Fortuna Reports Third Quarter 2021 Unaudited Financial Results
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”
or the “Company”) today reported third quarter 2021 net
income of $0.2 million, adjusted net income1 of $22.5 million, and
adjusted EBITDA1 of $75.3 million.
Jorge A. Ganoza, President and CEO, commented,
“Our strong adjusted EBITDA1 of $75.3 million with margins of 46%
and free cash flow from operations1 of $33.8 million in the third
quarter attest to the strength of our business. Our record
financial results reflect the sustained upward production trend at
the Lindero mine in Argentina and the first quarterly contribution
of the Yaramoko mine in Burkina Faso.” Mr. Ganoza concluded, “We
expect our robust cash flow generation to continue to be our main
source of funding as we ramp up construction activities at the
Seguela project in Côte d´Ivoire.”
Third Quarter 2021
Highlights
- Record sales of
$162.6 million, an increase of 95% from the $83.4 million reported
in the same period in 2020 (“Q3 2020”), due primarily to gold sales
from the Yaramoko mine of $49.0 million and from the Lindero mine
of $41.8 million.
- Net income of
$0.2 million or $0.00 per share, compared to $13.1 million or $0.07
net income per share reported in Q3 2020. Net income was lower due
primarily to $10.5 million in transaction costs related to the
acquisition of Roxgold Inc., and $9.6 million settlement of the
disputed royalty claim with the Mexican Geological Service
(“SGM”).
- Adjusted net
income1 of $22.5 million compared to $16.1 million reported in Q3
2020.
- Adjusted EBITDA1
of $75.3 million compared to $42.2 million reported in Q3
2020.
- Free cash flow
from ongoing operations1 of $33.8 million compared to $30.1 million
reported in Q3 2020.
- As of September
30, 2021, the Company had cash and cash equivalents of $135.8
million, an increase of $3.9 million from December 31, 2020.
- Silver and gold
production of 1,711,881 ounces and 65,425 ounces,
respectively.
- AISC1 per ounce
of gold sold of $1,270 for the Lindero Mine and $1,188 for the
Yaramoko Mine. AISC1,2 per silver equivalent ounce of payable
silver sold of $15.51 and $17.66 for the San Jose Mine and Caylloma
Mine, respectively.
1 Refer to Non-IFRS financial measures 2 AISC/oz Ag Eq
calculated at realized metal prices, refer to mine site results for
realized prices and Non-IFRS Financial Measures for silver
equivalent ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended Sept 30 |
|
|
|
Nine months ended Sept 30 |
|
|
|
|
2021 |
|
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
Sales |
|
162.6 |
|
|
83.4 |
|
95 |
% |
|
400.9 |
|
175.5 |
|
128 |
% |
Mine operating income |
|
47.3 |
|
|
42.1 |
|
12 |
% |
|
147.1 |
|
63.3 |
|
132 |
% |
Operating income |
|
21.8 |
|
|
28.5 |
|
(24 |
)% |
|
98.0 |
|
29.0 |
|
238 |
% |
Net income |
|
0.2 |
|
|
13.1 |
|
(98 |
)% |
|
42.8 |
|
2.9 |
|
1,376 |
% |
Earnings (loss) per share -
basic |
|
(0.00 |
) |
|
0.07 |
|
(103 |
)% |
|
0.19 |
|
0.02 |
|
850 |
% |
Adjusted net income1 |
|
22.5 |
|
|
16.1 |
|
40 |
% |
|
71.5 |
|
8.9 |
|
704 |
% |
Adjusted EBITDA1 |
|
75.3 |
|
|
42.2 |
|
78 |
% |
|
191.1 |
|
67.8 |
|
182 |
% |
Net cash provided by operating
activities |
|
39.4 |
|
|
32.4 |
|
22 |
% |
|
90.1 |
|
36.9 |
|
144 |
% |
Free cash flow from ongoing
operations1 |
|
33.8 |
|
|
30.1 |
|
12 |
% |
|
66.2 |
|
44.5 |
|
49 |
% |
Capex |
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
25.6 |
|
|
14.8 |
|
73 |
% |
|
46.7 |
|
46.8 |
|
(0 |
)% |
Non-sustaining |
|
0.7 |
|
|
- |
|
0 |
% |
|
1.8 |
|
0.2 |
|
800 |
% |
Brownfields |
|
4.7 |
|
|
1.0 |
|
370 |
% |
|
10.6 |
|
2.9 |
|
266 |
% |
As at |
|
|
|
|
|
|
|
Sep 30, 2021 |
|
Dec 31, 2020 |
|
% Change |
Cash
and cash equivalents |
|
|
|
135.8 |
|
131.9 |
|
3 |
% |
1 Refer to Non-IFRS
financial measures and Forward Looking Statements at the end of
this news release |
Figures may not add
due to rounding |
|
|
Third Quarter 2021 Results
Sales for the three months ended September 30,
2021 were $162.6 million, an increase of 95% from the $83.4 million
reported in Q3 2020. Lindero reported adjusted sales of $41.8
million from 23,559 ounces of gold sold. Yaramoko reported adjusted
sales of $49.0 million from 27,494 ounces of gold sold. San Jose
reported adjusted sales of $43.7 million, a decrease of 32% from
the $64.7 million reported in Q3 2020 due to decreases in the price
of silver and a 24% and 21% decrease in the volume of silver and
gold ounces sold, respectively. Caylloma reported adjusted sales of
$28.0 million, a 49% increase from the $18.8 million reported in Q3
2020 due primarily to a 36% increase in the volume of silver sold,
and increases in the volume and price of lead and zinc sold.
Operating income for the three months ended
September 30, 2021 was $21.8 million, a decrease of $6.7 million
compared to Q3 2020. The decrease was due primarily to lower sales
at the San Jose mine and the $9.6 million settlement of the
disputed royalty claim with the SGM plus value added tax paid to
the SGM, offset partly by Lindero and Yaramoko’s contribution to
operating income of $10.3 million and $10.0 million
respectively.
Net income for the three months ended September
30, 2021 was $0.2 million, a $12.9 million decrease from the $13.1
million net income reported in Q3 2020, primarily due to lower
operating income and $10.5 million in transaction costs related to
the acquisition of Roxgold Inc. The effective tax rate for the
quarter was 98%.
