Fortuna Mining Corp (FVI) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.82
• Revenue Growth: 30.33%
• EPS Growth: N/A
• Country: CA
• Employees: 1,232
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Silver
• EPS (TTM): 0.27
• Shares Outstanding: 306,528,200
• 10 Day Avg. Volume: 1,294,597
• 30 Day Avg. Volume: 1,043,686
• PEG Ratio: 0.54
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.84
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 1.09
• 1Y Price Target: $9.02
• Price Target Upside: -5.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: C$11.50 ▲(20.67%Upside)

Fortuna Silver Mines receives a strong score of 80, driven primarily by robust financial performance, effective technical indicators, and positive corporate events. The company's strategic divestments and growth initiatives support its long-term stability and growth. Valuation is reasonable, though the absence of a dividend yield slightly detracts from the overall score. The earnings call provided insights into operational efficiencies and strategic shifts, although not weighted in the score.

Positive Factors

Financial Performance

FVI shares could benefit from a growing track record of cash flow generation driven by the Séguéla gold mine.

Operational Improvements

Higher than forecasted throughput at Séguéla and Yaramoko offset a slightly weaker quarter at Lindero.

Resource Expansion

Fortuna reported an updated Mineral Reserve and Resource estimate for its Séguéla mine, adding 500koz of additional inferred resources.

Negative Factors

Cost Guidance

2025 AISC guidance of $1,550-$1,680/oz AuEq is above the $1,437/oz estimate on higher sustaining capex.

Production Estimates

Q4 production of 116.4koz AuEq was slightly below the 121.1koz estimate, and increased from 110.8koz in Q3.

Fortuna Mining Corp Business Overview & Revenue Model

Company Description

Fortuna Silver Mines Inc. engages in the acquisition, exploration, and mining of precious and base metal deposits in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It holds interest in the Caylloma silver, lead, and zinc mine located in southern Peru; the San Jose silver and gold mine situated in southern Mexico; the Lindero gold project located in Argentina; Yaramoko gold mine situated in south western Burkina Faso; and Séguéla gold mine located in south western Côte d'Ivoire. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

How the Company Makes Money

Fortuna Silver Mines generates revenue primarily through the extraction and sale of precious metals, including silver, gold, and to a lesser extent, base metals such as lead and zinc. The company owns and operates several mines, including the San Jose Mine in Mexico, the Caylloma Mine in Peru, and the Lindero Mine in Argentina. These mining operations involve the exploration, development, and extraction of metal ores, which are then processed and refined into saleable products. Fortuna sells these refined metals to various customers, including metal traders, smelters, and refineries, based on prevailing market prices. The company's earnings are influenced by factors such as metal prices, production volumes, and operational efficiency. Additionally, Fortuna may enter into strategic partnerships or joint ventures to enhance its production capacity or acquire new projects, further contributing to its revenue streams.

Fortuna Mining Corp Financial Statement Overview

Summary

Fortuna Silver Mines exhibits strong financial health across its income statement, balance sheet, and cash flow. The company shows robust profitability, efficient operations, and a solid financial position with low leverage. Additionally, the firm demonstrates effective cash management and growth in free cash flow, positioning it well for future growth and stability in the volatile silver industry.

Income Statement

Fortuna Silver Mines shows strong performance in its income statement for the TTM period. The gross profit margin is robust at 34.56%, and the net profit margin is solid at 14.28%. The company has demonstrated significant revenue growth from 2024 to the TTM period, with a growth rate of 6.13%. EBIT and EBITDA margins are healthy at 24.20% and 46.60% respectively, indicating efficient operations and strong earnings before interest and taxes. These metrics highlight the company's profitability and positive growth trajectory.

Balance Sheet

The balance sheet indicates a stable financial position. The debt-to-equity ratio is low at 0.14, suggesting conservative leverage and a strong equity position. Return on equity is 11.03%, reflecting an effective use of equity to generate profits. The equity ratio stands at 66.78%, indicating a solid proportion of assets financed by stockholders' equity. Overall, Fortuna Silver Mines maintains a strong balance sheet with manageable debt levels and a good return on equity.

