Fortuna Mining Aktie

Greetings. Welcome to the Fortuna Mining Q1 2026 Financial and Operational Results Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Carlos Baca, Vice President of Investor Relations. You may begin.

Thank you, Holly. Good morning to all, and welcome to Fortuna Mining's conference call to discuss our financial and first quarter of 2026. Hosting today's call on behalf of Fortuna are Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; David Whittle, Chief Operating Officer, West Africa; and Cesar Velasco, Chief Operating Officer, Latin America.

Today's earnings call presentation is available on our website at fortunamining.com. Statements made during this call are subject to the reader advisories included in yesterday's news release, the webcast presentation, our management discussion and analysis and the risk factors outlined in our annual information form.

All financial figures discussed today are in U.S. dollars unless otherwise stated. Technical information presented has been reviewed and approved by Eric Chapman, Fortuna's Senior Vice President of Technical Services and a qualified person as defined by National Instrument 23-101.

I will now turn the call over to Alberto Ganoza, President, Chief Executive Officer and Co-Founder of Fortuna Mining.

Thank you, Carlos, and good morning, and thank you for joining us today. The first quarter of 2026 marked an exceptionally strong start to the year for Fortuna. We delivered strong operational and financial performance. And importantly, we achieved these results with 0 recorded lost time injuries during the period. This extends our safety performance to 5 consecutive quarters free of lost time injuries.

Financially, the quarter delivered record results across our key metrics. Sales reached record $342 million, reflecting higher realized gold and silver prices. Adjusted net income was $111 million or $0.36 per share, a quarterly record for the company. Adjusted EBITDA totaled $219 million, also a record. And free cash flow from ongoing operations reached $174 million, representing our strongest quarterly cash generation to date.

These results underscore the quality of our asset base, disciplined operating execution and strong leverage to the gold price environment. Operationally, this financial performance was supported by solid execution across our portfolio. We produced 72,900 gold equivalent ounces in the quarter. And based on performance year-to-date and current operating conditions, we remain well positioned to meet our full year 2026 guidance.

With that as context, let me step back and focus on the bigger story for Fortuna. We're working to deliver approximately 60% growth in annual gold production over the next 24 months, taking us to approximately 0.5 million ounces of annual gold production. By expanding our Séguéla mine in Côte d'Ivoire and by bringing our Diamba Sud project in Senegal into production.

The key message I want to emphasize is that we control this growth. This growth is driven by 2 projects already within our portfolio, not dependent on acquisitions or exploration success. Both Séguéla and Diamba Sud are technically straightforward, benefit from strong social acceptance and are financially derisked. These are executable growth projects supported by our strong balance sheet and our operating track record in West Africa and both demonstrate robust economics at long-term gold prices below $3,000 per ounce.

As these projects advance over the next 24 months, we expect this growth to translate into meaningful increases in production and free cash flow per share, while maintaining discipline in execution, cost and capital allocation. Our growth plans are also underpinned by the recently published update to mineral reserves and mineral resources on April 23, which shows growth across all categories of resources and reserves.

Proven and Probable Mineral Reserves increased by 15% year-over-year after depletion to 3 million gold ounces. Indicated Mineral Resources increased by 56% to 2.1 million gold ounces and Inferred Mineral resources increased by 4% to 2.2 million gold ounces. This growth speaks to the mineral potential of our assets and our potential not only to expand production, but also to support decade-plus mine lives across our operations.

Looking ahead, there are several near-term milestones that we believe are important for investors to watch. Both the Diamba Sud feasibility study and Séguéla Expansion study are expected to be completed in this month of May, providing greater technical and economic visibility on our growth plans. In parallel, we're expecting environmental approval for Diamba Sud imminently, followed by the final mining permit shortly thereafter.

All this, while we continue to advance Diamba early works with a 2026 budget of $100 million. Our strong cash generation continues to strengthen the balance sheet. At quarter end, we had approximately $816 million of total liquidity, including $493 million in net cash, positioning Fortuna among the stronger balance sheets in our peer group.

This financial strength allows us to comfortably fund approximately $330 million of total exploration, sustaining and nonsustaining capital in 2026, entirely from internal cash flow. Of this $330 million figure, 56% is allocated to growth and exploration. At the same time, we are returning capital to shareholders. Year-to-date, we returned $40 million via the repurchase of 4.2 million shares. For the quarter, we repurchased $20 million, which represents 11% of our free cash flow from operations.

Before handing over for more detailed operational commentary, I want to briefly address cost. All-in sustaining cost fee in the first quarter was $2,107 per gold equivalent ounce. Of that amount, approximately $122 per ounce is attributable to external factors, primarily the impact of higher gold prices on royalties and higher share-based compensation associated with our share price performance during the period. These factors are not reflective of underlying operating execution, which remains solid across the portfolio.

With that, I will now turn the call over to the operating quarter in more detail. David? David, give us your review.

Thanks, Jorge.

Séguéla delivered a successful first quarter with strong production results and importantly, 0 LTIs reported. During the quarter, Séguéla produced 42,016 ounces of gold, representing a 14% improvement over the previous quarter and finishing ahead of the mine plan. A total of 393,000 tonnes of ore were mined at an average gold grade of 3.69 grams per tonne, together with 5.46 million tonnes of additional material, resulting in a strip ratio of 13.9:1.

The processing plant treated 430,000 tonnes of ore at an average gold grade of 3.21 grams per tonne with throughput averaging 212 tonnes per hour.

Production was sourced primarily from the Antenna, Ancien and Kula pits, while waste mining progressed well at the Sunbird pit, positioning the operation for future ore contribution from that area. Séguéla's strong operating performance resulted in a cash cost of $679 per ounce and an all-in sustaining cost of $1,760 per ounce of gold.

In terms of projects underway at Séguéla, substantial progress was achieved in the first quarter. The 6-megawatt solar power plant project is nearing completion and is expected to be commissioned this quarter with power sourced from the solar power plant, providing approximately a 35% per unit cost saving on power provided from the grid.

In April, we announced a 34% increase in mineral reserves and a 55% increase in inferred resources from the Sunbird project. Based on drilling completed through to the end of the first quarter. This further enhances the Sunbird underground project and reinforces its importance as a future source of ore for Séguéla.

A joint permitting committee has been established with Côte d'Ivoire's Ministry of Mines with the goal of permitting the underground mine by the end of 2026. Initial development is then targeted for the first half of 2027. We also decided to develop and operate the Sunbird underground mine on an owner-operator basis with an incremental increase in budgeted CapEx of $25 million to undertake this project.

Orders for primary mining equipment are expected to be placed during the second quarter. Access to the underground mine will be established from the southern section of the Sunbird pit rather than through the originally contemplated dedicated Boxcut excavation.

This section of the Sunbird pit was not scheduled to be mined until 2027. Whilst accelerating this mining has the effect of increasing Séguéla's forecast AISC towards the upper end of guidance, this decision provides a cost improvement of more than $7 million on the project by reducing underground development requirements and avoiding additional waste volumes associated with the Boxcut option. Mining of the Sunbird South pit has now commenced.

Studies for the proposed processing plant expansion continued throughout the first quarter. Lycopodium, which designed and constructed the current processing plant presented several expansion options and is now progressing detailed studies on the selected option, which includes the addition of the ball mill as well as increased thickening, leaching and gravity circuit capacity.

The current primary crushing capacity is expected to be sufficient to support the planned throughput increase. Exploration drilling at Séguéla is ongoing with additional drill rigs being mobilized to site, bringing the exploration drilling fleet to 7 rigs. The drilling program is focused on further conversion and expansion of the Sunbird and Kingfisher resources as well as testing below the southern extent of the Antenna pit and the newly discovered near-surface footwall opportunity at Sunbird.

At Diamba Sud, early works, programs and exploration activities continued to advance successfully during the quarter. Approval of the ESIA is expected imminently and the feasibility study remains on track for completion, including the first time reporting mineral reserves in support for the construction decision by mid of this year.

Thank you. Back to you, Jorge.

Thank you, David. Now we'll move on to LatAm. Cesar, please?

Thank you, Jorge, and good morning, everyone. In the first quarter, our Latin American operations delivered a strong and stable performance, underpinned by disciplined execution, solid safety performance and clear progress on key operational priorities.

At Lindero in Argentina, the quarter was defined by strong operating delivery and the successful execution of a critical maintenance milestone, which positions the operation well for the rest of the year. We mined 1.7 million tonnes of ore at a favorable strip ratio of 1.35:1 and placed 1.5 million tonnes on the leach pad at an average head grade of 0.62 grams per tonne of gold, containing an estimated 30,538 ounces of gold, in line with our mine plan.

As a result, gold production reached 21,545 ounces, representing a 12% increase compared to the fourth quarter of 2025. So overall, from an operational standpoint, the mine performed as expected with improving momentum. But the most important development in the quarter was the completion of the primary crusher foundation replacement. I want to highlight 3 things. We delivered it on time, we stayed within budget, and we executed it with strong safety performance. Crucially, crushing operations resumed on May 1 as planned and the plant returned immediately to stable operating conditions, supporting throughput going forward.

Now turning to financial performance. Lindero delivered a very strong quarter financially, generating $101.5 million in sales with a strong EBITDA margin of 69% of sales, increasing by 28.5% and 9.5%, respectively, when compared to the fourth quarter of 2025, reflecting higher gold prices, strong cost discipline and solid operational execution.

On costs, we reported cash cost of $1,208 per ounce and an AISC of $1,783 per ounce. As expected, these costs were slightly affected primarily due to temporary and nonrecurring factors such as equipment rentals and temporary crushing solutions associated with the primary crusher project, maintenance interventions and macroeconomic pressures in Argentina, particularly high inflation and a stronger-than-expected peso, which increases dollar-denominated costs.

However, these pressures were partially offset by higher production volumes, a lower stripping ratio and ongoing operational efficiencies. Looking ahead, we expect a clear and steady cost reduction throughout the year as the temporary measures are removed, capital work is completed and efficiency gains are fully realized. And as a result, we continue to expect AISC to move toward the $1,300 per ounce by the fourth quarter.

Finally, on growth, we continue to advance both near mine and regional exploration. As Lindero has previously indicated, we have initiated drilling below the current pit limits, targeting conversion of 400,000 ounces of inferred resources to higher confidence categories. These resources are located beyond the limits of the current final pit design.

In parallel, we have multiple regional exploration programs underway, including Cerro Lindo, where activities started in March with construction completed and drilling now underway. During the second half of April, we also began our first phase of our 2026 drilling program at Arizaro. This 11,400 meter program is designed to test for deeper, fertile, intrusions and proximal magnetic anomalies, followed by resource expansion. And finally, as of today, exploration work has started at the Rio Negro properties in Southern Argentina, where surface mapping and sampling is underway. Drilling is planned for September after the winter break.

Let me now turn to Caylloma in Peru. Caylloma continued to stand out as a very consistent and reliable operation, delivering predictable performance quarter after quarter. In the first quarter, mining and processing volumes were fully in line with plan, and we benefited from higher head grades, particularly in silver and base metals. This translated into higher silver production of 258,000 ounces, up 3.5% quarter-over-quarter and strong and stable base metals output of 11.5 million pounds and 8.2 million pounds of zinc and lead, respectively.

Mine production totaled 136,700 tonnes of ore in the first quarter, which continues to come from well-established mining zones from the Animas vein, Simoide vein and Ramal Carolina vein, which supports operational stability and predictability. From a financial perspective, Caylloma also delivered a strong quarter, generating sales of $34.6 million and maintaining a solid EBITDA margin of 62% of sales. This reflected the combination of higher realized metal prices and disciplined cost management.