Adjusted EBITDA for the three months ended
September 30, 2021 was $75.3 million, an increase of $33.1 million
compared to $42.2 million reported in Q3 2020. The increase
reflects Lindero and Yaramoko´s contribution to adjusted EBITDA of
$21.8 milion and $25.8 million, as well as higher EBITDA at
Caylloma.
Free cash flow from ongoing operations for the
three months ended September 30, 2021 was $33.8 million compared to
$30.1 million in Q3 2020.
Liquidity
As of September 30, 2021, the Company had cash
and cash equivalents of $135.8 million, an increase of $3.9 million
from December 31, 2020.
On November 4, 2021, the Company entered into a
fourth amended and restated credit agreement, effective as of
November 5, 2021, which converts the Company’s prior non-revolving
and revolving facility into a revolving term credit facility in the
amount of $200.0 million, subject to the conditions set out below,
with a term of four years and a step down to $150.0 million after
three years.
On closing of the amended credit facility,
$120.0 million was available for drawdown and was drawn down in
full. If a new environmental impact authorization for the San Jose
mine (“San Jose EIA”) (See news release dated October 25, 2021) has
not been approved or the existing San Jose EIA has not been
extended by January 23, 2022, the availability of the amended
credit facility will be reduced to $100.0 million. The total
amended credit facility of up to $200.0 million will only become
available upon receipt of the new San Jose EIA approval or San Jose
EIA extension.
On November 10, 2021, Minera Cuzcatlan received
written notification from SEMARNAT that its application, made in
May 2021, for a 10 year extension to its Environmental Impact
Authorization for the San Jose Mine which expired on October 23,
2021 had been denied. SEMARNAT denied the application for the
extension citing a pending evaluation by SEMARNAT related to the
regularization of ancillary infrastructure at the mine site. In
addition, it cited non receipt of requested information, which the
Company has already provided to the authority. The Company is
reviewing the reasons for the denial with its advisors, but
believes that it is fundamentally in compliance with all
material aspects of the San Jose EIA and is entitled to an
extension.
The San Jose mine is currently operating under
the protection of the Mexican courts which allows the continued
operation of the San Jose mine beyond the expiry date of the
EIA. Minera Cuzcatlan has the right and intends to
appeal the decision of SEMARNAT and will continue to pursue all
legal protection available to it in order to continue to operate
pending the appeal of the decision of SEMARNAT.
Under the terms of the amended credit facility,
the Company must obtain by November 20, 2021 a permanent injunction
or equivalent protection, in form and substance acceptable to the
lenders acting reasonably, which allows the Company to continue to
operate the mine.
Lindero Mine, Argentina
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Three months ended Sept 30, |
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Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Mine Production |
|
|
|
|
|
|
|
|
|
|
Tonnes placed on the leach pad |
1,387,134 |
|
|
- |
|
|
4,994,134 |
|
|
- |
|
|
|
|
|
|
|
|
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|
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Gold |
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
1.10 |
|
|
- |
|
|
0.94 |
|
|
- |
Production (oz) |
26,235 |
|
|
- |
|
|
68,088 |
|
|
- |
Metal sold (oz) |
23,559 |
|
|
- |
|
|
63,788 |
|
|
- |
Realized price ($/oz) |
1,772 |
|
|
- |
|
|
1,775 |
|
|
- |
|
|
|
|
|
|
|
|
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|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
646 |
|
|
- |
|
|
635 |
|
|
- |
All-in sustaining cash cost ($/oz Au)1 |
1,270 |
|
|
- |
|
|
1,182 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures ($000's) |
|
|
|
|
|
|
|
|
|
|
Sustaining |
10,639 |
|
|
- |
|
|
21,294 |
|
|
- |
Brownfields |
86 |
|
|
- |
|
|
528 |
|
|
- |
1 Refer to Non-IFRS Financial Measures |
|
During the third quarter of 2021, the onsite
impact of COVID-19 diminished resulting in less disruptions to the
operations, with the company screening 74 positive cases compared
to 160 cases registered in the second quarter of 2021. To date,
including company and contractor personnel, 94% of the workforce
has been vaccinated with one dose and 40% with two doses. The
government of Argentina has announced that travel restrictions will
start to ease in November, which should improve lead times and
onsite technical assistance from foreign vendors.
In the third quarter of 2021, a total of
1,387,134 tonnes of ore were placed on the leach pad averaging 1.10
g/t gold containing an estimated 49,247 ounces of gold. Total gold
production for the quarter was 26,235 ounces, comprised of 24,318
ounces in doré and an increase of 1,918 ounces of gold-in-carbon
(GIC) inventory.
Cash cost per gold ounce sold was $646, as the
mine continues to ramp-up production.
All-in sustaining cash costs per gold ounce sold
was $1,270 during the quarter and $1,182 year to date, slightly
above the Company’s updated guidance for the full year, due
primarily to timing of sustaining capital expenditures and ounces
sold. The Company expects the full year results to be in-line with
the updated guidance.
Total capital expenditures of $10.7 million
during the quarter were related primarily to the ADR plant
expansion and completion of phase 1B of the leach pad
construction.
Yaramoko Mine Complex, Burkina
Faso
|
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|
Three months ended Sept 30, |
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|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Mine Production |
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
126,677 |
|
|
- |
|
|
126,677 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
7.28 |
|
|
- |
|
|
7.28 |
|
|
- |
Production (oz) |
28,751 |
|
|
- |
|
|
28,751 |
|
|
- |
Metal sold (oz) |
27,494 |
|
|
- |
|
|
27,494 |
|
|
- |
Realized price ($/oz) |
1,783 |
|
|
- |
|
|
1,783 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
720 |
|
|
- |
|
|
720 |
|
|
- |
All-in sustaining cash cost ($/oz Au)1 |
1,188 |
|
|
- |
|
|
1,188 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
($000's) |
|
|
|
|
|
|
|
|
|
|
Sustaining |
7,398 |
|
|
- |
|
|
7,398 |
|
|
- |
Brownfields |
560 |
|
|
- |
|
|
560 |
|
|
- |
1 Refer to
Non-IFRS Financial Measures |
|
The Yaramoko Mine produced 28,751 ounces of gold
in the third quarter of 2021 with an average gold head grade of
7.28 g/t; slightly below the plan for the quarter.
