Fortuna Mining (NYSE:FSM) Stock

Fortuna Mining

Fortuna Silver Mines

Fortuna Mining Corp is a Canadian-based precious metals mining company with mines in the Latin America and West Africa regions producing gold and silver. It operate mines in Argentina, Burkina Faso, Cote d'Ivoire, Mexico, and Peru.

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Gold hits record high above $2,790 on dovish central bank moves and demand from safe-haven seeking investors. Fed holds rates steady but hints at potential cuts.

Gold Hits Record High As Central Banks Ease Stance: 5 Mining Stocks Rally

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Fortuna Silver Mines Inc. (NYSE: FSM) produced 110,820 gold equivalent ounces in the third quarter of 2024, a 13.9% decrease from the year-ago quarter. This includes a gold production of 91,251 ounces and a silver production of 816,187 ounces.

Fortuna Silver&#39;s Gold Equivalent Production Dips 14% Y/Y in Q3

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Source: Adrian Day 08/16/2024

Global Analyst Adrian Day reviews results from six major resource companies, four of which are royalty companies.

Diverse Issues Offset Mostly Strong Revenues

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Fortuna Mining Says A Fatal Accident Occurred Yesterday At The Séguéla Mine

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Fortuna Mining shares are trading lower after CIBC downgraded the stock from Neutral to Underperformer and cut its price target from C$8 to C$7.

CIBC analyst Don DeMarco downgrades Fortuna Mining (TSX:<a class="ticker" href="https://www.benzinga.com/stock/FVI#TSX">FVI</a>) from Neutral to Underperformer and lowers the price target from C$8 to C$7.

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CIBC Downgrades Fortuna Mining to Underperformer, Lowers Price Target to C$7

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Shares of precious metals stocks are trading higher as gold and silver prices rise amid US tariffs on steel and aluminum.

Shares of precious metal-related companies are trading higher. Reserve assets may be seeing renewed strength after the Fed kept rates unchanged yesterday and noted that inflation remains somewhat elevated.

Gold surged past $2,790 in Thursday morning trading, setting a new all-time high after eclipsing its late October 2024 peak. Central bank actions and rising demand for safe-haven assets <a href="https://www.benzinga.com/markets">fueled the metal's climb.</a>
Several major central banks have signaled a more dovish stance on inflation in recent hours, leading speculators to anticipate lower borrowing costs ahead—providing further support for gold prices. 
Furthermore, speculation over higher U.S. tariffs is leading to greater demand for gold by central banks, with disruptions affecting trading in London.
<h3 class="wp-block-heading">Fed Holds Steady, While Other Major Central Banks Ease Borrowing Costs</h3>
The Federal Reserve held interest rates steady on Wednesday and refrained from offering clear guidance on future moves. 
Yet, Fed Chair Jerome Powell struck a noticeably less hawkish tone compared to his stance in December.
Powell welcomed the latest inflation readings for January and did not rule out the possibility of rate cuts, stating that weaker labor market conditions or faster-than-expected disinflation could justify easing monetary policy.
Powell further stated that interest rates remain &#8220;meaningfully above neutral,&#8221; suggesting there is room for potential cuts.
&#8220;We remain comfortable with our forecast that the FOMC will deliver two more 25bp cuts in June and December this year and one more in 2026,&#8221; Goldman Sachs economist David Mericle wrote in a note Thursday. 
Market-based expectations continue to point toward two additional Fed rate cuts by the end of 2025, with the first move likely coming in June. 
On Wednesday, the Bank of Canada announced a 25-basis-point rate cut to 3%, citing inflation's broad convergence toward the 2% target. Policymakers also noted the potential negative economic effects of rising U.S. trade tariffs.
The BoC further announced the end of quantitative tightening and plans to restart asset purchases in early March to support liquidity and economic activity. 
On Thursday, <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43336153/us-economy-grows-below-q4-estimates-as-consumer-spending-hits-7-quarter-high">U.S. GDP growth for the fourth quarter of 2024</a> came in at 2.3%, missing the 2.6% consensus estimate. 
The same day, both the <a href="https://www.benzinga.com/government/regulations/25/01/43340971/ecb-cuts-interest-rates-by-25-basis-points-as-economy-cools-lagarde-rejects-bitcoin-as-reserve-asset">European Central Bank</a> and Sweden's Riksbank also announced rate cuts.
<h3 class="wp-block-heading">Gold Miners Rally, Central Banks Rush To Gold In London</h3>
Rising gold prices are fueling a rally among metal miners during Thursday trading.
The widely followed VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) rallied 4.2% reaching levels last seen in early November 2024. Junior miners, as tracked by the VanEck Junior Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDXJ#NYSE">GDXJ</a>), were similarly up by 4.1%. 
In a seminar last week, VanEck portfolio manager Imaru Casanova indicated that central banks are rushing to buy gold. 
"Central banks are emerging as a key demand driver for gold prices," she said. 
As reported by Reuters, gold traders in London are scrambling to borrow bullion from central banks as shipments to the U.S. surge amid speculation of potential import tariffs. 
The Bank of England, which stores gold for central banks, is experiencing delays of up to four weeks for withdrawals—far longer than the usual few days.
The rush is driven by traders hedging risks on COMEX and capitalizing on a price premium between U.S. futures and London spot prices. 
Former Koch Supply &amp; Trading executive Robert Gottlieb told Reuters that the BoE is struggling to handle the increased borrowing requests.
Mining stocks showing a notable surge on Thursday include:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>1-day Return</td>
</tr>
<tr>
<td>Endeavour Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXK#NYSE">EXK</a>)</td>
<td>8.18%</td>
</tr>
<tr>
<td>MAG Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAG#NYSE">MAG</a>)</td>
<td>7.67%</td>
</tr>
<tr>
<td>Coeur Mining, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CDE#NYSE">CDE</a>)</td>
<td>7.15%</td>
</tr>
<tr>
<td>Fortuna Mining Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>)</td>
<td>6.96%</td>
</tr>
<tr>
<td>SilverCrest Metals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SILV#NYSE">SILV</a>)</td>
<td>6.72%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:20 p.m. ET</figcaption></figure>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin">A Different Powell Emerges: Fed Chair Softens Hawkish Tone On Interest Rates, Bitcoin</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Scotiabank analyst Eric Winmill maintains Fortuna Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>) with a Sector Perform and lowers the price target from $6.75 to $6.

