Fortuna Mining generated $85.7M free cash flow in Q2 2026 despite cost pressures from the Argentine peso and higher royalties. The company approved Séguéla expansion and Diamba Sud feasibility, targeting 500k oz/year.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Fortuna Mining Corp. reported $85.7 million in free cash flow from ongoing operations for the second quarter of 2026, down from $174 million in the prior quarter but up from $57.4 million a year earlier. The Vancouver-based gold miner also approved the Séguéla plant expansion in Côte d’Ivoire and delivered the feasibility study for the Diamba Sud project in Senegal, positioning the company to grow production 60% to over 500,000 ounces annually.
“Fortuna delivered another strong quarter of production,” CEO Jorge Ganoza said in the release. “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.”
All-in sustaining cost per gold-equivalent ounce from continuing operations came in at $2,157, up $49 from the first quarter and $225 from the second quarter of 2025. The increase included $49 from external factors – the Argentine peso’s appreciation at Lindero, higher royalties linked to gold prices, and diesel costs – plus $115 from one-time operational items, mostly the planned 30-day shutdown of the primary crusher at Lindero for refurbishment and mobilization costs for an added mining contractor at Séguéla.
Attributable net income from continuing operations was $75.5 million, or $0.25 per share, compared with $111 million in the first quarter and $42.6 million a year earlier. Adjusted net income matched that figure. The sequential decline reflected a lower realized gold price of $4,447 an ounce versus $4,884 in the first quarter, a higher effective tax rate of 46% due to deferred taxes at Lindero from the peso devaluation, and higher cash costs per ounce. Versus the year-ago period, net income rose on a 34% jump in the gold price from $3,307 an ounce.
Net cash generated by operations before working capital changes totaled $123.7 million. After working capital, operating cash flow was $138.3 million, down from $209.4 million in the first quarter on lower sales and $69.7 million in taxes paid – a timing effect, the company said. Capital expenditures reached $67.9 million, split between sustaining ($36.6 million) and non-sustaining ($31.3 million). The growth spend included $10.9 million at Diamba Sud, $10.6 million in exploration, and $5 million related to the earn-in on the Quartzstone project in Guyana.
Ganoza highlighted the organic growth milestones. The Diamba Sud feasibility study supports a construction decision, and the Séguéla plant expansion has been approved. Together, the two projects should lift annual production past 500,000 ounces, he said.
Shareholder returns remained a priority. Fortuna returned $82.1 million to shareholders through share buybacks during the quarter, funded by the cash flow from operations and a strong balance sheet. The company’s EBITDA margin stood at 63%, with adjusted EBITDA of $200.8 million.
The realized gold price for the quarter averaged $4,447 an ounce, compared with $3,307 a year earlier. Gold miners have benefited from the metal’s rally, though cost pressures from currency movements and royalties have tempered margin expansion at some producers. Commodities analysis shows a mixed picture for the sector as input costs rise with the gold price.
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