Unplanned downtime due to the premature
changeout of a SAG mill pinion bearing in August contributed to
slightly lower mill throughput of 126,677 tonnes in the quarter
against a plan of 127,917 tonnes. This, in addition to some
necessary re-sequencing of production stopes at the 55 Zone, due to
isolated ground conditions causing bridging which resulted in a
reprioritization of lower grade stopes, contributed to the minor
production shortfall.
These issues have been remedied and are not
expected to continue nor affect fourth quarter performance which is
expected to be in line with guidance.
Cash cost per gold ounce sold was $720, which
was above plan, primarily due to lower production.
All-in sustaining cash cost per gold ounce sold
was $1,188, slightly above the Company’s updated guidance, due
primarily to the lower production and timing of sustaining capital
expenditures. The Company expects the full year results to be
in-line with the updated guidance.
Capital expenditures of $8.0 million during the
quarter related primarily to underground mine development
costs.
San Jose Mine, Mexico
|
|
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|
|
|
|
|
|
|
|
|
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Mine Production |
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
248,984 |
|
|
255,226 |
|
|
778,352 |
|
|
662,203 |
Average tonnes milled per day |
2,862 |
|
|
2,934 |
|
|
2,980 |
|
|
2,518 |
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
195 |
|
|
254 |
|
|
206 |
|
|
232 |
Recovery (%) |
92 |
|
|
92 |
|
|
91 |
|
|
92 |
Production (oz) |
1,436,658 |
|
|
1,917,540 |
|
|
4,707,496 |
|
|
4,516,790 |
Metal sold (oz) |
1,440,946 |
|
|
1,884,940 |
|
|
4,704,656 |
|
|
4,503,736 |
Realized price ($/oz) |
24.16 |
|
|
24.87 |
|
|
25.80 |
|
|
20.04 |
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
1.22 |
|
|
1.52 |
|
|
1.29 |
|
|
1.42 |
Recovery (%) |
91 |
|
|
92 |
|
|
91 |
|
|
91 |
Production (oz) |
8,910 |
|
|
11,425 |
|
|
29,477 |
|
|
27,709 |
Metal sold (oz) |
8,922 |
|
|
11,317 |
|
|
29,421 |
|
|
27,797 |
Realized price ($/oz) |
1,784 |
|
|
1,921 |
|
|
1,798 |
|
|
1,752 |
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
77.52 |
|
|
67.60 |
|
|
74.22 |
|
|
68.51 |
Production cash cost ($/oz Ag Eq)1,2 |
9.99 |
|
|
7.15 |
|
|
9.28 |
|
|
7.21 |
Net smelter return ($/t) |
192.00 |
|
|
255.64 |
|
|
212.00 |
|
|
196.93 |
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
15.51 |
|
|
11.39 |
|
|
14.13 |
|
|
10.83 |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
($000's) |
|
|
|
|
|
|
|
|
|
|
Sustaining |
4,006 |
|
|
3,774 |
|
|
9,978 |
|
|
6,518 |
Non-sustaining |
745 |
|
|
– |
|
|
1,776 |
|
|
– |
Brownfields |
2,849 |
|
|
1,017 |
|
|
6,739 |
|
|
2,517 |
1 Production cash
cost silver equivalent and All-in sustaining cash cost silver
equivalent are calculated using realized metal prices for each
period |
2 Production cash
cost, Production cash cost silver equivalent, and All-in sustaining
cash cost silver equivalent are Non-IFRS Financial Measures, refer
to Non-IFRS Financial Measures |
|
The San Jose Mine produced 1,436,658 ounces of
silver and 8,910 ounces of gold during the three months ended
September 30, 2021, which represents a decrease of 25% and 22%,
respectively, compared to Q3 2020. The decrease was due primarily
to lower grades.
The production cash cost per tonne for the three
months ended September 30, 2021 was $77.52 an increase from the
$67.60 per tonne in Q3 2020 primarily due to lower tonnes
milled.
The all-in sustaining cash cost of payable
silver equivalent for the three months ended September 30, 2021 was
$15.51 per ounce, an increase from the $11.39 per ounce in Q3 2020.
The increase was due primarily to higher production cash costs as
noted above, increase in brownfields capital expenditures, higher
royalties, and lower silver equivalent sales.
Capital expenditures totaled $7.6 million for
the three months ended September 30, 2021, an increase from the
$4.8 million in Q3 2020. The increase was due to the impact of
COVID-19 in Q3 2020, whereby brownfields capital expenditures at
the operations were significantly reduced.
Caylloma Mine, Peru
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Mine Production |
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
136,410 |
|
|
107,002 |
|
|
401,942 |
|
|
373,915 |
Average tonnes milled per day |
1,516 |
|
|
1,189 |
|
|
1,517 |
|
|
1,530 |
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
78 |
|
|
74 |
|
|
77 |
|
|
70 |
Recovery (%) |
81 |
|
|
83 |
|
|
82 |
|
|
83 |
Production (oz) |
275,223 |
|
|
210,206 |
|
|
810,962 |
|
|
704,190 |
Metal sold (oz) |
295,532 |
|
|
217,281 |
|
|
830,495 |
|
|
704,843 |
Realized price ($/oz) |
24.67 |
|
|
24.96 |
|
|
25.80 |
|
|
19.27 |
|
|
|
|
|
|
|
|
|
|
|
Lead |
|
|
|
|
|
|
|
|
|
|
Grade (%) |
3.14 |
|
|
3.15 |
|
|
3.15 |
|
|
2.94 |
Recovery (%) |
87 |
|
|
90 |
|
|
88 |
|
|
87 |
Production (000's lbs) |
8,245 |
|
|
6,702 |
|
|
24,571 |
|
|
21,201 |
Metal sold (000's lbs) |
8,859 |
|
|
6,884 |
|
|
25,354 |
|
|
21,196 |
Realized price ($/lb) |
1.06 |
|
|
0.86 |
|
|
0.98 |
|
|
0.82 |
|
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
Grade (%) |
4.74 |
|
|
4.93 |
|
|
4.67 |
|
|
4.58 |
Recovery (%) |
87 |
|
|
89 |
|
|
87 |
|
|
88 |
Production (000's lbs) |
12,436 |
|
|
10,313 |
|
|
36,169 |
|
|
33,110 |
Metal sold (000's lbs) |
12,754 |
|
|
10,628 |
|
|
36,775 |
|
|
32,999 |
Realized price ($/lb) |
1.36 |
|
|
1.07 |
|
|
1.31 |
|
|
0.98 |
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
86.04 |
|
|
76.80 |
|
|
85.17 |
|
|
74.72 |
Production cash cost ($/oz Ag Eq)1,2 |
12.75 |
|
|
14.40 |
|
|
13.25 |
|
|
13.67 |
Net smelter return ($/t) |
196.00 |
|
|
162.82 |
|
|
193.90 |
|
|
119.79 |
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
17.66 |
|
|
19.53 |
|
|
18.17 |
|
|
17.73 |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
($000's) |
|
|
|
|
|
|
|
|
|
|
Sustaining |
3,575 |
|
|
1,213 |
|
|
8,024 |
|
|
4,042 |
Brownfields |
1,201 |
|
|
65 |
|
|
2,810 |
|
|
415 |
1 Production cash
cost silver equivalent and All-in sustaining cash cost silver
equivalent are calculated using realized metal prices for each
period |
2 Production cash
cost, Production cash cost silver equivalent, and All-in sustaining
cash cost silver equivalent are Non-IFRS Financial Measures, refer
to Non-IFRS Financial Measures |
|
The Caylloma Mine produced 275,223 ounces of
silver, 8.2 million pounds of lead and 12.4 million pounds of zinc
during the three months ended September 30, 2021, an increase of
31%, 23%, and 21% respectively compared to Q3 2020. The increased
metal production was due to higher head grades for all metals and
higher recoveries for silver and lead. Gold production for the
third quarter of 2021 totaled 1,529 ounces with an average head
grade of 0.48 g/t, an increase of 12% over Q3 2020.
