21,793 20,443 15,821 13,827 - 71,884 Royalties and taxes 253 4,293 5,472 354 - 10,372 Worker's participation - - - 417 - 417 General and administration 2,879 550 1,168 1,219 10,649 16,465 Total cash costs 24,925 25,286 22,461 15,817 10,649 99,138 Sustaining capital1 10,405 12,033 10,188 4,641 - 37,267 Blue chips gains (investing activities)1 (2,648 ) - - - - (2,648 ) All-in sustaining costs 32,682 37,319 32,649 20,458 10,649 133,757 Gold equivalent ounces sold 21,628 27,171 34,450 13,306 - 96,556 All-in sustaining costs per ounce2 1,511 1,373 948 1,538 - 1,385 Gold equivalent was calculated using the realized prices for gold of $1,990/oz Au, $23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn Figures may not add due to rounding 1 Presented on a cash basis
Reconciliation of cost of sales to cash cost per payable ounce of silver equivalent sold for the three months ended December 31, 2024 and for the three months ended March 31, 2025 and 2024
Cash Cost Per Silver Equivalent Ounce Sold - Q4 2024 Caylloma Cost of sales 19,866 Depletion, depreciation, and amortization (4,295 ) Royalties and taxes (222 ) Other (1,624 ) Treatment and refining charges 2,965 Cash cost applicable per silver equivalent sold 16,690 Ounces of silver equivalent sold1 1,009,804 Cash cost per ounce of silver equivalent sold ($/oz) 16.53 1 Silver equivalent sold for is calculated using a silver to lead ratio of 1:34.3 pounds, and silver to zinc ratio of 1:22.6 pounds. 2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices Figures may not add due to rounding