Fortuna Silver Mines Inc.
(NYSE: FSM) (TSX: FVI) today
reported net income of $10.3 million, adjusted net income of $7.2
million, and adjusted EBITDA of $27.2 million for the second
quarter of 2019.
Jorge A. Ganoza, President and CEO, commented,
“Our results in the second quarter a reflect strong financial
performance in spite of a challenging price environment for silver,
with adjusted net earnings per share of 6 cents, adjusted EBITDA
margin of 40 percent, and free cash flow from ongoing operations of
$15.4 million.” Mr. Ganoza continued, “As of the end of June,
Lindero construction progress is 57 percent complete, with 98
percent of the direct capital expenditures committed, and over 70
percent of the total projected capital spent.” Mr. Ganoza added,
“With mine production set to start in August and construction of
the crushing and leach pad facilities progressing according to
schedule we plan to initiate placing ore on the leach pad in the
fourth quarter of 2019.”
Second quarter 2019
highlights
- Sales of $67.9 million, compared to
$73.7 million in Q2 2018
- Net income of $10.3 million,
compared to $11.2 million in Q2 2018
- Adjusted net income1 of $7.2
million, compared to $11.1 million in Q2 2018
- Adjusted EBITDA1 of $27.2 million,
compared to $35.2 million in Q2 2018
- Free cash flow from ongoing
operations1 of $15.4 million, compared to $9.1 million in Q2 2018
due largely to the impact of short-term movements in receivables
and inventory
- Silver and gold production of
2,387,225 ounces and 13,497 ounces, respectively
- AISC2 per silver equivalent ounce
of payable silver was $11.3
Notes: 1 Refer to
Non-GAAP Financial Measures and Forward-Looking
Statements 2 AISC oz Ag Eq calculated
at realized metal prices of $1,311/oz Au, $14.9/oz Ag, $0.9/lb Pb,
and $1.3/lb Zn
Second Quarter 2019 Consolidated
Results
|
|
|
|
|
|
|
|
|
|
|
Consolidated Financial Metrics |
Three months ended June 30, |
Six months ended June 30, |
|
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
(Expressed in $ millions except per share
information) |
|
|
|
Sales |
$ |
67.9 |
|
$ |
73.7 |
|
(8%) |
$ |
126.9 |
|
$ |
144.1 |
|
(12%) |
Mine
operating income |
|
23.0 |
|
|
31.4 |
|
(27%) |
|
44.5 |
|
|
62.7 |
|
(29%) |
Operating
income |
|
15.7 |
|
|
22.4 |
|
(30%) |
|
26.6 |
|
|
44.8 |
|
(41%) |
Net
income |
|
10.3 |
|
|
11.2 |
|
(8%) |
|
12.5 |
|
|
24.9 |
|
(50%) |
Earnings
per share (basic) |
|
0.07 |
|
|
0.07 |
|
(0%) |
|
0.08 |
|
|
0.16 |
|
(50%) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net income1 |
|
7.2 |
|
|
11.1 |
|
(35%) |
|
15.6 |
|
|
24.3 |
|
(36%) |
Adjusted
EBITDA1 |
|
27.2 |
|
|
35.2 |
|
(23%) |
|
51.1 |
|
|
67.0 |
|
(24%) |
Net cash
provided by operating activities |
|
24.0 |
|
|
21.9 |
|
10% |
|
27.9 |
|
|
42.2 |
|
(34%) |
Free cash
flow1 |
|
(27.6 |
) |
|
(20.2 |
) |
(37%) |
|
(61.6 |
) |
|
(7.8 |
) |
(690%) |
Free cash
flow from ongoing operations1 |
|
15.4 |
|
|
9.1 |
|
69% |
|
17.5 |
|
|
28.0 |
|
(38%) |
Capex |
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
4.8 |
|
|
6.0 |
|
(21%) |
|
9.4 |
|
|
9.2 |
|
3% |
Non-sustaining |
|
1.0 |
|
|
0.9 |
|
6% |
|
1.7 |
|
|
1.1 |
|
58% |
Lindero |
|
62.0 |
|
|
12.8 |
|
383% |
|
92.9 |
|
|
17.7 |
|
425% |
Brownfields |
|
1.8 |
|
|
2.3 |
|
(24%) |
|
3.0 |
|
|
3.0 |
|
0% |
|
|
|
|
|
|
|
Jun 30, 2019 |
|
Dec 31, 2018 |
% Change |
Cash,
cash equivalents, and short-term investments |
|
$ |
77.2 |
|
|
163.3 |
|
(53%) |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
|
|
$ |
823.3 |
|
$ |
786.5 |
|
5% |
Non-current credit facility |
|
|
|
|
|
$ |
69.4 |
|
$ |
69.3 |
|
0% |
Shareholders' equity |
|
|
|
|
|
$ |
616.9 |
|
$ |
602.8 |
|
2% |
Notes: |
1. Refer to
Non-GAAP Financial Measures. |
Certain
comparative figures have been reclassified to conform to the
current year presentation |
Sales for the three months ended June 30, 2019
were $67.9 million, an 8% decrease from the $73.7 million reported
in Q2 2018. The decrease in sales was due primarily to a
decline in metal prices for silver, lead, and zinc of 10%, 21%, and
11%, respectively, which was partially offset by a 6% increase of
silver ounces sold.
