Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”
or the “Company”) today reported its financial and
operating results for the first quarter of 2024.
First Quarter 2024
highlights
Financial
- Attributable net income of $26.3
million or $0.09 per share, compared to a $92.3 million
attributable net loss or $0.30 per share in Q4 2023
- Adjusted attributable net income1
of $26.7 million or $0.09 per share, compared to $20.6 million or
$0.07 per share in Q4 2023
- Generated $84.3 million of cash
flow from operations before working capital changes, and free cash
flow from ongoing operations1 of $12.1 million, compared to $105.4
million and $66.2 million, respectively, in Q4 2023
- The Company paid down $40.0 million
of its revolving credit facility. At the close of the quarter total
net debt was $83.0 million and the total net debt to adjusted
EBITDA ratio1 was 0.2:1
- Liquidity as of March 31, 2024 was
$212.7 million2, compared to $213.1 million at the end of Q4
2023
Return to Shareholders
- Returned $3.5 million of capital to
shareholders during the quarter through the Company’s normal course
issuer bid (“NCIB”) program
- On April 30, 2024 Fortuna announced
that the TSX had approved the renewal of the Company’s NCIB program
to purchase 5% of its outstanding common shares.
Operational
- Gold equivalent3 production of
112,543 ounces, compared to 136,154 ounces in Q4 2023
- Gold production of 89,678 ounces,
compared to 107,376 ounces in Q4 2023
- Silver production of 1,074,571
ounces, compared to 1,354,003 ounces in Q4 2023
- Consolidated cash costs1 per ounce
of gold equivalent sold of $879, compared to $840 in Q4 2023;
adjusting for San Jose, which is mining its last year of Mineral
Reserves, consolidated cash costs was $744
- Consolidated all-in sustaining cash
costs (AISC)1 per ounce of gold equivalent sold of $1,495, compared
to $1,509 in Q4 2023; adjusting for San Jose, consolidated AISC was
$1,412
- Year to date Lost Time Injury
Frequency Rate (LTIFR) of 1.13 and Total Recordable Injury
Frequency Rate (TRIFR) of 3.10
Growth and Development
- At Séguéla, mill throughput for the
quarter averaged 195 tonnes per hour (t/hr), versus name plate
design capacity of 154 t/hr. Mill constraints continued to be
tested with throughputs of up to 220 t/hr being recorded over a
seven-day period.
- The Kingfisher prospect was
identified at Séguéla which continues the identification of new
prospects at the site. Refer to the News Release “Fortuna discovers
new Kingfisher prospect at Séguéla Mine and provides exploration
update at the Diamba Sud Gold Project” dated March 11, 2024.
- Exploration continued at the Yessi
Vein at San Jose including an intercept of 1kg silver equivalent
over an estimated true width of 8.1 meters highlighting the
potential for high-grade shoots. Refer to the News Release “Fortuna
intersects 1kg Ag Eq over an estimated true width of 8.1m at the
Yessi vein, San Jose Mine, Mexico” dated April 15, 2024.
"Our operations performed in line with
expectations for the first quarter with 112,543 of gold equivalent
production, $84.3 million in cash from operations before working
capital changes and earnings per share of $0.09.” said Jorge
Ganoza, Fortuna’s President and CEO. Mr. Ganoza continued “Coming
off a record fourth quarter, lower production was in line with plan
as Séguéla prepared the Ancien pit for mining, a maintenance
shutdown was completed at Yaramoko and San Jose focused on
underground preparation with site production weighted to the second
half of the year.” Mr. Ganoza concluded, “We also executed on our
capital priorities by paying down an additional $40 million in debt
and advancing exciting exploration opportunities at Séguéla and
Diamba Sud while also returning capital to shareholders through our
share buyback program.”
First Quarter 2024 Consolidated Results
| |
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|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
(Expressed in millions) |
|
|
2024 |
|
|
|
2023 |
|
% Change |
|
Sales |
|
|
224.9 |
|
|
|
175.7 |
|
|
28 |
% |
| Mine operating income |
|
|
69.9 |
|
|
|
40.4 |
|
|
73 |
% |
| Operating income |
|
|
47.1 |
|
|
|
23.9 |
|
|
97 |
% |
| Attributable net income |
|
|
26.3 |
|
|
|
10.9 |
|
|
141 |
% |
| Attributable income per share
- basic |
|
|
0.09 |
|
|
|
0.04 |
|
|
132 |
% |
| Adjusted attributable net
income1 |
|
|
26.7 |
|
|
|
12.2 |
|
|
119 |
% |
| Adjusted EBITDA1 |
|
|
95.2 |
|
|
|
65.3 |
|
|
46 |
% |
| Net cash provided by operating
activities |
|
|
48.9 |
|
|
|
41.8 |
|
|
17 |
% |
| Free cash flow from ongoing
operations1 |
|
|
12.1 |
|
|
|
8.5 |
|
|
42 |
% |
| Cash cost ($/oz Au Eq)1 |
|
|
879 |
|
|
|
916 |
|
|
(4 |
%) |
| All-in sustaining cash cost
($/oz Au Eq)1 |
|
|
1,495 |
|
|
|
1,514 |
|
|
(1 |
%) |
| Capital expenditures2 |
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
25.8 |
|
|
|
27.9 |
|
|
(8 |
%) |
|
Non-sustaining3 |
|
|
8.8 |
|
|
|
1.2 |
|
|
633 |
% |
|
Séguéla construction |
|
|
- |
|
|
|
25.7 |
|
|
(100 |
%) |
|
Brownfields |
|
|
6.7 |
|
|
|
4.9 |
|
|
37 |
% |
| As at |
|
|
March 31, 2024 |
|
|
|
December 31, 2023 |
|
% Change |
| Cash and cash equivalents |
|
|
87.7 |
|
|
|
128.1 |
|
|
(32 |
%) |
| Net liquidity position
(excluding letters of credit) |
|
|
212.7 |
|
|
|
213.1 |
|
|
(0 |
%) |
|
Shareholder's equity attributable to Fortuna shareholders |
|
|
1,260.8 |
|
|
|
1,238.4 |
|
|
2 |
% |
| 1 Refer to
Non-IFRS Financial Measures section at the end of this news release
and to the MD&A accompanying the Company’s financial statements
filed on SEDAR+ at www.sedarplus.ca for a description of the
calculation of these measures. |
| 2 Capital
expenditures are presented on a cash basis |
|
| 3 Non-sustaining
expenditures include greenfields exploration |
|
| Figures may not
add due to rounding |
|
| |
|
First Quarter 2024 Results
Attributable Net Income and Adjusted
Attributable Net IncomeNet income attributable to Fortuna for the
quarter was $26.3 million compared to $10.9 million in Q1 2023.
After adjusting for non-cash and non-recurring items, adjusted
attributable net income for the quarter was $26.7 million compared
to $12.2 million in Q1 2023. The increase in net income and
adjusted net income is explained mainly by increased gold sales
volume and higher realized gold and silver prices. Higher gold
sales volume was primarily due to contributions from Séguéla which
was under construction in the comparable period. This was partially
offset by lower silver production at San Jose as the mine exhausts
its Mineral Reserves. The realized gold and silver prices were
$2,087 and $23.43 per ounce respectively compared to $1,893 and
$22.52 per ounce, respectively, for the comparable period in the
prior year.
