Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI)
is pleased to report production results for the second quarter of
2019 from its two operating mines in Latin America, the San Jose
Mine in Mexico and the Caylloma Mine in Peru. The Company
produced 2.4 million ounces of silver and 13,497 ounces of gold
plus base metal by-products. Silver and gold production for
the first six months totaled 4.6 million ounces and 26,811 ounces
respectively; being 5 percent above and 1 percent below the
Company’s mid-year projection respectively. Fortuna is on
schedule to produce 8.2 - 9.0 million ounces of silver and 49 - 54
thousand ounces of gold or 11.7 - 12.9 million Ag Eq1 ounces in
2019 in accordance with our annual production guidance (refer to
Fortuna news release dated January 17, 2019).
Second Quarter Production
Highlights
- Silver production of 2,387,225 ounces; 3 percent increase over
Q2 2018
- Gold production of 13,497 ounces; 7 percent decrease over
Q2 2018
- Lead production of 6,975,426 pounds; 3 percent decrease over Q2
2018
- Zinc production of 11,173,027 pounds; 2 percent decrease over
Q2 2018
- Cash cost2 for San Jose is US$68.6/t, within 2019 annual cost
guidance of between $63.5 - $70.1/t
- Cash cost2 for Caylloma is US$86.7/t, within 2019 annual cost
guidance of between $80.0 - $88.4/t
Consolidated Operating
Highlights
|
Second Quarter 2019 |
Second Quarter 2018 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Processed Ore |
|
|
Tonnes milled |
133,548 |
271,016 |
|
134,123 |
263,383 |
|
Average tpd milled |
1,501 |
3,045 |
|
1,507 |
2,987 |
|
Silver3 |
|
|
Grade (g/t) |
64 |
273 |
|
65 |
268 |
|
Recovery (%) |
83.86 |
90.76 |
|
84.84 |
91.67 |
|
Production (oz) |
230,000 |
2,157,225 |
2,387,225 |
237,303 |
2,084,013 |
2,321,315 |
|
Second Quarter 2019 |
Second Quarter 2018 |
|
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Caylloma, Peru |
San Jose, Mexico |
Consolidated |
Gold |
|
|
Grade (g/t) |
0.20 |
1.68 |
|
0.17 |
1.86 |
|
Recovery (%) |
34.33 |
90.23 |
|
17.91 |
91.54 |
|
Production (oz) |
293 |
13,204 |
13,497 |
134 |
14,422 |
14,557 |
Lead |
|
|
Grade (%) |
2.61 |
|
|
2.65 |
|
|
Recovery (%) |
90.88 |
|
|
91.63 |
|
|
Production (lbs) |
6,975,426 |
|
6,975,426 |
7,186,541 |
|
7,186,541 |
Zinc |
|
|
Grade (%) |
4.22 |
|
|
4.27 |
|
|
Recovery (%) |
89.89 |
|
|
90.57 |
|
|
Production (lbs) |
11,173,027 |
|
11,173,027 |
11,436,243 |
|
11,436,243 |
Notes:1. Silver equivalent production does not include
lead or zinc and is calculated using a silver to gold ratio of 72
to 12. Preliminary estimates of cash operating costs per
tonne are subject to modification on final cost
consolidation3. Metallurgical recovery for silver at the
Caylloma Mine is calculated based on silver content in lead
concentrate4. Totals may not add due to rounding
San Jose Mine, Mexico
The San Jose Mine produced 2,157,225 ounces of
silver and 13,204 ounces of gold in the second quarter of 2019,
7 percent above and 4 percent below budget respectively.
Average head grades for silver and gold were 273 g/t and 1.68
g/t, 7 percent above and 3 percent below budget respectively.
Silver and gold production for the first six months of 2019
totaled 4.2 million ounces and 25,945 ounces respectively; being 5
percent above and 4 percent below the mine’s mid-year
projection.
Caylloma Mine, Peru
The Caylloma Mine produced 230,000 ounces of
silver in the second quarter of 2019, 1 percent above budget.
Average silver head grade of 64 g/t, 1 percent above budget.
Silver production for the first six months of 2019 totaled
463,836 ounces; 1 percent above the mine’s mid-year projection.
Lead and zinc production for the second quarter
of 2019 was 6,975,426 pounds and 11,173,027 pounds respectively, in
line with budget and 6 percent above budget respectively.
Average head grades for lead and zinc were 2.61% and 4.22%, in line
with budget and 7 percent above budget respectively. Base
metals production for the first six months of 2019 totaled
14,147,628 pounds of lead and 22,468,271 pounds of zinc; being 1
percent below and 8 percent above the mine’s mid-year
projection.
Qualified Person
Amri Sinuhaji, Technical Services Director –
Mine Planning, is the Qualified Person for Fortuna Silver Mines
Inc. as defined by National Instrument 43-101. Mr. Sinuhaji
is a Professional Engineer registered with the Association of
Professional Engineers and Geoscientists of the Province of British
Columbia (#48305) and has reviewed and approved the scientific and
technical information contained in this news release.
About Fortuna
Silver Mines Inc.
Fortuna is a growth oriented, precious metals
producer focused on mining opportunities in Latin America.
Our primary assets are 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 our website at www.fortunasilver.com.
Jorge A. Ganoza President, CEO and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos BacaT (Peru): +51.1.616.6060, ext. 0
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
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; 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.
Fortuna Silver Mines (NYSE:FSM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fortuna Silver Mines (NYSE:FSM)
Historical Stock Chart
From Apr 2023 to Apr 2024