Cash Flow

Cash flow analysis reveals positive trends for Fortuna Silver Mines. The free cash flow growth rate is an impressive 48.92%, indicating improved cash generation. The operating cash flow to net income ratio is 2.75, suggesting strong operating cash flow relative to net income. Additionally, the free cash flow to net income ratio is 1.50, highlighting efficient conversion of income into free cash. These metrics underscore the company's ability to generate and manage cash effectively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.13B	1.06B	842.43M	681.49M	599.85M	278.97M
	Gross Profit
389.57M	343.61M	190.03M	146.80M	205.48M	110.22M
	EBIT
272.77M	228.05M	-407.00K	85.69M	136.88M	57.24M
	EBITDA
525.36M	471.21M	233.78M	59.05M	242.05M	106.62M
	Net Income Common Stockholders
160.99M	128.74M	-50.84M	-135.91M	57.88M	21.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
128.15M	231.33M	128.15M	80.57M	107.51M	132.96M
	Total Assets
1.97B	2.12B	1.97B	1.88B	2.02B	1.06B
	Total Debt
264.25M	194.01M	264.25M	240.52M	186.89M	178.11M
	Net Debt
136.10M	-37.32M	136.10M	160.03M	79.80M	46.22M
	Total Liabilities
679.74M	649.46M	679.74M	587.53M	592.35M	329.57M
	Stockholders Equity
1.24B	1.40B	1.24B	1.24B	1.38B	725.77M
Cash Flow		Free Cash Flow
241.11M	161.90M	79.59M	-56.99M	-5.15M	-20.94M
	Operating Cash Flow
443.11M	365.68M	296.91M	194.25M	147.14M	93.39M
	Investing Cash Flow
-195.43M	-194.44M	-216.88M	-255.33M	-118.50M	-113.65M
	Financing Cash Flow
-27.94M	-66.14M	-32.72M	38.47M	-51.42M	68.91M

Fortuna Mining Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FVI, the sentiment is Positive. The current price of 9.53 is above the 20-day moving average (MA) of 8.38, above the 50-day MA of 8.42, and above the 200-day MA of 7.18, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 79.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FVI.

Fortuna Mining Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVI	80 Outperform	$2.99B	13.10	12.07%	―	30.33%	―
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%
AG		$4.00B	―	-4.57%	0.24%	―	―
MAG		$2.19B	23.87	16.27%	0.94%	―	―
SVM		$909.24M	14.62	9.62%	0.61%	―	―
AYA	61 Neutral	C$1.83B	152.08	-4.59%	―	88.60%	-684.16%
DSVSF		$1.98B	―	-24.80%	―	―	―

Fortuna Mining Corp Corporate Events

Fortuna Mining Reports Promising Gold Intercepts at Diamba Sud Project

Fortuna Mining Corp. has announced significant exploration results from its Diamba Sud Gold Project in Senegal, highlighting promising gold intercepts at the Southern Arc prospect. The drilling results, including 8.6 g/t gold over 13.6 meters, suggest strong potential for near-term resource growth, enhancing the project’s value and reinforcing Fortuna’s strategic positioning in the gold mining sector.

The most recent analyst rating on (TSE:FVI) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Fortuna Silver Mines stock, see the TSE:FVI Stock Forecast page.

Fortuna Mining Corp. Releases 2024 Sustainability Report Highlighting ESG Achievements

Fortuna Mining Corp. has released its 2024 Sustainability Report, emphasizing its commitment to sustainability as a strategic imperative. The report details the company’s progress in governance, risk management, and ESG factors, highlighting achievements such as zero fatal incidents, industry-leading greenhouse gas emissions intensity, and significant community contributions. These efforts aim to strengthen relationships with stakeholders and create lasting social and environmental value.

The most recent analyst rating on (TSE:FVI) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Fortuna Silver Mines stock, see the TSE:FVI Stock Forecast page.

Fortuna Silver Mines Streamlines Portfolio with Yaramoko Mine Sale

Fortuna Silver Mines has completed the divestiture of its Yaramoko Mine in Burkina Faso, selling it to Soleil Resources International Ltd. for $70 million. This move is part of Fortuna’s strategy to streamline its asset portfolio, reallocating capital and management resources to pursue higher-value opportunities. The sale increases the company’s liquidity and allows it to exit a challenging operational and security environment. Following this divestiture, Fortuna has updated its 2025 production and cost guidance, reflecting an 18% reduction in gold equivalent production and a 6% increase in all-in sustaining costs, primarily due to the exclusion of Yaramoko’s contribution.

The most recent analyst rating on (TSE:FVI) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Fortuna Silver Mines stock, see the TSE:FVI Stock Forecast page.