Other items impacting the adjusted net income
for the quarter compared to Q1 2023 were higher G&A of $2.8
million, related to the addition of Séguéla G&A and timing of
execution on certain corporate G&A items; higher foreign
exchange loss of $2.5 million related mainly to our West African
operations; and higher interest expense of $3.6 million, explained
by $2.8 million of capitalized interest expense in the comparative
period vs nil in Q1 2024 and higher accretion of right of use lease
liabilities.
Depreciation and DepletionDepreciation and
depletion for the first quarter of 2024 was $50.3 million compared
to $44.1 million in the comparable period. The increase in
depreciation and depletion was primarily the result of higher sales
volume and the inclusion of $15.8 million in depletion of the
purchase price related to the acquisition of Roxgold Inc. This was
partially offset by lower depreciation and depletion at San Jose as
a result of an impairment charge in the fourth quarter of 2023.
Adjusted EBITDA and Cash FlowAdjusted EBITDA for
the quarter was $95.2 million, a margin of 42% over sales, compared
to $65.3 million and margin over sales of 37%, reported in the same
period in 2023. The main driver for the increase in EBITDA was the
contribution from Séguéla with EBITDA margin of 62% in Q1 2024,
partially offset by nil EBITDA at San Jose.
Net cash generated by operations for the quarter
was $48.9 million compared to $41.8 million in Q1 2023. The
increase of $7.1 million reflects higher adjusted EBITDA of $29.9
million and lower taxes paid of $7.0 million as Séguéla is expected
to start remittances to the government in the second quarter. This
was offset by negative changes in working capital in Q1 2024 of
$35.3 million compared to negative $10.8 million in Q1 2023.
The negative change in working capital of $35.3
million consisted of the following:
- An increase in receivables of $7.3
million driven by an increase in VAT receivables of $3.5 million at
Séguéla and $5.8 million at Yaramoko
- An increase of inventories of $9.8
million due to a $3.2 million increase in materials and supplies
and a $4.9 million increase in metals inventory
- A $17.3 million decrease in
accounts payable primarily at Lindero due to $3.8 million to settle
a deferred contract liability from the fourth quarter of 2023 due
to timing of production, $1.8 million to settle export loans with
local banks and $4.0 million related to timing of payments. Other
payables movements were related to timing.
In the first quarter of 2024 capital
expenditures on a cash basis were $41.4 million consisting
primarily of $25.8 million in sustaining capital, including $6.7
million of brownfields exploration, and $8.8 million of
non-sustaining exploration including engineering and environmental
studies at Diamba Sud.
Free cash flow from ongoing operations for the
quarter was $12.1 million, compared to $8.5 million in Q1 2023. The
increase in free cash flow from operations was primarily the result
of contributions from Séguéla which was under construction in Q1
2023 and was offset by negative working capital changes as
described above.
Cash Costs and AISCCash cost per equivalent gold
ounce was $879, compared to $915 in Q1 2023. The lower cash cost of
sales per gold equivalent ounce was mainly due to the contribution
of low-cost production from Séguéla and lower cost of sales per
ounce of gold at Yaramoko related to higher grades. This was
partially offset by higher cash costs per gold equivalent ounce at
San Jose as previously capitalized costs are now expensed as the
mine is in its last year of operations and higher cash cost per
gold ounce at Lindero related mainly to lower planned head grades
in 2024. Adjusting for San Jose, cash costs per gold equivalent
ounces was $744 for the quarter.
All-in sustaining costs per gold equivalent
ounce was $1,495 for the first quarter of 2024 compared to $1,514
for the first quarter of 2023. The decrease was primarily the
result of lower cash costs being offset by higher sustaining
capital expenditures primarily at Lindero due to the construction
of the heap leach pad expansion, increased brownfields exploration
at Séguéla to advance identified prospects and higher royalties in
the period due to higher production, metal prices and a change of
the royalty regime in Burkina Faso. Adjusting for San Jose, all-in
sustaining costs per gold equivalent ounces was $1,412 for the
current quarter.
General and Administrative ExpensesGeneral and
administrative expenses for the quarter of $18.2 million were
higher than the same period in 2023 as Séguéla transitioned to
operations and costs are no longer being capitalized, and due to
timing of corporate expenses. G&A is comprised of the following
items:
|
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|
|
|
|
|
|
|
|
| |
|
Three months ended March 31, |
|
(Expressed in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Mine G&A |
|
|
7.5 |
|
|
|
6.0 |
|
|
25 |
% |
|
Corporate G&A |
|
|
8.4 |
|
|
|
6.7 |
|
|
25 |
% |
|
Share-based payments |
|
|
2.2 |
|
|
|
2.1 |
|
|
5 |
% |
|
Workers' participation |
|
|
0.1 |
|
|
|
0.1 |
|
|
0 |
% |
|
Total |
|
|
18.2 |
|
|
|
14.9 |
|
|
22 |
% |
Liquidity
The Company’s total liquidity available as of
March 31, 2024 was $212.7 million comprised of $87.7 million in
cash and cash equivalents, and $125.0 million undrawn on the $250.0
million revolving credit facility (excluding letters of
credit).
Lindero Mine, Argentina
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Mine Production |
|
|
|
|
|
|
|
|
|
Tonnes placed on the leach pad |
|
|
1,547,323 |
|
|
|
1,478,148 |
|
| |
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.60 |
|
|
|
0.71 |
|
|
Production (oz) |
|
|
23,262 |
|
|
|
25,258 |
|
|
Metal sold (oz) |
|
|
21,719 |
|
|
|
26,812 |
|
|
Realized price ($/oz) |
|
|
2,072 |
|
|
|
1,885 |
|
| |
|
|
|
|
|
|
|
|
| Unit
Costs |
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
1,008 |
|
|
|
891 |
|
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,634 |
|
|
|
1,424 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 2 |
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
9,807 |
|
|
|
7,745 |
|
|
Sustaining leases |
|
|
598 |
|
|
|
598 |
|
|
Non-sustaining |
|
|
154 |
|
|
|
187 |
|
1 Cash cost and All-in sustaining cash cost are non-IFRS
financial measures; refer to non-IFRS financial measures section at
the end of this news release and to the MD&A accompanying the
Company’s financial statements filed on SEDAR+ at www.sedarplus.ca
for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash
basis.
Quarterly Operating and Financial Highlights
During the first quarter of 2024 total mined ore
was 2.0 million tonnes at a stripping ratio of 0.54:1. A total of
1,547,323 tonnes of ore was placed on the heap leach pad at an
average gold grade of 0.60 g/t, containing an estimated 29,670
ounces of gold. Gold production for Q1 2024 totaled 23,262 ounces,
an 8% decrease in total ounces from the first quarter of 2023,
primarily due to lower head grades. Lower mined grades are aligned
with the mining sequence and the Mineral Reserves estimates.
The cash cost per ounce of gold for the quarter
ending March 31, 2024, was $1,008 compared to $891, in the same
period of 2023. The increase in cash cost per ounce of gold was
primarily related to higher ounces sold in the comparable period
due to higher production, timing of sales as 1,700 ounces of gold
were still in inventory at the end of the period and additional
rental equipment.