On costs, we reported cash cost of $30.26 per ounce and AISC of $44.36 per ounce of silver equivalent, similar to the fourth quarter of 2025. This was mainly explained by the increased impact of higher prices on the silver equivalent conversion, while production costs remained in line with plan for the quarter. So the underlying operating cost base remained stable and well controlled.

Finally, on exploration. The 2026 campaign commenced in February, targeting extensions to ore shoot 3 and 4 at the Animas Zone where mineralization remains open at depth. Thank you, and back to you, Jorge.

Thank you. We'll now go over the financial highlights with our CFO, Luis?

Yes. Thank you. I will provide a brief review of our consolidated financials. Attributable net income, as highlighted by Jorge was -- for the quarter was $111 million or $0.36 per share. That's up 64% versus the prior quarter and up 200% versus the prior year. Our strong performance was driven by record metal prices with cost per ounce in line with our full year guidance.

Our average realized gold price was $4,884 per ounce compared with $4,166 per ounce in Q4 of 2025 and $2,884 per ounce in Q1 of 2025. Cash cost per gold equivalent ounce was $951, broadly consistent with the prior quarter and slightly above Q1 of 2025.

A brief comment on inflationary trends and indicators. We have not seen any material impact on our cost structure to date. In Q1, we saw higher input costs for certain materials, though not consistently across all regions. For fuel, specifically, we have seen rising prices at our Peruvian operations, while in Argentina and at Ivory Coast, we have not yet seen any meaningful pass-through from higher oil prices. We will continue to monitor the situation.

A few comments on the financial statements. General and administration expenses were $27.8 million, up $3.9 million year-over-year, primarily due to higher year-end bonuses and the timing of corporate and subsidiary expenses. We recorded a foreign exchange loss of $2.1 million, driven primarily by modest depreciation of the euro and the West African franc against the U.S. dollar from January through March, together with our net monetary asset position, including cash balances and VAT receivables.

Our effective tax rate was 33% for the quarter compared with 28% in Q1 of 2025. The increase reflects an inflection point in our deferred tax position at Lindero in Argentina. In the current metal price environment, we are utilizing existing tax shields at a faster pace and transitioning from a deferred tax asset to a deferred tax liability position.

As a result, we expect to begin recording deferred income tax expense for Lindero in 2026. This is an accounting charge only as we do not expect to incur current income taxes in Argentina until 2027 with first cash tax payments likely in 2028. At the consolidated level, we expect the effective tax rate to step up in the remaining quarters of 2026, such that the full year rate ends up in the high 30% range. This compares with a roughly 28% to 30% level we've reported over the past few quarters.

Moving to the cash flow statement. We generated $174 million of free cash flow from ongoing operations, which excludes new development projects and growth initiatives. We also expect to pay approximately $140 million of taxes in 2026 with the majority paid in Q2 and Q3, about 50% in Q2 and 35% in Q3. As a result of this timing and all else being equal, we should expect somewhat lower free cash flow over the next 2 quarters.

In the investing section, additions to property, plant and equipment were $45.3 million, including approximately $28 million of sustaining capital and $17 million of nonsustaining spend. The nonsustaining total included $8.8 million at the Diamba Sud project and $8.6 million in brownfields and greenfields exploration.

Turning to the balance sheet. We ended the quarter with $665.9 million of cash and net cash of $493 million after financial debt. Net cash increased by $111 million versus year-end, reflecting strong free cash flow from operations, partially offset by $17.4 million of growth capital and $24.5 million of share buybacks. Total liquidity was $816 million, including the full $150 million undrawn amount under our revolving credit facility.

Thank you, and back to you, Jorge.

Thank you, Carlos.

We would now like to open the call to questions. Holly, please go ahead.

[Operator Instructions] Your first question for today is from Mohamed Sidibe with National Bank.

Maybe if I can start with Séguéla. During the quarter, you reported a cash cost around $678, which is below the guidance of $735 and $815. Would you be able to give us a little bit of color on what's leading to that cost outperformance like understanding that you produced 42,000 ounces, but is there any improvement in the unit mining costs or unit processing costs that you're seeing with -- and any commentary as well as impact on fuel in country would be very useful.

David, do you want to tackle Mohamed's question?

I can touch on a couple of the factors there. There's probably 3 main drivers being cash cost for the first quarter. The first one, obviously, which you've already mentioned is that we increased our gold output compared to previous quarters, moving to 42,000 ounces, so probably about 14%, 15% higher on previous quarters. The other drivers would be an accounting aspect depending on the schedule. The stripping either falls into the OpEx component or is part of the sustaining CapEx, which obviously doesn't form part of the cash cost per ounce.

The other component was just with regard to the scheduling within the mine plan. Our stripping ratio within the quarter was 13.9 (sic) [ 13.9:1 ], which was probably a little bit lower than our forecast over the year stripping ratio, which at the moment is scheduled to be around a little bit over 16 for the year. So those are the 3 components of simple accounting one in terms of which property calls into a lower strip ratio for that particular quarter and then the additional ounces produced.

That's very helpful. And maybe on the unit cost pressure in country, are you seeing anything on the fuel, diesel side or anything impacting your mining or processing cost?

Not materially at this stage. We're starting to see some increases in grinding media, but nothing that's material. In terms of power costs, power costs are controlled by the Côte d'Ivoire government. And at this point in time, we haven't been informed of any significant increases in gazetted power costs.

Great. And maybe the second question on the Diamba Sud, I know that the technical report for that is likely due -- or an update due by the end of -- what's the status of the permit with the [ Senegal ] government? And do you have any update on that front?

Well, with regard to the permitting of Diamba Sud, so the ESIA was submitted towards the end of last year. As we said in the commentary, we are expecting to receive the approval on that potentially within the next week or so, certainly very imminently. The exploitation permit we would expect to be sort of in the middle of this year. So everything seems to be progressing pretty much in line with what we have outlined.

Your next question is from [ Sidney Beckman ] with Sternella.

I had a question around the cash and acquisition mandate. Specifically, when you're evaluating a West Africa acquisition, particularly an asset with existing processing infrastructure that you might toll mill or integrate with Séguéla, how deep does your operational technology due diligence go on the target control systems, specifically under the SEC 2023 cyber disclosure rules?

Any material incident as an acquisition asset becomes your disclosure obligation under Form 8-K within 4 business days of determining materiality. So here's the question. If you're buying someone else's mill, their SCADA system, their plant control and their operational network come with it?

Have you built a formal cyber due diligence framework into your M&A process that specifically assesses whether a target has undisclosed incidents or legacy vulnerabilities in their operational technology stack that could become your problem and your disclosure obligation at the moment the deal closes?

The short answer, I think, is no. We have not been looking at targets that are at that level of development. Our latest acquisitions have focused more on predevelopment stage type opportunities like we have done with Chesser -- with the acquisition of Chesser Resources, which brought the Diamba Sud project to our portfolio back in 2023. That was a predevelopment stage opportunity. We have made other investments.

For example, we expanded our presence to Guyana that was announced a few weeks ago through an option agreement to form a joint venture, but that's pre-resource type opportunities. So our acquisition M&A mandate right now is focused more on predevelopment stage opportunities. And I will have to refer to my lawyer to answer your question in more detail.

Your next question for today is from Eric Winmill with Scotiabank.

Congrats on a good quarter. Just maybe on Guyana, if you don't mind, just walking through a bit about what attracted you to the region. Obviously, huge perspective. Do you see an opportunity potentially to accelerate your investments there or maybe give more in country in Guyana?

Yes. Absolutely, we've been monitoring the Guyana Shield in general for some time for over a year. It's been in our watch list. As you well know, the geologic setting is very familiar to what we have in West Africa. So we've been monitoring and searching for opportunity. And this recently announced Quartzstone auction agreement, I believe, is a very exciting entry point into the Guyana Shield.

I was in Guyana only a few weeks ago, had the opportunity to meet with the Director of Mines, the Director of the Secretary or Minister of Natural Resources and Environment and the President of the country. There was a very consistent pro-business message from state authorities.

And the Quartzstone is on its own, a very exciting opportunity. If we want to look at it from the proximology lens, it's some 30, 35 kilometers away from where [ G Stone ] G2 sit with their exciting discovery. And we are in a very similar geologic setting, met the sediments, met the volcanics around against an intrusive through a big structure that hosts gold over a 26-kilometer stretch within the property.

So lots of exciting geology there, lots of gold, and we have an exciting program there for us. And right now, we're very much focused not only on Quartzone, but expanding our presence in Guyana. We're looking at opportunities in Suriname as well. So I would say that those 2 places are where we find a bit more of opportunity and areas of focus for us right now.

Okay. Fantastic. Maybe just one more, if you don't mind. So you're now planning to access Sunbird underground here from the open pit right instead of the Boxcut. That's going to start probably next year. And is it fair to say you'll be drilling from underground there starting next year? Or what are some of the critical path items you're looking for on the development path of Sunbird underground...

There was a bit of interference on the line. But if I understand -- you're referring to drilling -- the exploration drilling or you're referring to the start of development, underground development?

Yes. Just wondering about sequencing there, some of the critical path items and whether we should expect drilling from underground there as well.

Drilling will continue to take place from surface all through 2026 and very likely well into 2027. We're drilling deep holes right now. It would certainly be more efficient to drill from underground, but it will be some time until we can develop that infrastructure, probably late into 2027 is when we will be in a position like that.

For now, we are enjoying a lot of success with our drilling at Sunbird Deep, where we're planning the underground mining. And we'll continue to pursue that over the next at least 18 months, perhaps 24 months from surface.

Your next question for today is from Adrian Day with Adrian Day Asset Management.

A couple of questions, general questions, if I may, and I'll ask them together because they kind of are connected. So first of all, I don't know if you could give us a sort of overview of current exploration activities, particularly greenfields exploration, not the stuff of Séguéla, you've already talked about, but mostly greenfields.

And how do you view greenfields exploration versus taking equity stakes in existing companies because you've got a couple of those that you've done recently. And then that brings us to Guyana. And in your minds, how do you view taking on an additional -- if you were to take on a mine in an additional country, would you look at that as an opportunity to diversify your risk? Or would you be more cautious on just adding one more country with its own needs and requirements, et cetera? I'm just trying to see how you view all these different activities.

Yes. And good questions, and I will start from the end, replying Adrian, from your last -- the last question on diversifying risk. We are quite clear that Fortuna has a business model where we play in -- sometimes in the frontier. For us, mining has always been a frontier business, and we're happy to play in the frontier. We're designed for that. Everybody here is experienced with that.

And what do we ask in exchange for taking the higher perceived geopolitical risk. We must be asking for something in exchange when we take on that higher geopolitical risk. And what we ask in exchange, for example, is what we are enjoying right now in Senegal. Our time to cash flow is very short. As David pointed out during his intervention, David Whittle, we submitted our environmental impact and social assessment to the government in the month of September and we are expecting the approval of the environmental study imminently.

So that's going to be 7, 8 months to get full environmental and social approval from authorities to move ahead into construction, right? So those are the type of things we ask in exchange for that higher perceived in my mind, geopolitical risk. But we are not blind to the fact that there is geopolitical risk, right?

So we have -- if you see our NAV, the NAV of the company does not sit in one large asset. Our mines are not concentrated in one country. So I believe we have a good diversification of our mines, our projects, and therefore, our NAV is not if you will, at risk in just in any one jurisdiction, right? So that also brings the -- I believe what was your point, managing that geographic dispersion.