Scotiabank Maintains Sector Perform on Fortuna Mining, Lowers Price Target to $6

Asset Sales

Fortuna Mining Entered Into A Binding Letter Agreement To Sell Its 100% Interest In Compañia Minera Cuzcatlan To Minas Del Balsas For $2M Payable On Closing Of The Transaction

Fortuna Mining Corp. (NYSE:<a href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>, TSX:<a href="https://www.benzinga.com/stock/FVI#TSX">FVI</a>) is pleased to announce it has entered into a binding letter agreement (the "Letter Agreement") to sell (the "Transaction") its 100 percent interest in Compañia Minera Cuzcatlan S.A. de C.V. ("Cuzcatlan") to Minas del Balsas S.A. de C.V. ("MDB"), a private Mexican company. Cuzcatlan is the owner of a 100 percent interest in the San Jose Mine in the state of Oaxaca, Mexico. Following the sale, Fortuna will cease to have any interest in the San Jose Mine, other than the net smelter return royalty described below. The San Jose Mine was scheduled to initiate a progressive closure process starting in early 2025.
Details of the Transaction
Under the terms of the Letter Agreement, MDB will acquire all of the issued and outstanding shares of Cuzcatlan held by Fortuna's subsidiaries for the aggregate consideration of:
<ul>
<li>US$2 million payable on closing of the Transaction;</li>
<li>a further US$2 million payable on the first anniversary of closing the Transaction;</li>
<li>a final US$2 million payable on the second anniversary of closing the Transaction; and</li>
<li>the right to receive up to approximately US$11 million upon the completion of certain conditions.&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</li>
</ul>
In addition, Fortuna will receive a 1.0 percent net smelter royalty on production from the San Jose Mine concessions, for a 5-year term as of the start of production.
The completion of the Transaction is subject to customary conditions of closing and is expected to be completed in the first quarter of 2025. INFOR Financial Inc. acted as financial advisor to Fortuna.