Operating income for the three months ended June
30, 2019 was $15.7 million, or $6.7 million lower than the $22.4
million reported for the comparable quarter in 2018.
The decrease in operating income was due primarily to lower sales
of $5.8 million and higher operating costs of $2.7 million at both
the San Jose and Caylloma mines, and was partially offset by lower
selling and general and admistration expenses of $1.1 million
related to lower share-based payment charges. Cash cost for
the quarter and year-to-date at San Jose and Caylloma are within
our annual cash cost guidance range. (Refer to Fortuna news release
dated January 17, 2019. “Fortuna reports 2018 full year
production of 12.8 million silver equivalent ounces and issues 2019
guidance”).
Net income for the three months ended June 30,
2019 was $10.3 million or $0.07 per share, an 8% decrease compared
to $11.2 million or $0.07 per share reported in the same quarter in
2018.
Adjusted net income for the quarter was $7.2
million a decrease of 35% compared to $11.1 million reported in the
same quarter of 2018. The main non-cash adjustments
were unrealized commodity derivative losses, foreign exchange gains
and deferred tax credits related to our Argentina construction
activities. The effective tax rate, on an adjusted basis was
54% compared to 52% for the same quarter in 2018 and reflects a
withholding tax on dividend repatriation of $1.4 million.
Adjusted EBITDA for the period was $27.2 million
compared to $35.2 million in the comparable period in 2018.
The decrease in adjusted EBITDA was due primarily to lower metal
prices and higher operating costs.
Net cash provided by operating activities for
the three months ended June 30, 2019 was $24.0 million compared to
$21.9 million reported in Q2 2018, as the prior year was impacted
by negative changes in working capital of $7.2 million compared to
positive changes in the current quarter of $1.8 million.
Free cash flow from ongoing operations was $15.4
million, compared to $9.1 million in Q2 2018. For the six
months ended June 30, 2019 free cash flow from ongoing operations
was $17.5 million compared to $28.0 million for the comparable
period in 2018.
Liquidity and capital resources
Total liquidity available to the Company as of
June 30, 2019 was $157.2 million, which includes $80.0 million of
available credit under our $150 million credit facility. At
June 30, 2019, the Company had cash, cash equivalents, and
short-term investments of $77.2 million (December 31, 2018 – $163.3
million). The decrease in cash reflects the increase in the
pace of spending at the construction of the Lindero
project.
Lindero gold Project
Construction at the Lindero 18,750 tpd open pit
heap leach gold project located in the Province of Salta in
Argentina is 57% complete. Approximately 98% of direct
capital costs have been committed with all the major contractors at
the construction site. Construction spending is accelerating
and spending for the second quarter was $51.2 million (YTD spending
- $92.8 million), an increase of 23% over the first quarter.
