Fortuna Mining Corp. press release

Fortuna Reports Results for the Second Quarter 2026

2026-08-06

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(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated)

Fortuna Delivers Strong Q2 Results; Positioned To Deliver Our Next Phase of Growth

VANCOUVER, British Columbia, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Fortuna Mining Corp.(NYSE: FSM | TSX: FVI)(“Fortuna” or the “Company”) today reported its financial and operating results for the second quarter of 2026. (Results from the Company’s San Jose and Yaramoko assets have been excluded from the 2025 comparative figures as they were disposed of during the second quarter of 2025.)

Jorge Ganoza, President and CEO of Fortuna, commented, “Fortuna delivered another strong quarter of production, generating $85.7 million of free cash flow from ongoing operations and $200.8 million in adjusted EBITDA, with a robust EBITDA margin of 63%. The second quarter is expected to be our peak AISC for the year and trend down in the second half with the completion of key capital projects at Lindero. At the same time, we are monitoring cost pressures from external factors, including royalties linked to gold prices, fuel costs, inflation, and macroeconomic conditions in Argentina, and the potential impact to our cost guidance for the year.”

Mr. Ganoza continued, “We also achieved key milestones for our organic growth projects with the delivery of the Diamba Sud Feasibility Study and a construction decision for the Séguéla Plant Expansion. Combined, these two projects will grow our production by 60% to over 500,000 ounces per year.”

Mr. Ganoza concluded, “The quarter also demonstrated the strength of our portfolio as we funded our growth projects, maintained a strong balance sheet, and still generated sufficient excess cash to return $82.1 million to shareholders through share buy-backs.”

Second Quarter Highlights

Cash and Cash Flow

Free cash flow1from ongoing operations of $85.7 million; a QoQ decrease of $88.3 million, mostly due to timing of tax payments $123.7 million of net cash from operating activities before changes in working capital or $0.41 per share; a QoQ decrease of $89.6 million, mostly due to timing of tax payments Liquidity of $756.7 million and a net cash position of $435 million; strong balance sheet supports concurrent construction of the Séguéla Plant Expansion and Diamba Sud Project

Profitability

Adjusted attributable net income1of $75.5 million or $0.25 basic EPS; a QoQ decrease of $0.11 per share, due to lower gold price and higher effective tax rate Adjusted EBITDA1of $200.8 million with margins of 63%; a QoQ decrease of $18.0 million primarily due to lower gold prices

Return to Shareholders

Year to date the Company has returned $106.6 million to shareholders ($82.1 million in Q2 2026) via the repurchase of 10.8 million shares

Operational

Gold equivalent production2of 72,217 ounces and the Company remains on track to achieve its annual production guidance Consolidated cash cost per gold equivalent ounce (“GEO”)1of $1,034, up from $951 in the previous quarter Consolidated AISC per GEO1of $2,157 for Q2 2026, up from $2,107 in the previous quarter. Compared to the assumptions in our annual guidance, AISC contains a $49 impact from external factors, and $115 of one-time operational items. We expect AISC to trend down in the second half of the year. Excluding external factors, we expect unit costs within our control to downtrend within our full year guidance range. External cost factors, including metal price-linked royalties, macroeconomic factors in Argentina and diesel prices, remain potential impacts to our full-year outlook. Total recordable injury frequency rate for the quarter was 1.21.

Growth and Business Development

Delivered the Diamba Sud feasibility study, confirming an economically robust project to anchor our next phase of growth. Refer to the News Release dated June 29, 2026 “Fortuna delivers robust Feasibility Study for the Diamba Sud Gold Project in Senegal: After-tax IRR of 60% and NPV5% of US$1 billion using US$3,500/oz”. Provided a final investment decision for the Séguéla Plant Expansion to unlock the potential of the mine and provide a pathway to production of over 200,000 ounces per year. Refer to the News Release dated July 29, 2026 “Fortuna Approves 30% Capacity Expansion of the Séguéla Gold Mine in Côte d’Ivoire”. On July 28, 2026, the Company acquired 5,695,312 common shares of Awalé Resources Limited (“Awalé”), a mineral exploration company in Côte d’Ivoire, for $3.4 million, thereby increasing the Company’s investment to 20,732,905 common shares of Awalé and maintaining Fortuna’s ownership interest in Awalé at approximately 14.7%

