7 Cheapest Penny Stocks to Buy Now

4. Fortuna Mining Corp. (NYSE:FSM)

Share Price: $4.88

Forward P/E Ratio: 9.91

Earnings Growth This Year: 113.60%    

Number of Hedge Fund Holders: 17

Fortuna Mining Corp. (NYSE:FSM) is a Canadian Mining company that focuses on precious metals including gold, silver, lead, and zinc. The company has operations in Latin America and West Africa.

The company is on track to meet its annual guidance of 457 to 479 kilo-ounce gold production and an All-In Sustaining Cost (AISC) of $1,485 to $1,640/oz Gold. During the second quarter of 2024 alone, Fortuna Mining Corp. (NYSE:FSM) produced 92.7 kilo ounces of gold which was up from 64.3 kilo ounces from the comparable quarter last year. The consolidated AISC was also close to its guidance at $1,656/oz of gold indicating a significant improvement from the previous year.

Production is merely the first half for any mining company, the second half comprises selling the produced metals. Fortuna Mining Corp. (NYSE:FSM) has done well in the selling department as well. Its net sales of $260 million were up nearly 64% from the same quarter in 2023, indicating an overall robust business for the company.

Strong production topped with an improved AISC resulted in strong operating income for the mining company. The operating income came in at $55.4 million more than a 619% increase year-over-year.

These robust financial highlights become more attractive with its cheap valuation and current share price. The stock is trading at only 9.91 times its forward earnings. Moreover, its earnings are expected to grow by 114% during the year making it one of the cheapest penny stocks to buy now.