Fortuna Mining Exits San Jose Mine, Secures $17M Potentially Through Sale and Royalties

Fortuna Mining Corp. (NYSE:<a href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>, TSX:<a href="https://www.benzinga.com/stock/FVI#TSX">FVI</a>) is pleased to provide an update on its exploration program at the Séguéla Mine in Côte d'Ivoire.
Paul Weedon, Senior Vice President, Exploration, commented, "The prospectivity of Kingfisher is underscored by the recent intersections of 15.3 meters averaging 4.1 g/t Au and 17 meters averaging 3.3 g/t Au; approximately 150 meters further along strike of the recently reported maiden Inferred Resource of 294,000&nbsp;ounces averaging 2.3 g/t Au1." Mr. Weedon added, "At the Sunbird deposit, mineralization has been successfully drill defined approximately 650 meters further along strike from the limits of the existing underground resource and remains open."

Fortuna Mining Reports High-Grade Gold Intersections at Séguéla Mine, Côte d'Ivoire

GATO

Shares of precious metals stocks are trading higher amid strength in gold and silver prices. Gold may be rising amid reports of renewed China Central Bank purchases as well as geopolitical uncertainty following Assad's ouster in Syria.

Fortuna Silver Mines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>) reported quarterly earnings of $0.16 per share which beat the analyst consensus estimate of $0.12 by 33.33 percent. This is a 77.78 percent increase over earnings of $0.09 per share from the same period last year. The company reported quarterly sales of $274.900 million which beat the analyst consensus estimate of $265.956 million by 3.36 percent. This is a 13.08 percent increase over sales of $243.100 million the same period last year.

Earnings Beats

Fortuna Silver Mines Q3 2024 Adj. EPS $0.16 Beats $0.12 Estimate, Sales $274.900M Beat $265.956M Estimate

Fortuna Silver Mines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>) is gearing up to announce its quarterly earnings on Wednesday, 2024-11-06. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Fortuna Silver Mines will report an earnings per share (EPS) of $0.12.
Anticipation surrounds Fortuna Silver Mines's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

<h3>Market Performance of Fortuna Silver Mines's Stock</h3>
Shares of Fortuna Silver Mines were trading at $4.8 as of November 04. Over the last 52-week period, shares are up 62.59%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/FSM/earnings">To track all earnings releases for Fortuna Silver Mines visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Fortuna Silver Mines's Earnings Outlook

Fortuna Silver Mines Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fsm#NYSE">FSM</a>) produced 110,820 gold equivalent ounces in the third quarter of 2024, a 13.9% decrease from the year-ago quarter. This includes a gold production of 91,251 ounces and a silver production of 816,187 ounces. Gold output marked a 3.8% year-over-year fall, whereas silver production was down 51.4%.
<h2>FSM&#39;s Mine Performances in Q3</h2>
FSM currently has five operating mines in its portfolio. The S&eacute;gu&eacute;la mine, located in C&ocirc;te d&acute;Ivoire, contributed 34,998 ounces of gold in the third quarter of 2024. Its total production for the third quarter of 2023 was 31,498 ounces. The mine is expected to produce gold of 126,000-138,000 ounces in 2024.
The Yaramoko Mine in Burkina Faso produced 28,006 ounces of gold, down 18% year over year. FSM expects Yaramoko&#39;s gold production between 105,000 and 119,000 ounces for 2024.
The third-quarter&nbsp; gold production at the Lindero mine in Argentina was 24,345 ounces, up 16.3% year over year. The 2024 guidance for the mine is pegged at 93,000-105,000 ounces of gold.
The San Jose mine in Mexico produced 510,741 ounces of silver and 3,771 ounces of gold. Silver production was down 62.8% year over year, whereas gold production declined 54%. The company expects gold production for 2024 between 19,000 and 23,000 ounces, whereas silver production is forecast at 3.1-3.6 million ounces.
The Caylloma mine in Peru produced 305,446 ounces of silver, down 0.9% year over year. Gold output was 131 ounces compared with 149 ounces in the third quarter of 2023. The mine&#39;s 2024 silver production is targeted between 0.9 million and 1.1 million ounces.
Zinc production was 12.8 million pounds and lead production was 13 million pounds.
<h2>Fortuna Silver Maintains 2024 Guidance</h2>
FSM reported gold and silver production of 273,645 ounces and 2.9 million ounces, respectively, in the first nine months of 2024, translating to 339,933 ounces of gold equivalent (including lead and zinc by-products).
Gold equivalent production guidance for 2024 is maintained between 457,000 and 497,000 ounces. The range indicates a year-over-year increase of 1-10%.
The gold production guidance is pegged at 343,000-385,000 ounces, which indicates growth of 5-18% from the 2023 reported level. The silver production guidance is 4-4.7 million ounces for 2024, which suggests a year-over-year decline of 21-32%.
<h2>FSM&#39;s Peer Performance in Q3</h2>
Endeavour Silver Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/exk#NYSE">EXK</a>) produced 1.6 million silver equivalent ounces in the third quarter of 2024, a 14% decline from the year-ago quarter due to reduced silver production at its mines, which offset higher gold output. 
Consolidated silver production fell 24% year over year to 874,717 million ounces. This was due to a reduced operating capacity at Guanacev&iacute; after the trunnion breakdown in August.
Endeavour Silver, however, witnessed a 2% year-over-year improvement in gold production to 9,290 ounces . The rise was driven by higher gold grades mined at Guanacev&iacute; and Bola&ntilde;itos, as well as increased gold content in third-party feed processed at Guanacev&iacute;.
<h2>Fortuna Silver&#39;s Share Price Outperforms Industry</h2>
Shares of Fortuna Silver have gained 61% in the past year compared with the industry&#39;s 7.3% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/01/81138.jpg?v=880079609" />
Image Source: Zacks Investment Research
<h2>FSM&#39;s Zacks Rank &amp; Stocks to Consider</h2>
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>) and Eldorado Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ego#NYSE">EGO</a>). CRS and EGO sport a Zacks Rank #1 (Strong Buy) at present.
The Zacks Consensus Estimate for Carpenter Technology&#39;s fiscal 2025 earnings is pegged at $6.09 per share. The consensus estimate for 2025 earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 127.1% in a year.
The Zacks Consensus Estimate for Eldorado Gold&#39;s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 16% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 82.9% in a year.
<a href="https://www.zacks.com/stock/news/2350045/fortuna-silver-s-gold-equivalent-production-dips-14-y-y-in-q3?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2350045">To read this article on Zacks.com click here.</a>

