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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FVI

Fortuna Mining Corp.'s recent performance was driven by a strong Q2 2025 earnings report, with EPS of $0.13, up from $0.064 in 2Q2024. The company's generative exploration program, valued at $19 million, across Côte d'Ivoire, Mexico, and Argentina, has garnered attention. Institutional owners hold 65% of the company, implying significant influence. New drilling findings from the Kingfisher and Sunbird deposits at the Séguéla Mine in Côte d'Ivoire, including 4.5 g/t Au over 37.4 meters, have also been announced.

1.c. Company Highlights

2. Fortuna Mining's Q3 2025 Earnings: A Strong Performance

Fortuna Mining reported a robust financial performance in Q3 2025, with attributable net income reaching $123.6 million or $0.40 per share, driven by a $69 million impairment reversal at their Lindero mine. Adjusted net income was $0.17 per share, impacted by higher share-based compensation and a foreign exchange loss in Argentina. The actual EPS came out at $0.2368, slightly lower than the estimated $0.2514. Revenue growth is expected to be 13.9% next year, indicating a positive outlook. The company's cash flow from operations was $73.4 million, and their net cash position increased by $51 million to $266 million.

Publication Date: Nov -24

📋 Highlights
  • Strong Safety Performance:: Achieved 9.7 million work hours without a lost time injury (318-day streak), with a 53% decline in total recordable injury frequency rate to 0.86 vs. 1.6 in 2024.
  • Attributable Net Income Surge:: Reported $123.6M ($0.40/share) driven by a $69M impairment reversal at Lindero mine, surpassing adjusted net income ($0.17/share) by 235%.
  • Free Cash Flow Outperforms Consensus:: Generated $73M free cash flow from operations ($0.37/share), exceeding analyst estimates of $0.36/share, with $114M net cash from operations pre-working capital changes.
  • Diamba Sud Project Economics:: Preliminary assessment shows 72% after-tax IRR and $563M NPV (5% discount) at $2,750/oz gold price, targeting construction decision by H1 2026.
  • Liquidity and Cost Efficiency:: Net cash position rose $51M to $266M, total liquidity at $588M ($200M YTD increase), with all-in sustaining costs reduced to $1,570/oz (-12% QoQ).

Operational Highlights

The company's operations remained resilient, with Séguéla producing 38,799 ounces of gold, Lindero achieving its highest gold production this year, and Caylloma delivering steady and reliable production. The consolidated cash costs remained below $1,000 per ounce, and all-in sustaining cost at their mines is tracking within guidance. Lindero's all-in sustaining cost has been trending lower every quarter to the current $1,500 per ounce range.

Growth Prospects

Fortuna Mining is advancing multiple high-value opportunities, including the Diamba Sud project in Senegal, which boasts strong economics and is advancing towards a construction decision in the first half of 2026. The Preliminary Economic Assessment confirms strong economics, with an after-tax internal rate of return of 72% and a net present value of $563 million at a 5% discount. The company's growth capital expenditures totaled $17 million, primarily consisting of investments in the Diamba Sud project and exploration activities.

Valuation Metrics

Fortuna Mining's current valuation metrics indicate a reasonable price for the stock. The P/E Ratio is 16.02, and the P/S Ratio is 2.3. The EV/EBITDA ratio is 4.18, indicating a relatively low valuation compared to its earnings. The company's Return on Equity (ROE) is 10.91%, and the Return on Invested Capital (ROIC) is 9.92%, indicating a decent return on investment. With a net cash position of $266 million and a growing liquidity position of $588 million, the company's financial health is strong.

Capital Allocation Priorities

According to Jorge Durant, the company's first priority is to advance near-term growth projects, including a construction decision on Diamba Sud next year and expanding their Séguéla process infrastructure. The company's second priority is their share buyback program, which remains in place. This indicates a focus on growth and returning value to shareholders.

3. NewsRoom

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Did Diamba Sud's Resource Expansion and Project Milestones Just Shift Fortuna Mining's (TSX:FVI) Investment Narrative?

