Fortuna reports consolidated financial results for the third
quarter 2018
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI)
today reported net income of $6.9 million, earnings per share of 4
cents and revenue of $59.6 million in the third quarter of 2018.
Jorge A. Ganoza, President and CEO, commented,
“We have delivered a solid quarter in spite of a 12% and 5%
decrease in silver and gold prices, respectively, in the third
quarter, with earnings per share of $0.04, EBITDA of $24.2 million,
and free cash flow, excluding Lindero construction costs, of $13.6
million.” Mr. Ganoza concluded, “The rate of spending at
Lindero continues to increase as construction activities accelerate
towards year end. It is estimated that a total of between $110
million to $130 million will be spent in 2018. Construction
activities are progressing according to the project´s schedule with
commercial production planned for the end of the third quarter of
2019.”
Third quarter consolidated financial
highlights:
- Sales of $59.6 million, compared to
$64.0 million in Q3 2017
- Net income of $6.9 million,
compared to $10.3 million in Q3 2017
- Earnings per share of $0.04,
compared to $0.06 in Q3 2017
- Net cash provided by operations of
$21.5 million and adjusted EBITDA of $24.2 million, compared to
$20.3 million and $30.6 million, respectively, in Q3 2017
- Free cash flow, excluding Lindero
construction costs,1 of $13.6 million and $42.2 million for the
three and nine months ended September 30, 2018
- Cash position, including short term
investments, as at September 30, 2018 was $176.7 million
- Silver and gold production totaled
2,230,465 and 12,542 ounces compared to 2,009,362 and 13,412 in Q3
2017
- AISC1 per silver equivalent2 ounce
was $10.8 compared to $11.1 in Q3 2017
1 All-in sustaining cash cost and free cash flow
excluding Lindero construction costs are Non-GAAP Financial
Measures2 AISC/oz Ag Eq calculated at realized metal prices of
$1,211/oz Au, $14.8/oz Ag, $1.0/lb Pb, and $1.2/lb Zn
|
Third quarter consolidated financial results |
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Consolidated Metrics |
|
Q3 2018 |
|
Q3 2017 |
% Change |
|
YTD 2018 |
|
YTD 2017 |
% Change |
|
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|
Financial (Expressed in $ millions except per share
information and all-in sustaining cash costs) |
Sales |
$ |
59.6 |
|
$ |
64.0 |
-7% |
$ |
203.7 |
|
$ |
192.8 |
6% |
Mine operating income |
|
16.5 |
|
|
24.9 |
-34% |
|
79.2 |
|
|
74.3 |
7% |
Operating income |
|
10.5 |
|
|
18.9 |
-44% |
|
55.3 |
|
|
52.7 |
5% |
Net income |
|
6.9 |
|
|
10.3 |
-33% |
|
31.8 |
|
|
32.2 |
-1% |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (basic) |
|
0.04 |
|
|
0.06 |
-33% |
|
0.20 |
|
|
0.20 |
0% |
Earnings per share (diluted) |
|
0.04 |
|
|
0.06 |
-33% |
|
0.20 |
|
|
0.20 |
0% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income1 |
|
7.1 |
|
|
13.1 |
-46% |
|
30.2 |
|
|
36.4 |
-17% |
Adjusted EBITDA1 |
|
24.2 |
|
|
30.6 |
-21% |
|
91.2 |
|
|
87.3 |
4% |
Free cash flow1 |
|
(19.3 |
) |
|
8.3 |
-333% |
|
(26.9 |
) |
|
9.9 |
-372% |
Free cash flow excluding Lindero construction costs1 |
|
13.6 |
|
|
11.7 |
16% |
|
42.2 |
|
|
17.7 |
138% |
Capex (sustaining) |
|
5.4 |
|
|
7.5 |
-28% |
|
14.6 |
|
|
19.9 |
-27% |
Capex (non-sustaining) |
|
0.6 |
|
|
2.4 |
-74% |
|
2.1 |
|
|
2.9 |
-27% |
Capex (Lindero) |
|
24.5 |
|
|
3.7 |
564% |
|
41.8 |
|
|
8.3 |
402% |
Capex (Brownfield) |
|
2.4 |
|
|
2.2 |
9% |
|
7.1 |
|
|