Fortuna Silver's Gold Equivalent Production Dips 14% Y/Y in Q3

Q3 2024 Production highlights
<ul>
<li>Gold equivalent production of 110,820 ounces1; compared to 128,671 oz Au Eq in Q3 20232 and 116,570 oz Au Eq in Q2 20243</li>
<li>Gold production of 91,251 ounces; compared to 94,821 oz Au in Q3 20232 and 92,716 oz Au in Q2 20243</li>
<li>Silver production of 816,187 ounces; compared to 1,680,751 oz Ag in Q3 20232 and 990,574 oz Ag in Q2 20243</li>
<li>Zinc and lead production of 12.8 million and 10.0 million pounds; compared to 14.0 million and 10.3 million pounds in Q3 20232, respectively</li>
</ul>

Fortuna Mining Reports Production Results For The Third Quarter Of 2024 From Its Five Operating Mines In West Africa And Latin America

Fortuna Mining Corp shares are trading lower. The company is facing and responding to media reports regarding the possible withdrawal of existing mining permits and said it received confirmation that the government has no plans to withdraw existing mining permits which are in compliance with Burkina Faso's laws.

Fortuna Mining Corp. (NYSE:<a href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>, TSX:<a href="https://www.benzinga.com/stock/FVI#TSX">FVI</a>) today shared an update on its operations at the Yaramoko Mine in Burkina Faso. &nbsp;
On October 5, 2024, Burkina Faso's President Ibrahim Traoré made public comments regarding mining companies operating in the country and the possible withdrawal of existing mining permits. Fortuna has sought clarification from the country's Ministry of Mines on this point and has received confirmation that the government has no plans to withdraw existing mining permits which are in compliance with Burkina Faso's laws. The Yaramoko Mine is in compliance with all material laws and operations continue to be conducted normally.
The Yaramoko Mine has been in operation since 2016 and reached the one-million-ounce gold pour milestone on May 19, 2024 (refer to Fortuna news release dated May 22, 2024, "<a href="https://fortunamining.com/news/fortunas-yaramoko-mine-reaches-one-million-ounce-gold-pour-milestone/">Fortuna's Yaramoko Mine reaches one-million-ounce gold pour milestone</a>"). Yaramoko is expected to contribute approximately 25 percent of Fortuna's gold equivalent ounces in 2024 (refer to Fortuna news release dated January 18, 2024, "<a href="https://fortunamining.com/news/fortuna-reports-record-2023-production-of-452-koz-au-eq-and-2024-annual-guidance-of-457-to-497-koz-au-eq/">Fortuna reports record 2023 production of 452 koz Au Eq and 2024 annual guidance of 457 to 497 koz Au Eq</a>").

