Fortuna Mining Corp. reported attributable net income of $75.5 million for the second quarter of 2026, a 77% increase compared to $42.6 million in the same period last year, driven primarily by higher realized gold prices averaging $4,447 per ounce. The Vancouver-based miner generated adjusted EBITDA of $200.8 million, maintaining a robust margin of 63%, and returned $82.1 million to shareholders through share buybacks during the quarter. Despite a quarter-over-quarter decline in free cash flow due to timing of tax payments, the company maintained a strong liquidity position of $756.7 million, supporting its concurrent growth projects.

Adjusted EBITDA decreased $18.0 million quarter-over-quarter to $200.8 million, primarily reflecting lower gold prices compared to the first quarter. Consolidated all-in sustaining costs (AISC) per gold equivalent ounce (GEO) rose to $2,157 from $2,107 in the previous quarter, influenced by external factors including Argentine peso appreciation at the Lindero mine and higher diesel costs. Management noted that AISC is expected to trend down in the second half of the year as key capital projects at Lindero are completed.

Operational Highlights

Gold equivalent production from continuing operations totaled 72,217 ounces in Q2 2026, keeping the company on track for its annual production guidance. Cash cost per GEO increased to $1,034 from $951 in Q1 2026, largely due to higher costs at Lindero and the effect of higher silver prices on GEO calculations at Caylloma. The total recordable injury frequency rate for the quarter was 1.21.

Mine-Specific Performance

At Séguéla in Côte d’Ivoire, gold production reached 41,683 ounces with an average head grade of 3.46 g/t. Cash cost per gold ounce sold was $676, comparable to $670 in Q2 2025. At Lindero in Argentina, production was 20,829 ounces, lower than the 23,550 ounces in Q2 2025, due to a planned 30-day shutdown of the primary crusher for foundation replacement. Lindero’s cash cost per ounce rose to $1,459 from $1,148 in the prior year period.

Caylloma in Peru produced 231,294 ounces of silver, 7.8 million pounds of lead, and 12.0 million pounds of zinc. The cash cost per silver equivalent ounce sold increased to $27.77 from $15.16 in Q2 2025, primarily due to higher realized silver prices impacting the calculation of silver equivalent ounces sold.

What the Numbers Show

The divergence between rising operational costs and expanding profitability highlights Fortuna’s leverage to gold price movements. While consolidated AISC increased by 12% year-over-year to $2,157 per GEO, the realized gold price surged 34% to $4,447 per ounce. This price advantage more than offset the cost inflation driven by external factors such as currency fluctuations in Argentina and higher royalties, resulting in a 77% jump in net income. However, the quarter-over-quarter drop in free cash flow from $174.0 million to $85.7 million signals sensitivity to working capital dynamics and tax payment timing, which investors should monitor alongside the projected H2 cost downtrend.

Fortuna Mining Corp announced on July 29, 2026, that it has approved a $109 million expansion of its Seguela gold mine in Cote d'Ivoire, marking a strategic move to enhance throughput and extend the life of its cornerstone asset. The project aims to increase processing capacity by 30%, from 1.75 Mtpa to 2.3 Mtpa, while integrating the Sunbird underground mine to support average annual gold production of more than 200,000 ounces over the next decade. This capital allocation is expected to deliver attractive project returns with a projected payback period of approximately 2.5 years, funded entirely from operating cash flow and supported by the company’s liquidity of approximately $800 million as of the end of Q1 2026.

The expansion involves significant upgrades to the Seguela processing facility and supporting infrastructure. Key technical modifications include converting the milling circuit from a single-stage SAG configuration to a combined SAG and ball mill circuit, alongside the installation of a new gravity circuit, intensive leach reactor, pre-leach thickener, and a second carbon-in-leach train. These enhancements are designed to improve operational flexibility and achieve average gold recoveries of approximately 94.5%. Supporting infrastructure upgrades will also address reagent handling, oxygen supply, process water, plant air, and tailings pumping systems to accommodate the higher processing rate.

Execution Timeline

Fortuna plans to execute the expansion through a phased approach designed to minimize disruption to ongoing operations. Construction activities, including site preparation, camp expansion, and procurement of long-lead items, are expected to commence in H2 2026. Underground mining at the Sunbird deposit is scheduled to begin in Q2 2027, with the expanded processing plant targeted to reach full throughput of approximately 2.3 Mtpa by H2 2028.

Jorge A. Ganoza, President and CEO of Fortuna Mining Corp, stated that Seguela has consistently exceeded expectations since entering production in mid-2023. He noted that the expansion represents a logical next step in unlocking additional value by increasing processing capacity and integrating underground production. The project aligns with Fortuna’s strategy of disciplined reinvestment in high-quality assets and supports the company’s objective of increasing consolidated annual gold rate of production toward 500,000 ounces by 2028, alongside the feasibility-stage Diamba Sud project in Senegal.

What the Numbers Show

The decision to expand Seguela highlights Fortuna’s focus on capital efficiency and organic growth within its existing portfolio. By leveraging existing infrastructure to increase throughput by 30% rather than developing a greenfield site, the company aims to optimize capital expenditure relative to production gains. The projected payback period of 2.5 years suggests a strong internal rate of return, particularly given that the $109 million cost is covered by internal cash flows without diluting equity or increasing leverage. This approach reinforces Seguela’s position as a primary driver for achieving the company’s broader production target of 500,000 ounces annually by 2028.

Raul Espinoza, Director of Technical Services for Fortuna Mining Corp., reviewed and approved the scientific and technical information contained in the release. As a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy (FAusIMM CP) and a Qualified Person under National Instrument 43-101, Espinoza verified the underlying data regarding the mineral projects and expansion metrics.