Management Promotions

Effective September 1, Luis Dario Ganoza will be promoted to President from his current role as Chief Financial Officer, and Kevin O’Reilly will be promoted to Chief Financial Officer from his current role as Vice President, Finance and Accounting. Luis and Kevin have been with Fortuna for 20 and 5 years, respectively, and these promotions reflect the Company’s next phase of growth as it prepares to advance construction of the Diamba Sud Project, execute the Séguéla mine expansion, and continue pursuing its broader growth ambitions.

Second Quarter 2026 Consolidated Results

| | Three months ended | | | | Six months ended June 30, | | | | | | | | | | | | | (in millions of US dollars) | Mar. 31, 2026 | | Jun. 30, 2026 | | Jun. 30, 2025 | | Q2 % Change | | 2026 | 2025 | | % Change | | | | | | OPERATING STATISTICS | | | | | | | | | | | | | | | | | | GEO production from continuing operations (1)(2) | 72,872 | | 72,217 | | 71,229 | | 1 | % | | 145,089 | | 141,615 | | 2 | % | | | Cash cost continuing operations($/oz GEO) (1)(2) | 951 | | 1,034 | | 929 | | 11 | % | | 993 | | 899 | | 10 | % | | | AISC continuing operations($/oz GEO) (1)(2) | 2,107 | | 2,157 | | 1,932 | | 12 | % | | 2,134 | | 1,846 | | 16 | % | | | Realized price Gold ($/oz) | 4,884 | | 4,447 | | 3,307 | | 34 | % | | 4,667 | | 3,103 | | 50 | % | | | FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | | | | | | Sales | 342.5 | | 318.4 | | 230.4 | | 38 | % | | 660.9 | | 425.5 | | 55 | % | | | Attributable net income from continuing operations | 111.0 | | 75.5 | | 42.6 | | 77 | % | | 186.5 | | 78.1 | | 139 | % | | | Attributable earnings per share from continuing operations - basic | 0.36 | | 0.25 | | 0.14 | | 79 | % | | 0.62 | | 0.25 | | 148 | % | | | Adjusted EBITDA (1) | 218.8 | | 200.8 | | 133.3 | | 51 | % | | 419.6 | | 235.8 | | 78 | % | | | CASH FLOW AND CAPEX | | | | | | | | | | | | | | | | | | Net cash provided by operating activities - continuing operations | 209.4 | | 138.3 | | 92.7 | | 49 | % | | 347.6 | | 181.7 | | 91 | % | | | Free cash flow from ongoing operations (1) | 174.0 | | 85.7 | | 57.4 | | 49 | % | | 259.7 | | 124.1 | | 109 | % | | | Capital expenditures (3) | | | | | | | | | | | | | | | | | | Sustaining | 27.9 | | 36.6 | | 31.4 | | 17 | % | | 64.5 | | 54.0 | | 19 | % | | | Sustaining leases | 6.8 | | 8.9 | | 6.0 | | 48 | % | | 15.7 | | 10.9 | | 44 | % | | | Growth capital | 17.4 | | 31.3 | | 15.6 | | 101 | % | | 48.7 | | 31.0 | | 57 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Jun. 30, 2026 | | Dec. 31, 2025 | | % Change | | | | | Cash and cash equivalents and short-term investments | | | | | | | | | 606.7 | | 554.0 | | 10 | % | | | | Net liquidity position (excluding letters of credit) | | | | | | | | | 756.7 | | 704.0 | | 7 | % | | | | Shareholder's equity attributable to Fortuna shareholders | | | | | | | | | 1,767.0 | | 1,677.0 | | 5 | % | | | | | | | | | | | | | | | | | | | | | | (1) Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s condensed interim consolidated financial statements for the three and six months ended June 30, 2026 and for the three months ended March 31, 2026 filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures. | | | | | | | | | | | | | | | | | | (2) Gold equivalent was calculated using the realized prices for gold of $4,447/oz Au, $75.22/oz Ag, $1,930/t Pb and $3,464/t Zn for Q2 2026. Gold equivalent was calculated using the realized prices for gold of $3,307/oz Au, $33.77/oz Ag, $1,945/t Pb and $2,640/t Zn for Q2 2025.Gold equivalent was calculated using the realized prices for gold of $4,884/oz Au, $82.69/oz Ag, $1,918/t Pb and $3,246/t Zn for Q1 2026. Gold equivalent was calculated using the realized prices for gold of $4,667/oz Au, $78.32/oz Ag, $1,925/t Pb and $3,363/t Zn for YTD 2026. Gold equivalent was calculated using the realized prices for gold of $3,103/oz Au, $32.8/oz Ag, $1,958/t Pb and $2,747/t Zn for YTD 2025. | | | | | | | | | | | | | | | | | | (3) Capital expenditures are presented on a cash basis | | | | | | | | | | | | | | | | | | Figures may not add due to rounding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Second Quarter 2026 Results