Total project construction spending as at the end of June 30, 2019
was $216.2 million, of which approximately $31.5 million remains
unpaid. The budget construction forecast to completion of the
project is approximately $298.0 million. In addition we
expect to incur approximately $25 million of pre-production costs
and supplies inventory along with $18 million of refundable value
added taxes.
|
San Jose Mine, Mexico |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2019 |
2018 |
|
2019 |
2018 |
Mine Production |
|
|
|
|
|
Tonnes milled |
271,016 |
263,383 |
|
527,658 |
521,587 |
Average tonnes milled per day |
3,045 |
2,987 |
|
3,003 |
2,998 |
|
|
|
|
|
|
Silver |
|
|
|
|
|
Grade (g/t) |
273 |
268 |
|
270 |
276 |
Recovery (%) |
91 |
92 |
|
91 |
92 |
Production (oz) |
2,157,225 |
2,084,013 |
|
4,156,718 |
4,269,926 |
Metal sold (oz) |
2,317,922 |
2,187,880 |
|
4,174,210 |
4,199,140 |
Realized price ($/oz) |
14.85 |
16.59 |
|
15.19 |
16.64 |
|
|
|
|
|
|
Gold |
|
|
|
|
|
Grade (g/t) |
1.68 |
1.86 |
|
1.70 |
1.90 |
Recovery (%) |
90 |
92 |
|
90 |
92 |
Production (oz) |
13,204 |
14,422 |
|
25,945 |
29,304 |
Metal sold (oz) |
14,263 |
15,097 |
|
25,975 |
28,845 |
Realized price ($/oz) |
1,311 |
1,299 |
|
1,313 |
1,315 |
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
Production cash cost ($/t) |
69.0 |
60.5 |
|
68.8 |
62.8 |
Production cash cost ($/oz Ag Eq)1,2 |
6.2 |
5.5 |
|
6.3 |
5.5 |
Unit net smelter return ($/t) |
170.2 |
190.6 |
|
172.1 |
197.1 |
AISC ($/oz Ag Eq)1,3 |
9.3 |
8.9 |
|
9.0 |
8.6 |
Notes: |
|
|
|
|
|
1.
Production cash cost silver equivalent and All-in sustaining cash
cost silver equivalent (“AISC”) are calculated using realized metal
prices for each period respectively. |
2.
Production cash cost, Production cash cost silver equivalent, and
AISC are Non-GAAP Financial Measures. Refer to Non-GAAP
Financial Measures in the associated MD&A for a description and
calculation of these measures |
Quarterly Results
The San Jose Mine produced 2,157,225 ounces of
silver and 13,204 ounces of gold in the second quarter of 2019,
which were 4% above and 8% below the comparable quarter in
2018. The higher silver production was due to a 2% higher
head grade and a 3% higher mill throughput, while the lower gold
production was due to a 10% lower head grade compared to the same
quarter in 2018.
Cash cost per tonne of processed ore for the
second quarter ended June 30, 2019 increased 14% to $68.99 per
tonne (refer to Non-GAAP Financial Measures) compared to $60.47 per
tonne for the comparable quarter in 2018. The increase in
cash cost was due to higher mining costs related to blasting and
rock support and partially offset by lower dry-stack tailings
operating costs. Cash cost for the quarter and year-to-date
are within our 2019 annual cash cost guidance of between $63.5 to
$70.1 per tonne (refer to Fortuna news release dated January 17,
2019. “Fortuna reports 2018 full year production of 12.8
million silver equivalent ounces and issues 2019 guidance”).
|
Caylloma Mine, Peru |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2019 |
2018 |
|
2019 |
2018 |
Mine Production |
|
|
|
|
|
Tonnes milled |
133,548 |
134,123 |
|
263,698 |
263,743 |
Average tonnes milled per day |
1,501 |
1,507 |
|
1,498 |
1,499 |
|
|
|
|
|
|
Silver |
|
|
|
|
|
Grade (g/t) |
64 |
65 |
|
65 |
63 |
Recovery (%) |
84 |
85 |
|
84 |
85 |
Production (oz) |
230,000 |
237,303 |
|
463,836 |
452,848 |
Metal sold (oz) |
233,463 |
226,222 |
|
471,332 |
446,511 |
Realized price ($/oz) |
14.89 |
16.54 |
|
15.23 |
16.66 |
|
|
|
|
|
|
Lead |
|
|
|
|
|
Grade (%) |
2.61 |
2.65 |
|
2.67 |
2.69 |
Recovery (%) |
91 |
92 |
|
91 |
91 |
Production (000's lbs) |
6,976 |
7,187 |
|
14,148 |
14,226 |
Metal sold (000's lbs) |
7,110 |
6,880 |
|
14,341 |
14,149 |
Realized price ($/lb) |
0.86 |
1.08 |
|
0.89 |
1.11 |
|
|
|
|
|
|
Zinc |
|
|
|
|
|
Grade (%) |
4.22 |
4.27 |
|
4.30 |
4.29 |
Recovery (%) |
90 |
91 |
|
90 |
90 |
Production (000's lbs) |
11,173 |
11,436 |
|
22,469 |
22,465 |
Metal sold (000's lbs) |
10,924 |
11,429 |
|
22,193 |
22,507 |
Realized price ($/lb) |
1.25 |
1.41 |
|
1.24 |
1.48 |
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
Production cash cost ($/t) |
86.1 |
76.9 |
|
82.8 |
77.8 |
Production cash cost ($/oz Ag Eq)1,2 |
10.3 |
7.0 |
|
9.8 |
6.9 |
Unit net smelter return ($/t) |
134.5 |
180.4 |
|
140.7 |
185.3 |
AISC ($/oz Ag Eq)1,3 |
13.5 |
10.4 |
|
13.2 |
10.1 |
Notes: |
|
|
|
|
|
1.
