"Our business generated healthy free cash flow of US$21.9 million in spite of declining metal prices in the quarter and the compounding negative price adjustments this triggers on our concentrate sales," president and CEO Jorge A Ganoza.
"Costs across our operations are tracking in the upper range of annual guidance in spite of inflationary pressures. Our teams are focused on the implementation of productivity initiatives to help mitigate rising input costs," he said.
The company's adjusted EBITDA for the three months was $57.9 million, which rose 5% year on year, while earnings per share fell to $0.01 from $0.09.
National Bank of Canada Financial Markets said the earnings per share missed NBF and consensus estimates of $0.07.
Canaccord Genuity Capital Markets had also forecast for $0.07, while its estimate for the EBITDA was $69 million.
"FVI's financial results were below our estimates due to higher operating costs. Despite this, the company maintained production and cost guidance for the year, but flagged that costs at San Jose and Lindero are tracking toward the upper end of guidance," CG said.
Fortuna's mines include Caylloma in Peru, Lindero in Argentina, San Jose in Mexico, and Yaramoko in Burkina Faso. It also has the Sequela gold project in Cote d'lvoure which is under construction with first gold pour expected in mid-2023. Sequela remains on track.
Fortuna's all-in sustaining costs for the quarter at the Lindero mine were $1,151/oz Au, which compares to CG's forecast of $1,220/oz.
Yaramoko saw $1,565/oz Au vs CG's $1,604/oz; Caylloma was $18.19oz silver-equivalent ounces vs $14.33/oz; and San Jose was $14.31/oz AuEq vs $15.24/oz.
Fortuna's consolidated realized prices for the quarter were $1,870/oz and $22.62/oz for gold and silver, respectively.
Fortuna's share price fell 10% day on day to C$3.35 (US$3.35) on 11 August.
CG lowered its target price for the company from C$5 to C$4.75, while NBF targets C$4.50.