Fortuna Silver Mines Achieves Record Cash Flow and Strategic Divestments in Q1 2025

Fortuna Silver Mines reported a record free cash flow of $111.3 million for the first quarter of 2025, marking a 30% increase quarter over quarter. The company achieved a significant improvement in its free cash flow margin, driven by higher gold prices and reduced all-in-sustaining costs. Fortuna’s strategic divestment of high-cost, short-life assets, including the sale of the San Jose Mine and its interest in the Yaramoko Mine, is aimed at reallocating capital towards more profitable ventures, aligning with its long-term growth strategy. Despite a fatal accident at the Séguéla Mine, the company continues to prioritize safety and operational efficiency.

Fortuna Mining Corp. Renews Share Repurchase Program

Fortuna Mining Corp. has announced the renewal of its share repurchase program, allowing the company to buy back up to five percent of its outstanding common shares. This move is aimed at addressing market prices that may not reflect the shares’ underlying value, and it is seen as a strategic use of corporate funds. The program will be conducted through the Toronto Stock Exchange, the New York Stock Exchange, and other Canadian trading systems, with purchases made at market prices. The initiative reflects Fortuna’s commitment to optimizing shareholder value and maintaining financial flexibility.

Fortuna Mining Corp. to Announce Q1 2025 Financial Results

Fortuna Mining Corp. will release its first quarter 2025 financial results on May 7, 2025, after market close, followed by a conference call on May 8, 2025, to discuss the financial and operational outcomes. The announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting its market positioning and investor relations.

Fortuna Mining Corp. Sells San Jose Mine to JRC Ingeniería

Fortuna Mining Corp. has completed the sale of its San Jose Mine in Oaxaca, Mexico, to JRC Ingeniería y Construcción S.A.C. for a total consideration of up to approximately $16 million, including future conditional payments. The sale allows Fortuna to divest a non-core asset, previously placed on care and maintenance due to high operating costs and depleted reserves, while retaining a net smelter royalty on future production, potentially enhancing its financial flexibility and strategic focus.

Fortuna Mining Corp. Sells Yaramoko Mine to Exit Burkina Faso

Fortuna Mining Corp. has announced the sale of its interest in the Yaramoko Mine and associated subsidiaries in Burkina Faso to Soleil Resources International Limited. This strategic move allows Fortuna to exit a challenging market, optimize value, and avoid future liabilities, while providing liquidity to pursue other opportunities aligned with its strategic goals.

Fortuna Silver Mines Achieves Strong Q1 2025 Production and Expands Capacity

Fortuna Silver Mines reported a solid production of 103,459 gold equivalent ounces for the first quarter of 2025, with gold production at 91,893 ounces. The company completed the Lindero leach pad expansion project on time and within budget, providing an additional 10 years of production capacity. Despite a slight decrease in gold equivalent production compared to previous quarters, Fortuna reiterated its annual production guidance, indicating confidence in meeting its targets. The company also repurchased 916,900 common shares, reflecting a strategic move to enhance shareholder value.

Fortuna Mining Corp. Files Fiscal 2024 Annual Report

Fortuna Mining Corp. has filed its fiscal 2024 annual report on Form 40-F with the U.S. Securities and Exchange Commission, which includes audited financial statements and management’s discussion and analysis. This filing is a significant step in maintaining transparency with shareholders and stakeholders, reflecting the company’s commitment to regulatory compliance and providing insights into its financial health and operational performance.

Fortuna Mining Corp. to Present at Mining Forum Europe 2025

Fortuna Mining Corp. announced its participation in the Mining Forum Europe 2025 in Zürich, Switzerland, where CEO Jorge A. Ganoza will present. This event is significant for Fortuna as it provides a platform to showcase its operations and sustainability efforts to investors, potentially enhancing its market position and stakeholder engagement.

Fortuna Silver Mines Reports Positive Exploration Results at Séguéla Mine

Fortuna Silver Mines has reported promising exploration results at its Séguéla Mine in Côte d’Ivoire, with significant gold intersections at the Kingfisher and Sunbird deposits. These results, including a notable 7.2 g/t gold over 31.5 meters at Kingfisher, are expected to enhance the resource confidence and potentially transition these resources into mineral reserves by 2025, indicating a positive impact on the company’s operational growth and industry positioning.

Fortuna Silver Mines Reports Updated Mineral Reserves and Resources

Fortuna Silver Mines has released its updated Mineral Reserve and Resource estimates for its various projects as of December 31, 2024. The report highlights a 29% increase in consolidated inferred mineral resources and a 36% increase in measured and indicated resources, driven by infill drilling and new discoveries. However, there is an 11% decrease in proven and probable mineral reserves due to production-related depletion, partially offset by resource upgrades.