One-glance verdict
Undervalued
$13.24 our estimate vs market $10.07
Wall Street consensus: $14.50 (9.5% higher than our fair-value estimate)
24% below our estimate, below the bear case
Fundamentals snapshot
Fortuna Mining Corp.
FSM · NYQ · Basic Materials · Gold
Current price
$10.07
52-week range
$7.90 - $13.85
Market cap
$2.98B
Balance sheet
Healthy
14.26x Strong cushion
Net cash $214.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 39.8% last year.
- Reward Returns 18.6% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 3/10 years.
What this company does
Fortuna Mining Corp.
Fortuna Mining Corp. digs up and sells valuable metals like gold and silver from mines in different countries. Most of their income comes from selling these precious metals, which is important because it directly shows how much money they make from their core business of finding and selling what's in the ground.
How the company got here
Fortuna Mining Corp. was founded in 2005, initially focusing on silver mining in Latin America. Over the years, the company has strategically acquired and developed several mines, expanding its operations across different regions and metals. A significant shift occurred in 2021 when Fortuna acquired Roxgold, which brought gold mines in West Africa into its portfolio, and later acquired Chesser Resources, further strengthening its West African presence. In 2024, the company officially changed its name from Fortuna Silver Mines Inc. to Fortuna Mining Corp. to reflect its evolving focus on gold production. This rebranding also coincided with the divestment of some of its silver-focused assets, such as the San Jose mine in Mexico, to concentrate on higher-margin gold operations. Fortuna's journey has been marked by strategic acquisitions, organic growth through mine development, and a deliberate pivot towards becoming a premier growth-oriented gold producer.
What it actually does
Fortuna Mining Corp. is a company that explores for, mines, and processes precious and base metals. Essentially, they dig valuable minerals out of the ground, refine them, and then sell them. Their primary products are gold and silver, but they also extract lead and zinc as by-products. These metals are essential components in many industries, from jewelry and electronics to industrial applications. The company operates mines in various countries and sells its refined metals to smelters and refiners.
Lindero Mine
The Lindero Mine, located in Salta, Argentina, is an open-pit gold mine that began production in October 2020. It is a significant contributor to Fortuna's gold output. The mine operates year-round in a high-altitude, arid region. Fortuna acquired the development-stage project in 2016 and has since focused on optimizing its operations and exploring for further resources. Recent drilling has indicated that gold mineralization extends below the current mine design, suggesting potential for expanding reserves and extending the mine's life.
Séguéla Mine
The Séguéla Mine, situated in Côte d'Ivoire, is an open-pit gold mine that commenced operations in May 2023. This mine has become a cornerstone asset for Fortuna, with ongoing exploration and development activities aimed at increasing its production capacity. Fortuna is currently undertaking a significant expansion project at Séguéla, which includes increasing processing capacity and developing an underground mine. This expansion is expected to boost annual gold production and enhance the mine's profitability.
Caylloma Mine
The Caylloma Mine, located in southern Peru, is an underground mine that produces silver, lead, and zinc, with gold as a by-product. Fortuna acquired this mine in 2005 and modernized its processing plant. The mine has a long history of production and continues to be a stable contributor to the company's overall output, providing a diversified revenue stream beyond just gold.
Diamba Sud Gold Project
The Diamba Sud Gold Project in Senegal is a feasibility-stage project that represents a significant future growth opportunity for Fortuna. The project is located in a highly prospective gold region and is expected to become a major open-pit mine. Fortuna is advancing this project with the aim of making a construction decision, which would lead to the development of a new, substantial gold-producing asset for the company.
Bambadji Project
The Bambadji Project is an advanced gold exploration project in Senegal, acquired by Fortuna in 2026. It is located adjacent to the Diamba Sud Gold Project and lies along the Senegal-Mali Shear Zone, a highly prospective geological area known for hosting significant gold deposits. Fortuna has invested heavily in exploration at Bambadji, with extensive drilling planned to define and expand potential gold resources. This project is part of Fortuna's strategy to build a robust pipeline of future mining assets.
What management is betting on now
Fortuna Mining's current strategy centers on growing its gold production through disciplined reinvestment in high-quality assets and strategic exploration. The company is focused on expanding its existing mines, particularly the Séguéla Mine in Côte d'Ivoire, and advancing its development projects like Diamba Sud in Senegal. Management is prioritizing projects that offer strong returns and are funded through operational cash flow, aiming to avoid equity dilution. Fortuna is also actively exploring new opportunities, such as the Bambadji Project, to build a pipeline of future growth. The company's goal is to significantly increase its annual gold production while maintaining a focus on operational efficiency and managing jurisdictional risks.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $13.24 vs current price $10.07
Wall Street consensus is the average analyst price target: $14.50 (9.5% higher than our fair-value estimate).
Our most-likely fair value is $13.24 a share — about 31.5% above today's price of $10.07, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $214.1M - more cash than debt. Interest coverage 14.3x.
Net debt
$-214.07M
Interest coverage
14.26x
Fortuna Mining Corp.'s profit covers its interest bill about 14.3 times over.
Healthy
Worse cushion
Baseline
Better cushion
FSM
BASELINE
Fortuna Mining Corp.
Total debt $241.30M Interest coverage 14.26x This is the baseline the peer rows are being compared against.
Total debt $43.04M Interest coverage 217.45x +1,424% vs FSM Carries about 15.2x more debt cushion than FSM.
Total debt $2.37M Interest coverage 32.21x +126% vs FSM Carries about 2.3x more debt cushion than FSM.
Total debt $546.20M Interest coverage 37.25x +161% vs FSM Carries about 2.6x more debt cushion than FSM.
Total debt $548.70M Interest coverage 10.58x -26% vs FSM Carries about 1.3x less debt cushion than FSM.
Total debt $2.00B Interest coverage 26.70x +87% vs FSM Carries about 1.9x more debt cushion than FSM.
What you should know
The case for and against FSM
3 Rewards
0 Risks
Rewards
-
Revenue grew 39.8% last year.
-
Returns 18.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.60x
Forward P/E
6.56x
P/B
1.64x
P/S
2.43x
EV/EBITDA
3.58x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
55.6%
Operating margin
35.5%
Net margin
24.7%
ROE
18.6%
ROA
14.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
2.31x
Quick ratio
1.69x
Total debt
$241.30M
Total cash
$455.37M
Growth
How the business has been compounding
Revenue TTM
$1.22B
Revenue 5Y CAGR
11.6%
EPS TTM
0.95
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$455.37M
Free CF TTM
$277.36M
FCF margin
22.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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