The all-in sustaining cash cost per gold ounce
sold during Q1 2024 was $1,634, up from $1,424 in the first quarter
of 2023. The increase in the quarter was primarily due to increased
cash costs, higher capital expenditures related to the heap leach
expansion and higher general and administrative costs.
As of March 31, 2024, the $51.8 million leach
pad expansion project ($41.7 million capital investment in 2024)
was approximately 35% complete. The construction package of the
project commenced in January 2024, and is 18% complete, with
contractors on site undertaking earthworks and construction of the
impulsion line. The procurement and construction management (“PCM”)
service was awarded to Knight Piésold consultants, with the PCM
project offices installed and personnel onsite as of the third
quarter of 2023. Procurement is 92% complete, with critical path
items onsite. The final shipments of geomembrane and geosynthetic
clay liner are currently in transit, and the pump manufacturing for
the new impulsion line are all on schedule. In addition to the
current works, liner installation and major mechanical works are
expected to commence in the second quarter of 2024. The project is
scheduled to be substantially complete in the fourth quarter of
2024, with operations beginning ore placement by the end of 2024
according to the stacking plan for the year.
Yaramoko Mine, Burkina Faso
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Mine Production |
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
107,719 |
|
|
|
139,650 |
|
| |
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
8.79 |
|
|
|
5.94 |
|
|
Recovery (%) |
|
|
98 |
|
|
|
97 |
|
|
Production (oz) |
|
|
27,177 |
|
|
|
26,437 |
|
|
Metal sold (oz) |
|
|
27,171 |
|
|
|
29,472 |
|
|
Realized price ($/oz) |
|
|
2,095 |
|
|
|
1,899 |
|
| |
|
|
|
|
|
|
|
|
| Unit
Costs |
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
752 |
|
|
|
819 |
|
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,373 |
|
|
|
1,509 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 2 |
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
9,573 |
|
|
|
13,549 |
|
|
Sustaining leases |
|
|
1,050 |
|
|
|
1,359 |
|
|
Brownfields |
|
|
1,410 |
|
|
|
1,191 |
|
1 Cash cost and All-in sustaining cash cost are
non-IFRS financial measures; refer to non-IFRS financial measures
section at the end of this news release and to the MD&A
accompanying the Company’s financial statements filed on SEDAR+ at
www.sedarplus.ca for a description of the calculation of these
measures.2 Capital expenditures are presented on a cash basis.
In the first quarter of 2024, Yaramoko mined
123,877 tonnes of ore at an average grade of 8.30 g/t Au containing
an estimated 33,053 ounces of gold. Mill production was 27,177
ounces of gold with an average gold head grade of 8.79 g/t. This
represents a 3% and 48% increase when compared to the same period
in 2023. A planned mill maintenance shutdown reduced mill
throughput in the first quarter of 2024.
The cash cost per ounce of gold sold for the
quarter ended March 31, 2024, was $752, compared to $819 in the
same period in 2023. The decrease for the quarter is mainly
attributed to higher head grades, which demand lower direct costs
per ounce. This was partially offset by higher royalties due to
higher metal prices and a change in the royalty regime in Burkina
Faso which increased the royalty rate from 5% to 7% when the gold
price is over $2,000 per ounce.
The all-in sustaining cash cost per gold ounce
sold was $1,373 for the quarter ended March 31, 2024, compared to
$1,509 in the same period of 2023. The change in the quarter was
primarily due to the decreased cash cost described above, and
reduced capital expenditures.
Drilling focused on infill grade control and
exploring for extensions beyond the mineralized resource envelope
in the deeper eastern and western portions of the 55 Zone. Stoping
operations at the QVP orebody accelerated with batch mill tests
confirming grade expectations.
In early April, the Government of Ghana issued a
directive which stopped the export of electricity to its
neighbouring countries, including Burkina Faso. As a consequence,
Yaramoko has supplemented electricity used in its operations from
the national grid with self-generated backup power. Production at
Yaramoko has not been affected; however, Management is currently
monitoring the increase in costs of the alternative energy
supplies.
Séguéla Mine, Côte d’Ivoire
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| Mine Production |
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
394,837 |
|
|
|
- |
|
|
Average tonnes crushed per day |
|
|
4,339 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
2.79 |
|
|
|
- |
|
|
Recovery (%) |
|
|
94 |
|
|
|
- |
|
|
Production (oz) |
|
|
34,556 |
|
|
|
- |
|
|
Metal sold (oz) |
|
|
34,450 |
|
|
|
- |
|
|
Realized price ($/oz) |
|
|
2,095 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
459 |
|
|
|
- |
|
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
948 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
2 |
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
3,027 |
|
|
|
- |
|
|
Sustaining leases |
|
|
2,265 |
|
|
|
- |
|
|
Non-sustaining |
|
|
1,035 |
|
|
|
- |
|
|
Brownfields |
|
|
4,896 |
|
|
|
- |
|
| 1 Cash cost and
All-in sustaining cash cost are non-IFRS financial measures. Refer
to Non-IFRS Financial Measures. |
| 2 Capital
expenditures are presented on a cash basis |
| |
In the first quarter of 2024, mined material
totaled 420,538 tonnes of ore, averaging 2.23 g/t Au, and
containing an estimated 30,192 ounces of gold from the Antenna and
Ancien pits. Movement of waste during the quarter totaled 2,538,067
tonnes, for a strip ratio of 6:1.
Production was mainly focused on the Antenna pit
which produced 401,109 tonnes of ore, the remainder being mined at
the Ancien pit. A total of 700,229 tonnes of waste was also mined
at Ancien. Waste mining commenced at Koula during the quarter with
18,063 tonnes of waste being mined.
Séguéla processed 394,837 tonnes in the quarter,
producing 34,556 ounces of gold, at an average head grade of 2.79
g/t Au.
Throughput for the quarter averaged 195 tonnes
per hour (t/hr), versus name plate design capacity of 154 t/hr.
Mill constraints continued to be tested with throughputs of up to
220 t/hr being recorded over a seven-day period. This was achieved
with a 60/20/20 blend of fresh, transitional and oxide ore
respectively. The Life of Mine (LOM) blend consists of 85% fresh
rock. A relining of the mill is planned in April, and further tests
will then be conducted with a blend more representative of the LOM
blend. Mine design and scheduling continue with the focus being on
the requirements to sustainably meet the expected higher throughput
rates.
Cash cost per gold ounce sold was $459, and
all-in sustaining cash cost per gold ounce sold was $948 for Q1
2024. Both were within plan and guidance.
Côte d’Ivoire has been experiencing a shortage
of electricity to the national grid since mid-April, due to
failures at two private power generation plants, which supply
approximately 25% of the electricity to the national grid. This has
led to power cuts in neighborhoods, load shedding during peak
hours, and electricity rationing to industries. Power output from
one of the plants (CIPREL)has now been restored; however,
restoration of supply from the second plant (AZITO) is not expected
until July. The Séguéla mine continues to receive energy on a daily
basis from the grid with interruptions. The operation has emergency
backup power generation capacity to sustain critical processes
only. Management is implementing various short-and medium-term
mitigating measures which include operating the mill at 25% higher
throughput, adjusting mine plans to prioritize higher grade Mineral
Reserves, and sourcing a power backup solution for the entire
operation, expected to be available on-site in July. Production in
April has been only marginally affected. Management has not
modified annual guidance for the Séguéla mine at this time but
continues to monitor the situation closely.
