Fortuna Mining Corp, junior mining company with huge growth potential

Bull case for Fortuna Mining Corp. (FSM)

As every one seen, the price of silver and gold has gone up dramatically since they’re preceived as safe-haven assets and wealth preservers, although silver has more reasons to go up, such as:

→ 6 year run of supply deficit;

→ Its use on modern tech due to is conductivity, deficit will only get worse with every expanding capex budgets from tech companies to make data centers;

→ Medical applications, an aging population does not help the supply deficit;

For Fortuna which has its mines in Argentina, Peru, Cotê d’Ivoire and new gold mine project in the final stages and starting construction in h1 2026, is shielded from geopolitical blows as the southern hemisphere is typically safe from international wars and conflicts. This means it will have very little disruption on its mines helping sustaining continuous growth in production and profit generation.

So far, management expects and has shown so far:

→ 151% EPS growth this year alone, double and then some compared to the industry average of 65,9%;

→ Cash flow has risen y/y by 5,4% once again far superior to the industry average of 2,2%, the annualized yearly growth of cash flow the last 3-5 years was 38,6% compared to the industry 4,8%;

→ Quarterly revisions of results has always been positive and will continue to be so due to the explosive rise in silver prices, which will only show the majority of its gains on 1Q26 and forward, since it’s the time frame where silver got above 100$/oz and is now stabilizing around 80$ – 90$/oz, same with gold since the war in Iran is on so gold will stabilize above 5000$/oz;

→ Exploration on the new gold mine project have been very successful, as the last drilling as shown a increase of 73% in indicated minerals resources (more gold and higher grade);

→ Only 4 analysts are following this stock, which means there’s some time before it goes into mainstream media news to get retail to pump the stock higher and get exit liquidity, they’ll probably get in around 1Q26 results reports since other gold and silver miners will get to expensive, reducing gains so they’ll start looking for mid-tier miners with good growth outlooks to pump;

→ RoA 11,59% / operational margin 43,42% / profit margin 30,35% all this as of now has been far better than other miners in the same tier and some from big miners on the top tier;

→ Cash on hand 560,75 million, double the debt amount they have of 211,3 million;

→ 65% production increase target in 24 months;

→ Lindero mine has its crusher broken but it’s getting a replacement at the end of march, making the mine have softer production in 1H26, full recovery in 2H26;

→ Overall consolidated costs per gold oz is 971$, 5% increase, due to expenses on mine expansion but will start to go back down around 2H26.

Since we are in another war with the middle east, inflation will come back strong and major capex budgets on tech, will only make the demand for safe-haven assets and raw materials used on tech more valuable making all the miners with room to grow very valuable. Let’s also not forget that from April 1^st and forward, Indian mutual funds will be allowed to buy gold and silver for the funds they manage.

My current position is 1000 shares at a acquisition price of 9,16/share, around 20% of my portfolio.