5. Fortuna Mining Corp. (NYSE:FSM)
Price as of March 3: $4.32
Forward P/E ratio: 5.04
Analysts upside potential: 31.71%
Number of hedge fund holders: 19
Fortuna Mining Corp. (NYSE:FSM) is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. The company primarily produces gold and silver with lead and zinc as by-products. It has an additional preliminary economic assessment stage project (Diamba Sud Gold Project) located in Senegal.
Fortuna Mining Corp. (NYSE:FSM) has been realigning its portfolio, recently announcing the sale of its non-core San Jose Mine in Mexico. This divestment, expected to close in Q1 2025, allows the company to focus on higher-value opportunities within its portfolio. The San Jose Mine, which had been scheduled to begin a progressive closure process in early 2025, was once one of the 12 largest primary silver producers in the world but is no longer considered a core asset. The transaction includes $6 million in staged payments, the potential for an additional $11 million upon certain conditions, and a 1% net smelter royalty for a 5-year term.
Meanwhile, Fortuna Mining Corp. (NYSE:FSM) is delivering strong operational results. It reported a record production of 455,958 gold equivalent ounces for 2024, including 369,637 ounces of gold and 3.7 million ounces of silver. The company projects a slight decrease in production for 2025, but this won’t dent its revenues.
Lina Thomas, an analyst at Goldman Sachs Research, predicts that the price of gold will climb by 8% to $3,100 a troy ounce by the end of 2025. This prediction is underpinned by “higher-than-expected demand for gold from central banks, which have been increasing their reserves of the commodity since the freezing of Russian central bank assets in 2022.” Put simply, Fortuna’s revenues can still increase substantially despite reduced production. This is why Fortuna Mining Corp. (NYSE:FSM) is one of the Best Value Penny Stocks to Invest in Now.