Q2 2026 vs First Quarter 2026 (“Q1 2026”)

Cash cost per ounce and AISC Cash cost per GEO sold from continuing operations was $1,034 in Q2 2026, representing an $83 increase compared to $951 recorded in Q1 2026 and All-in sustaining costs per GEO from continuing operations was $2,157 representing a $49 increase from the $2,107 recorded in the prior quarter. Compared to underlying annual guidance projections AISC contains a $49 impact from external factors and approximately $115 of one-time operational items; external factors consisted mainly of $41 from the appreciation of the Argentine peso at our Lindero mine, $37 higher royalties due to gold prices, $24 from higher diesel prices and inflationary effects on contractor unit prices, partially offset by $48 from a decrease in share-based compensation. Internal factors were mainly related to the primary crusher refurbishment shutdown at Lindero and mobilization costs of an added mining contractor at Séguéla.

Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations for the period was $75.5 million in Q2 2026, compared to $111.0 million in Q1 2026.

After adjusting for non-recurring items, adjusted attributable net income was $75.5 million or $0.25 per share compared to $111.0 million or $0.36 per share in Q1 2026. The decrease was primarily due to lower realized gold prices, a higher effective tax rate of 46% compared to 33% in Q1 2026 and a higher cost per GEO. The realized gold price in Q2 2026 was $4,447 per ounce compared to $4,884 in Q1 2026. The higher effective tax rate was mostly the result of higher deferred taxes at Lindero resulting from the devaluation of the Argentine peso. Higher cost per GEO was mostly due to the impact of increased costs at Lindero due to real appreciation of the Argentine peso and one-time items in the quarter and higher royalties at Séguéla.

Foreign Exchange In Q2 2026, the Company recorded a foreign exchange loss of $6.3 million compared to a loss of $2.1 million in Q1 2026. The foreign exchange loss was due to the purchase of US dollars in Argentina for repatriation and movement in the Euro and the impact on cash and VAT balances in Côte d’Ivoire held in West African Francs.

Cash Flow Net cash generated by operations before changes in working capital totaled $123.7 million or $0.41 per share. After adjusting for working capital, net cash generated by operations for the quarter was $138.3 million, a decrease of $71.1 million compared to $209.4 million in Q1 2026. The decrease was driven primarily by lower sales, and higher taxes paid of $69.7 million due to timing of installments, partially offset by positive changes in working capital of $14.7 million in Q2 2026 compared to negative $4.0 million in Q1 2026.

Free cash flow from ongoing operations in Q2 2026 was $85.7 million, a decrease of $88.3 million compared to $174.0 million in Q1 2026 reflecting lower cash from operating activities and higher sustaining capital expenditures and advances to contractors.