The production cash cost per tonne for the three
months ended September 30, 2021 was $86.04, an increase from the
$76.80 in Q3 2020. The increase was due primarily to higher mining
costs on increased mine preparation activities and higher planned
maintenance costs in the processing plant.
The all-in sustaining cash cost of payable
silver equivalent for the three months ended September 30, 2021 was
$17.66 per ounce, a decrease from the $19.53 per ounce in Q3 2020.
The decrease was due primarily to higher silver equivalent sales,
offset partly by the higher production cash cost per tonne as noted
above.
Capital expenditures totaled $4.8 million for
the three months ended September 30, 2021, an increase from the
$1.3 million in Q3 2020. The increase was primarily due to the
impact of COVID-19 during Q3 2020, whereby capital expenditures
were significantly reduced.
On October 16, 2021, the Company signed a
community support with the Municipality of Caylloma, which includes
a voluntary payment of 2.2 million Peruvian soles per year over the
four year term agreement, starting in the fourth quarter of 2021.
The resources will be used for the implementation of programs or
projects for the sustainable development of the Caylloma
District.
Qualified Person
Eric Chapman, Vice President of Technical
Services, is a Professional Geoscientist of the Association of
Professional Engineers and Geoscientists of the Province 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 following tables represent the calculation
of certain Non-IFRS financial measures as referenced in this news
release. In alignment with the World Gold Council standard for
all-in sustaining cash cost and all-in cash cost, the Company has
presented the cash cost figures on a sold ounce basis for all
periods presented and has excluded royalties that are under the
scope of IAS 12 – Income Taxes, with the change from the previously
presented figures being applied retrospectively to prior
periods.
Reconciliation to Adjusted Net Income for the three and
nine months ended September 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
Consolidated |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
0.2 |
|
|
13.1 |
|
|
42.8 |
|
|
2.9 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals1 |
- |
|
|
- |
|
|
0.1 |
|
|
- |
|
Foreign exchange loss, Lindero Mine2 |
1.2 |
|
|
2.7 |
|
|
3.8 |
|
|
8.6 |
|
Share of loss from associates |
- |
|
|
- |
|
|
- |
|
|
0.1 |
|
Investment income |
- |
|
|
- |
|
|
- |
|
|
(3.3 |
) |
Roxgold transaction costs |
10.5 |
|
|
- |
|
|
14.1 |
|
|
- |
|
SGM Royalty settlement |
6.7 |
|
|
- |
|
|
6.7 |
|
|
- |
|
Other non-cash/non-recurring items |
3.9 |
|
|
0.3 |
|
|
4.0 |
|
|
0.6 |
|
Adjusted Net Income (loss) |
22.5 |
|
|
16.1 |
|
|
71.5 |
|
|
8.9 |
|
1 Amounts are recorded in Cost of
sales |
|
|
|
|
|
|
|
|
|
|
2 Amounts are recorded in General
and Administration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Adjusted EBITDA for
the three and nine months ended September 30, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
Three months ended Sept 30, |
|
Nine months ended Sept 30, |
Consolidated |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
0.2 |
|
|
13.1 |
|
|
42.8 |
|
|
2.9 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Community support provision and accruals |
- |
|
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
Inventory adjustment |
1.8 |
|
|
- |
|
|
1.7 |
|
|
- |
|
Foreign exchange loss, Lindero Mine |
1.2 |
|
|
2.7 |
|
|
3.8 |
|
|
8.7 |
|
Net finance items |
4.0 |
|
|
0.4 |
|
|
8.5 |
|
|
1.1 |
|
Depreciation, depletion, and amortization |
37.8 |
|
|
11.1 |
|
|
77.5 |
|
|
31.6 |
|
Income taxes |
8.9 |
|
|
15.0 |
|
|
34.2 |
|
|
28.3 |
|
Share of loss from associates |
- |
|
|
- |
|
|
- |
|
|
0.1 |
|
Investment income |
- |
|
|
- |
|
|
- |
|
|
(3.3 |
) |
SGM Royalty settlement |
9.6 |
|
|
- |
|
|
9.6 |
|
|
- |
|
Roxgold transaction costs |
10.5 |
|
|
- |
|
|
14.1 |
|
|
- |
|
Other non-cash/non-recurring items |
1.3 |
|
|
(0.2 |
) |
|
(1.0 |
) |
|
(1.6 |
) |
Adjusted EBITDA |
75.3 |
|
|
42.2 |
|
|
191.1 |
|
|
67.8 |
|
Reconciliation of Free Cash Flow from
ongoing operations for three and nine months ended September 30,
2021 and 2020
|
|
|
|
|
|
|
|
|
Three months ended Sept 30, |
|
Nine
months ended Sept 30, |
Consolidated |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
(Restated) |
|
|
|
|
(Restated) |
|
Net cash provided by operating
activities |
39.4 |
|
|
32.4 |
|
|
90.1 |
|
|
36.9 |
|
Adjustments |
|
|
|
|
|
|
|
Roxgold transaction costs |
24.9 |
|
|
- |
|
|
27.9 |
|
|
- |
|
Change in long term receivables and assets |