As you know, we are centered in West Africa and in Latin America. And we manage the business from hubs, West Africa is managed from Abidjan, where David Whittle is our Chief Operating Officer, looking after the business there. And then on LatAm from the Lima office, where Cesar Velasco looks after the business there.

So we believe we can provide efficient cover to the regions from these management hubs and manage the complexities and demands of the different jurisdictions. With respect to Guyana, just some facts about doing business there. In Guyana, for example, once you are granted an exploration permit, the drilling permits, once you're granted an exploration license, the drilling permits come already granted with that. There is no additional permitting required to carry on with exploration.

So again, once again, it's a new jurisdiction. It's not necessarily a proven mining jurisdiction. But again, it offers tremendous opportunities, not only on the geologic endowment, but also on the East to do business. We will likely be reducing dramatically our presence in Mexico. We are not seeing a significant change in business climate in Mexico and our work to date has not yield anything that meets our investment criteria.

So you will likely see us transferring resources from what we have been doing in Mexico into the Guyana Shield, basically Guyana, Surinam right now. Quartzstone is a good anchor project, and we would certainly look to expand our presence through new opportunities in those 2 countries for now, right? And then you asked about greenfields versus equity stakes. We do not have a set budget or to make equity investments.

Our assessment of equity investments is more like, I would say, by appointment. If there is something a geology we like and a team we like, that's very important. We spend a lot of time not only knowing the geology, but also the people behind the programs.

We would be willing to make an equity investment, just like we did with Awalé in Côte d'Ivoire. We are the largest shareholder of Awalé Resources. We own 15% of the company. And Awalé has a very exciting discovery and continues expanding in geology that is of a lot of interest to us, right? They continue to have a success there.

So our greenfields are focused within the regions. We are active in Côte d'Ivoire. We're active in Guinea. We're active in Senegal. We are retreating from Mexico, moving resources into Guyana, and we're active in Argentina. We're always looking for opportunities in Peru. So those are the areas where we're playing, and we'll make investments more by appointment rather as a specific strategy and budget to make capital or equity investments. That was a long-winded answer. I don't know, if that addressed your...

No, that was really great.

[Operator Instructions] We have reached the end of the question-and-answer session, and I will now turn the call over to Carlos for closing remarks.

Thank you, Holly. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Mining. Have a great day.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Good day, everyone, and welcome to the Fortuna Mining Corp. Fourth Quarter and Full Year 2025 Financial and Operational Results Call. [Operator Instructions]

It is now my pleasure to hand the floor over to your host, Carlos Baca, Vice President of Investor Relations. Sir, the floor is yours.

Thank you, Matthew. Good morning, ladies and gentlemen, and welcome to Fortuna Mining's conference call to discuss our financial and operational results for fourth quarter and full year 2025. Hosting today's call on behalf of Fortuna are Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; David Whittle, Chief Operating Officer, West Africa. Today's earnings call presentation is available on our website at fortunamining.com.

Statements made during this call are subject to the reader advisories included in yesterday's news release, in the webcast presentation or management discussion and analysis and the risk factors outlined in our annual information form. All financial figures discussed today are in U.S. dollars unless otherwise stated.

Technical information presented has been reviewed and approved by Eric Chapman, Fortuna's Senior Vice President of Technical Services and a qualified person as defined by National Instrument 43-101.

I will now turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder of Fortuna Mining.

Thank you, Carlos. Good morning, and thank you for joining us today. I'll start very briefly with the quarter before moving to our growth outlook.

In the quarter, we delivered record adjusted net income of $0.23 per share, generally in line with analysts' consensus. Net cash from operations before working capital adjustments was a strong $0.48 per share, exceeding consensus estimates of $0.43. We also generated record free cash flow of $132 million for the quarter and again, record $330 million for the full year, highlighting the strength of our operations and balance sheet, which ranks amongst the strongest in our peer group, with over $700 million in liquidity and a net cash position of approximately $380 million.

With that context, let me turn to the more important part of the story now, which is growth and value creation. As we have stated, our objective is clear: to grow Fortuna to more than 0.5 million ounces of annual gold production from long-life assets, achieving this over the next 24 months. This will represent approximately 65% growth from current production levels. Importantly, this is growth that we control. The ounces are already contained within our mineral inventory across advanced projects in our portfolio. As this production comes online, we expect it to translate into meaningful growth in free cash flow per share, supported by scale, asset quality, good geographic distribution and capital discipline. The delivery of this growth is driven by 2 core assets: Diamba Sud in Senegal and Seguela in the Ivory Coast. Starting with Diamba Sud, the project continues to advance on a fast track approach towards a formal construction decision in midyear, aligned with the publication of the feasibility study. This morning, we released an updated mineral resource estimate, showing a 73% increase in indicated resources to 1.25 million ounces of gold, which will form the key foundation for the study. For 2026, we have approved a $100 million budget at Diamba Sud, with $67 million of that allocated to early works, which include the camp facilities, major excavations and other enabling infrastructure. We began breaking ground this week and we filed our exploitation permit application earlier this month, marking important execution milestones. Mineralization at Diamba remains wide open, and we continue to carry out aggressive drilling in parallel with project development activities as we pursue further resource growth while growing, continuing and derisking project time line.

Turning to Seguela. We're preparing for the next phase of growth through a plant upgrade study currently underway, evaluating throughput expansion options that potentially take the mine to 200,000 ounces of annual production. This work builds on recent reserve growth and position Seguela to deliver higher production and cash flow from an already high-quality long-life asset.

In summary, Fortuna's growth to over 0.5 million ounces is visible, controlled and executable, supported by a strong balance sheet, a sound base of mineral resources and reserves and a clear focus on per share value creation.

With that, I'll turn the call over to the operating team. David, do you want to share your update?

Thank you, Jorge. Seguela delivered another strong quarter and for the second consecutive year, exceeded the upper end of production guidence. This consistent outperformance reflects the strength of the operation and the quality of the asset. Encouragingly, recent exploration drilling results providing further momentum, presenting opportunities to increase production levels beyond the current mine plan assumptions. At Diamba Sud in Senegal, the project continues to advance on schedule, early works programs have been approved, key contracts have been tendered and awarded and the project team is mobilizing in preparation for the next development phase. Importantly, during the fourth quarter, no significant incidents were recorded across our West African operations, underscoring our commitment to maintaining a safe and healthy workplace for all personnel.

At Seguela, we produced 36,942 ounces of gold in the fourth quarter, consistent with prior quarters and ahead of the mine plan. For the full year, production totaled 152,420 ounces, exceeding the upper end of guidance by 4%.

Mining during the quarter totaled 340,000 tonnes of ore, at an average grade of 3.71 grams per tonne gold, along with 3.92 million tonnes of waste, resulting in a strip ratio of 11.5:1. The processing plant created 410,000 tonnes of ore at an average grade of 3.01 grams per tonne gold, with throughput averaging 214 tons per hour. Ore was primarily sourced from the Antenna Ancien and Koula pits with waste mining also commencing for the Sunbird pit. The Sunbird underground project continues to advance strongly. Based on drilling completed through to the end of June 2025, we declared a reserve of just over 400,000 ounces.

During the second half of 2025, 5 diamond drill rigs were allocated to Sunbird, delivering excellent results that support further resource growth. Given the strength of the Sunbird underground and the incorporation of Kingfisher Open pit into the life of mine plan, we've identified an opportunity to increase plant capacity. Like a [ podium ], the original plant builder has been engaged to evaluate expansion options, targeting throughput of between 2 million and 2.5 million tonnes per year. Early indications are positive and we expect to complete the study early this year.

So again a strong operational performance translated into a cash cost of $710 per ounce of gold for the quarter and $679 per ounce for the year. AISC was $1,576 per ounce of gold for the quarter and $1,560 per ounce for the year, at the midpoint of guidance, despite an $86 per ounce impact from higher royalties lead to increased gold prices. Cost discipline remains a clear strength of the operation. In 2026, exploration drilling will continue at pace, with increased focus on infill drilling and step-out testing along [ stopes ] and at depth at Kingfisher as well as continued evaluation of additional targets across the 35 kilometers strike length from the Seguela [ land ] package. Drilling at Sunbird underground will also continue as we advance technical studies and progress permitting activities. Capital has already been allocated for long-lead underground mining equipment.

Turning to Diamba Sud, exploration, environment permitting and feasibility work advanced meaningfully during the quarter. Government approvals were received for early works programs the ESIA during its final stages of approval. Following the rainy season, drill rigs were remobilized at SEMARNAT and other deposits with continued positive results, further strengthening our confidence in this already robust package.

Thank you. Back to yourself Jorge.

thank you, David. Now sure, Cesar will share the update on Lat Am operations. Cesar, please?

Thank you, Jorge, and good afternoon, everyone. Our Latin Africa operation delivered resilient performance in 2025 with no reportable safety incident, supported by strong production execution during the first 3 quarters of Lindero and consistent results at Caylloma throughout the year, where base metal production exceeded the upper end of guidance.

Fourth quarter results at Lindero by impacted by mechanical downtime in the crushing circuit, which affected full year production. At Lindero, full year gold production totaled 87,489 ounces, approximately 6% below the lower end of guidance, affected entirely by the fourth quarter production, which totaled 19,201 ounces of gold, driven by 2 independent mechanical interruptions during the same period. An engineering review identified the structural fatigue risk in the primary crusher foundations. To address the root cause, we have approved a 35-day foundation replacement schedule for late March 2026 at an estimated cost of $2.2 million. Ore is being pre-stockpiled to maintain stacking continuity during the repair. This has been fully considered within our production plan and guidance for the year. From a financial perspective, Lindero generated $294.2 million in annual gold sales and EBITDA margin remained strong at 57% to sales.

Cash cost of $1,117 per ounce of gold for Q4 and $1,132 for the year, well within guidance range. Q4 all-in sustaining cost improved to $1,639 per ounce of gold due to lower sustaining capital and reduced stripping, offset by the impact of maintenance interventions and temporary crushing solutions. AISC for the full year of $1,716 per ounce within guidance range. We are currently conducting approximately 6,500 meters of diamond drilling below the pit bottom, where mineralization remains open at depth. The objective of this program is to upgrade and estimated 40,000 ounces of inferred resources to the indicated and measured categories. These resources are located beyond the limits of the current final pit design and the resources pit shell. Lindero remains a high-margin, long-life mine with strong fundamentals.

Now turning to Caylloma, the operation continued to deliver consistent and disciplined performance throughout 2025. In the fourth quarter of 2025, Caylloma produced 250,000 ounces of silver at an average head grade of 65 grams per tonne, maintaining production levels in line with the previous quarter. Zinc and lead production totaled 12.1 million and 8.4 million, respectively, at an average head grades of 4.32% zinc and 2.95% lead. Production remained steady quarter-over-quarter as mining continued from the same levels and stopes, supporting predictable milled feed and recoveries. For the full year production of [Technical Difficulty]

Ladies and gentlemen, please remain on the line while we reconnect the speaker to the conference room. Thank you for your patience. Once again, ladies and gentlemen, please remain on the line while we reconnect the speaker to the conference room.

Once again, ladies and gentlemen, please remain on the line while we reconnect the speaker to your conference. And Carlos your line is connected. Your line is live.

Yes. We're back. Okay.

I think we can move on to the financial summary with the CFO. Luis, please go ahead.

Thank you. So attributable net income for the quarter was $68.1 million or $0.22 per share. On an adjusted basis, excluding noncash charges, net income was $71.3 million or $0.23 per share. This represents a significant increase over the $0.06 reported in Q4 of 2024 and the $0.17 in Q3 of 2025. Year-over-year, that increase was primarily driven by higher gold prices. We realized an average price of 4,166 per ounce, an increase of over $1,500 per ounce, while consolidated cash costs rose only marginally by 5% to $971 per ounce. This pricing benefit was partially offset by lower production volumes stemming from the HPGR downtime at Lindero in December, as referenced by Cesar.