In Q2 2026, the Company’s total capital expenditures were $67.9 million of which $36.6 million were classified as sustaining and $31.3 million as non-sustaining. Non-sustaining capital expenditures were comprised primarily of $10.9 million at the Diamba Sud project, $10.6 million in brownfields and greenfields exploration, and $5 million related to the earn-in agreement on the Quartzstone project in Guyana.

Q2 2026 vs Q2 2025

Cash cost per ounce and AISC Consolidated cash cost per GEO increased to $1,034 in Q2 2026, representing a $105 increase compared to $929 recorded in Q2 2025. The increase was due to higher costs at Lindero and the effect of higher silver prices on the calculation of GEOs at Caylloma. Higher costs at Lindero were driven mostly by real appreciation of the Argentine peso, higher diesel costs, lower gold volume produced and higher operating expenses related to maintenance activities during the planned 30-day shut-down of the primary crusher.

All-in sustaining costs per GEO from continuing operations increased $225 to $2,157 in Q2 2026 from $1,932 in Q2 2025. This increase primarily resulted from higher cash costs as described above, higher CAPEX and sustaining leases, and higher royalties because of higher gold prices. This was partially offset by higher GEOs sold.

Attributable Net Income and Adjusted Net Income Attributable net income from continuing operations was $75.5 million, or $0.25 per share, compared to $42.6 million, or $0.14 per share, in Q2 2025.

After adjusting for non-recurring items, adjusted attributable net income from continuing operations was $75.5 million or $0.25 per share compared to $44.7 million or $0.15 per share in Q2 2025. The increase was primarily due to higher realized gold prices and slightly higher gold volume sold, partially offset by higher cash cost per GEO, as discussed above, and higher royalty payments associated with higher gold prices. Gold averaged $4,447 per ounce in Q2 2026 compared to $3,307 per ounce in Q2 2025. Other items with an offsetting impact on higher sales were a foreign exchange loss of $6.3 million compared to a gain of $2.3 million in the comparable period, and a higher effective tax rate of 46% compared to 41% in Q2 2025.

Depreciation and Depletion Depreciation and depletion decreased by $4.3 million to $44.0 million compared to $48.3 million Q2 2025. Depletion per GEO decreased primarily due to the increase in Mineral Reserves at Séguéla and partially offset by higher depletion per GEO at Lindero due to an impairment reversal of $52.7 million recorded in Q3 2025. Depreciation and depletion in the period included $11.5 million related to the purchase price allocation from the 2021 Roxgold acquisition.

Cash Flow Net cash generated by operations for the quarter was $138.3 million, an increase of $45.6 million compared to $92.7 million reported in Q2 2025. The increase was primarily driven by higher sales, and positive working capital of $14.5 million compared to negative $4.2 million in Q2 2025, offset by higher taxes paid in Q2 2026 of $42.9 million.

Free cash flow from ongoing operations in Q2 2026 was $85.7 million, an increase of $28.3 million compared to $57.4 million reported in Q2 2025. The increase was mainly due to higher cash flow from operations as discussed above partially offset by higher sustaining capital expenditures.

Séguéla Mine, Côte d’Ivoire

| | Three months ended June 30, | | Six months ended June 30, | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | | Mine production | | | | | | | | | | Tonnes milled | 421,464 | | 429,184 | | 852,417 | | 873,188 | | | Average tonnes crushed per day | 4,581 | | 4,665 | | 4,683 | | 4,798 | | | | | | | | | | | | | Gold | | | | | | | | | | Grade (g/t) | 3.46 | | 3.00 | | 3.33 | | 2.88 | | | Recovery (%) | 92 | | 93 | | 93 | | 93 | | | Production (oz) | 41,683 | | 38,186 | | 83,699 | | 76,686 | | | Metal sold (oz) | 41,677 | | 38,144 | | 83,731 | | 76,583 | | | Realized price ($/oz) | 4,456 | | 3,315 | | 4,682 | | 3,101 | | | | | | | | | | | | | Unit costs | | | | | | | | | | Cash cost ($/oz Au) (1) | 676 | | 670 | | 677 | | 660 | | | All-in sustaining cash cost ($/oz Au) (1) | 1,765 | | 1,634 | | 1,762 | | 1,461 | | | | | | | | | | | | | Capital expenditures ($000's) (2) | | | | | | | | | | Sustaining | 18,729 | | 18,065 | | 36,746 | | 26,678 | | | Sustaining leases | 6,491 | | 4,484 | | 10,755 | | 8,123 | | | Growth capital | 10,594 | | 5,538 | | 17,238 | | 14,745 | | | | | | | | | | | | | 1Cash 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 condensed interim consolidated financial statements for the three and six months ended June 30, 2026 filed on SEDAR+ at www.sedarplus.cafor a description of the calculation of these measures. | | | | | | | | | | 2Capital expenditures are presented on a cash basis. | | | | | | | | | | | | | | | | | | |