Production cash cost silver equivalent and All-in sustaining cash
cost silver equivalent (“AISC”) are calculated using realized metal
prices for each period respectively. |
2.
Production cash cost, Production cash cost silver equivalent, and
AISC are Non-GAAP Financial Measures. Refer to Non-GAAP
Financial Measures in the associated MD&A for a description and
calculation of these measures |
Quarterly Results
The Caylloma Mine produced 7.0 million pounds of
lead and 11.2 million pounds of zinc in the second quarter of 2019,
which were 3% and 2% lower than the production for the comparable
quarter in 2018. The decreased production was due to lower
head grades of lead and zinc of 2.61% and 4.22%,
respectively. Silver production totaled 230,000 ounces or 3%
lower than the production for the comparable quarter in 2018.
Cash cost per tonne of processed ore was $86.11
(refer to Non-GAAP Financial Measures) and was 12% higher than the
$76.88 cash cost per tonne for the comparable period in 2018.
The higher cash cost was due primarily to higher mining costs
related to preparation and support and higher on-site indirect
costs. Cash cost for the quarter and year-to-date are within
our 2019 annual cash cost guidance of between $80.0 to $88.4 per
tonne (refer to Fortuna news release dated January 17, 2019.
“Fortuna reports 2018 full year production of 12.8 million silver
equivalent ounces and issues 2019 guidance”).
Non-GAAP Financial
Measures
The following tables represent the calculation
of certain Non-GAAP Financial Measures as referenced in this news
release.
|
Income Statement Reconciliation to Adjusted Net Income for
the Three Months Ended June 30, 2019 |
|
(Expressed in
$ millions, except per share information) |
|
Q2 2019 |
|
Adjust. |
|
Q2 2019 Adjusted |
|
Q2 2018 |
|
Adjust. |
|
Q2 2018 Adjusted |
Sales |
$ |
67.9 |
|
$ |
- |
|
$ |
67.9 |
|
$ |
73.7 |
|
$ |
- |
|
$ |
73.7 |
|
Cost of
sales |
|
44.9 |
|
|
0.1 |
|
|
45.0 |
|
|
42.3 |
|
|
- |
|
|
42.3 |
|
Mine operating income |
|
23.0 |
|
|
(0.1 |
) |
|
22.9 |
|
|
31.4 |
|
|
- |
|
|
31.4 |
|
Selling, general and
administration |
|
7.0 |
|
|
(0.1 |
) |
|
6.9 |
|
|
8.0 |
|
|
- |
|
|
8.0 |
|
Exploration and
evaluation |
|
0.3 |
|
|
- |
|
|
0.3 |
|
|
0.3 |
|
|
- |
|
|
0.3 |
|
Share of loss (income) of
equity-accounted investee |
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Foreign exchange loss
(gain) |
|
(0.2 |
) |
|
0.7 |
|
|
0.5 |
|
|
(0.5 |
) |
|
- |
|
|
(0.5 |
) |
Impairment reversal |
|
- |
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Other
(income) expenses, net |
|
0.1 |
|
|
- |
|
|
0.1 |
|
|
1.1 |
|
|
(0.8 |
) |
|
0.3 |
|
Operating Income |
|
15.7 |
|
|
(0.6 |
) |
|
15.1 |
