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Fortuna Mining Corp. (FSM - Free Report) reported second-quarter 2024 earnings per share of 13 cents, which missed the Zacks Consensus Estimate of 16 cents. The figure, however, marked a substantial improvement from the year-ago quarter’s earnings per share of 1 cent, driven by higher gold sales volume, and gold and silver prices.
After adjusting for non-cash and non-recurring items, adjusted attributable net income was $30.4 million compared with $2.5 million in the year-ago quarter.
Fortuna Mining’s revenues surged 64% year over year to $260 million, reflecting a 61% increase in gold sales volumes, which was offset by a 27% decline in silver sales. Realized gold price was $2,334 per ounce, 18% higher than $1,975 per ounce in the year-ago quarter. Realized silver prices rose 21% year over year to $29.10 per ounce.
Gold equivalent production increased 25% year over year to 116,570 ounces. Fortuna Mining produced 92,716 ounces of gold, 44% higher than the year-ago quarter. Silver production plunged 22% to 990,574 ounces.
Fortuna Mining Corp. Price, Consensus and EPS Surprise
The improvement in gold volume was mainly attributed to the contribution of Séguéla, which had poured its first gold in the year-ago quarter. The mine contributed 32,983 ounces of gold in the second quarter compared with 4,023 ounces in the year-ago quarter. Gold output at the Yaramoko Mine was up 8% year over year while Caylloma gold output was up 61%. This was partially offset by a 9% decline in gold production at the San Jose mine.
All-In Sustaining Cost per gold equivalent ounce was $1,656, down 8% from $1,799 in the year-ago quarter. Consolidated cash costs per ounce of gold equivalent sold were $988, 2% higher than the second quarter of 2023.
FSM reported a mine-operating profit of $80 million, reflecting year-over-year growth of 150%. The company reported an operating income of $55.4 million, marking a solid jump of 619% from the $7.7 million reported in the year-ago quarter.
Adjusted EBITDA rose 154% year over year to $113 million. The adjusted EBITDA margin was 43.3% compared with 28% in the year-ago quarter. The improvement was mainly aided by contributions from the Seguela mine and higher production at Yaramoko.
Cash Position
Fortuna Mining ended the second quarter with around $106 million of cash and cash equivalents compared with $128 million held at the end of the year-ago quarter. Net cash flow from operating activities was $38.6 million compared with $9.5 million in the second quarter of 2023.
Price Performance
Shares of Fortuna Silver have gained 46.8% in a year against the industry’s 0.4% decline.
Image Source: Zacks Investment Research
How Did FSM’s Peers Fare in Q2?
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 11 cents for the second quarter, which missed the Zacks Consensus Estimate of 15 cents. PAAS had posted adjusted earnings per share of 8 cents in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of 6 cents per share compared with the year-ago quarter’s loss of 9 cents per share.
PAAS’ revenues improved 7.3% year over year to $686 million. The top line beat the Zacks Consensus Estimate of $682 million. The average realized silver price increased 20% year over year to $28.14 per ounce. The average realized gold price increased 18.3% year over year to $2,336 per ounce.
First Majestic Silver (AG - Free Report) reported a second-quarter loss of 7 cents per share, which missed the Zacks Consensus Estimate of earnings of 2 cents per share. The company reported a loss of 2 cents per share in the second quarter of 2023.
Total production was 5.3 million silver equivalent (AgEq) ounces, which consisted of 2.1 million silver ounces and 39,339 gold ounces.
AG’s quarterly revenues declined 7% year over year to $136.2 million. The downfall was attributed to a 15% decrease in the total number of payable AgEq ounces sold due to higher silver inventory levels held at quarter end. Lower production at San Dimas and La Encantada and the temporary suspension of mining activities at Jerritt Canyon in March 2023 also led to the decline. However, this was partially offset by increased production at Santa Elena and a rise in the average realized silver price.
Zacks Rank & Another Stock Worth Considering
Fortuna Mining currently carries a Zacks Rank #2 (Buy).
CRS beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 15.9%. The company's shares have soared 136.9% in the past year.
