Canada's Fortuna Mining Q3 adjusted profit declines sequentially on lower gold prices, production

Overview

• Canada precious metals miner's Q3 sales rose 17% yr/yr to $293.4 mln

• Adjusted net income was $51.2 mln, flat from Q3 2025

• Company completed $200 mln Bambadji gold project acquisition in Senegal

Outlook

• Fortuna expects to achieve its annual production guidance for 2026

• Séguéla mine is on track to achieve the lower end of its production guidance

• Caylloma Mine is expected to exceed annual production guidance on a gold equivalent basis

Result Drivers

• LOWER PRODUCTION AND METAL PRICES - Co said adjusted net income declined QoQ due to lower gold prices, lower volume sold, and higher non-cash costs for share-based compensation and depletion per ounce

• OPERATIONAL ISSUES AT SÉGUÉLA - Co said Séguéla mine faced reduced equipment availability and a temporary site-wide stoppage, impacting mining volumes and delaying access to higher-grade ore

• HIGHER COSTS - Co said all-in sustaining costs rose due to higher share-based compensation, elevated diesel prices, acro-economic factors impacting Argentine Peso denominated costs at Lindero, and increased consumable prices

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Fortuna Mining Corp is C$19.50, about 45.4% above its November 4 closing price of C$13.41

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Nov 4 - Canada's B2Gold lowers annual all-in sustaining cost guidance after strong gold production in Q3

• Nov 5 - Canada's Lundin Gold Q3 revenue rises on record gold production, higher prices

• Nov 4 - Canada's OceanaGold on track to achieve annual production target

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)