0.1 |
|
|
(0.3 |
) |
|
(0.0 |
) |
|
(0.9 |
) |
Additions to mineral properties, plant and equipment |
(32.2 |
) |
|
(5.6 |
) |
|
(55.4 |
) |
|
(13.8 |
) |
Impact of adoption in IAS 16 and Production costs |
- |
|
|
13.1 |
|
|
- |
|
|
25.2 |
|
Current income tax expense |
(9.0 |
) |
|
(15.5 |
) |
|
(35.2 |
) |
|
(25.5 |
) |
Income taxes paid |
12.6 |
|
|
6.0 |
|
|
43.6 |
|
|
22.6 |
|
Other adjustments |
(1.9 |
) |
|
- |
|
|
(4.8 |
) |
|
- |
|
Free
cash flow from ongoing operations |
33.8 |
|
|
30.1 |
|
|
66.2 |
|
|
44.5 |
|
Reconciliation of Cash Cost per Ounce of Gold Sold for
the three and nine months ended September 30, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
Lindero
Mine |
|
|
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cost of sales |
|
|
29,508 |
|
|
- |
|
|
75,974 |
|
|
- |
Changes in dore inventory |
|
|
1,456 |
|
|
- |
|
|
2,458 |
|
|
- |
Inventory adjustment |
|
|
(1,743 |
) |
|
- |
|
|
(1,743 |
) |
|
- |
Export duties |
|
|
(3,137 |
) |
|
- |
|
|
(8,519 |
) |
|
- |
Depletion and
depreciation |
|
|
(9,092 |
) |
|
- |
|
|
(24,512 |
) |
|
- |
By
product credits |
|
|
(55 |
) |
|
- |
|
|
(183 |
) |
|
- |
Production cash cost |
|
|
16,937 |
|
|
- |
|
|
43,475 |
|
|
- |
Changes in dore inventory |
|
|
(1,456 |
) |
|
- |
|
|
(2,458 |
) |
|
- |
Realized gain in diesel hedge |
|
|
(272 |
) |
|
- |
|
|
(525 |
) |
|
- |
Cash cost applicable per gold
ounce sold |
A |
|
15,209 |
|
|
- |
|
|
40,492 |
|
|
- |
Ounces
of gold sold |
B |
|
23,549 |
|
|
- |
|
|
63,762 |
|
|
- |
Cash
cost per ounce of gold sold ($/oz) |
=A/B |
|
646 |
|
|
- |
|
|
635 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Yaramoko
Mine |
|
|
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cost of sales |
|
|
38,431 |
|
|
- |
|
|
38,431 |
|
|
- |
Changes in dore inventory |
|
|
823 |
|
|
- |
|
|
823 |
|
|
- |
Export duties |
|
|
(2,975 |
) |
|
- |
|
|
(2,975 |
) |
|
- |
Depletion and
depreciation |
|
|
(15,739 |
) |
|
- |
|
|
(15,739 |
) |
|
- |
By
product credits |
|
|
(61 |
) |
|
- |
|
|
(61 |
) |
|
- |
Production cash cost |
|
|
20,479 |
|
|
- |
|
|
20,479 |
|
|
- |
Changes in dore inventory |
|
|
(823 |
) |
|
- |
|
|
(823 |
) |
|
- |
Refining charges |
|
|
138 |
|
|
- |
|
|
138 |
|
|
- |
Cash cost applicable per gold
ounce sold |
A |
|
19,794 |
|
|
- |
|
|
19,794 |
|
|
- |
Ounces
of gold sold |
B |
|
27,475 |
|
|
- |
|
|
27,475 |
|
|
- |
Cash
cost per ounce of gold sold ($/oz) |
=A/B |
|
720 |
|
|
- |
|
|
720 |
|
|
- |
Reconciliation of All-in Sustaining Cash Cost per Ounce
of Gold Sold for the three and nine months ended September 30, 2021
and 2020
|
|
|
|
|
|
|
|
|
|
|
Lindero
Mine |
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
15,209 |
|
|
- |
|
|
40,492 |
|
|
- |
Export duties and mining
taxes |
3,137 |
|
|
- |
|
|
8,519 |
|
|
- |
General
and administrative expenses (operations) |
1,387 |
|
|
- |
|
|
4,003 |
|
|
- |
Adjusted operating cash
cost |
19,733 |
|
|
- |
|
|
53,014 |
|
|
- |
Sustaining leases |
740 |
|
|
- |
|
|
1,796 |
|
|
- |
Sustaining capital
expenditures1 |
9,385 |
|
|
- |
|
|
20,040 |
|
|
- |
Brownfields exploration expenditures1 |
47 |
|
|
- |
|
|
489 |
|
|
- |
All-in sustaining cash
cost |
29,905 |
|
|
- |
|
|
75,339 |
|
|
- |
All-in cash cost |
29,905 |
|
|
- |
|
|
75,339 |
|
|
- |
Ounces
of gold sold |
23,549 |
|
|
- |
|
|
63,762 |
|
|
- |
All-in
sustaining cash cost per ounce of gold sold |
1,270 |
|
|
- |
|
|
1,182 |
|
|
- |
All-in
cash cost per ounce of gold sold |
1,270 |
|
|
- |
|
|
1,182 |
|
|
- |
1 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
Yaramoko
Mine |
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
19,794 |
|
|
- |
|
|
19,794 |
|
|
- |
Export duties and mining
taxes |
2,975 |
|
|
- |
|
|
2,975 |
|
|
- |
General
and administrative expenses (operations) |
439 |
|
|
- |
|
|
439 |
|
|
- |
Adjusted operating cash
cost |
23,208 |
|
|
- |
|
|
23,208 |
|
|
- |
Sustaining leases |
1,467 |
|
|
- |
|
|
1,467 |
|
|
- |
Sustaining capital
expenditures1 |
7,398 |
|
|
- |
|
|
7,398 |
|
|
- |
Brownfields exploration expenditures1 |
560 |
|
|
- |
|
|
560 |
|
|
- |
All-in sustaining cash
cost |
32,633 |
|
|
- |
|
|
32,633 |
|
|
- |
All-in cash cost |
32,633 |
|
|
- |
|
|
32,633 |
|
|
- |
Ounces
of gold sold |
27,475 |
|
|
- |
|
|
27,475 |
|
|
- |
All-in
sustaining cash cost per ounce of gold sold |
1,188 |
|
|
- |
|
|
1,188 |
|
|
- |
All-in
cash cost per ounce of gold sold |
1,188 |
|
|
- |
|
|
1,188 |
|
|
- |
1 Presented on a
cash basis |
|
Reconciliation of Production Cash Cost per Tonne and
Cash Cost per Payable Ounce of Silver Equivalent Sold for the three