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Fortuna Mining (FSM) Q2 Earnings Miss, Revenues Surge Y/Y
Fortuna Mining Corp. (FSM - Free Report) reported second-quarter 2024 earnings per share of 13 cents, which missed the Zacks Consensus Estimate of 16 cents. The figure, however, marked a substantial improvement from the year-ago quarter’s earnings per share of 1 cent, driven by higher gold sales volume, and gold and silver prices.
After adjusting for non-cash and non-recurring items, adjusted attributable net income was $30.4 million compared with $2.5 million in the year-ago quarter.
Fortuna Mining’s revenues surged 64% year over year to $260 million, reflecting a 61% increase in gold sales volumes, which was offset by a 27% decline in silver sales. Realized gold price was $2,334 per ounce, 18% higher than $1,975 per ounce in the year-ago quarter. Realized silver prices rose 21% year over year to $29.10 per ounce.
Gold equivalent production increased 25% year over year to 116,570 ounces. Fortuna Mining produced 92,716 ounces of gold, 44% higher than the year-ago quarter. Silver production plunged 22% to 990,574 ounces.
Fortuna Mining Corp. Price, Consensus and EPS Surprise
Fortuna Mining Corp. price-consensus-eps-surprise-chart | Fortuna Mining Corp. Quote
The improvement in gold volume was mainly attributed to the contribution of Séguéla, which had poured its first gold in the year-ago quarter. The mine contributed 32,983 ounces of gold in the second quarter compared with 4,023 ounces in the year-ago quarter. Gold output at the Yaramoko Mine was up 8% year over year while Caylloma gold output was up 61%. This was partially offset by a 9% decline in gold production at the San Jose mine.
All-In Sustaining Cost per gold equivalent ounce was $1,656, down 8% from $1,799 in the year-ago quarter. Consolidated cash costs per ounce of gold equivalent sold were $988, 2% higher than the second quarter of 2023.
FSM reported a mine-operating profit of $80 million, reflecting year-over-year growth of 150%. The company reported an operating income of $55.4 million, marking a solid jump of 619% from the $7.7 million reported in the year-ago quarter.
Adjusted EBITDA rose 154% year over year to $113 million. The adjusted EBITDA margin was 43.3% compared with 28% in the year-ago quarter. The improvement was mainly aided by contributions from the Seguela mine and higher production at Yaramoko.
Cash Position
Fortuna Mining ended the second quarter with around $106 million of cash and cash equivalents compared with $128 million held at the end of the year-ago quarter. Net cash flow from operating activities was $38.6 million compared with $9.5 million in the second quarter of 2023.
Price Performance
Shares of Fortuna Silver have gained 46.8% in a year against the industry’s 0.4% decline.
Image Source: Zacks Investment Research
How Did FSM’s Peers Fare in Q2?
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 11 cents for the second quarter, which missed the Zacks Consensus Estimate of 15 cents. PAAS had posted adjusted earnings per share of 8 cents in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of 6 cents per share compared with the year-ago quarter’s loss of 9 cents per share.
PAAS’ revenues improved 7.3% year over year to $686 million. The top line beat the Zacks Consensus Estimate of $682 million. The average realized silver price increased 20% year over year to $28.14 per ounce. The average realized gold price increased 18.3% year over year to $2,336 per ounce.
First Majestic Silver (AG - Free Report) reported a second-quarter loss of 7 cents per share, which missed the Zacks Consensus Estimate of earnings of 2 cents per share. The company reported a loss of 2 cents per share in the second quarter of 2023.
Total production was 5.3 million silver equivalent (AgEq) ounces, which consisted of 2.1 million silver ounces and 39,339 gold ounces.
AG’s quarterly revenues declined 7% year over year to $136.2 million. The downfall was attributed to a 15% decrease in the total number of payable AgEq ounces sold due to higher silver inventory levels held at quarter end. Lower production at San Dimas and La Encantada and the temporary suspension of mining activities at Jerritt Canyon in March 2023 also led to the decline. However, this was partially offset by increased production at Santa Elena and a rise in the average realized silver price.
Zacks Rank & Another Stock Worth Considering
Fortuna Mining currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the basic materials space is Carpenter Technology Corporation (CRS - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRS beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 15.9%. The company's shares have soared 136.9% in the past year.