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Fortuna Responds To Recent Media Reports Concerning Burkina Faso; Says 'Has Received Confirmation That The Government Has No Plans To Withdraw Existing Mining Permits Which Are In Compliance With Burkina Faso's Laws. The Yaramoko Mine Is In Compliance With All Material Laws And Operations Continue To Be Conducted Normally.'

CGAU

Shares of precious metal companies are trading lower amid a drop in the price of gold. Weakness in the commodity may be due to August's ISM Manufacturing PMI data indicating an economic contraction and pending non-farm payrolls data that may determine the size of future rate cuts.

Source: <a href="https://www.streetwisereports.com/article/2024/08/16/diverse-issues-offset-mostly-strong-revenues.html?utm_medium=feed">Adrian Day 08/16/2024</a>
Global Analyst Adrian Day reviews results from six major resource companies, four of which are royalty companies.
The quarterly results we look at today from six major resource companies mostly include higher revenues and cash flows, which is not unexpected given that the gold price was $250 an ounce higher than in the first quarter.
However, they also show some companies are still struggling with costs. Above all, they clearly illustrate Robert Friedland&#39;s quip that &quot;Murphy works overtime in the mining business.&quot;
The last quarter includes a power outage, equipment failures, arbitration, a heap leach failure, a broken agreement, and construction delays. And more. It reinforces that mining is a difficult business, and so too for the royalty companies that reap some of the rewards. Guidance and market forecasts are all too often set with the expectation of perfection. Companies that had unexpected problems saw their stock prices slammed.
<h2>Wheaton Has Strong Quarter as It Ramps up Production</h2>
Wheaton Precious Metals Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wpm#NYSE">WPM</a>) was the exception, with a strong quarter in which nothing meaningful went wrong. It is on track to achieve the upper end of its full-year guidance. Production was stronger than expected, driven by outperformance at its largest asset, Salobo, as Phase III continues its ramp-up, as well as strong performance at Pe&ntilde;asquito and Antamina.
Sales were lower due to timing differences between production and sales. There are some major new assets on which it holds streams moving towards production, including Ivanhoe&#39;s Platreef, where an updated feasibility study is scheduled for the fourth quarter; this will be one of the world&#39;s largest platinum producers. There are six other projects under construction and more predevelopment projects, allowing Wheaton to move from this year&#39;s production range of 550,000 to 620,000 GEOs to over 850,000 a year from 2029 onwards.
<h2>Company Has Strong Pipeline With Balance Sheet To Transact</h2>
The pipeline for new deals is very busy, with larger transactions under consideration, mostly in the pre-construction phase, with some over half-a-billion in size.
This is a change from recent Wheaton activity which saw it making some very small transactions, some as small as $20 million. The company has a rock-solid balance sheet, with $540 million in cash, up $234 million on the quarter, with total liquidity of $2.5 billion.
We are long-term holders.
<h2>Royal on Track To Meet Guidance With Strong Revenues</h2>
Royal Gold Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rgld#NASDAQ">RGLD</a>) reported quarterly financials better than expected, even after pre-releasing its streaming sales, which constitute the bulk of its revenues. Revenue was up 17% quarter-on-quarter, primarily due to higher metal prices but also higher copper sales at Mount Milligan and higher gold and silver production from Pe&ntilde;asquito, partially offset by lower sales at Pueblo Viejo, where the expansion is still in ramp-up. G&amp;A cash costs remain flat. The company is tracking its guidance, which remains unchanged.
During the quarter, Royal acquired additional royalties on B2Gold&#39;s Back River project. The royalties are different in structure (NSR and GSR) as well as having hurdles and variable rates; the company estimates that, in aggregate, their royalties approximate a 1.1% gross smelter royalty. With a further $100 million paydown on its debt, the company is now net cash positive, with just $50 million of debt outstanding and available liquidity of $1 billion. The debt is expected to be paid off next week, eliminating the debt taken on to acquire three major royalties over the past two years (Cortez, Great Bear, and Back River), which the company acquired without any equity dilution.
Royal has strong free cash flow, and near-term growth as well as some longer-term potential.
<h2>Osisko Lowers Full-Year Guidance as It Writes off Mine Royalty</h2>