|
|
22.4 |
|
|
0.8 |
|
|
23.2 |
|
Interest and finance
costs |
|
(0.1 |
) |
|
0.1 |
|
|
(0.0 |
) |
|
0.2 |
|
|
- |
|
|
0.2 |
|
Gain
(loss) on financial assets and liabilities carried at fair
value |
|
0.3 |
|
|
0.3 |
|
|
0.6 |
|
|
2.5 |
|
|
(2.9 |
) |
|
(0.4 |
) |
Income before taxes |
|
15.9 |
|
|
(0.2 |
) |
|
15.7 |
|
|
25.1 |
|
|
(2.1 |
) |
|
23.0 |
|
Current income tax
expense |
|
9.9 |
|
|
0.1 |
|
|
10.0 |
|
|
12.2 |
|
|
(0.9 |
) |
|
11.3 |
|
Deferred income tax recovery |
|
(4.2 |
) |
|
2.7 |
|
|
(1.5 |
) |
|
1.7 |
|
|
(1.1 |
) |
|
0.6 |
|
Net income and adjusted net
income |
$ |
10.2 |
|
$ |
(3.0 |
) |
$ |
7.2 |
|
$ |
11.2 |
|
$ |
(0.1 |
) |
$ |
11.1 |
|
Earnings per share - basic |
$ |
0.07 |
|
$ |
(0.03 |
) |
$ |
0.04 |
|
$ |
0.07 |
|
$ |
0.01 |
|
$ |
0.08 |
|
Note: Certain figures may not add due to rounding and certain
comparative figures have been reclassified to conform to the
current year presentation |
|
|
Income Statement Reconciliation to Adjusted Net Income for
the Six Months Ended June 30, 2019 |
|
(Expressed in
$ millions, except per share information) |
|
YTD 2019 |
|
Adjust. |
|
YTD 2019 Adjusted |
|
YTD 2018 |
|
Adjust. |
|
YTD 2018 Adjusted |
Sales |
$ |
126.9 |
|
$ |
- |
|
$ |
126.9 |
|
$ |
144.1 |
|
$ |
- |
|
$ |
144.1 |
|
Cost of
sales |
|
82.4 |
|
|
0.1 |
|
|
82.5 |
|
|
81.4 |
|
|
- |
|
|
81.4 |
|
Mine operating income |
|
44.5 |
|
|
(0.1 |
) |
|
44.4 |
|
|
62.7 |
|
|
- |
|
|
62.7 |
|
Selling, general and
administration |
|
13.5 |
|
|
0.1 |
|
|
13.6 |
|
|
14.9 |
|
|
- |
|
|
14.9 |
|
Exploration and
evaluation |
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
0.4 |
|
|
- |
|
|
0.4 |
|
Share of loss (income) of
equity-accounted investee |
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
|
(0.2 |
) |
|
0.2 |
|
|
- |
|
Foreign exchange loss |
|
3.5 |
|
|
(2.3 |
) |
|
1.2 |
|
|
1.7 |
|
|
- |
|
|
1.7 |
|
Other
(income) expenses, net |
|
0.3 |
|
|
- |
|
|
0.3 |
|
|
1.1 |
|
|
(0.8 |
) |
|
0.3 |
|
Operating Income |
|
26.6 |
|
|
2.2 |
|
|
28.9 |
|
|
44.8 |
|
|
0.6 |
|
|
45.4 |
|
Interest and finance
costs |
|
0.0 |
|
|
0.2 |
|
|
0.2 |
|
|
(0.3 |
) |
|
0.5 |
|
|
0.2 |
|
Gain
(loss) on financial assets and liabilities carried at fair
value |
|
(1.2 |
) |
|
2.6 |
|
|
1.4 |
|
|
2.9 |
|
|
(4.2 |
) |
|
(1.3 |
) |
Income before taxes |
|
25.5 |
|
|
5.0 |
|
|
30.5 |
|
|
47.4 |
|
|
(3.1 |
) |
|
44.3 |
|
Current income tax
expense |
|
18.5 |
|
|
0.8 |
|
|
19.3 |
|
|
22.0 |
|
|
(1.3 |
) |
|
20.7 |
|
Deferred income tax expense (recovery) |
|
(5.6 |
) |
|
1.1 |
|
|
(4.5 |
) |
|
0.5 |
|
|
(1.3 |
) |
|
(0.8 |
) |
Net income and adjusted net
income |
$ |
12.6 |
|
$ |
3.1 |
|
$ |
15.6 |
|
$ |
24.9 |
|
$ |
(0.6 |
) |
$ |