and nine months ended September 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
San Jose
Mine |
|
|
Three months ended Sept 30, |
|
Nine months ended Sept 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Cost of sales |
|
|
29,980 |
|
|
29,574 |
|
|
90,051 |
|
|
73,288 |
|
Changes in concentrate
inventory |
|
|
(31 |
) |
|
340 |
|
|
63 |
|
|
277 |
|
Depletion and depreciation in
concentrate inventory |
|
|
54 |
|
|
(592 |
) |
|
21 |
|
|
(587 |
) |
Inventory adjustment |
|
|
(35 |
) |
|
- |
|
|
46 |
|
|
2 |
|
Royalties and mining
taxes |
|
|
(1,641 |
) |
|
(1,239 |
) |
|
(4,368 |
) |
|
(2,878 |
) |
Workers participation |
|
|
(1,218 |
) |
|
(2,970 |
) |
|
(4,573 |
) |
|
(5,059 |
) |
Depletion and depreciation |
|
|
(7,808 |
) |
|
(7,859 |
) |
|
(23,468 |
) |
|
(19,677 |
) |
Cash cost |
A |
|
19,301 |
|
|
17,254 |
|
|
57,772 |
|
|
45,366 |
|
Total
processed ore (tonnes) |
B |
|
248,984 |
|
|
255,226 |
|
|
778,352 |
|
|
662,203 |
|
Production cash cost per tonne ($/t) |
=A/B |
|
77.52 |
|
|
67.60 |
|
|
74.22 |
|
|
68.51 |
|
Cash cost |
A |
|
19,301 |
|
|
17,254 |
|
|
57,772 |
|
|
45,366 |
|
Changes in concentrate
inventory |
|
|
31 |
|
|
(340 |
) |
|
(63 |
) |
|
(277 |
) |
Depletion and depreciation in
concentrate inventory |
|
|
(54 |
) |
|
592 |
|
|
(21 |
) |
|
587 |
|
Inventory adjustment |
|
|
35 |
|
|
- |
|
|
(46 |
) |
|
(2 |
) |
Treatment charges |
|
|
(2,622 |
) |
|
322 |
|
|
(441 |
) |
|
103 |
|
Refining charges |
|
|
3,539 |
|
|
1,064 |
|
|
3,161 |
|
|
2,554 |
|
Cash cost applicable per
payable ounce sold |
C |
|
20,230 |
|
|
18,892 |
|
|
60,362 |
|
|
48,331 |
|
Payable
ounces of silver equivalent sold1 |
D |
|
2,024,487 |
|
|
2,640,492 |
|
|
6,501,691 |
|
|
6,702,294 |
|
Cash
cost per ounce of payable silver equivalent sold2 ($/oz) |
=C/D |
|
9.99 |
|
|
7.15 |
|
|
9.28 |
|
|
7.21 |
|
Mining cost per tonne |
|
|
38.00 |
|
|
34.30 |
|
|
38.74 |
|
|
35.74 |
|
Milling cost per tonne |
|
|
17.22 |
|
|
15.45 |
|
|
16.71 |
|
|
16.46 |
|
Indirect cost per tonne |
|
|
14.79 |
|
|
9.38 |
|
|
12.66 |
|
|
8.91 |
|
Community relations cost per
tonne |
|
|
3.08 |
|
|
6.51 |
|
|
1.44 |
|
|
4.17 |
|
Distribution cost per tonne |
|
|
4.43 |
|
|
1.96 |
|
|
4.67 |
|
|
3.23 |
|
Production cash cost per tonne ($/t) |
|
|
77.52 |
|
|
67.60 |
|
|
74.22 |
|
|
68.51 |
|
1 Silver equivalent
sold for Q3 2021 is calculated using a silver to gold ratio of
73.9:1 (Q3 2020: 77.2:1) and for Q3 2021 YTD: silver to gold ratio
of 69.7:1 (Q3 2020 YTD: 87.4:1) |
2 Silver equivalent
is calculated using the realized prices for gold and silver. |
|
|
|
|
|
|
|
|
|
|
Caylloma
Mine |
|
|
Three months ended Sept 30, |
|
Nine months ended Sept 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Cost of sales |
|
|
17,302 |
|
|
11,812 |
|
|
49,332 |
|
|
38,882 |
|
Changes in concentrate
inventory |
|
|
(670 |
) |
|
(262 |
) |
|
(899 |
) |
|
27 |
|
Depletion and depreciation in
concentrate inventory |
|
|
133 |
|
|
98 |
|
|
155 |
|
|
227 |
|
Royalties and mining
taxes |
|
|
(68 |
) |
|
(71 |
) |
|
(157 |
) |
|
(390 |
) |
Provision for community
support |
|
|
- |
|
|
2 |
|
|
- |
|
|
101 |
|
Workers participation |
|
|
(412 |
) |
|
(583 |
) |
|
(1,624 |
) |
|
(411 |
) |
Depletion and depreciation |
|
|
(4,549 |
) |
|
(2,778 |
) |
|
(12,575 |
) |
|
(10,496 |
) |
Cash cost |
A |
|
11,736 |
|
|
8,218 |
|
|
34,232 |
|
|
27,940 |
|
Total
processed ore (tonnes) |
B |
|
136,410 |
|
|
107,002 |
|
|
401,942 |
|
|
373,916 |
|
Production cash cost per tonne ($/t) |
=A/B |
|
86.04 |
|
|
76.80 |
|
|
85.17 |
|
|
74.72 |
|
Cash cost |
A |
|
11,736 |
|
|
8,218 |
|
|
34,232 |
|
|
27,940 |
|
Changes in concentrate
inventory |
|
|
670 |
|
|
262 |
|
|
899 |
|
|
(27 |
) |
Depletion and depreciation in
concentrate inventory |
|
|
(133 |
) |
|
(98 |
) |
|
(155 |
) |
|
(227 |
) |
Treatment charges |
|
|
4,378 |
|
|
4,414 |
|
|
11,125 |
|
|
13,977 |
|
Refining charges |
|
|
459 |
|
|
339 |
|
|
1,292 |
|
|
1,082 |
|
Cash cost applicable per
payable ounce sold |
C |
|
17,110 |
|
|
13,135 |
|
|
47,393 |
|
|
42,745 |
|
Payable
ounces of silver equivalent sold1 |
D |
|
1,341,997 |
|
|
912,207 |
|
|
3,577,778 |
|
|
3,127,621 |
|
Cash
cost per ounce of payable silver equivalent sold2 ($/oz) |
=C/D |
|
12.75 |
|
|
14.40 |
|
|
13.25 |
|
|
13.67 |
|
Mining cost per tonne |
|
|
33.82 |
|
|
30.80 |
|
|
32.24 |
|
|
32.64 |
|
Milling cost per tonne |
|
|
15.95 |
|
|
14.58 |
|
|
15.00 |
|
|
13.94 |
|
Indirect cost per tonne |
|
|
28.05 |
|
|
23.95 |
|
|
29.50 |
|
|
21.03 |
|
Community relations cost per
tonne |
|
|
0.51 |
|
|
6.92 |
|
|
0.72 |
|
|
4.58 |
|
Distribution cost per tonne |
|
|
7.71 |
|
|
0.55 |
|
|
7.71 |
|
|
2.53 |
|