Compared to Q3 of 2025, the $0.06 increase in EPS was similarly driven by a $700 per ounce rise in realized gold prices. I will take a couple of minutes to make a few other comments pertaining to certain items of our annual results. We recorded $26 million in general and administration expenses for Q4, which includes $6.9 million in stock-based compensation. This total is $9.5 million higher than Q4 of 2024. This increase was driven by 2 main factors: $5.3 million related to higher stock-based compensation due to our year-over-year share price appreciation; and $3.5 million in higher site level G&A, primarily due to timing of expenses. A full breakdown is available on Page 10 of our MD&A. Looking ahead, we expect quarterly G&A, excluding stock-based compensation to range between $14 million and $16 million across our corporate and site operations.

Continuing with G&A, full year expenses totaled $97.7 million, an increase of $29 million over 2024. About 2/3 of this variance, approximately $20 million stems from stock-based compensation, driven once again by the year-over-year appreciation of our share price. We recorded a foreign exchange loss of $2.9 million for the quarter and $7.8 million for the full year. The annual figure includes a $13.8 million realized foreign exchange loss, primarily driven by our operations in Argentina. Notably, over $6 million of this realized loss stemmed from cash balances held [ in country ] during the first half of the year. However, this was fully offset by hedging strategies we implemented to protect the U.S. dollar value of our local currency.

Interest and finance costs for the quarter were $2.6 million, which is $3 million lower than Q4 of 2024. And for the full year, interest costs totaled $12.3 million. This is a $12 million decrease from the previous year. This improvement was driven primarily by a significant increase in interest income which rose to $14.5 million in 2025 compared to $3.7 million in 2024, reflecting our growing cash balances.

Finally, on the income statement, our effective tax rate for the fourth quarter was 33%, while the full year 2025 rate was 26%. These figures reflect the statutory tax rates in our operating jurisdictions as well as withholding taxes associated with the repatriation of profits. Looking ahead to 2026, we expect our effective tax rates to average between 30% and 33%.

Moving to cash flow and liquidity. Our total capital expenditures was $44.5 million for the quarter and $178.1 million for the full year. Of the annual total, $109 million was dedicated to sustaining capital and $69 million to growth initiatives. This growth spend included $48 million for exploration across Diamba Sud, our operating sites and greenfield initiatives, along with $14 million to advance the Diamba Sud project.

Free cash flow from ongoing operations, which accounts for sustaining capital reached $132 million for Q4 and $330 million for the full year. This represents an EBITDA conversion rate of 84% and 60%, respectively. We ended 2025 with $704 million in total liquidity, a $327 million increase over 2024, driven by our strong operating results and the sale of Yaramoko earlier this year. Back to you, Jorge.

Carlos. That's all for management, and we can open the floor for Q&A.

[Operator Instructions] Your first question is coming from Mohamed Sidibe from National Bank.

Maybe my first question, I can start with Diamba Sud and the positive resource update that you provided this morning. How should we think about the upcoming technical report? Will the increased resource be geared towards extending the mine life there? Or should we think about an improvement of the production profile in the first 2 to 5 years with maybe a little bit tonnage than previously expected. Any color would be great there.

Yes. No, we do not anticipate this will lead to a change in throughput against what we presented in the PEA, which was released in October. So this will, I believe, have 2 impacts this new update Mohamed, one will lead to an extension of life of mine, right? And second, the new resources coming in come at a higher grade. So the new deposit in the inventory is Southern Arc, which today is the largest deposit at the Diamba Sud camp. And it is also the highest grade one. So at 1.9 grams, I do would expect that annual production -- the annual production profile benefits to some degree from that uplift as well.

That's clear on that front. And then so I guess a little bit more high grade in the front and then the lower grade material from the other assets can be used to extend the mine life there. If I can maybe ask yourself or David, maybe on the gold price assumption. So Diamba, you took it from about $2,600 to $3,300 per ounce. What was -- what are the key drivers behind that assumption? And if you can walk us through any reasoning behind that, using that price for the resource, please?

Yes. That is the resource that we have used. Right now, everybody is adjusting their price decks and we are using the methodology we use, the number we derived is $3,300 for the resource. So you should anticipate that for the reserve estimate, we use a lower gold price. Just as a reference, for our budgets and reserves for 2026, it's something we estimate with a cutoff date of -- in the second half of the year. And we use $2,600 gold for the resources and $2,300 gold for the reserve. So you should anticipate we use for reserves a lower number, a lower gold price compared to the 3,300 in the resource.

That's great. And then maybe my final question on just the broader portfolio. I know you already guided to 2026, but how should we think about the cadence of production in the first half versus second half, specifically as with shipping at Seguela and production at Lindero? Just any color there would be appreciated.

Production through the year should be, in general, steady. The only one is Lindero, where production in Q1 should be -- Q1, Q2 should be expected to be a bit on the softer side as -- that's part of our plans. As Cesar described, we are engaged in improvements, changes to the foundations of the primary crusher and then gradually picking up a bit better in the second half of the year once all of those works are complete. Where do -- we do see an more variation is in AISC through the year. We do expect a bit of a higher AISC in the beginning of the year, smoothing out, lowering throughout midyear into the second half to be where we guided, right? And that is just a function of capital expenditures being a bit more heavier in the first half of the year compared to the second half.

[Operator Instructions] Your next question is coming from John Pereira.

Sorry, I -- my line got disconnect. I'm not sure if there's any duplication from the previous caller. My questions are -- 1 of my questions is similar and really in terms of -- you talk about your plan to get to 500,000 ounces. And I'm just wondering if we could hear a little bit more color around that when you look at Seguela at current running rate of, we'll say, 160,000 ounces annually, if you can indeed achieve a 40% increase through your studies, that takes you to 225,000. And then obviously, Diamba Sud, if that goes forward, would contribute. So I'd just like to understand a little bit more color on from the various projects, how you equate to 500,000 when you expect or how does that ramp over '26, '27 and '28? Answer whatever you can. I know I'm asking a lot here.

And then in terms of cost for the various projects for example, in Seguela, if we want to move that from 160 to 225, do you have a sense of what the CapEx cost would be for that? Diamba Sud talked about in terms of previous news releases and in terms of capital costs. But can you just give a little bit more flavor and then maybe if there's any increase in production expected from Lindero as well?

Yes, absolutely. Let's start with Seguela. Seguela is a mine that was originally designed to operate at a throughput rate of 1.25 million tonnes per year. That was the nameplate capacity of what we built and commissioned in mid-2023. Today, the mine is operating. For 2026, we have budgeted and guided for 1,750,000 ounces of throughput in the year, right? Our aim is to take it to 2.2 million, 2.3 million tons per year. That is a brownfields expansion of the processing plant. We're well advanced with the studies, and we have confidence right now that technically, it's a very straightforward project. Most of the work will reside on the wet portion of the circuit, be it that thinners, pumping capacity, leach tanks. And we will certainly have to add a regrind ball mill. But as we understand it today, very little work will likely take place on the combination. So I can give you a broad range of the figure, we believe, will be required to materialize this expansion right now as the study is not complete, but the order of magnitude is in the range of probably $50 million, $60 million to $100 million on the high end. And by midyear, we will have a trade-off between the different options that we have and certainly final numbers for that. But in terms of order of magnitude, those are the magnitude we're talking about, right? In -- but of course, the processing capacity is just a portion of this project because the foundation for this resides in the resource and in the reserve. And we just published a few weeks ago, an updated reserve and resource estimate for this mine. And what we're showing is that we have 1.5 million ounces of gold in reserves and 400,000 ounces in the indicated category and 700,000 ounces in the inferred. And we continue drilling and finding more. So you should expect that before midyear, probably April, May, we will be updating again the resources and reserves for this mine. And it will be a constant deterioration for the next foreseeable future because we are having -- enjoying a lot of success with our drilling. So that is the foundation really for the expansion. And we are targeting 2.2 million tonnes per year, 2.3 million in that range. That range still needs to be well defined in the study. And that, with the grades we have in the reserve and in the resources that we do our modeling, should lead to a production in the range of 200,000 ounces of gold annually. So that is our target based on the work we're delivering. When can we achieve this? If we have a study completed by mid-2026, I think a project of this nature, advancing it at a fast pace, we're not subject to any financial limitations on this one, we can advance it quickly and expectation would be that 12 to 18 months, I think, would be -- probably the limiting factor is delivery times on key equipment, for example, a rig or a mill, right? Right now, delivery times are around 12 months. So 12 to 18 months, I believe, is what should be expected from the gold decision. We might a long way decide to derisk the time line, advancing with some early purchases. That's something that we can consider. But we are not there yet. We're still in the study phase. Moving on to the Diamba Sud, the same. Diamba Sud has a robust rich resource. We just updated it. We are very confident on the technical viability and economics of this project. We have a very strong PEA published in October that using $2,750 gold yields, an internal rate of return of 72% for our investment. So -- and that was with a smaller resource. So now with the figures we just updated, those -- this new resource, 1.25 million ounces indicated are going to inform the feasibility study that we aim to publish in May, June. But we are confident and the best use of our funds right now is advance the project in a way that we derisk the time line for first gold. So we have decided to commit this year $100 million for the Diamba Sud project and $67 million of that $100 million figure are allocated for early works. What does that entail? We're building the camp. We are initiating excavations. We plan to initiate excavations on the water storage facility and other ancillary infrastructure. We are planning to purchase -- place early purchase orders for critical equipment packages, power generators, SAG mill and other equipment packages. Placing those early orders will not only help secure our budget through the construction but also safeguard or time line to first gold. Everybody is happy right now about $4,000, $5,000 gold, but no one is thinking that everybody now wants to build a gold mine and the delivery times on the critical equipment that we use, the consumables or mines require, the people needed to execute all of these are quickly going to come in high demand and shortage, right? So how are we mitigating that risk? Putting our capital to work and advancing as much as we can, placing early -- getting ourselves early in the queues for critical equipment, securing the best people and the best teams from the engineering firm. So we're doing a lot of that right now.

What do you consider long life? So you took a long life mine. You talked about 8 to 10 years is what you may be comfortable with?

The target for us is a decade. We need to see not solely on reserves, but also considering at least our resources, we need to see a decade, a decade plus. Yes.

So that tells me that we say within the next 2 or 3 years, you want to ramp to 500,000, 0.5 million ounces per year, then you are obviously in aggregate, going to target a resource of close to 5 million ounces through the various projects. So I guess you're well underway, certainly with Seguela, right? And Diamba Sud at 1.5 million [ ounces ] already, right?

Let me help you there. if I do something in -- currently today in our aggregate or consolidated reserves, if you look at our website, what you will see is that we have 3 million ounces in reserves today on a consolidated basis, 2.2 million ounces in indicated resources, which are of good quality and it's just a function of timing until we start converting a big chunk of that into the reserve. And we have 2 million ounces of gold in inferred categories, plus $50 million in drilling being spent this year in exploration, not just drilling, but exploration. So the aggregate number, if I aggregate, which the regulators don't like, but if I -- just for the sake of conversation, the aggregate is over 7 million ounces. So we feel comfortable we have the resource base and reserve base to achieve our ambition.

Right. Do you still have anything -- any exploration going on in Mexico?

