Shares of Fortuna Silver Mines (NYSE: FSM) plummeted 6.93% in pre-market trading on Thursday after the company reported second-quarter earnings that fell short of analyst expectations. The precious metals miner posted adjusted earnings of $0.14 per share, missing the consensus estimate of $0.21 per share and disappointing investors.

Fortuna's revenue for the quarter ended June 30 declined 11.4% year-over-year to $230.42 million, well below analysts' projections of $246.00 million. The company faced operational challenges, including higher costs and lower production at some of its mines. All-in sustaining costs (AISC) per gold equivalent ounce from continuing operations rose to $1,932 in Q2 2025, compared to $1,752 in the previous quarter, primarily due to higher cash costs, increased royalties from higher gold prices, and higher sustaining capital expenditures.

Despite the earnings miss and revenue decline, Fortuna maintained its full-year production guidance of 160,000 to 180,000 gold ounces for 2026. The company's CEO, Jorge A. Ganoza, emphasized Fortuna's strong liquidity position and its focus on growth opportunities, including the planned production expansion at the Séguéla Mine and advancing the Diamba Sud project in Senegal. However, investors appear to be more concerned with the near-term challenges, as reflected in the significant pre-market stock price drop.