Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Jul, 25 | FVI | Buy | CAD 9.0 | CAD 9.5 | CAD 9.8 | 5 days | Closed |
5.56%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Fortuna Mining Corp. engages in the precious and base metal mining and related activities in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, Peru, and Senegal. The company operates through Mansfield, Sanu, Sango, Cuzcatlan, and Bateas segments. It operates the Lindero gold mine, the Yaramoko gold mine, the Séguéla gold mine, and the San Jose silver-gold mine, as well as the Caylloma silver, lead, and zinc mine. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.
Higher Net Margin: 23.4% in Q1 2025 vs 8.8% of Industry Median
Higher EBITDA Margin: 54.3% in Q1 2025 vs 35.2% of Industry Median
Higher Cash Cycle Days: 53.1 Days in Q1 2025 vs 47.1 Days of Industry Median
Lower Current Ratio: 2.04x in Q1 2025 vs 2.35x of Industry Median
Volatility in the commodity price , Interest and foreign exchange rates, Trade tariffs, Government policy, etc
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 9.0 | 8.2 | 9.5 | 9.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Uplifted Financials: In Q1 2025, the company reported significant growth under revenue due to decent production and sales volumes, as well as better realized prices. Its revenue was USD 290.1 million against USD 200.9 million in pcp. The company also posted higher operating profit of USD 64.8 million in Q1 2025 compared to USD 29.0 million in pcp, assisted by controlled cost of sales and foreign exchange gain.
Healthy Ongoing Operations: The company recently announced its preliminary production results for the second quarter of 2025 from its three operating mines in West Africa and Latin America. Gold production from ongoing operations increased to 61,736 ounces, up from 56,000 ounces in Q2 2024 and 58,820 ounces in Q1 2025.
Elevated Cash Flows: Net cash generated by operations for the quarter was USD 126.4 million, a significant increase compared to USD 48.9 million in Q1 2024. This growth was primarily driven by higher gold prices and increased sales volumes at the Séguéla and Yaramoko mines. Additionally, free cash flow from ongoing operations in Q1 2025 totaled USD 111.3 million, up from USD 17.3 million in Q1 2024.
Considering the expected valuation upside, decent production, expanding capacity, higher financials, positive guidance, focused on curbing cost, current trading levels and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of CAD 9.00, as on July 9, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FVI Fortuna Silver Mines Inc |
-0.2 2.27% | 8.63 | 12.52 | 9.12 | 2.37 | 1.39 | 1.67 | 3.65 |
| NGT Newmont Goldcorp Corp |
0.35 0.44% | 80.05 | 13.22 | 9.38 | 4.51 | 2.07 | 3.45 | 7.15 |
| AEM Agnico Eagle Mines Limited |
-0.36 0.22% | 162.66 | 25.63 | 19.27 | 9.33 | 2.85 | 6.92 | 11.93 |
| WPM Wheaton Precious Metals Corp |
-0.96 0.78% | 121.39 | 64.97 | 41.49 | 37.81 | 5.38 | 26.78 | 37.60 |
| ABX Barrick Gold Corp |
-0.03 0.10% | 28.56 | 15.66 | 11.20 | 3.66 | 1.49 | 2.78 | 5.07 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 9, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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