Yes. We do have some early stage exploration at 2 projects. One is being currently drilled. We don't talk much about those because those are early stage exploration. But yes, we still do some work. It's not a significant portion of the overall budget, but we're still there.

Okay. Great. And then just lastly on Lindero. Where do you see that the production for Lindero going? Is there any growth or expansion plans planned for Lindero?

Today, Lindero enjoys a decade in reserves, right? Reserves and resources, we clearly have a -- we're comfortable with 19 years there, right now as it sits. And Cesar touched on this during his intervention. We currently have a drill program because at the pit -- at the bottom of -- below the bottom of the pit, we have a open mineralization and we are targeting -- this is a target of 400,000 ounces of gold that we're currently drilling at the bottom of the pit. How much of that are we going to capture? Let me get back to you once the drilling is complete, but that is the target. And we're drilling -- we're set to start drilling in March, I believe, and so before year -- midyear, that program should be completed, and I expect we'll see a big portion of those ounces coming into the inventory mid in the second half of the year. Our budget there for exploration is about $5 million this year. Yes.

Your next question is coming from Mohamed Sidibe from National Bank.

Just Seguela, maybe as you relate to the underground, could you share some color on when -- about the underground development plans you have there for Sunbird and when we could start to see ore from the underground within your plan? I'm not sure if you can give any color on that front.

Yes. We have, Mohamed, a budget this year of around $14 million that will likely grow some. This year, we want to start the box cut and some purchases of underground equipment. The idea is that we are doing excavations in 2027, so probably late 2027, early 2028 is when we can start seeing production. Remember that we're still permitting. We're still permitting underground. So we expect we can achieve our permits late this year. I was at Indaba with the team, David and the team, we had a good meeting with the Director of Mines. For Sene -- Ivory Coast, and he was very keen to advance with the permitting and with the aim of having it permitted this year. So if we take his word, if we're permitted this year, we can initiate mining next, right? This will require ramps and crosscuts and ancillary infrastructure that will likely be developed throughout 2027 and first production in 2028.

[Operator Instructions] That concludes our Q&A session. I will now hand the conference back to Carlos Baca, Vice President of Investor Relations, for closing remarks. Please go ahead.

Thank you, Matthew. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Mining. Have a great day.

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

Greetings, and welcome to the Fortuna Mining Corp. Q3 2025 Financial and Operational Results Call. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Carlos Baca, VP of Investor Relations at Fortuna Mining Corp. You may begin.

Thank you, Paul. Good morning, ladies and gentlemen, and welcome to Fortuna Mining's conference call to discuss our financial and operational results for the third quarter of 2025.

Hosting today's call on behalf of Fortuna are Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; and David Whittle, Chief Operating Officer, West Africa.

Today's earnings call presentation is available on our website at fortunamining.com.

Statements made during this call are subject to the reader advisories included in yesterday's news release, the webcast presentation or management discussion and analysis and the risk factors outlined in our annual information form.

All financial figures discussed today are in U.S. dollars unless otherwise stated.

Technical information presented has been reviewed and approved by Eric Chapman, Fortuna's Senior Vice President of Technical Services and a qualified person as defined by National Instrument 43-101.

I will now turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder of Fortuna Mining.

Good morning, and thank you for joining us today. The third quarter was a strong one for Fortuna, not only in terms of operational delivery, financial results and continued buildup of Fortuna's balance sheet, but also in the meaningful progress we have made in positioning the company for the next stage of growth.

But let's start with safety. By the end of October, we achieved 318 days or 9.7 million work hours without a lost time injury, our longest streak yet. Our total recordable injury frequency rate improved to 0.86, down from 1.6 a year ago. These results demonstrate our collective commitment to ensuring everyone returns home safe and sound.

Turning to the numbers. We realized an average gold price of $3,467 per ounce, up 5% from the second quarter and up 20% from the first quarter of the year.

Attributable net income reached $123.6 million or $0.40 per share, driven by a $69 million impairment reversal at our Lindero mine.

Adjusted net income was $0.17 per share, impacted by higher share-based compensation due to a rising share price and a $7.4 million foreign exchange loss in Argentina, which both together account to approximately $0.04 per share.

Our strong free cash flow from operations was $73 million with net cash from operating activities before working capital changes at $114 million or $0.37 per share, surpassing analyst consensus of $0.36.

During the quarter, we recorded $13.5 million in withholding taxes related to the repatriation of $118 million from Argentina and Côte d’Ivoire. We expect regular repatriations moving forward.

Overall, our business benefits from higher realized gold prices, improving margins and strong cash generation. As a result, our liquidity position at the end of the quarter stands at a solid $588 million with a growing net cash position of $266 million. This enables us to accelerate our pursuit of multiple high-value opportunities in the asset portfolio across different stages of the project life cycle.

In Côte d’Ivoire, at Séguéla, our flagship mine, we are expanding the life of mine and boosting annual gold output through exploration success at Sunbird and Kingfisher deposits.

In Senegal, our predevelopment stage Diamba Sud project boasts strong economics, advancing towards a construction decision in the first half of next year.

In Salta, Argentina, we're excited to drill for gold at one of the largest untested high-level epithermal anomalies in the north of the country.

The Cerro Lindo project, held privately for years, now offers us an exciting exploration opportunity.

Our strategic investments announced this year in Awalé Resources and JV with DeSoto Resources position us with exciting gold prospects on both the Ivorian and Guinean sites of the prolific Siguiri Basin, which straddles these 2 countries.

And we continue advancing a pipeline of early-stage projects in Mexico, Peru and Côte d’Ivoire.

Our consolidated cash costs remained below $1,000 per ounce.

And all-in sustaining cost at our 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, where we expect it will stabilize.

At Séguéla, the story is inverse. We expect to complete the year on the upper end of guidance but we're coming from a low all-in sustaining cost of $1,290 in first quarter of the year to the current $1,738 in the third quarter. This is driven mainly by timing of capital investments and the impact of higher gold price on royalty payments.

As key investments at Séguéla are completed in Q3 and into Q4 to support our 2026 expanded production of 160,000 to 180,000 ounces of gold, we expect to see all-in sustaining cost in the range of $1,600 to $1,700 per ounce range.

Caylloma will finish just outside its guidance range due to relative metal prices used in gold equivalents. As you know, Caylloma has a significant base metal lead/zinc component to its production.

Now turning to growth. For Diamba Sud project in Senegal continues to advance at pace on a fast-track approach. In mid-October, we released the Preliminary Economic Assessment for an open pit and conventional carbon-in-leach plant, confirming strong economics that support our goal of reaching a Definitive Feasibility Study and a construction decision in the first half of 2026.

Using a gold price of $2,750, the after-tax internal rate of return of the project is 72%, and the net present value at a 5% discount is $563 million.

The mineralization at Diamba Sud remains wide open, and we are drilling nonstop with 5 rigs, expecting to add resources by the time the DFS is published.

On October 7, we filed the Environmental and Social Impact Assessment, expecting the certificate of acceptance in the first half of next year.

Site camp early works are progressing with an approved $17 million Phase 1 budget, and the government is being very supportive, and we have received consent to move ahead with a Phase 2 early works, including the water dam excavations and excavations for other key infrastructure.

We plan to fast track front-end engineering design activities during the feasibility work to shorten and derisk the development time line by securing long-lead equipment early.

Diamba is a project that can bring additional 150,000 ounces of gold of annual production on average for the first 3 years of operations.

Regarding the business environment in key jurisdictions for us, both Côte d’Ivoire and Argentina held national elections in late October. In Argentina, the government's electoral victory in Congress and Senate strengthened its mandate for advancing structural economic reforms. Argentina's business climate has improved significantly and we remain optimistic about the country's trajectory.

In Côte d’Ivoire, President Alassane Ouattara was reelected for a fourth term with a decisive majority. We anticipate the continuation of pro-business and pro-investment policies that have made Côte d’Ivoire one of the fastest-growing and most resilient economies in West Africa.

In summary, Q3 was a strong quarter for Fortuna. Our safety record continues to set new benchmarks. Our operations remain resilient and our growth projects are advancing according to plan. We entered the final quarter of the year with a solid balance sheet, strong cash generation and a clear path of near- to mid-term organic growth driven by Diamba Sud and Séguéla expanded gold output.

I'll now hand the call over to David Whittle, our Chief Operating Officer for West Africa, and Cesar Velasco, Chief Operating Officer for LatAm, who will review their respective operational results. We can start with you, David.

Thank you, Jorge. Séguéla achieved another impressive quarter, delivering excellent results in both production and safety. This positions Séguéla well to exceed upper production guidance for 2025. We have gold output now projected to surpass 150,000 ounces.

Our dedication to safety and environmental excellence remains steadfast, and we are making steady progress toward our goal of zero harm across all our operations. I'm pleased to report that no injuries occurred at any of our West African locations during the quarter.

At Séguéla, we produced 38,799 ounces of gold, maintaining consistency with prior quarters and surpassing the mine plan. Mining during the quarter totaled 272,000 tonnes of ore at an average grade of 3.66 grams per tonne gold, along with 4.43 million tonnes of waste, resulting in a strip ratio of 16.3:1.

The processing plant treated 435,000 tonnes at an average grade of 3.01 grams per tonne gold, with throughput averaging 208 tonnes per hour for the quarter. Ore was primarily sourced from the Antenna, Ancien and Koula pits.

During the quarter, we received permitting approvals for 5 satellite pits, including the Sunbird, Kingfisher and Badior open pits. Several major projects also advanced successfully over the third quarter. The 8.5 million TSF lift was completed, providing tailings storage at current throughputs until late 2029. The replacement of the transmission tower at the Sunbird pit, a $9 million project, progressed well, and we are now prepared to commence pre-mining operations for the Sunbird pit in Q4.

The rock breaker and the primary crusher was commissioned and is operating effectively, further debottlenecking the processing circuit and the 6-megawatt solar plant project is expected to be complete in the first quarter of 2026, which will help to reduce power costs.

Séguéla performance resulted in a cash cost of $698 per ounce and an all-in sustaining cost of $1,738 per ounce, both aligning with our budget. Site costs continue to be managed efficiently with the increased all-in sustaining costs primarily attributed to royalties on the higher gold price.

Exploration drilling at the Sunbird underground project continued in the third quarter with encouraging results. The ongoing success of this drilling, combined with the results from the Kingfisher Deposit provides us with a resource base that offers further opportunities to optimize production from Séguéla.

Whilst current process plant throughputs are focused on maximizing available capacity with minimal investment, we're now investigating in options to further enhance process plant throughput.

Drilling is continuing with 5 drill rigs at the Sunbird underground deposit in Q4, aiming to further expand the underground resource. Engineering studies and permitting activities will continue in Q4 and 2026, with the expectation of commencing underground mining operations in 2027.

The Kingfisher Deposit remains open in all directions and further drilling will be undertaken in 2026 to convert inferred resources to indicated status and further expand the resource.

At our Diamba Sud project in Senegal, exploration, environmental permitting and feasibility activities made significant progress during the quarter, government approvals were received for early works programs, ESIA was submitted for approval and the PEA was published.

Following the rainy season, drill rigs have been remobilized for further drilling at the Southern Arc deposit at Diamba with the aim of enhancing the resource base and building on the strong PEA results.

Thank you, and back to you, Jorge.

Thank you, David. Cesar?

Thank you, Jorge, and good afternoon, everyone. I am pleased to report that both Lindero and Caylloma ongoing multiple safety initiatives are driving continuous improvement and reinforcing a culture of accountability and care across all of our operations, delivering excellent safety performance.

