Fortuna Silver Mines Generates 30% Increase in Cash Flow
By jturbin | November 8, 2012 10:08 PM IST
Fortuna Silver Mines (FVI.TSX, NYSE: FSM) reported its third quarter financial and operating results, which included a 30% rise in operating cash flow to $19.95 million. On a per share basis, quarterly cash flow rose to $0.16 from $0.12 in the third quarter of 2011.
Fortuna also announced that at its San Jose mine in Mexico, the expansion of the processing plant to its design capacity and construction of an off-site dore plant in the coming year will contribute substantially to the Company’s profit margins. Furthermore, the Mines and Energy Ministry granted the construction permit for a new tailings facility at its Caylloma mine in Peru, now scheduled to be commissioned at the end of November 2012.
* Revenue of $43.84 million, a 35% increase over the prior year period
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* Silver production of 1,027,741 million ounces, a 56% rise over Q3 2011
* Gold production of 5,348 ounces, 251% above the prior year period
* Cash cost per silver ounce, net of by-product credits, was US$4.81
Jorge Ganoza, President and CEO of Fortuna Silver Mines:
“I am pleased that we have had another strong quarter of record sales and cash from operations. At the end of August 2012, the San Jose mine celebrated its first anniversary of commercial production – in the last year, it has consistently exceeded its planned operating and financial targets.”
Graeme Jennings, Cormark Securities:
“We believe that the Company offers investors exposure to an undervalued ‘best in class’ mid-tier silver producer with a rapidly growing production profile supported by high quality in-situ resources and exploration assets.”