Osisko Gold Royalties Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/or#NYSE">OR</a>) saw a reasonable second quarter, in line with its guidance, but due, as acknowledged by the company, to higher metals prices. Gold Equivalent Ounces (GEOs), which had been pre-released, declined slightly. It lowered its second-half guidance on the back of the suspension of the Eagle Mine in the Yukon following a heap leach failure at the end of the quarter.
Osisko decided to take a full impairment on the royalty it holds on the mine, stating that it has no visibility on when the mine might restart and is not expecting any ounces for the rest of the year. There is also a delay in the ramp-up of one of its new royalty assets, Mantos Blancos, contributing to the lower-than-expected second half. It does have three new assets paying in the second half, including Tocantinzinho, which has already started producing but on which royalty payments have a three-month delay. It has already received initial payments from a new Agnico Mine as well as the CSA copper assets in Australia.
<h2>New Assets Starting Up</h2>
Paying down debt is the company&#39;s first priority, other than doing new transactions. After repaying $44 million during the quarter, it now has $109 million in debt and $67 million in cash. With a credit facility, it has access to capital and a strong balance sheet.
Though the second half will be weaker than earlier expected, there are three new paying assets, and behind these a strong pipeline. Osisko has 20 producing assets, with 98% of revenues now from gold and silver and a very strong political risk profile. The new CEO is proving himself to be capable and focused.
Osisko is a Buy.
<h2>Altius Financials as Expected, as Major Decision and Transaction Awaited</h2>
Altius Minerals Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/atusf#OTC">ATUSF</a>) reported financials for the quarter more-or-less as expected after pre-releasing royalty revenue. As always, with a diverse portfolio, there are winners and losers: potash fell again from its extraordinarily high pricing levels in 2023, while base metals saw continued gains. The iron ore segment recovered, and renewal royalties, while lower than an exceptional first quarter, are growing strongly, more than 50% above the year-ago quarter.
In all, royalty revenue of $21.7 million rose nearly 25% in the last quarter (and 17% from the year-ago quarter). The outlook looks strong. The renewables company saw one new project come on line in the last quarter, with another this quarter and several new deals closing. Altius holds royalties on three projects in its base and battery metals division, which are currently under construction, while Champion Iron is continuing discussions on finding a partner for its Kami iron-ore project, for which Altius holds a royalty. The high-priority iron ore that Kami will produce was recently designated as a &quot;critical mineral&quot; by Canada.
<h2>Silicon-Merlin Will Be the Major Drive in the Near Term</h2>
In the near term, however, the major development will be the disposition of the royalty it holds on AngloGold&#39;s Silicon-Merlin deposit in southern Nevada.
The deposit continues to advance, with some exceptional assay results from its infill drilling at Merlin, including a stunning 0.53 g/t gold over 144.5 meters. It drilled 66,000 km during the first half, mostly infill, though we know there has also been aggressive drilling to the west of the Merlin deposit, with the company saying it had hit &quot;very exciting&quot; new intercepts. A Pre-Feasibility Study on Merlin is expected to be finished in late 2025. The region has a current resource of 17.5 million ounces, and Anglo projects the district producing 500,000 ounces a year. Altius holds a 1.5% royalty with the area of interest under arbitration; another recommended company, Orogen, holds a 1% royalty on the main deposit, which is undisputed. 
Altius has already received preliminary bids from companies, with CEO Brian Dalton saying that the &quot;strong and diverse proposals . . . highlighted a meaningful disconnect between how its value is perceived by (the) financial industry versus the royalty industry professionals.&quot; Once it has received the decision on its arbitration, it intends to seek final bids and will then make a decision on whether to accept a bid (to sell or swap for base metals royalties) or to hold the royalty. I do not want to read too much into that comment from Dalton, but it was interesting to hear him raise again the possibility of keeping the royalty.
<h2>Altius Buyback Stock, as Improving Balance Sheet Improves</h2>
Altius repurchased 119,000 of its shares during the quarter, and it is no secret that the company wants to repurchase more shares if it sells that royalty. It has cash of a little over $19 million after receiving $9 million in settlement of a loan receivable, plus holdings in public companies totaling over $371 million. These include over $176 million of shares in Altius Renewal Royalties and nearly $56 million in its Project Generation&quot; portfolio.
