Fortuna Mining Reports 42% Drop in Silver Production at San Jose

Fortuna Mining reports a record free cash flow of US$95.6 million during 4Q24, a 69% increase compared to the previous quarter, and US$202.9 million for the full year. Despite the progress, the company’s San Jose mine in Oaxaca reported a decrease in gold equivalent output with annual production below its production guidance.

Fortuna Mining's net cash from operations reached US$141.6 million in 4Q24, a 21% quarter-over-quarter increase, and US$438.2 million for the year. The company reported attributable net income of US$11.3 million in 4Q24 after non-cash charges of US$26.3 million, and US$128.7 million for 2024. Adjusted attributable net income was US$37 million in 4Q24, and US$144 million for the year. 

Operational results included gold equivalent production of 116,358oz in 4Q24 and a record 455,958oz for 2024, meeting the low end of annual guidance. The consolidated cash cost was US$1,015/oz in 4Q24 and US$987/oz for the year. The all-in sustaining cost per gold equivalent oz was US$1,772 in 4Q24 and US$1,640 for 2024, both within annual guidance. “The increase in cash cost is explained mainly by lower head grades at Séguéla in 2024, and lower stripping and mining costs during Séguéla’s first semester of operations in 2H23, as well as higher cost at San Jose,” reads Fortuna Mining’s press release.

San Jose Mine’s Performance

The San Jose mine experienced a decrease in production. In 4Q24, the mine produced 594,373oz of silver and 4,239oz of gold, representing decreases of 42% and 33%, respectively, compared to 4Q23. Annual production for 2024 totaled 2.5Moz of silver and 17,811oz of gold, falling below guidance. The company attributed the decline in production to lower extracted mineral and head grades, consistent with the mine plan's decreasing grade profile. 

The cash cost per silver equivalent ounce at San Jose was US$26.01 during the quarter, up from US$20.45 in 4Q23, and US$25.25 for the year, compared to US$14.28 in 2023. The all-in sustaining cash cost per payable silver equivalent ounce increased to US$29.94 in 4Q24 and US$28.22 for the year. Fortuna Mining entered into a binding letter of intent to divest the San Jose mine, however, it did not provide further details on the progress of this movement.