24.3 |
|
Earnings per share - basic |
$ |
0.08 |
|
$ |
0.02 |
|
$ |
0.10 |
|
$ |
0.16 |
|
$ |
(0.08 |
) |
$ |
0.08 |
|
Note: Certain figures may not add due to rounding and certain
comparative figures have been reclassified to conform to the
current year presentation |
|
|
Adjusted EBITDA |
(Expressed in $ millions) |
|
Q2 2019 |
|
Q2 2018 |
|
YTD Q2 2019 |
|
YTD Q2 2018 |
Net Income for the period |
$ |
10.3 |
|
$ |
11.2 |
|
$ |
12.5 |
|
$ |
24.9 |
|
Add back: |
|
|
|
|
|
|
|
|
Foreign exchange, Lindero project |
|
(0.7 |
) |
|
- |
|
|
2.2 |
|
|
- |
|
Net finance items |
|
- |
|
|
(0.2 |
) |
|
(0.2 |
) |
|
0.2 |
|
Depreciation, depletion, and amortization |
|
11.4 |
|
|
11.9 |
|
|
20.5 |
|
|
22.6 |
|
Income taxes |
|
5.7 |
|
|
13.9 |
|
|
12.9 |
|
|
22.5 |
|
Share of loss (income) of equity-accounted investee |
|
0.1 |
|
|
- |
|
|
0.1 |
|
|
(0.2 |
) |
Other non-cash items |
|
0.4 |
|
|
(1.6 |
) |
|
3.1 |
|
|
(3.1 |
) |
Adjusted EBITDA |
$ |
27.2 |
|
$ |
35.2 |
|
$ |
51.1 |
|
$ |
67.0 |
|
|
|
|
|
|
|
|
|
|
|
Free cash flow and free cash flow from ongoing
operations |
(Expressed in $ millions) |
|
Q2 2019 |
|
Q2 2018 |
|
YTD Q2 2019 |
|
YTD Q2 2018 |
Free Cash Flow |
Net cash provided by operating activities |
$ |
24.0 |
|
$ |
21.9 |
|
$ |
27.9 |
|
$ |
42.2 |
|
Less: Purchases of mineral properties, plant and
equipment |
|
(5.6 |
) |
|
(8.7 |
) |
|
(13.3 |
) |
|
(15.7 |
) |
Less: Expenditures on Lindero Project |
|
(51.2 |
) |
|
(7.6 |
) |
|
(77.0 |
) |
|
(11.8 |
) |
Less: Deposits on long
term assets, net |
|
9.1 |
|
|
(21.1 |
) |
|
(0.7 |
) |
|
(23.2 |
) |
Less: Current income tax
expense |
|
(9.9 |
) |
|
(12.2 |
) |
|
(18.5 |
) |
|
(22.0 |
) |
Add: Income taxes paid |
|
6.0 |
|
|
7.5 |
|
|
20.0 |
|
|
22.7 |
|
Free cash
flow |
|
(27.6 |
) |
|
(20.2 |
) |
|
(61.6 |
) |
|
(7.8 |
) |
Add: Expenditures on Lindero Project |
|
51.2 |
|
|
7.6 |
|
|
77.0 |
|
|
11.8 |
|
Add: Greenfield capital
expenditures |
|
0.9 |
|
|
1.2 |
|
|
1.5 |
|
|
1.5 |
|
Add: Deposits on long term assets - Lindero Project |
|
(9.1 |
) |
|
20.5 |
|
|
0.6 |
|
|
22.5 |
|
Free cash flow from ongoing
operations |
$ |
15.4 |
|
$ |
9.1 |
|
$ |
17.5 |
|
$ |
28.0 |
|
|
|
|
|
|
|
|
|
|
The financial statements and MD&A are
available on SEDAR and have also been posted on the company's
website at
https://www.fortunasilver.com/investors/financials/2019/.
Conference call to review 2019
second quarter financial and operational
results
A conference call to discuss the financial and
operational results will be held on Thursday, August 8, 2019 at
9:00 a.m. Pacific | 12:00 p.m. Eastern. Hosting the call will
be Jorge A. Ganoza, President and CEO, and Luis D. Ganoza, Chief
Financial Officer.