I am not suggesting that these are all for sale &mdash; though it has been sold some shares from its PG portfolio &mdash; but they do strengthen the balance sheet. It has $93 million available on its credit facility. Altius is a core holding for us, offering broad exposure to the commodity universe with some of the most astute management in the business.
Hold and look to buy on any weakness.
<h2>Pan American&#39;s Production Down at Ongoing Mine Problems</h2>
Pan American Silver Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/paas#NYSE">PAAS</a>) had a mixed quarter with slightly lower production and overall costs higher, though with lower costs for silver quarter-on-quarter ($14.49/oz cash costs). Ongoing issues at two mines, La Colorado and Dolores, hurt production. However, boosted by the higher metals prices, Pan American saw record cash flow from operations during the quarter.
The company reiterated its guidance, expecting production to be weighted towards the fourth quarter and, overall, silver production to be at the low end of the range. The rest of the year should bring improvement from La Colorada following the completion of the new ventilation system and $245 million in cash from the closing of the La Arena sale. There is also potential for the re-start of Escobal; several meetings with the government were held recently after delays caused by the change in government.
The company has a strong balance sheet, with $369 million in cash and a net debt of $472 million. It continued to buy back stock, bringing the total for the year to date to 1.7 million shares for just over $24 million (indicating that most shares were bought early on in the year, given the average cost of just over $14). The company reiterated that it expected additional divestments of non-core assets.
Pan American is a Buy, for operational turnaround, and Escobal potential, as well as strong management and balance sheet.
<h2>Fortuna&#39;s Revenue Disappointments but Issues Are Temporary</h2>
Fortuna Silver Mines Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fsm#NYSE">FSM</a>) reported revenue slightly lower than expected and costs higher. All-in sustaining Costs (AISC) at $1,656/oz were meaningfully higher than the first quarter&#39;s $1,495 due to three factors: higher power costs in West Africa, planned maintenance at Lindero, and higher per-ounce costs at San Jose as that mine runs down as it approaches the end of its reserve life. The first two factors here are temporary; Fortuna now has full generator capacity at its S&eacute;qu&eacute;la mine, so costs are expected to come down again in the second half of the year.
Despite these challenges, Fortuna is on track to meet its full-year guidance. Operations are doing well, and there has been some good exploration success, in particular around the S&eacute;qu&eacute;la mine. At San Jose, in Mexico, the company is continuing to explore alternatives: continuing to mine, closing the mine, or putting it on care and maintenance pending greater reserves from exploration. It will have a decision in the third quarter. The company continues to strengthen its balance sheet. A convertible issue allowed it to fully repay its credit facility and redeem an existing convertible, partly in cash and partly in shares.
Overall, the new convertible reduced its interest rate from over 7% to just 3.75%. Net debt is now just $66 million. It has $350 million in available liquidity. We like Fortuna for its diversified asset base, its strong management, and solid balance sheet, as well as strong brownfields potential.
Important Disclosures:
<ol>
<li>As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals Corp., Osisko Gold Royalties Ltd., Altius Minerals Corp., Pan American Silver Corp., Fortuna Mining Corp., Franco-Nevada Corp., Lara Exploration Ltd., Metalla Royalty &amp; Streaming, and Fox Riv Res Corp.</li>
<li>Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.</li>
<li>Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>
Adrian Day Disclosures
Adrian Day&#39;s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. <a href="http://www.AdrianDayGlobalAnalyst.com" title="www.AdrianDayGlobalAnalyst.com">www.AdrianDayGlobalAnalyst.com</a>. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor&#39;s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. &copy; 2023. Adrian Day&#39;s Global Analyst. Information and advice herein are intended purely for the subscriber&#39;s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

Scotiabank analyst Eric Winmill maintains Fortuna Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>) with a Sector Perform and raises the price target from $6 to $6.5.

Scotiabank Maintains Sector Perform on Fortuna Mining, Raises Price Target to $6.5

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