10 Best Canadian Penny Stocks to Buy Now

04. Fortuna Mining Corp. (NYSE:FSM)

Number of Hedge Fund Holders: 17

Fortuna Mining Corp. (NYSE:FSM) is a diversified precious metals producer with a focus on exploration, extraction, and processing across Latin America and West Africa. The company operates through several segments, including Bateas, Cuzcatlan, Mansfield, and Corporate, managing silver, gold, lead, and zinc mines. Key assets like the Caylloma silver mine and the San Jose silver-gold mine have demonstrated solid production metrics, underlining the company’s robust operational capabilities.

In Q2 2024, Fortuna Mining Corp. (NYSE:FSM) reported impressive financial results, driven by the rising prices of gold and silver. The company produced 116,000 gold equivalent ounces, with gold sales accounting for 81% of the total revenue. The average realized gold price rose significantly to $2,334 per ounce from $2,087 in Q1, boosting total sales to $260 million. Fortuna Mining Corp. (NYSE:FSM) also generated $93 million in cash flow before working capital adjustments and achieved a free cash flow of $39 million, highlighting its strong financial health. The company’s focus on strategic capital projects is expected to fuel future growth. The Lindero mine’s leach pad expansion, now 60% complete, is set to enhance production capacity, while the Seguela processing plant’s optimization has already yielded significant operational efficiencies. Additionally, Fortuna Mining Corp. (NYSE:FSM) exploration efforts at the Kingfisher discovery in the Seguela mine present promising opportunities, potentially adding new resources to its portfolio.

Fortuna Mining Corp. (NYSE:FSM) secures its position on our list of the ten best Canadian penny stocks to buy now, thanks to its robust financial stability. The company boasts a strong balance sheet, highlighted by $350 million in liquidity, bolstered by a successful $172 million convertible notes placement. Fortuna’s low total net debt to EBITDA ratio of 0.2 reflects its prudent financial management, enabling the company to seize value-focused opportunities across its operational regions. With ongoing investments in high-potential projects and a steadfast commitment to operational excellence, Fortuna Mining Corp. (NYSE:FSM) is well-positioned for sustained growth and value creation for its shareholders. In the second quarter of 2024, the number of hedge funds holding positions in Fortuna Mining Corp. (NYSE:FSM) stands at 17 similar to the previous quarter, as reported by Insider Monkey’s database. The collective value of these holdings is about $96.29 million, with the largest position held by Joel Greenblatt’s Gotham Asset Management.