San Jose Mine, Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| Mine Production |
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
181,103 |
|
|
|
246,736 |
|
|
Average tonnes milled per day |
|
|
2,182 |
|
|
|
2,869 |
|
| |
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
147 |
|
|
|
181 |
|
|
Recovery (%) |
|
|
89 |
|
|
|
91 |
|
|
Production (oz) |
|
|
759,111 |
|
|
|
1,303,312 |
|
|
Metal sold (oz) |
|
|
746,607 |
|
|
|
1,328,333 |
|
|
Realized price ($/oz) |
|
|
23.47 |
|
|
|
22.58 |
|
| |
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.90 |
|
|
|
1.15 |
|
|
Recovery (%) |
|
|
87 |
|
|
|
90 |
|
|
Production (oz) |
|
|
4,533 |
|
|
|
8,231 |
|
|
Metal sold (oz) |
|
|
4,460 |
|
|
|
8,355 |
|
|
Realized price ($/oz) |
|
|
2,074 |
|
|
|
1,900 |
|
| |
|
|
|
|
|
|
|
|
| Unit
Costs |
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Ag Eq)1,2 |
|
|
21.98 |
|
|
|
11.35 |
|
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
24.24 |
|
|
|
15.51 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures ($000's) 3 |
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
– |
|
|
|
3,772 |
|
|
Sustaining leases |
|
|
261 |
|
|
|
162 |
|
|
Non-sustaining |
|
|
3,477 |
|
|
|
269 |
|
|
Brownfields |
|
|
– |
|
|
|
1,088 |
|
1 Cash cost per ounce of silver equivalent and
All-in sustaining cash cost per ounce of silver equivalent are
calculated using realized metal prices for each period
respectively.2 Cash cost per ounce of silver equivalent, and all-in
sustaining cash cost per ounce of silver equivalent are non-IFRS
financial measures, refer to non-IFRS financial measures section at
the end of this news release and to the MD&A accompanying the
Company’s financial statements filed on SEDAR+ at www.sedarplus.ca
for a description of the calculation of these measures.3 Capital
expenditures are presented on a cash basis
In the first quarter of 2024, San Jose produced
759,111 ounces of silver and 4,533 ounces of gold, 42% and 45%
decreases respectively, at average head grades for silver and gold
of 147 g/t and 0.90 g/t, 19% and 22% decreases respectively, when
compared to the same period in 2023. The decrease in silver and
gold production, when compared to the first quarter of 2023, is
explained by lower tonnes extracted and lower grades, which is
consistent with the annual plan and guidance. During the first
quarter, the processing plant milled 181,103 tonnes at an average
of 2,182 tonnes per day, in line with the plan for the period.
The cash cost per silver equivalent ounce for
the three months ending March 31, 2024, was $21.98, an increase
from $11.42 in the same period of 2023. The San Jose Mine has less
operational flexibility in 2024 compared to 2023, due to the
reduced and more dispersed Mineral Reserves associated with the
Trinidad deposit, which also increase mine costs. Production areas
contain lower head grades and a higher presence of ferrous oxides
in the upper levels, which impacted recoveries by approximately 2%
in the quarter. Ore processed decreased by 27% due to lower tonnes
mined.
The all-in sustaining cash cost per payable
silver equivalent ounce for the three months ended March 31, 2024,
increased by 56% to $24.24. This compares to $15.51 per ounce for
the same period in 2023. These increases were mainly driven by
higher cash costs and lower production, slightly mitigated by lower
capital expenditure. The operation is experiencing further cost
pressures driven by the continued appreciation of the Mexican peso.
The Company conducts regular assessments and trade-offs between
maintaining operations and opting for a care and maintenance
option.
Sustaining capital expenditure has decreased as we near the
anticipated closure of the mine. Drilling in 2024 was higher due to
the drilling campaign at the Yessi vein, which was discovered in
the third quarter of 2023. Exploration at the Yessi vein is
ongoing.
Caylloma Mine, Peru
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| Mine Production |
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
137,096 |
|
|
|
125,995 |
|
|
Average tonnes milled per day |
|
|
1,540 |
|
|
|
1,448 |
|
| |
|
|
|
|
|
|
|
|
| Silver |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
87 |
|
|
|
85 |
|
|
Recovery (%) |
|
|
82 |
|
|
|
82 |
|
|
Production (oz) |
|
|
315,460 |
|
|
|
283,066 |
|
|
Metal sold (oz) |
|
|
325,483 |
|
|
|
263,570 |
|
|
Realized price ($/oz) |
|
|
23.34 |
|
|
|
22.24 |
|
| |
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.12 |
|
|
|
0.15 |
|
|
Recovery (%) |
|
|
29 |
|
|
|
27 |
|
|
Production (oz) |
|
|
150 |
|
|
|
166 |
|
|
Metal sold (oz) |
|
|
63 |
|
|
|
22 |
|
|
Realized price ($/oz) |
|
|
2,024 |
|
|
|
1,895 |
|
| |
|
|
|
|
|
|
|
|
| Lead |
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
3.48 |
|
|
|
3.74 |
|
|
Recovery (%) |
|
|
91 |
|
|
|
92 |
|
|
Production (000's lbs) |
|
|
9,531 |
|
|
|
9,509 |
|
|
Metal sold (000's lbs) |
|
|
9,825 |
|
|
|
8,782 |
|
|
Realized price ($/lb) |
|
|
0.95 |
|
|
|
1.02 |
|
| |
|
|
|
|
|
|
|
|
| Zinc |
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
4.46 |
|
|
|
5.21 |
|
|
Recovery (%) |
|
|
90 |
|
|
|
90 |
|
|
Production (000's lbs) |
|
|
12,183 |
|
|
|
13,051 |
|
|
Metal sold (000's lbs) |
|
|
12,466 |
|
|
|
13,815 |
|
|
Realized price ($/lb) |
|
|
1.11 |
|
|
|
1.45 |
|
| |
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Ag Eq)1,2 |
|
|
11.61 |
|
|
|
12.74 |
|
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
17.18 |
|
|
|
16.88 |
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
3 |
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
3,377 |
|
|
|
2,810 |
|
|
Sustaining leases |
|
|
906 |
|
|
|
856 |
|
|
Brownfields |
|
|
358 |
|
|
|
204 |
|
1 Cash cost per ounce of silver equivalent and
All-in sustaining cash cost per ounce of silver equivalent are
calculated using realized metal prices for each period
respectively.2 Cash cost per ounce of silver equivalent, and all-in
sustaining cash cost per ounce of silver equivalent are non-IFRS
financial measures, refer to non-IFRS financial measures section at
the end of this news release and to the MD&A accompanying the
Company’s financial statements filed on SEDAR+ at www.sedarplus.ca
for a description of the calculation of these measures.3 Capital
expenditures are presented on a cash basis.
In the first quarter, the Caylloma Mine produced
315,460 ounces of silver, 11% higher compared to the first quarter
2023, at an average head grade of 87 g/t Ag.