Production cash cost per tonne ($/t) |
|
|
86.04 |
|
|
76.80 |
|
|
85.17 |
|
|
74.72 |
|
1 Silver equivalent
sold for Q3 2021 is calculated using a silver to gold ratio of
72.5:1 (Q3 2020: 78.3:1) , silver to lead ratio of 1:23.3 pounds
(Q3 2020: 1:29.2), and silver to zinc ratio of 1:18.2 pounds (Q3
2020: 1:23.2). YTD 2021: silver to gold ratio of 69.4:1 (Q3 2020
YTD: 96.4:1), silver to lead ratio of 1:26.3 pounds (Q3 2020 YTD:
1:23.6), and silver to zinc ratio of 1:19.7 pounds (Q3 2020 YTD:
1:19.7) |
2 Silver equivalent
is calculated using the realized prices for gold, silver, lead, and
zinc. |
|
Reconciliation of All-in Sustaining Cash Cost and All-in
Cash Cost per Payable Ounce of Silver Equivalent Sold for three and
nine months ended September 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
San Jose
Mine |
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
20,230 |
|
|
18,897 |
|
|
60,362 |
|
|
48,346 |
Royalties and mining
taxes |
1,641 |
|
|
1,239 |
|
|
4,368 |
|
|
2,878 |
Workers' participation |
1,522 |
|
|
3,713 |
|
|
5,716 |
|
|
6,324 |
General
and administrative expenses (operations) |
1,719 |
|
|
1,363 |
|
|
5,022 |
|
|
4,228 |
Adjusted operating cash
cost |
25,112 |
|
|
25,212 |
|
|
75,468 |
|
|
61,776 |
Care and maintenance costs
(impact of COVID-19) |
- |
|
|
- |
|
|
- |
|
|
1,568 |
Sustaining leases |
184 |
|
|
63 |
|
|
447 |
|
|
188 |
Sustaining capital
expenditures3 |
3,553 |
|
|
3,774 |
|
|
9,525 |
|
|
6,518 |
Brownfields exploration expenditures3 |
2,547 |
|
|
1,017 |
|
|
6,437 |
|
|
2,517 |
All-in sustaining cash
cost |
31,397 |
|
|
30,066 |
|
|
91,878 |
|
|
72,567 |
Non-sustaining capital expenditures3 |
745 |
|
|
125 |
|
|
1,776 |
|
|
374 |
All-in cash cost |
32,142 |
|
|
30,191 |
|
|
93,654 |
|
|
72,941 |
Payable
ounces of silver equivalent sold1 |
2,024,487 |
|
|
2,640,492 |
|
|
6,501,691 |
|
|
6,702,294 |
All-in
sustaining cash cost per ounce of payable silver equivalent
sold2 |
15.51 |
|
|
11.39 |
|
|
14.13 |
|
|
10.83 |
All-in
cash cost per ounce of payable silver equivalent sold2 |
15.88 |
|
|
11.43 |
|
|
14.40 |
|
|
10.88 |
1 Silver equivalent
sold for Q3 2021 is calculated using a silver to gold ratio of
73.9:1 (Q3 2020: 77.2:1) and for Q3 2021 YTD: silver to gold ratio
of 69.7:1 (Q3 2020 YTD: 87.4:1) |
2 Silver equivalent
is calculated using the realized prices for gold and silver. Refer
to Financial Results - Sales and Realized Prices |
3 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
Caylloma
Mine |
Three months ended Sept 30, |
|
|
Nine months ended Sept 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
17,110 |
|
|
13,562 |
|
|
47,392 |
|
|
44,825 |
Royalties and mining
taxes |
68 |
|
|
71 |
|
|
157 |
|
|
390 |
Workers' participation |
465 |
|
|
644 |
|
|
1,886 |
|
|
477 |
General
and administrative expenses (operations) |
630 |
|
|
701 |
|
|
2,700 |
|
|
2,514 |
Adjusted operating cash
cost |
18,273 |
|
|
14,978 |
|
|
52,135 |
|
|
48,206 |
Sustaining leases |
780 |
|
|
695 |
|
|
2,170 |
|
|
1,930 |
Sustaining capital
expenditures3 |
3,480 |
|
|
1,213 |
|
|
7,930 |
|
|
4,042 |
Brownfields exploration expenditures3 |
1,168 |
|
|
65 |
|
|
2,777 |
|
|
415 |
All-in sustaining cash
cost |
23,701 |
|
|
16,951 |
|
|
65,012 |
|
|
54,593 |
All-in cash cost |
23,701 |
|
|
17,814 |
|
|
65,012 |
|
|
55,456 |
Payable
ounces of silver equivalent sold1 |
1,341,997 |
|
|
912,207 |
|
|
3,577,778 |
|
|
3,127,621 |
All-in
sustaining cash cost per ounce of payable silver equivalent
sold2 |
17.66 |
|
|
19.53 |
|
|
18.17 |
|
|
17.73 |
All-in
cash cost per ounce of payable silver equivalent sold2 |
17.66 |
|
|
19.53 |
|
|
18.17 |
|
|
17.73 |
1 Silver equivalent
sold for Q3 2021 is calculated using a silver to gold ratio of
72.5:1 (Q3 2020: 78.3:1) , silver to lead ratio of 1:23.3 pounds
(Q3 2020: 1:29.2), and silver to zinc ratio of 1:18.2 pounds (Q3
2020: 1:23.2). YTD 2021: silver to gold ratio of 69.4:1 (Q3 2020
YTD: 96.4:1), silver to lead ratio of 1:26.3 pounds (Q3 2020 YTD:
1:23.6), and silver to zinc ratio of 1:19.7 pounds (Q3 2020 YTD:
1:19.7) |
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 third quarter 2021 Financial Statements and accompanying
Management’s Discussion and Analysis for the three and nine months
ended September 30, 2021, which are available for download on the
Company’s website, www.fortunasilver.com, on SEDAR at www.sedar.com
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 Friday, November 12, 2021 at
9:00 a.m. Pacific time | 12:00 p.m. Eastern time. 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/1696/43329 or over the
phone by dialing in just prior to the starting time.