At Lindero in Argentina, we had a strong quarter, achieving our highest gold production this year. Gold output reached 24,417 ounces, a 4% rise from 23,550 ounces in the second quarter, driven by a 5% increase in gold grade and effective inventory recovery from the leach pad.

We placed 1.7 million tonnes of ore on the leach pad at an average head grade of 0.60 grams per tonne containing about 32,775 ounces of gold. With 1.5 million tonnes of ore mined and a favorable strip ratio of 1.9:1, we are well aligned with our mining plan. Processing performance was robust with continued optimization of the crushing circuit achieving an average throughput of 1,061 tonnes per hour, about 8% above the 2024 average, demonstrating progress in our operational efficiency initiatives.

However, on September 27, we experienced an unexpected shutdown of the primary crusher due to mechanical issues involving high amperage and overheating of the pitman shaft, specifically traced to the premature wear of the primary wear parts such as the bushings and bearings.

Replacement parts have been secured and corrective actions are underway to resolve the structural misalignment. We anticipate the crusher will be fully operational by mid-November. Meanwhile, we have implemented effective mitigation strategies such as using a portable jaw crusher and direct Run-of-Mine ore screening to ensure uninterrupted operations. Consequently, we do not foresee any impact on our annual production target.

Regarding costs, the cash cost in Q3 was $1,117 per ounce of gold compared to $1,148 per ounce in Q2, marking a 3% improvement due to higher ounces sold and stable operating conditions. The all-in sustaining cost decreased significantly to $1,570 per ounce from $1,783 per ounce in the second quarter, a notable 12% reduction, supported by lower costs, reduced sustaining capital, higher by-product credit and a 7.7% increase in ounces sold.

Overall, Lindero delivered strong performance this quarter, supported by disciplined cost management, resilient production and solid margins of approximately $2,500 per ounce to our ASIC based on current gold prices.

At Caylloma in Peru, we delivered another steady and reliable quarter of production, meeting operational expectations. The Caylloma mine continues to exceed all of its physical and cost targets for the year, reflecting strong operational execution. However, our reported metal equivalents are being impacted by the silver and base metal conversion factor, which affect the calculation of both the gold and silver equivalent production.

In terms of costs, the cash cost per silver equivalent ounce was $17.92 compared to for $15.16 in Q2, mainly due to slightly lower silver production and higher realized silver prices.

The all-in sustaining cost increased modestly to $25.17 for silver equivalent tonnes from $21.73 in Q2, primarily due to the same factors and fewer silver equivalent ounces sold.

Despite these cost movements, Caylloma maintained healthy margins, supported by strong base metal prices and disciplined operational control. With the current strength in silver prices, we're looking to access some of the highest grade silver zones that Caylloma is known for. These areas, which are better suited to conventional mining methods are becoming economically attractive and once again, under the present price environment.

In summary, the third quarter highlighted strong production growth at Lindero, steady performance at Caylloma and lower unit cost across the region. Our teams in Argentina and Peru continue to execute with discipline and focus, maintaining momentum in operational reliability, cost efficiency and safety as we move into the year's final quarter.

Back to you, Jorge.

Thank you. I'll now hand the call over to Luis, our CFO, who will review financial results.

Thank you. So we have reported net income attributable to Fortuna of $123.6 million or $0.40 per share. This result includes a $70 million noncash impairment reversal at the Lindero mine, which includes $17 million of low-grade stockpiles.

After adjusting for noncash nonrecurring items, attributable net income was $51 million or $0.17 per share. This represents a strong 56% increase year-over-year and a 14% sequential increase over Q2. The growth was driven mainly by higher metal prices.

The cash cost per ounce for the quarter was $942, broadly aligned with the prior quarter and slightly above Q3 of 2024 as a result of higher mine stripping ratios at Lindero and Séguéla after our mine plans.

We have reported 2 nonoperational items impacting our results this quarter. The effect of our stock-based compensation of the increase in our share base during the period, representing a one-time increase to share-based expense of $6.3 million and a foreign exchange loss of $7.4 million. The foreign exchange loss was mostly attributable to our Lindero operations in Argentina as the peso experienced a sharp 14% devaluation in Q3.

For the first 9 months of the year, our FX loss related to the Argentinian operations amounts to $10 million, of which over half is related to the accumulation of local currency cash balances. However, I want to emphasize that we implemented structures to preserve the value of these funds and the FX loss on local cash balances for the full year is fully offset in our income statement through the interest income, investment gains and derivative line items.

We were able to restart repatriation in the month of July from Argentina, and under current conditions, we expect to maintain local cash balances at a minimum. In Q3, a total of $62 million were repatriated, net of withholding taxes.

Our general and administration expenses for the quarter were $26.3 million. This represents an increase over the prior year of $12.6 million. This was due mainly to higher stock-based compensation as explained, plus an increase in corporate G&A of $4 million related mostly to timing of expenses. Our annual corporate G&A remains relatively stable at around $28 million to $30 million, and the breakdown is provided in Page 11 of our MD&A.

Moving to our cash flow statement. Our capital expenditures for the quarter totaled $48.5 million. Of this, we classified $17 million of growth CapEx, which primarily consists of investments in the Diamba Sud project of $6.8 million and exploration activities of around $10 million.

Our anticipated capital expenditures for the full year have adjusted upwards slightly from the $180 million previously disclosed to approximately $190 million. This increase primarily reflects added exploration allocations due to continued exploration success at Séguéla and Diamba.

In terms of free cash flow, we generated $73.4 million from ongoing operations, up from $57.4 million in the prior quarter, reflecting the effect, again, of a higher gold price. And our net cash position increased by $51 million after growth CapEx and other items.

All of this brings our total liquidity to $588 million, and our net cash position to $266 million. This represents an increase of over $200 million year-to-date. In the current price environment, we expect this trend to accelerate.

That's it for me. Back to you, Jorge.

We would now like to open the call to questions. Paul, please go ahead.

[Operator Instructions] And the first question today is coming from Mohamed Sidibe from National Bank.

Maybe just starting with your strong balance sheet, strong free cash flow that you're printing and the elevated gold and silver prices. How are you thinking about your capital allocation priorities. I know you have Diamba coming up. But specifically as it relates to capital return to shareholders as you're looking into next year.

As you pointed out, we have a pipeline of near-term growth. So that is the first priority we have with respect to capital allocation. We expect we'll be making a construction decision on Diamba Sud next year in the first half of the year. We're advancing early works that are trying to derisk the time line and shorten the time line also for first gold at Diamba by advancing these early works.

We are also scoping right now the potential to expand our Séguéla process infrastructure. As you recall, Séguéla was originally designed at 1.25 million tonnes per annum. We're currently running the plant at 1.75 million tonnes per annum, and we're currently doing scoping -- starting scoping work to expand it to the range of 2.2 million, 2.3 million tonnes per annum.

Additional to that, as you have seen, we're expanding exploration work across the 2 regions, LatAm and West Africa. We just expanded into Guinea through a JV with DeSoto. We are expanding our exploration in Argentina. We're currently drilling in Mexico. We're currently drilling in Peru. So that is our first priority and where we believe we can add most value right now.

Second, we have our share buyback program in place. We were quite active with the share buyback program at the beginning of the year, end of last year. We repurchased approximately $30 million worth of stock. The share buyback program remains in place, and today is our preferred way to return to -- capital to shareholders. And we have made a pause in the last 2 quarters with the share buyback program, but we could be active in the market again anytime.

Great. And then maybe if I could shift to operations. So Lindero, the unexpected shutdown and mindful that this has no impact on your annual production target, given the mitigation measures. But how should we think about this for cost into Q4? Should we -- could we see any potential impacts on that front? And any color would be appreciated there.

Yes. I'll let Cesar address the question.

Sure. Well, in particular to cost, we have been able to compensate some of those cost in specifically with regards to the portable rental jaw crusher. So we're offsetting that cost with other noncritical initiatives that we had in Lindero. So we don't expect our cost to be significantly impacted in Q4. That should address.

[Operator Instructions] There were no other questions from the lines at this time. I will now hand the call back to Carlos Baca for closing remarks.

Thank you, Paul. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Mining. Have a great day.

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Good day, everyone, and welcome to the Fortuna Mining Corp. Second Quarter 2025 Financial and Operational Results Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Carlos Baca, Vice President, Investor Relations. Sir, the floor is yours.

Thank you, Matthew. Good morning, ladies and gentlemen, and welcome to Fortuna Mining's conference call to discuss our financial and operational results for the second quarter of 2025. Hosting today's call on behalf of Fortuna are Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; and David Whittle, Chief Operating Officer, West Africa.

Today's earnings call presentation is available on our website at fortunamining.com. Before we begin, please note that during the quarter, Fortuna completed the sale of the San Jose and Yaramoko mines. Accordingly, results from these mines have been excluded from continuing operations for the quarter and year-to-date, along with comparative figures.

Statements made during this call are subject to the reader advisories included in yesterday's news release, the webcast presentation, our management discussion and analysis and risk factors outlined in our annual information form. All financial figures discussed today are in U.S. dollars unless otherwise indicated. Technical information presented has been reviewed and approved by Eric Chapman, Fortuna's Senior Vice President of Technical Services and a qualified person as defined by National Instrument 43-101.

I will now turn the call over to Jose Alberto Ganza, President, Chief Executive Officer and Co-Founder of Fortuna Mining.

Thank you, Carlos, and good morning, everyone, and thank you for joining us. The second quarter reflects the strategic streamlining of our portfolio of assets. Early in the quarter, we completed the sale of 2 mines with short life of mineral reserves, each with less -- each with less than a year in mining left. Naturally, this reduces our near-term production.

In 2024, we delivered a record 460,000 ounces of gold equivalent. With the sale of these mines, our annualized production is now roughly 330,000 ounces. But the key message today is this, rebuilding production to 0.5 million ounces per year, which is strategically where we want to be positioned is fully under our control. And those ounces will be higher margin, longer life and lower risk than before. And here is why we're confident, Seguela, our flagship asset, is on a clear growth path. 140,000 ounces of gold have been guided for 2025 and 170,000 to 180,000 ounces of gold have been guided for 2026 as our expansion plan comes online.

Diamba Sud in Senegal is emerging as our next growth engine. In just 6 months, the indicated resource as recently published grew by 53% and inferred resources by 93% for a combined 1 million ounces. We continue to drill to expand and upgrade the resource and advance permitting and engineering towards a 2026 construction decision. All the exploration work that we've been doing over the past 18 months have really enhanced our understanding of the deposit and our drilling and exploration is really yielding fruit here. And importantly, our robust balance sheet with $537 million in liquidity and $215 million in net cash derisk any growth decision we choose to make.

So, with that growth vision in mind, let's move to our Q2 results highlights. On health and safety first, safety of our personnel remains our top priority, and I am proud to report that we continue to improve. We recorded 7.2 million work hours without any lost time injury. That's a record for the company, up from 6.7 million work hours in the prior record. And our total recordable injury frequency rate was 0.87 for the second quarter, improving from 0.98 in the first quarter.

On highlights from our financial performance, the second quarter was another quarter of strengthening even further the balance sheet of the company and delivering solid margins. Liquidity, again, at $537 million, up $76 million from the previous quarter, driven by $84 million in proceeds from the mine sales.

Net cash was $215 million at the end of the period, up from $137 million at the end of Q1 2025. Free cash flow from operations was a strong $57.5 million compared to $66 million in Q1, primarily due to the timing of tax payments. Our margins expanded with higher gold prices. Average realized gold price was $3,306 per ounce, which is up 14% with respect to what we averaged in the first quarter.