Quarterly Operating and Financial Highlights

During the second quarter of 2026, Séguéla mined a total of 433,231 tonnes of ore, averaging 3.06 g/t Au and containing an estimated 42,555 ounces of gold from the Antenna, Ancien, Koula, and Sunbird pits. A total of 5,902,142 tonnes of waste was mined during the period, resulting in a strip ratio of 13.6:1. Additionally, 731,647 tonnes of waste were mined during the quarter at Sunbird South to gain access to the underground portal position.

In the second quarter of 2026, Séguéla processed 421,464 tonnes of ore, producing 41,683 ounces of gold, at an average head grade of 3.46 g/t Au, a 2% decrease in tonnes of ore and 15% increase in average head grade, compared to the same period of the previous year. Tonnes milled were slightly lower than in the previous quarter, reflecting a planned mill reline during the period.

Cash cost per gold ounce sold was $676, comparable to $670 for the second quarter of 2025 as higher operating costs were offset by increased production.

All-in sustaining cash cost per gold ounce sold was $1,765 for the second quarter of 2026 compared to $1,634 for the second quarter of 2025. The increase was primarily a result of higher royalties due to an increase in realized gold prices.

Lindero Mine, Argentina

| | Three months ended June 30, | | Six months ended June 30, | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | | Mine production | | | | | | | | | | Tonnes placed on the leach pad | 1,558,750 | | 1,828,520 | | 3,084,036 | | 3,581,536 | | | | | | | | | | | | | Gold | | | | | | | | | | Grade (g/t) | 0.64 | | 0.57 | | 0.63 | | 0.56 | | | Production (oz) | 20,829 | | 23,550 | | 42,374 | | 43,870 | | | Metal sold (oz) | 20,404 | | 23,487 | | 41,587 | | 42,142 | | | Realized price ($/oz) | 4,422 | | 3,293 | | 4,633 | | 3,108 | | | | | | | | | | | | | Unit costs | | | | | | | | | | Cash cost ($/oz Au) (1) | 1,459 | | 1,148 | | 1,331 | | 1,147 | | | All-in sustaining cash cost ($/oz Au) (1) | 2,265 | | 1,783 | | 2,019 | | 1,839 | | | | | | | | | | | | | Capital expenditures ($000's) (2) | | | | | | | | | | Sustaining | 12,053 | | 11,356 | | 19,722 | | 23,718 | | | Sustaining leases | 1,231 | | 791 | | 2,628 | | 1,373 | | | Growth capital | 4,083 | | 1,827 | | 4,798 | | 2,134 | | | | | | | | | | | | | 1Cash 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 condensed interim consolidated financial statements for the three and six months ended June 30, 2026 filed on SEDAR+ at www.sedarplus.cafor a description of the calculation of these measures. | | | | | | | | | | 2Capital expenditures are presented on a cash basis. | | | | | | | | | | | | | | | | | | |

Quarterly Operating and Financial Highlights

In the second quarter of 2026, a total of 1,558,750 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.64 g/t, containing an estimated 32,008 ounces of gold. Ore mined was 1.38 million tonnes, with a stripping ratio of 1.81:1. During the first half of 2026, Lindero placed on the leach pad approximately 95% of the ounces planned for the period required to achieve the midpoint of its annual production guidance.