Conference call details:
Date: Friday, November 12, 2021Time: 9:00 a.m.
Pacific time | 12:00 p.m. Eastern time
Dial in number (Toll Free): +1. 888.506.0062Dial
in number (International): +1.973.528.0011Entry code: 664594
Replay number (Toll Free): +1.877.481.4010Replay
number (International): +1.919.882.2331Replay Passcode: 43329
Playback of the earnings call will be available
until Friday, November 26, 2021. Playback of the webcast will be
available until Saturday, November 12, 2022. In addition, a
transcript of the call will be archived on the Company’s website at
https://fortunasilver.com/investors/financial-reports/.
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with four operating mines in Argentina,
Burkina Faso, Mexico and Peru, and an advanced development project
in Côte d’Ivoire. 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
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 performance in 2021; estimated updated
production forecasts and sales for 2021; estimated updated
production costs and all-in sustaining cash costs for 2021;
estimated capital expenditures in 2021; estimated brownfields and
greenfields expenditures in 2021; the future estimated impact of
COVID-19 on the Company’s production, workforce, business,
operations and financial condition; metal price estimates;
estimated metal grades in 2021; the estimated amount of ore to be
placed on the leach pad at the Lindero Mine in 2021, the grade of
gold and the amount of gold estimated to be contained therein; the
Company’s plans for the construction of an open pit mine at the
Seguela project in Cote d’Ivoire; the economics for the
construction of the mine at the Seguela project as set out in the
feasibility study, the estimated construction capex for the
project, the timelines and schedules for the construction and
production of gold; undisclosed risks and liabilities relating to
the Roxgold business combination; risks that the anticipated
benefits of the Roxgold business combination will not be realized
or fully realized; the Company's business strategy, plans and
outlook; the merit of the Company's mines and mineral properties;
mineral resource and reserve estimates; production costs;
timelines; the future financial or operating performance of the
Company; expenditures; the ability of the Company to successfully
appeal the denial to the extension of the San Jose EIA; the ability
of the Company to repay or refinance its credit facility in the
event that the Company does not obtain an extension to the San Jose
EIA; 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; the impact of the
COVID-19 pandemic on the Company’s mining operations and
construction activities; the duration and impacts of COVID-19 on
the Company’s production, workforce, business, operations and
financial condition, and the risks relating to a global pandemic,
which unless contained could cause a prolonged slowdown in global
economic growth; uncertainties related to the impacts of COVID-19
which may include: changing market conditions, changing
restrictions on the mining industry in the countries in which the
Company operates, the ability to operate as a result of government
imposed restrictions, including restrictions on travel, the
transportation of concentrates and doré, access to refineries, the
impact of additional waves of the pandemic or increases in
incidents of COVID-19 in the countries in which we operate; the
duration of any suspension of operations at the Company’s mines as
a result of COVID-19 which may affect production and the Company’
business operations and financial condition; the risks associated
with the completion of the business combination with Roxgold,
including the ability of the Company to successfully consolidate
functions, integrate operations, procedures and personnel; changes
in prices for gold, silver and other metals; the ability of the
Company to successfully appeal the decision of SEMARNAT denying the
extension to the San Jose EIA; obtaining a pemanent injunction or
equivalent protection from the Mexican Courts to allow the
continued operation of the San Jose pending the approval of the
appeal to the denial of the extension of the San Jose EIA;
fluctuation in currencies and foreign exchange rates; inflation;
the imposition of capital controls in countries in which the
Company operates; any extension of the currency controls in
Argentina; changes in the prices of key supplies; technological and
operational hazards in Fortuna’s mining and mine development
activities; delays in the ramp up of production at Lindero which
may cause delays in the commencement of commercial production;
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; 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 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; 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, labour and contractor
availability and other operating or technical difficulties); the
duration and impacts of COVID-19 on the Company’s production,
workforce, business, operations and financial condition, and the
risks relating to a global pandemic, which unless contained could
cause a slowdown in global economic growth; government mandates in
Peru, Mexico, Argentina, Burkina Faso and Côte d’Ivoire with
respect to mining operations generally or auxiliary businesses or
services required for the Company’s operations; government and the
Company’s attempts to reduce the spread of COVID-19 which may
affect many aspects of the Company’s operations, including
transportation of personnel to and from site, contractor and
supplier availability and the ability to sell or deliver
concentrate and doré; the expected trends in mineral prices and
currency exchange rates; 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 the Company will obtain an extension to the
San Jose EIA; that all required approvals and permits will be
obtained for the Company’s business and operations; 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 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.
Non-IFRS Financial Measures
This news release also refers to Non-IFRS
financial measures, such as production cash cost per tonne; cash
cost per payable ounce of silver; 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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