Our EBITDA margin grew to a record 55%, up from 50% in Q1, and our operating margin stood at 36%, up from 28% in Q1. Net earnings from continued operations were $41 million or $0.14 per share compared to $33 million or $0.11 per share in Q1. Our adjusted EPS of $0.14 includes a $17 million withholding tax accrual related to the inaugural full year dividend declared in Cote d'Ivoire for our Seguela mine, equivalent to $0.06 per share.

In Q1, we achieved full payback on Seguela's construction in 21 months, while also canceling all intercompany loans and therefore, the dividend. Cash flow from operations before working capital changes was $97 million or $0.32 per share. On operational performance, our consolidated gold equivalent production for the period was 75,950 ounces. When we look at it from continuing operations, gold production was 71,229 ounces, slightly above the previous quarter and aligned with our full year guidance.

Cash cost was $929 per ounce, up marginally 7% from Q1, mainly due to the gold to base metal ratio at our Caylloma mine, which carries a significant base metal lead zinc component in its production. Our consolidated AISC was $1,932 per ounce, up from $1,750 in Q1. Here, I want to reinforce that all our mines continue to track well to meet annual guidance. However, the elevated consolidated AISC I just mentioned is a temporary and timing effect related to CapEx and waste stripping at Lindero and Seguela. This mine's AISCs will gravitate towards a range of $1,500 per ounce throughout the second half of the year and into 2026.

Lindero's AISC is trending downwards towards below $1,500 per ounce by Q4 following the completion of the leach pad expansion. And Seguela's AISC is expected to rise temporarily towards $1,800 per ounce in Q4, consistent with planned peak in waste stripping in the second half of the year and timing of its capital investments, but staying in the average for the year within annual guidance. Seguela operated in the quarter with a very competitive cash cost per ounce of $670. And our 2025 capital budget of $78 million at Seguela enables the expansion of production guided for 2026.

We have a series of operational excellence and productivity initiatives that aim to drive margin improvements and cost discipline. Across the business, our portfolio of optimization and productivity initiatives is expected to generate between $50 million and $70 million in savings over the next 3 years. These programs span process optimization, equipment utilization, supply chain efficiencies and energy management at our mines. They will enhance cash flow, supporting our cost competitive 0.5 million ounce strategic objective of annual production.

And on closing of my comments, I want to revisit the strategic developments and looking ahead. The sale of the San Jose and Yaramoko mines in the quarter was timely. It not only generated $84 million in gross proceeds, but it also freed approximately $50 million in capital and management bandwidth away from mine closure projects towards high-value growth opportunities, which are better aligned with our strategy.

And looking forward, the Seguela expansion position us for strong growth in 2026. Diamba Sud continues to grow in scale and quality with a 2026 construction decision on the horizon. With this, the future -- the near future growth of the company is within our control. With a robust balance sheet, expanding margins and clear growth pipeline, Fortuna is well positioned to rebuild and surpass 0.5 million ounces per year target with higher margins, higher quality ounces and lower portfolio risk than ever before. In 20 years, I have never seen Fortuna as strong as it is today.

With that, I will ask David Whittle, our Chief Operating Officer for West Africa, to discuss the results of his region. David?

Thanks, Jorge. Seguela and Yaramoko delivered a strong second quarter, achieving solid results in both production and safety. Our commitment to safety and environmental performance remains unwavering, and we are steadily progressing towards our goal of zero harm across all our operations. I'm delighted to report that no injuries occurred at any of our West African operations during the quarter.

During this period, we successfully completed the divestiture of our Yaramoko mine to Soleil Resources, a privately owned Mauritius domiciled resources company, thereby concluding our operations in Burkina Faso. Fortuna operated Yaramoko up until April of 14, producing 4,721 ounces during this time. The decision to divest followed a compelling economic offer and aligned with our strategic priorities. At Seguela, we produced 38,186 ounces of gold, consistent with the prior quarter and exceeding the mine plan, reinforcing our expectations to achieve annual production at the higher end of guidance.

Mining during the quarter totaled 340,000 tonnes of ore at an average grade of 3.33 grams per tonne gold, along with 5.19 million tonnes of waste, resulting in a strip ratio of 15.3:1. The processing plant treated 429,000 tonnes at an average grade of 3 grams per tonne gold with all primarily sourced from the Antenna, Ancien, and Koula pits. The plant operated at an average throughput rate of 210 tonnes per hour. Throughput in June was temporarily reduced due to a major SAG mill reline and other scheduled maintenance, which are now complete. This ensuring smooth operations through to the end of the year.

The third lift of the tailings storage facility, an $8.5 million project remains on track for completion in the third quarter. This will enhance our storage capacity through to 2029, supporting increased throughput and positioning Seguela to achieve the higher end of its 160,000 to 180,000 ounces of annual production from 2026 onward. All other capital projects are progressing and are within budget.

Seguela's performance resulted in a cash cost of $670 per ounce and an all-in sustaining cost of $1,634 per ounce, both aligning with our budget. The AISC reflecting higher royalty expenses driven by the increase in gold prices. Exploration drilling at the Sunbird and Kingfisher deposits yielded encouraging results. Our technical teams are actively working to incorporate these deposits into reserves and mine plans with both remaining open, indicating potential for further resource expansion and bolstering our confidence in Seguela's long-term potential.

At our Diamba Sud project in Senegal, exploration, environmental permitting and feasibility activities made significant progress during the quarter. In addition to our $19 million 2025 budget, we approved an additional $17 million for early works, including ancillary facilities and infrastructure. Infill and extension drilling continued at the main deposits with success, prompting an expansion of the exploration program further to the South and Southeast of the Southern Arc prospect, where newly discovered mineralization remains open. These results enhance our confidence in Diamba Sud's potential, and we look forward to resuming drilling after the wet season in the second half of the year.

Back to you, Jorge.

Thank you, David. Now Cesar Velasco, our Chief Operating Officer for Latin America, will provide us with the highlights of his region. Cesar?

Thank you, Jorge, and good morning, everyone. I am pleased to report a robust quarter for our Latin American operations with both of our Lindero and Caylloma mines demonstrating strong safety, production and financial performance. This bolsters our confidence in the strength and resilience of our regional portfolio. At our Lindero mine in Argentina, we achieved remarkable progress on all fronts. Lindero's operational performance has been a significant success with costs decreasing and stable production, leading to higher margins and strong free cash flow.

Lindero produced 23,550 ounces of gold, marking a 16% increase over Q1. This aligns with our mining plan and keep us on track to meet our annual guidance. Our efficiency initiatives are yielding positive results. Our all-in sustaining cost was $1,783 per ounce, a notable reduction of 6.7% from the previous quarter. This improvement resulted from lower sustaining capital expenditures as the leach pad expansion was under construction in the previous quarter.

As Jorge mentioned, Lindero's AISC is steadily progressing towards our target of $1,400 per ounce by year-end. Our operational efficiencies are also leading to strong outcomes with crushing reaching a new record in June, averaging 1,100 tonnes per hour and stacking achieving a monthly record of 642,000 tonnes. As such, Lindero's cash cost for the second quarter was $1,148 per ounce.

Financially, Lindero's net sales were $75.7 million, a 42% increase from Q1, supported by a strong gold price of $3,293 per ounce. Operating income for the quarter was $29.1 million, nearly 66% higher than the previous quarter and an adjusted EBITDA of $37.9 million, up 34% versus the previous quarter. We generated free cash flow of $35.7 million, reflecting strong operational execution and disciplined capital management.

On the sustainability front, we commissioned our photovoltaic plant in Q2, which generated 1 million watts per hour in June. This supplied approximately 26% of Lindero's power needs, saved nearly $270,000 in diesel costs and avoided an estimated 720 tons of CO2 emissions. This marks a significant advancement in our sustainability strategy.

Moving to our Caylloma mine in Peru. It continued to perform reliably and efficiently. Caylloma exemplifies an operational excellence, disciplined capital expenditure and effective project execution. We successfully completed the new hydraulic paste backfill plant in April with a total investment of $5.4 million. The new plant enables a more efficient and automated process at a lower cost per ton. It also reduces CO2 emissions by eliminating the need to transport the critic material outside of the underground mine, thus eliminating related diesel consumption.

Caylloma's financial results reflect this operational consistency. Net sales were $28.4 million with operating income of $8.7 million and adjusted EBITDA of $11.3 million. Free cash flow was a notable $9 million, driven by cost discipline and operational consistency. The cash cost per silver equivalent ounce was $15.16 and AISC of $21.73 per ounce, both within the lower range of our annual guidance. Overall, our Latin American operations continue to deliver strong and consistent results. We're firmly on track to meet our full year guidance and continue generating long-term value for our stakeholders.

Back to you, Jorge.

Thank you, Cesar. Luis Dario, our CFO, will share the highlights of the quarter on the financial side of things.

Thank you, Jorge. I'll be discussing our financial results and all corresponding figures will be from our continuing operations only unless explicitly stated. We are pleased to report a net income attributable to Fortuna of $42.6 million or $0.14 per share. After adjusting for noncash, nonrecurring items, this figure rises to $44.7 million or $0.15 per share.

Our adjusted results represent a remarkable 380% increase over Q2 2024, driven primarily by higher metal prices and an increase in gold sold. Specifically, we realized gold prices that were nearly $1,000 per ounce higher than the prior year and sold 13% more gold. Our cash cost per ounce for the quarter was $929, about $88 higher than Q2 2024. This is consistent with our mine plans, which contemplate higher stripping ratio at both Lindero and Seguela.

Comparing our results to the first quarter of 2025, our adjusted net income grew by 25%. This was driven by gold prices that were $420 per ounce higher and an 8% increase in gold sold. On a quarter-over-quarter basis, our cash cost per ounce increased by $63, which is mainly attributable to the planned progression of waste stripping at our mines.

One item to note that impacted our Q2 results, as Jorge mentioned, was the recognition of the $17 million charge for withholding taxes. This relates to the first dividend declared at our CDI subsidiary. These taxes will be paid over the next few months and as we repatriate funds. And again, as Jorge emphasized, this represents $0.06 per share impact to our quarterly results.

Moving to our cash flow statement. We generated $92.7 million in net cash from operating activities. It is important to highlight that a large portion of our annual tax payments are concentrated in the second quarter. We paid $36 million, which represent over 40% of what we anticipate paying for all of 2025.

Our capital expenditures for the quarter totaled $47 million. Of this, we classify $15 million as growth CapEx, which primarily consist of investments in the Diamba Sud project and our exploration activities. Our anticipated capital expenditures for the full year are $180 million, consisting of $120 million for sustaining and $60 million for growth CapEx. This includes close to $30 million allocated to Diamba Sud.

In terms of free cash flow, we generated $57.4 million from ongoing operations. This is a slight decrease from Q1 2025 due to the timing of tax payments and higher sustaining CapEx on a quarter-over-quarter basis. With respect to our discontinued operations, the cash flow statement discloses a net cash contribution of $70.6 million for the full year across the operating, investing and financing sections. This figure includes gross proceeds of $83.8 million from asset sales.

Turning to the balance sheet. We've been experiencing delays in collecting our VAT at our Ivoire Coast operations. At this stage, we believe this is an issue related to the electoral cycle and expect collections to start normalizing toward the end of the year. At the end of the quarter, we held $37 million in VAT receivables, which represent approximately 17 months outstanding.

On a very positive note regarding repatriation related matters in Argentina, a favorable change in local prevailing conditions has allowed us to restart repatriation with over $40 million in the month of July, subsequent to the end of the quarter without any significant friction on foreign exchange costs.