Shareholders, analysts, media and interested
investors are invited to listen to the live conference call by
logging onto the webcast at:
https://www.webcaster4.com/Webcast/Page/1696/31124 or over the
phone by dialing just prior to the starting time.
Conference call
details:
Date: Thursday, August 8, 2019Time: 9:00
a.m. Pacific | 12:00 p.m. Eastern
Dial in number (Toll Free): +1.844.369.8770Dial
in number (International): +1.862.298.0840
Replay number (Toll Free): +1.877.481.4010Replay
number (International): +1.919.882.2331Replay Passcode: 50688
Playback of the conference call will be
available until August 22, 2019 at 12:00 a.m. Eastern.
Playback of the webcast will be available until August 8,
2020. In addition, a transcript of the call will be archived
on the company’s website:
https://www.fortunasilver.com/investors/financials/2019/.
About Fortuna Silver Mines
Inc.
Fortuna is a growth oriented, precious metal
producer with its primary assets being the Caylloma silver mine in
southern Peru, the San Jose silver-gold mine in Mexico and the
Lindero gold Project, currently under construction, in
Argentina. The Company is selectively pursuing acquisition
opportunities throughout the Americas and in select other
areas. For more information, please visit its website at
www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. GanozaPresident, CEO, and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations: Carlos BacaT (Peru):
+51.1.616.6060, ext. 0E: info@fortunasilver.com
Forward looking Statements
This news release contains forward looking
statements which constitute "forward looking information" within
the meaning of applicable Canadian securities legislation and
"forward looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995 (collectively, "Forward looking Statements"). All
statements included herein, other than statements of historical
fact, are Forward looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the Forward looking Statements. The Forward looking Statements
in this news release include, without limitation, statements about
the Company's plans for its mines and mineral properties; the
construction of the mine at the Lindero Project and the related
costs of construction, timing of commissioning, and timing of
commencement of commercial production; the Company's business
strategy, plans and outlook; the merit of the Company's mines and
mineral properties; the future financial or operating performance
of the Company; 2019 production and cost guidance; and proposed
expenditures. Often, but not always, these Forward looking
Statements can be identified by the use of words such as
"estimated", "potential", "open", "future", "assumed", "projected",
"used", "detailed", "has been", "gain", "planned", "reflecting",
"will", "containing", "remaining", "to be", or statements that
events, "could" or "should" occur or be achieved and similar
expressions, including negative variations.
Forward looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward looking Statements. Such
uncertainties and factors include, among others, changes in general
economic conditions and financial markets; changes in prices for
silver and other metals; technological and operational hazards in
Fortuna's mining and mine development activities; delays in the
contruction at the Lindero Project, delays in the commissioning or
commencement of commercial production at the Lindero Project; risks
inherent in mineral exploration; uncertainties inherent in the
estimation of mineral reserves, mineral resources, and metal
recoveries; governmental and other approvals; political unrest or
instability in countries where Fortuna is active; labor relations
issues; as well as those factors discussed under "Risk Factors" in
the Company's Annual Information Form. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in Forward looking Statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended.
Forward looking Statements contained herein are
based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to expectations regarding the
Company's plans for its mines and mineral properties; mine
production costs; expected trends in mineral prices and currency
exchange rates; the accuracy of the Company's current mineral
resource and reserve estimates; that the Company's activities will
be in accordance with the Company's public statements and stated
goals; that there will be no material adverse change affecting the
Company or its properties; that all required approvals will be
obtained; that there will be no significant disruptions affecting
operations and such other assumptions as set out herein. Forward
looking Statements are made as of the date hereof and the Company
disclaims any obligation to update any Forward looking Statements,
whether as a result of new information, future events or results or
otherwise, except as required by law. There can be no assurance
that Forward looking Statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not
place undue reliance on Forward looking Statements.
This news release also refers to non-GAAP
financial measures, such as cash cost per tonne of processed ore;
cash cost per payable ounce of silver; total production cost per
tonne; all-in sustaining cash cost; all-in cash cost; adjusted net
(loss) income; operating cash flow per share before changes in
working capital, income taxes, and interest income; and adjusted
EBITDA. These measures do not have a standardized meaning or method
of calculation, even though the descriptions of such measures may
be similar. These performance measures have no meaning under
International Financial Reporting Standards (IFRS) and therefore,
amounts presented may not be comparable to similar data presented
by other mining companies.
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