Lead and zinc production for the quarter was 9.5
million pounds of lead, and 12.2 million pounds of zinc. Lead
production was in line and zinc production decreased by 7% compared
to the same period in 2023. Head grades averaged 3.48%, and 4.46%,
a 7% and 14% decrease, respectively, when compared to the first
quarter of 2023.
Lower metal production compared to the previous
quarter was due to lower grades, which are in line with the Mineral
Reserves estimates and production guidance for the year.
The cash cost per silver equivalent ounces for
the three months ended March 31, 2024 was $11.61, a 12% decrease
compared to the comparable period in 2023. This was primarily due
to lower treatment and refining charges.
The all-in sustaining cash cost per ounce of
payable silver equivalent for the three months ended March 31,
2024, increased 2% to $17.18, compared to $16.88 for the same
period in 2023. The decrease in cash costs per ounce was offset by
higher capital expenditure, as well as the impact of increasing
silver prices on the calculation of silver equivalent ounces
resulting in lower equivalent silver ounces sold.
Underground development for the quarter was
mainly focused on mine levels 15, 16, 17, and 18. The increase in
Brownfields expenditures is primarily attributable to greater
footage, additional diamond drilling, and cost inflation.
Qualified Person
Eric Chapman, Senior Vice President of Technical
Services, is a Professional Geoscientist of the Engineers and
Geoscientists of British Columbia (Registration Number 36328), and
is the Company’s Qualified Person (as defined by National
Instrument 43-101). Mr. Chapman has reviewed and approved the
scientific and technical information contained in this news release
and has verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial
measures and ratios in this news release which are not defined
under the International Financial Reporting Standards (“IFRS”), as
issued by the International Accounting Standards Board, and are not
disclosed in the Company's financial statements, including but not
limited to: cash cost per ounce of gold sold; all-in sustaining
cash cost per ounce of gold sold; all-in sustaining cash cost per
ounce of gold equivalent sold; all-in cash cost per ounce of gold
sold; production cash cost per ounce of gold equivalent; cash cost
per payable ounce of silver equivalent sold; all-in sustaining cash
cost per payable ounce of silver equivalent sold; all-in cash cost
per payable ounce of silver equivalent sold; free cash flow from
ongoing operations; adjusted net income; adjusted attributable net
income; adjusted EBITDA and working capital.
These non-IFRS financial measures and non-IFRS
ratios are widely reported in the mining industry as benchmarks for
performance and are used by management to monitor and evaluate the
Company's operating performance and ability to generate cash. The
Company believes that, in addition to financial measures and ratios
prepared in accordance with IFRS, certain investors use these
non-IFRS financial measures and ratios to evaluate the Company’s
performance. However, the measures do not have a standardized
meaning under IFRS and may not be comparable to similar financial
measures disclosed by other companies. Accordingly, non-IFRS
financial measures and non-IFRS ratios should not be considered in
isolation or as a substitute for measures and ratios of the
Company’s performance prepared in accordance with IFRS. The Company
has calculated these measures consistently for all periods
presented.
To facilitate a better understanding of these
measures and ratios as calculated by the Company, descriptions are
provided below. In addition see “Non-IFRS Financial Measures” in
the Company’s management’s discussion and analysis for the three
months ended March 31, 2024 (“Q1 2024 MDA”), which section is
incorporated by reference in this news release, for additional
information regarding each non-IFRS financial measure and non-IFRS
ratio disclosed in this news release, including an explanation of
their composition; an explanation of how such measures and ratios
provide useful information to an investor; and the additional
purposes, if any, for which management of the Company uses such
measures and ratio. The Q1 2024 MD&A may be accessed on SEDAR+
at www.sedarplus.ca under the Company’s profile.
Except as otherwise described in the Q1 2024
MD&A, the Company has calculated these measures consistently
for all periods presented.
Reconciliation of Debt to total net debt and net debt to
adjusted EBITDA ratio for March 31, 2024
|
|
|
|
| |
|
|
(Expressed in millions except Total net debt to Adjusted EBITDA
ratio) |
|
As at March 31, 2024 |
|
|
Credit facility |
$ |
125.0 |
|
|
Convertible debenture |
|
45.7 |
|
| Debt |
|
170.7 |
|
| Less:
Cash and Cash Equivalents |
|
(87.7 |
) |
| Total net debt1 |
$ |
83.0 |
|
|
Adjusted EBITDA (last four quarters) |
$ |
335.1 |
|
| Total
net debt to adjusted EBITDA ratio |
|
0.2:1 |
|
| 1
Excluding letters of credit |
|
|
|
|
|
|
Reconciliation of net income to adjusted
attributable net income for the three months ended March 31, 2024
and 2023
| |
|
|
|
|
|
|
| |
|
|
Three months ended March 31, |
|
(Expressed in millions) |
|
2024 |
|
|
2023 |
|
|
Net income attributable to shareholders |
|
|
26.3 |
|
|
|
10.9 |
|
| Adjustments, net of tax: |
|
|
|
|
|
|
| Community support provision
and accruals1 |
|
|
(0.2 |
) |
|
|
- |
|
| Unrealized loss (gain) on
derivatives |
|
|
- |
|
|
|
1.0 |
|
| Accretion on right of use
assets |
|
|
0.9 |
|
|
|
0.6 |
|
| Other
non-cash/non-recurring items |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
Adjusted attributable net income |
|
|
26.7 |
|
|
|
12.2 |
|
| 1
Amounts are recorded in Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to adjusted
EBITDA for the three ended March 31, 2024 and 2023
| |
|
|
|
|
|
| |
|
Three months ended March 31, |
|
Consolidated (in millions of US dollars) |
|
2024 |
|
|
|
2023 |
|
| Net income |
|
29.1 |
|
|
|
11.9 |
|
| Adjustments: |
|
|
|
|
|
|
Community support provision and accruals |
|
(0.3 |
) |
|
|
(0.1 |
) |
|
Net finance items |
|
6.2 |
|
|
|
2.6 |
|
|
Depreciation, depletion, and amortization |
|
50.3 |
|
|
|
44.4 |
|
|
Income taxes |
|
14.5 |
|
|
|
7.9 |
|
|
Other non-cash/non-recurring items |
|
(4.6 |
) |
|
|
(1.4 |
) |
|
Adjusted EBITDA |
|
95.2 |
|
|
|
65.3 |
|
Figures may not add due to rounding
Reconciliation of net cash from
operating activities to free cash flow from ongoing operations for
the three months ended March 31, 2024 and 2023
In 2022, the Company changed the method for
calculating free cash flow from ongoing operations. The calculation
now uses taxes paid as opposed to the previous method which used
current income taxes. While this may create larger quarter over
quarter fluctuations due to the timing of income tax payments,
management believes the revised method is a better representation
of the free cash flow generated by the Company’s ongoing
operations.