Finally, I want to reinforce Jorge's message regarding our all-in sustaining costs. With the exception of factors tied to metal prices such as royalties and fair value adjustments to share-based payments, we are maintaining our revised guidance range for the year. For the second half of the year, we expect Q3 AISC to remain at similar levels to Q2 before coming down in the fourth quarter.

Looking beyond 2025 and considering our expanded production guidance for Seguela, we are targeting consolidated AISC levels in the range of $1,750 per ounce in the current metal price environment.

Back to you, Jorge.

Thank you. And with that, we can open the floor for questions. Carlos?

Thank you, Jorge. Please, Matthew, go ahead and prompt for our -- audience for questions.

Your first question is coming from Thomas Bonovitz.

Yes. Today, I see the stock really has gotten hammered pretty good. But I stepped up to the plate and I bought quite a bit. I bought roughly $50,000 worth. I would assume that everything is running exactly the way you just want, and I hope you would do the same thing and support the stock price. Thank you very much for your time.

Thank you for your comments there sir. And as stated, through the call and as you can see in our financial results, the company has never been stronger. The fact that we have a headline EPS miss against analyst consensus is related to the timing of our withholding taxes. If we adjust for those $0.06, we're above analyst consensus for earnings per share. And with respect to our elevated ASIC, for example, which has been an issue of topic of discussion, it has to do with the fact that we are investing in the business. Our Seguela mine, our flagship asset carries today about $78 million worth of capital that enables the mine to expand production into next year.

So, all of those are positive. There is no free lunch. You need to invest the money to capture the opportunities, and that's what we're doing. All of this with a very strong balance sheet that backs the company, right? We have been very careful in putting together a fortress balance sheet. And we are very comfortable that we can move our business forward, capture the growth opportunities that we have in our portfolio, yes. So, as I said in the call, I never seen Fortuna as strong and better positioned as I see it today, sir.

Your next question is coming from Eric Winmill from Scotiabank.

Just wondering if there's anything additional you can share on some of the investments that you've made in Awale and some of the others? And maybe just sort of strategically, do you see yourself making some more of these investments and ultimately, maybe as a way of gaining additional projects for the pipeline?

Yes. Thank you, Eric. Here, what I would like to say first is that the investments that we have been making over the past 24 months are rendering fruit, right? We have been able to advance Diamba Sud. You've seen the recent publication of our resources. And the near future of the company with respect to expanding ounces is under our control. And that's a key message. We have clear opportunities at Seguela, and we're delivering clear opportunities at Diamba Sud for growth.

On top of that, we are very active across the regions where we work. The Awale investment, Awale sits on a regional structural trend, a basin margin in the Birimian, that is very intriguing to us. We like the team at Awale. They are frugal and they are technically capable. They are steadily advancing with their work, and we like their approach. And -- so -- and they are positioned in an area that is again intriguing to us. So, we've been -- we have invested in the company and look forward to see how their progress advances.

We have other initiatives in Argentina as well for early-stage projects. So, we're populating the pipeline of earlier-stage opportunities. We see a lot of value there. Some of these opportunities might bear higher geologic risk in exchange for lower financial risk to the company because some of them -- a lot of them are early stage. But again, that's where we are finding a lot of value. And we're actively putting together either investments like Awale or option agreements that might lead to joint ventures. And we are active there in Cote d'Ivoire, in Mexico and in Argentina as well there.

Okay. Great. I really appreciate it. Maybe just one more, if you don't mind, shifting gears. But in Senegal, what's your experience to date in permitting? And as that project moves forward, I assume you feel pretty confident being able to get [Technical Difficulty] for development.

Yes. I have met personally with the Minister of Mines and his team on several occasions by now. And what I see is government that's quite supportive of new developments. And -- we recently hosted government officials from the Ministry of Mines and local authorities from Senegal and around Diamba Sud at our Seguela mine in Cote d'Ivoire. It was a very good visit. I think the project is being -- has been -- is being -- continues to be well socialized with the authorities and key stakeholders, and we're finding a lot of support. We're finding a lot of support.

And yes, so far, we are well advanced with our environmental impact statement approval. We're ready to submit in the month of September, and we expect to have an environmental approval early next year, yes.

Your next question is coming from Mohammed Sidibe from National Bank Financial.

Maybe just to follow up on Senegal and the experience in permitting there. For Diamba Sud specifically with the expectation of the environmental approval early next year, could you maybe walk us through the key milestone for Diamba Sud in terms of PEA by the end of the year, then you get the environmental approval? And then what are the next steps? Do we go towards the PFS? Or do you start assessing the potential to take this into construction if you have the right permits in place?

Yes. Let me start by saying that this recent publication of 1 million-ounce resource between indicated and inferred, it's, I'll say, a game changer for our view of the project, right? Just as a big -- a small recap, when we acquired Chesser, they had a historic resource of about 800,000 ounces. We saw some risks there, and we decided to go in, drill and rebuild the geologic model. As an outcome of that, the resource shrunk to 600,000 ounces. So, we went back and we've been drilling, enhancing our knowledge of the deposit. Our original expectation is that we would be where we're standing today by year-end 2025. So this result, this 1 million ounces that we've been able to produce with clear opportunities to continue expanding it is a significant change in our approach to the project. So to go straight to your question, we are aiming to submit -- we -- along with exploration, we've been carrying a lot of parallel activities on permitting, engineering. So, we are ready to present our environmental permits for review and approval in the coming month. And we expect to have an approval of that environmental document early in 2026. We expect -- we're planning to publish a PEA in the month of October, probably late October, early November, have a PEA out. But all of the process design ancillary facilities of that PEA really carry by now feasibility level are at the feasibility level.

So, our view is that we will transition quickly into a feasibility study early in 2026. So, that's where we are setting our sights into a feasibility study in early 2026 and consistent with that, a construction decision. And we are advancing capital for early works right now. We have approved $17 million budget already for some early works because as the project advances and we are breaching this million ounce threshold with clear opportunities to continue expanding the resource. We're getting as well more courageous on our view of a viable project, right? So that is the time line for us now, I would say, environmental approval early next year, submission this year, early next year approval, PEA by late October, feasibility study in H1, middle of H1 2026. Those are roughly the time lines we're seeing for Diamba.

That's very helpful. And then my second question relates to, I guess, the cadence for CapEx and maybe more for Luis into the second half of the year. Could you maybe help us know if there's a -- the CapEx spend between Q3 and Q4 will likely be equal or if it's more weighted to Q3 or Q4?

There should be a slightly more weighing into the second half of the year, particularly we expect in Q3. And again, coming slightly down in Q4, which is part of the driver for the projected lower ASIC in the latter part of the year. But the key message here is that we have one of our mines, Lindero trending down on AISC from a high AISC at the beginning of the year towards a low AISC at the end of the year and Seguela trending in the opposite. Our AISC at the beginning of the year at Seguela was a low -- under $1,200 -- sorry, under $1,300 per ounce. And as investments are picking up and stripping is picking up according to plan, that ASIC is going to gravitate higher, right? So -- and again, Seguela is the mine that is expanding into next year, expanding production into next year. So therefore, the capital buildup throughout the year, right?

Yes. No, that's great. And just to clarify that Q4 AISC that Luis talked about, was that the $1,750 per ounce level? Was that just more for comments on the overall year?

So, the comment on the $750 was related to 2026, and it would represent a decrease in AISC with respect to our guidance for 2025. So, the key message is, AISC is going to be somewhat higher in Q2 and Q3 of this year, coming down towards Q4, and we anticipate even a lower AISC into 2026.

At these levels, okay.

Your next question is coming from Adrian Day from Adrian Day Asset Management.

Yes, you discussed your pipeline quite a bit. That was interesting. But I wonder if you could quantify a little more the -- specifically the greenfields, the number of projects, the geographies, how much you're spending this year, next year? And how the spend compares on a historic basis to your greenfields exploration?

Hello, Adrian and first, geography. We currently have on the greenfield side, 3 opportunities being pursued. One, of course, is Awale through our investment. I'm not sure if you follow Awale, but they have a commanding land position in the most intriguing geologic setting. They already have made a significant discovery. They have a joint venture on that discovery with Newmont. But outside of that joint venture, there is a significant land package that continues to offer, we believe, very good potential, and that's what's intriguing to us.

In the north of Barrick's Tongon mine, we have a joint venture also an option agreement for a joint venture in Northern Côte d'Ivoire. That's a Tongon North project. It's a project where we're currently -- we've been drilling this first half of the year. Drilling has stopped due to rains and we look to resume in the second half of the year. But we're testing major structures in the Birimian. We identified gold in auger and big structures, long trends, we're drilling, and we look forward to report when we find something that merits reporting, right? We're finding gold. We're finding gold in the structures. We need to see where those structures blow up, right, and offer opportunity for size and tonnage and grade.

And we have an early discovery, I would say, in our Gugli property in Cote d'Ivoire as well in the South, where we have identified a very large 5-kilometer gold in soil anomaly in a concession that's owned 100% by us. And that is one, Cote d'Ivoire and you see we're very active, not only on brownfields, but in greenfields. We're looking at opportunities in Guinea, right, as well.

Moving on to at -- in Senegal, we're right now very much focused on the land package we control around Diamba Sud, which is sizable. So, we have a program where we're drilling the main core property of Diamba Sud, but also within the larger property package, we're doing a lot of generative work.

Across the Atlantic in Mexico, we have currently 2, 3 active joint ventures for early-stage opportunities. And in Argentina, we just did an option agreement with a local party to explore what I would categorize as one of the largest in heated anomalies in the province of Salta up there close to the Chilean border. And that's early stage. It's an option agreement. And after the winter, we look forward to initiate our first drilling campaigns. So, our exploration budget for greenfields right now sits at about $11 million, and that does not include any of the work we're doing at Diamba. That's excluding Diamba Sud. The budget is $11 million. Our global exploration budget, including now Diamba Sud stands at about $51 million, total exploration budget. That's up from $41 million in 2024. So we have increased our budget -- our global budget for brownfields, greenfields, all that is under the concept of exploration and new project development has gone up from $41 million in 2024, up to $51 million in 2025. But we feel we're well funded, and we have clear opportunities in front of us.

That's excellent.

We do not talk a lot about this early or talk enough, perhaps we don't talk enough about these early-stage opportunities because, again, what we expect is to produce something that we can meaningfully share with the market. You know how it is with early-stage opportunities. We're testing ideas, testing anomalies is a bit of a hidden miss. But we're going through the process, generating the ideas, testing the targets, right?

Your next question is coming from Thomas Bonovitz.

Yes. I was wondering if you're actively looking to buy another company or possibly merge. Maybe you can't talk about that stuff now, but I was just curious.

Yes. The answer to that, sir, is that when we think of acquisitions, they are answering the need for growth mainly, right? And we are very comfortable and calm that we have a very robust clear opportunity for growth within our control in our portfolio. So -- and that would be growth that we can deliver at the lowest cost and dilution to our shareholders, right? The most accretive growth we can provide our shareholders is organic growth, and that's under our control. And as I spoke during the call already, Diamba Sud and Seguela right now offer clear opportunities for that. And we are always paying attention for value opportunities, but I would characterize it as this. We have no need to chase ounces. We are chasing value. And if we see value out there, you'll see us very aggressively. We have the balance sheet to pursue big opportunities. But our search is for value, not ounces. We can produce the ounces organically, and that's the cheapest and most value we can deliver to our shareholders is advancing what's already in the portfolio, and that is our primary focus.

There are no further questions in the queue.

Thank you, Matthew. If there are no further questions, I'd like to thank everyone for joining us today. We appreciate your continued support and interest in Fortuna Mining. Have a great day.

Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.