Oct -16

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Fortuna Mining Rises 2.3% Premarket After Study Backs Mine at Senegal Gold Project

Oct -15

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Fortuna delivers robust PEA for Diamba Sud Gold Project in Senegal: After-tax IRR of 72% and NPV5% of US$563 million using US$2,750 per ounce

Oct -15

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Fortuna Mining (FSM) Stock Moves -1.12%: What You Should Know

Oct -10

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Fortuna Mining (FSM) Is Up 3.00% in One Week: What You Should Know

Oct -10

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A Look at Fortuna Mining's (TSX:FVI) Valuation Following Key Permit Milestone at Diamba Sud Project

Oct -08

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Fortuna delivers production of 72,462 gold equivalent ounces for the third quarter of 2025

Oct -08

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Fortuna Files Environmental and Social Impact Assessment for Diamba Sud Gold Project in Senegal

Oct -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.76%)

6. Segments

Sanu

Expected Growth: 4.65%

Sanu from Fortuna Silver Mines Inc. exhibits 4.65% growth driven by increasing silver prices, robust mine production, and efficient cost management. Strong exploration results, expanding mineral reserves, and strategic acquisitions also contribute to its growth momentum.

Mansfield

Expected Growth: 4.83%

Mansfield's 4.83% growth is driven by increasing silver and gold production, strong demand for precious metals, and Fortuna Silver Mines' strategic expansion into new mining projects. Additionally, cost savings from operational efficiencies and favorable currency exchange rates contribute to the segment's growth.

Sango

Expected Growth: 4.83%

Sango's 4.83% growth is driven by increasing silver prices, improved ore grades, and enhanced mining efficiency. Fortuna Silver Mines' strategic expansion into new mining areas and successful exploration efforts have also contributed to the growth. Additionally, the company's cost-saving initiatives and strong operational performance have enabled it to capitalize on the rising demand for silver.

Cuzcatlan

Expected Growth: 4.83%

Cuzcatlan's 4.83% growth is driven by increasing silver and gold production, driven by higher ore grades and improved mill throughput. Additionally, cost savings from operational efficiencies and favorable currency exchange rates contribute to the segment's growth.

Bateas

Expected Growth: 4.65%

Bateas' 4.65% growth is driven by increasing silver prices, successful exploration efforts, and operational efficiencies. Fortuna Silver Mines' focus on cost reduction and mine life extension also contributes to growth. Additionally, the company's diversification into gold and lead production helps mitigate risks and boosts revenue.

7. Detailed Products

Silver

Fortuna Silver Mines Inc. is a significant producer of silver, with a focus on extracting high-quality silver ore from its mines in Peru and Mexico.

Gold

The company also produces gold as a by-product of its silver mining operations, with a focus on extracting gold ore from its mines in Peru and Mexico.

Lead

Fortuna Silver Mines Inc. also produces lead as a by-product of its silver mining operations, with a focus on extracting lead ore from its mines in Peru and Mexico.

Zinc

The company produces zinc as a by-product of its silver mining operations, with a focus on extracting zinc ore from its mines in Peru and Mexico.

Copper

Fortuna Silver Mines Inc. also produces copper as a by-product of its silver mining operations, with a focus on extracting copper ore from its mines in Peru and Mexico.

8. Fortuna Silver Mines Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Fortuna Silver Mines Inc. is moderate, as there are alternative sources of silver and other metals, but the company's focus on sustainable and responsible mining practices helps to differentiate it from competitors.

Bargaining Power Of Customers

The bargaining power of customers is relatively low, as Fortuna Silver Mines Inc. sells its products to a diverse range of customers, and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Fortuna Silver Mines Inc. relies on a few key suppliers for equipment and services, but the company's scale and diversification efforts help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is relatively low, as the mining industry has significant barriers to entry, including high capital costs, regulatory hurdles, and environmental concerns.

Intensity Of Rivalry

The intensity of rivalry in the mining industry is high, as companies compete for limited resources, talent, and market share, and Fortuna Silver Mines Inc. must continually innovate and improve its operations to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.59%
Debt Cost 3.95%
Equity Weight 82.41%
Equity Cost 11.95%
WACC 10.54%
Leverage 21.34%

11. Quality Control: Fortuna Silver Mines Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Fortuna Silver Mines

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.81$

Current Price

12.81$

Potential

-0.00%

Expected Cash-Flows