|
|
|
|
|
|
|
| |
|
Three months ended March 31, |
|
(Expressed in millions) |
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
48.9 |
|
|
|
41.8 |
|
|
Additions to mineral properties, plant and equipment |
|
(32.4 |
) |
|
|
(30.4 |
) |
|
Gain on blue chip swap investments |
|
2.6 |
|
|
|
- |
|
|
Right of use payments |
|
(4.9 |
) |
|
|
(3.0 |
) |
|
Other adjustments |
|
(2.1 |
) |
|
|
0.1 |
|
| Free
cash flow from ongoing operations |
|
12.1 |
|
|
|
8.5 |
|
Figures may not add due to rounding
Reconciliation of cost of sales to cash cost per ounce
of gold equivalent sold for the three months ended March 31, 2024
and 2023
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Q1
2024 |
|
Lindero |
|
|
Yaramoko |
|
|
Séguéla |
|
|
San Jose |
|
|
Caylloma |
|
|
GEO Cash Costs |
|
Cost of sales |
|
34,049 |
|
|
|
34,951 |
|
|
|
45,209 |
|
|
|
23,724 |
|
|
|
17,105 |
|
|
|
155,040 |
|
|
Depletion, depreciation, and amortization |
|
(11,580 |
) |
|
|
(10,215 |
) |
|
|
(23,916 |
) |
|
|
(391 |
) |
|
|
(3,824 |
) |
|
|
(49,926 |
) |
|
Royalties and taxes |
|
(253 |
) |
|
|
(4,293 |
) |
|
|
(5,472 |
) |
|
|
(704 |
) |
|
|
(354 |
) |
|
|
(11,076 |
) |
|
By-product credits |
|
(424 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(424 |
) |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
(331 |
) |
|
|
(325 |
) |
|
Treatment and refining charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
973 |
|
|
|
1,231 |
|
|
|
2,204 |
|
| Cash
cost applicable per gold equivalent ounce sold |
|
21,792 |
|
|
|
20,443 |
|
|
|
15,821 |
|
|
|
23,608 |
|
|
|
13,827 |
|
|
|
95,491 |
|
|
Ounces of gold equivalent sold |
|
21,628 |
|
|
|
27,171 |
|
|
|
34,450 |
|
|
|
12,090 |
|
|
|
13,330 |
|
|
|
108,670 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
1,008 |
|
|
|
752 |
|
|
|
459 |
|
|
|
1,953 |
|
|
|
1,037 |
|
|
|
879 |
|
| Gold equivalent
was calculated using the realized prices for gold of $2,087/oz Au,
$23.4/oz Ag, $2,084/t Pb, and $2,450/t Zn for Q1 2024. |
| Figures may not
add due to rounding |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Q1
2023 |
|
Lindero |
|
|
Yaramoko |
|
|
Séguéla |
|
|
|
San Jose |
|
|
Caylloma |
|
|
GEO Cash Costs |
|
Cost of sales |
|
41,725 |
|
|
|
44,863 |
|
|
|
— |
|
|
|
32,523 |
|
|
|
16,108 |
|
|
|
135,219 |
|
|
Depletion, depreciation, and amortization |
|
(13,192 |
) |
|
|
(17,368 |
) |
|
|
— |
|
|
|
(9,912 |
) |
|
|
(3,483 |
) |
|
|
(43,955 |
) |
|
Royalties and taxes |
|
(3,926 |
) |
|
|
(3,362 |
) |
|
|
— |
|
|
|
(1,257 |
) |
|
|
(166 |
) |
|
|
(8,711 |
) |
|
By-product credits |
|
(799 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(799 |
) |
|
Other |
|
15 |
|
|
|
— |
|
|
|
— |
|
|
|
(17 |
) |
|
|
(471 |
) |
|
|
(473 |
) |
|
Treatment and refining charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
724 |
|
|
|
5,506 |
|
|
|
6,230 |
|
| Cash
cost applicable per gold equivalent ounce sold |
|
23,823 |
|
|
|
24,133 |
|
|
|
— |
|
|
|
22,061 |
|
|
|
17,494 |
|
|
|
87,511 |
|
|
Ounces of gold equivalent sold |
|
26,763 |
|
|
|
29,472 |
|
|
|
— |
|
|
|
23,127 |
|
|
|
16,179 |
|
|
|
95,541 |
|
|
Cash cost per ounce of gold equivalent sold ($/oz) |
|
891 |
|
|
|
819 |
|
|
|
— |
|
|
|
954 |
|
|
|
1,081 |
|
|
|
916 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,893/oz Au,
$22.5/oz Ag, $2,256/t Pb, and $3,197/t Zn for Q1 2023. |
| Figures may not
add due to rounding |
| |
Reconciliation of cost of sales to all-in sustaining
cash cost per ounce of gold equivalent sold for the three months
ended March 31, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Gold Equivalent Ounce Sold - Q1 2024 |
|
Lindero |
|
|
|
Yaramoko |
|
|
|
Séguéla |
|
|
|
San Jose |
|
|
|
Caylloma |
|
|
|
Corporate |
|
|
|
GEO AISC |
|
| Cash
cost applicable per gold equivalent ounce sold |
|
21,792 |
|
|
|
20,443 |
|
|
|
15,821 |
|
|
|
23,608 |
|
|
|
13,827 |
|
|
|
— |
|
|
|
95,491 |
|
|
Royalties and taxes |
|
253 |
|
|
|
4,293 |
|
|
|
5,472 |
|
|
|
704 |
|
|
|
354 |
|
|
|
— |
|
|
|
11,076 |
|
|
Worker's participation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
417 |
|
|
|
— |
|
|
|
417 |
|
|
General and administration |
|
2,879 |
|
|
|
550 |
|
|
|
1,168 |
|
|
|
1,458 |
|
|
|
1,219 |
|
|
|
10,649 |
|
|
|
17,923 |
|
| Total
cash costs |
|
24,924 |
|
|
|
25,286 |
|
|
|
22,461 |
|
|
|
25,770 |
|
|
|
15,817 |
|
|
|
10,649 |
|
|
|
124,907 |
|
|
Sustaining capital1 |
|
10,405 |
|
|
|
12,033 |
|
|
|
10,188 |
|
|
|
261 |
|
|
|
4,641 |
|
|
|
— |
|
|
|
37,528 |
|
|
All-in sustaining costs |
|
35,329 |
|
|
|
37,319 |
|
|
|
32,649 |
|
|
|
26,031 |
|
|
|
20,458 |
|
|
|
10,649 |
|
|
|
162,435 |
|
|
Gold equivalent ounces sold |
|
21,628 |
|
|
|
27,171 |
|
|
|
34,450 |
|
|
|
12,090 |
|
|
|
13,330 |
|
|
|
— |
|
|
|
108,670 |
|
|
All-in sustaining costs per ounce |
|
1,634 |
|
|
|
1,373 |
|
|
|
948 |
|
|
|
2,153 |
|
|
|
1,535 |
|
|
|
— |
|
|
|
1,495 |
|
| Gold equivalent
was calculated using the realized prices for gold of $2,087/oz Au,
$23.4/oz Ag, $2,084/t Pb, and $2,450/t Zn for Q1 2024. |
| Figures may not
add due to rounding |
| 1 Presented on a
cash basis |
|
AISC Per Gold Equivalent Ounce Sold - Q1 2023 |
|
Lindero |
|
|
|
Yaramoko |
|
|
|
Séguéla |
|
|
|
San Jose |
|
|
|
Caylloma |
|
|
|
Corporate |
|
|
|
GEO AISC |
|
| Cash
cost applicable per gold equivalent ounce sold |
|
23,823 |
|
|
|
24,133 |
|
|
|
— |
|
|
|
22,061 |
|
|
|
17,494 |
|
|
|
— |
|
|
|
87,511 |
|
|
Royalties and taxes |
|
3,926 |
|
|
|
3,362 |
|
|
|
— |
|
|
|
1,257 |
|
|
|
166 |
|
|
|
— |
|
|
|
8,711 |
|
|
Worker's participation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
517 |
|
|
|
— |
|
|
|
538 |
|
|
General and administration |
|
1,992 |
|
|
|
889 |
|
|
|
— |
|
|
|
1,802 |
|
|
|
1,144 |
|
|
|
8,681 |
|
|
|
14,508 |
|
| Total
cash costs |
|
29,741 |
|
|
|
28,384 |
|
|
|
— |
|
|
|
25,141 |
|
|
|
19,321 |
|
|
|
8,681 |
|
|
|
111,268 |
|
|
Sustaining capital3 |
|
8,343 |
|
|
|
16,099 |
|
|
|
— |
|
|
|
5,022 |
|
|
|
3,870 |
|
|
|
— |
|
|
|
33,334 |
|
|
All-in sustaining costs |
|
38,084 |
|
|
|
44,483 |
|
|
|
— |
|
|
|
30,163 |
|
|
|
