10 Cheap Penny Stocks to Buy According to Hedge Funds

8. Fortuna Mining Corp. (NYSE:FSM)

Forward P/E Ratio as of March 11: 6.07

Share Price as of March 11: $4.74

Number of Hedge Fund Holders: 19

Fortuna Mining Corp. (NYSE:FSM) is a precious and base metal mining company with operations across multiple continents. It explores and extracts silver, lead, zinc, and gold from mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, Peru, and Senegal. It manages its diverse portfolio through distinct operational segments.

The company’s Seguela gold mine in West Africa was a major driver of its 2024 success. The mine produced 137,781 ounces of gold in its first full year. In Q4 2024 alone, Seguela produced 35,244 ounces, which was a 1% sequential increase. The All-In Sustaining Costs (AISC) were well-managed, at $1,376 per ounce for the quarter and $1,153 per ounce for the year. AISC represents the total expenses associated with producing an ounce of gold, which includes mining, processing, and ongoing capital expenditures.

The company projects gold production to reach 160,000 to 180,000 ounces by 2026. This increase will be accompanied by a further reduction in AISC, which is targeted to be between $1,260 and $1,390 per ounce. To support this growth, Fortuna Mining Corp. (NYSE:FSM) is investing $8.5 million to expand the tailings storage facility, which will ensure capacity until 2029. $51 million is being invested in mineral exploration and new project development, with a focus on high-value targets like Kingfisher and Sandbird Deep at the Seguela mine camp.