23,191 |
|
|
|
8,681 |
|
|
|
144,602 |
|
|
Gold equivalent ounces sold |
|
26,763 |
|
|
|
29,472 |
|
|
|
— |
|
|
|
23,127 |
|
|
|
16,179 |
|
|
|
— |
|
|
|
95,541 |
|
|
All-in sustaining costs per ounce |
|
1,424 |
|
|
|
1,509 |
|
|
|
— |
|
|
|
1,304 |
|
|
|
1,433 |
|
|
|
— |
|
|
|
1,514 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,893/oz Au,
$22.5/oz Ag, $2,256/t Pb, and $3,197/t Zn for Q1 2023. |
| Figures may not
add due to rounding |
| 1 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cost of sales to cash cost per payable
ounce of silver equivalent sold for the three months ended March
31, 2024 and 2023
| |
|
|
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Q1
2024 |
|
San Jose |
|
|
|
Caylloma |
|
|
|
SEO Cash Costs |
|
|
Cost of sales |
|
23,724 |
|
|
|
17,105 |
|
|
|
40,829 |
|
| Depletion, depreciation, and
amortization |
|
(391 |
) |
|
|
(3,824 |
) |
|
|
(4,215 |
) |
| Royalties and taxes |
|
(704 |
) |
|
|
(354 |
) |
|
|
(1,058 |
) |
| Other |
|
6 |
|
|
|
(331 |
) |
|
|
(325 |
) |
|
Treatment and refining charges |
|
973 |
|
|
|
1,231 |
|
|
|
2,204 |
|
| Cash cost applicable per
silver equivalent sold |
|
23,608 |
|
|
|
13,827 |
|
|
|
37,435 |
|
| Ounces
of silver equivalent sold1 |
|
1,073,948 |
|
|
|
1,190,990 |
|
|
|
2,264,938 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
21.98 |
|
|
|
11.61 |
|
|
|
16.53 |
|
| 1 Silver
equivalent sold for Q1 2024 for San Jose is calculated using a
silver to gold ratio of 88.4:1. Silver equivalent sold for Q1 2024
for Caylloma is calculated using a silver to gold ratio of 86.8:1,
silver to lead ratio of 1:24.7 pounds, and silver to zinc ratio of
1:21.0 pounds. |
| 2 Silver
equivalent is calculated using the realized prices for gold,
silver, lead, and zinc. Refer to Financial Results - Sales and
Realized Prices |
| Figures may not
add due to rounding |
| |
| |
|
|
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Q1
2023 |
|
San Jose |
|
|
|
Caylloma |
|
|
|
SEO Cash Costs |
|
| Cost of sales |
|
32,523 |
|
|
|
16,108 |
|
|
|
48,631 |
|
| Depletion, depreciation, and
amortization |
|
(9,912 |
) |
|
|
(3,483 |
) |
|
|
(13,395 |
) |
| Royalties and taxes |
|
(1,257 |
) |
|
|
(166 |
) |
|
|
(1,423 |
) |
| Other |
|
(17 |
) |
|
|
(471 |
) |
|
|
(488 |
) |
|
Treatment and refining charges |
|
724 |
|
|
|
5,506 |
|
|
|
6,230 |
|
| Cash cost applicable per
silver equivalent sold |
|
22,061 |
|
|
|
17,494 |
|
|
|
39,555 |
|
| Ounces
of silver equivalent sold1 |
|
1,944,265 |
|
|
|
1,373,699 |
|
|
|
3,317,964 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
11.35 |
|
|
|
12.74 |
|
|
|
11.92 |
|
| 1 Silver
equivalent sold for San Jose for Q1 2023 is 81.2:1.Silver
equivalent sold for Caylloma for Q1 2023 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3
pounds, and silver to zinc ratio 1:15.7. |
| 2 Silver
equivalent is calculated using the realized prices for gold,
silver, lead, and zinc. Refer to Financial Results - Sales and
Realized Prices |
| Figures have been
restated to remove Right of Use |
| Figures may not
add due to rounding |
| |
|
|
|
|
|
|
|
|
Reconciliation of all-in sustaining cash
cost and all-in cash cost per payable ounce of silver equivalent
sold for the three months ended March 31, 2024 and
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Q1
2024 |
|
San Jose |
|
|
|
Caylloma |
|
|
|
SEO AISC |
|
| Cash
cost applicable per silver equivalent ounce sold |
|
23,608 |
|
|
|
13,827 |
|
|
|
37,435 |
|
|
Royalties and taxes |
|
704 |
|
|
|
354 |
|
|
|
1,058 |
|
|
Worker's participation |
|
— |
|
|
|
417 |
|
|
|
417 |
|
|
General and administration |
|
1,458 |
|
|
|
1,219 |
|
|
|
2,677 |
|
| Total
cash costs |
|
25,770 |
|
|
|
15,817 |
|
|
|
41,587 |
|
|
Sustaining capital3 |
|
261 |
|
|
|
4,641 |
|
|
|
4,902 |
|
|
All-in sustaining costs |
|
26,031 |
|
|
|
20,458 |
|
|
|
46,489 |
|
|
Silver equivalent ounces sold1 |
|
1,073,948 |
|
|
|
1,190,990 |
|
|
|
2,264,938 |
|
|
All-in sustaining costs per ounce2 |
|
24.24 |
|
|
|
17.18 |
|
|
|
20.53 |
|
| 1 Silver
equivalent sold for Q1 2024 for San Jose is calculated using a
silver to gold ratio of 88.4:1. Silver equivalent sold for Q1 2024
for Caylloma is calculated using a silver to gold ratio of 86.8:1,
silver to lead ratio of 1:24.7 pounds, and silver to zinc ratio of
1:21.0 pounds. |
| 2 Silver
equivalent is calculated using the realized prices for gold,
silver, lead, and zinc. Refer to Financial Results - Sales and
Realized Prices |
| 3 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Q1
2023 |
|
San Jose |
|
|
|
Caylloma |
|
|
|
SEO AISC |
|
| Cash
cost applicable per silver equivalent ounce sold |
|
22,061 |
|
|
|
17,494 |
|
|
|
39,555 |
|
|
Royalties and taxes |
|
1,257 |
|
|
|
166 |
|
|
|
1,423 |
|
|
Worker's participation |
|
21 |
|
|
|
517 |
|
|
|
538 |
|
|
General and administration |
|
1,802 |
|
|
|
1,144 |
|
|
|
2,946 |
|
| Total
cash costs |
|
25,141 |
|
|
|
19,321 |
|
|
|
44,462 |
|
|
Sustaining capital3 |
|
5,022 |
|
|
|
3,870 |
|
|
|
8,892 |
|
|
All-in sustaining costs |
|
30,163 |
|
|
|
23,191 |
|
|
|
53,354 |
|
|
Silver equivalent ounces sold1 |
|
1,944,265 |
|
|
|
1,373,699 |
|
|
|
3,317,964 |
|
|
All-in sustaining costs per ounce2 |
|
15.51 |
|
|
|
16.88 |
|
|
|
16.08 |
|
| 1 Silver
equivalent sold for San Jose for Q1 2023 is 81.2:1.Silver
equivalent sold for Caylloma for Q1 2023 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3
pounds, and silver to zinc ratio 1:15.7. |
| 2 Silver
equivalent is calculated using the realized prices for gold,
silver, lead, and zinc. Refer to Financial Results - Sales and
Realized Prices |
| 3 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional information regarding the Company’s
financial results and activities underway are available in the
Company’s unaudited condensed interim consolidated financial
statements for the three months ended March 31, 2024 and 2023 and
accompanying Q1 2024 MD&A, which are available for download on
the Company’s website, www.fortunasilver.com, on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.
Conference Call and Webcast
A conference call to discuss the financial and
operational results will be held on Wednesday, May 8, 2024, at 9:00
a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will
be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief
Financial Officer, Cesar Velasco, Chief Operating Officer - Latin
America, and David Whittle, Chief Operating Officer - West
Africa.
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/1696/50484 or over the
phone by dialing in just prior to the starting time.
Conference call details:
Date: Wednesday, May 8,
2024Time: 9:00 a.m. Pacific time | 12:00 p.m.
Eastern time
Dial in number (Toll Free):
+1.888.506.0062Dial in number (International):
+1.973.528.0011Access code: 586882
Replay number (Toll Free):
+1.877.481.4010Replay number (International):
+1.919.882.2331Replay passcode: 50484
Playback of the earnings call will be available
until Wednesday, May 22, 2024. Playback of the webcast will be
available until Thursday, May 8, 2025. In addition, a transcript of
the call will be archived on the Company’s website.
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with five operating mines in Argentina,
Burkina Faso, Côte d’Ivoire, Mexico, and Peru. Sustainability is
integral to all our operations and relationships. We produce gold
and silver and generate shared value over the long-term for our
stakeholders through efficient production, environmental
protection, and social responsibility. For more information, please
visit our website.
ON BEHALF OF THE BOARD
Jorge A. GanozaPresident, CEO,
and DirectorFortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | info@fortunasilver.com |
www.fortunasilver.com | Twitter |
LinkedIn | YouTube
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 anticipated financial and operational performance in
2024; estimated production and costs of production for 2024,
including grade and volume of metal produced and sales, revenues
and cashflows, and capital costs (sustaining and non-sustaining),
and operating costs, including projected production cash costs and
all-in sustaining costs; the ability of the Company to mitigate the
inflationary pressures on supplies used in its operations;
estimated capital expenditures and estimated exploration spending
in 2024, including amounts for exploration activities at its
properties; statements regarding the Company's liquidity, access to
capital; the impact of high inflation on the costs of production
and the supply chain; the Company’s expectation regarding the
timing for the completion of the leach pad expansion project at the
Lindero Mine; ; the Company’s plans with respect to the San Jose
Mine and statements relating to exploration at the Yessi Vein; the
Company’s plans regarding the mill at the Séguéla Mine; the
Company's business strategy, plans and outlook; the merit of the
Company's mines and mineral properties; mineral resource and
reserve estimates, metal recovery rates, concentrate grade and
quality; changes in tax rates and tax laws, requirements for
permits, anticipated approvals and other matters. Often, but not
always, these Forward-looking Statements can be identified by the
use of words such as "estimated", “expected”, “anticipated”,
"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; uncertainty relating to
new mining operations such as the Séguéla Mine, including the
possibility that actual capital and operating costs and economic
returns will differ significantly from those estimated for such
projects prior to production; risks associated with war or other
geo-political hostilities, such as the Ukrainian – Russian and the
Israel – Hamas conflicts, any of which could continue to cause a
disruption in global economic activity; fluctuation in currencies
and foreign exchange rates; increases in the rate of inflation; the
imposition or any extension of capital controls in countries in
which the Company operates; any changes in tax laws in Argentina
and the other countries in which we operate; changes in the prices
of key supplies; technological and operational hazards in Fortuna’s
mining and mine development activities; risks related to water and
power availability; risks inherent in mineral exploration;
uncertainties inherent in the estimation of mineral reserves,
mineral resources, and metal recoveries; changes to current
estimates of mineral reserves and resources; changes to production
and cost estimates; the possibility that the appeal in respect of
the ruling in favor of Compania Minera Cuzcatlan S.A. de C.V.
reinstating the environmental impact authorization at the San Jose
Mine (the “EIA”) will be successful; changes in the position of
regulatory authorities with respect to the granting of approvals or
permits; governmental and other approvals; changes in government,
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 the accuracy of the
Company’s current mineral resource and reserve estimates; that the
Company’s activities will be conducted in accordance with the
Company’s public statements and stated goals; that there will be no
material adverse change affecting the Company, its properties or
changes to production estimates (which assume accuracy of projected
ore grade, mining rates, recovery timing, and recovery rate
estimates and may be impacted by unscheduled maintenance, labor and
contractor availability and other operating or technical
difficulties); geo-political uncertainties that may affect the
Company’s production, workforce, business, operations and financial
condition; the expected trends in mineral prices and currency
exchange rates; that the Company will be successful in mitigating
the impact of inflation on its business and operations; that the
appeal filed in the Mexican Collegiate Court challenging the
reinstatement of the EIA will be unsuccessful; that all required
approvals and permits will be obtained for the Company’s business
and operations on acceptable terms; that there will be no
significant disruptions affecting the Company's operations, the
ability to meet current and future obligations 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 these
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.
Cautionary Note to United States Investors
Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this
news release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
a Canadian company of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI
43-101 and the Canadian Institute of Mining, Metallurgy and
Petroleum Definition Standards on Mineral Resources and Reserves.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the Securities and Exchange Commission, and
mineral reserve and resource information included in this news
release may not be comparable to similar information disclosed by
U.S. companies.
A PDF accompanying this announcement is available at
http://ml.globenewswire.com/Resource/Download/9fe9330b-a45b-4f5c-950b-04e8a17905a6
Fortuna Mining (NYSE:FSM)
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