7.8 |
-10% |
AISC ($/oz Ag)1,2 |
|
7.1 |
|
|
6.1 |
17% |
|
4.1 |
|
|
6.8 |
-40% |
AISC ($/oz Ag Eq)1,3 |
|
10.8 |
|
|
11.1 |
-3 |
|
10.1 |
|
|
11.4 |
-12% |
|
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|
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|
Sep 30, 2018 |
|
Dec 31, 2017 |
% Change |
Cash, cash equivalents, and short-term investments |
|
$ |
176.7 |
|
$ |
212.6 |
-17 |
|
|
|
|
|
|
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|
|
|
|
Total assets |
|
|
|
|
|
$ |
738.3 |
|
$ |
706.6 |
4% |
Non-current bank loan |
|
|
|
|
|
$ |
39.6 |
|
$ |
39.9 |
-1 |
|
|
|
|
|
|
|
|
|
|
|
1
Non-GAAP financial measure. Refer to the Non-GAAP Measures at the
end of this news release and in the associated MD&A for a
description and calculation of these measures |
2
Net of by-products from gold, lead, and zinc. |
3
AISC/oz Ag Eq calculated at realized metal prices of $1,211/oz Au,
$14.8/oz Ag, $1.0/lb Pb, and $1.2/lb Zn |
|
Net income for the three months ended September
30, 2018 was $6.9 million or $0.04 per share compared to $10.3
million or $0.06 per share for the comparable quarter in 2017.
Sales for the third quarter of 2018 decreased 7% to $59.6 million
compared to $64.0 million for the comparable quarter in 2017 due
primarily to a decline in metal prices for silver, lead, and zinc
and to a lesser extent, the timing of recognizing revenue on
concentrates delivered to the warehouse prior to the end of the
quarter of about $1.5 million, but which were not recognized in
sales for the third quarter.
Operating income for the three months ended
September 30, 2018 was $10.5 million, a 44% decrease from the $18.9
million of operating income for the comparable quarter in 2017. The
key drivers for the decrease were lower sales from a decline in
metal prices, higher production costs at the Caylloma mine as well
as a $1.4 million provision for a community support obligation that
will be paid over the next 2.5 years.
Adjusted net income decreased 46% during the
quarter to $7.1 million compared to $13.1 million for 2017.
Adjusted EBITDA decreased 21% to $24.2 million compared to $30.6
million for the comparable period in 2017.
Free cash flow, excluding Lindero construction
costs, was $13.6 million in the quarter and $42.2 million year to
date. At September 30, 2018, the Company had cash, cash equivalents
and short-term investments of $176.7 million which along with our
undrawn credit facility of $80.0 million will provide sufficient
liquidity to meet our funding needs during the construction of the
Lindero Project.
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San Jose Mine, Mexico |
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Three months ended September 30, |
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|
Nine months ended September 30, |
Mine Production |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Tonnes milled |
|
|
262,710 |
|
|
263,697 |
|
|
784,297 |
|
|
799,420 |
Average tonnes milled per day |
|
|
2,985 |
|
|
3,038 |
|
|
2,994 |
|
|
3,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
258 |
|
|
229 |
|
|
270 |
|
|
231 |
Recovery (%) |
|
|
91 |
|
|
91 |
|
|
92 |
|
|
92 |
Production (oz) |
|
|
1,991,211 |
|
|
1,774,556 |
|
|
6,261,137 |
|
|
5,454,793 |
Metal sold (oz) |
|
|
1,904,179 |
|
|
1,739,066 |
|
|
6,103,319 |
|
|
5,392,495 |
Realized price ($/oz) |
|
|
14.82 |
|
|
16.85 |
|
|
16.08 |
|
|
17.16 |
|
|
|
|
|
|
|
|
|
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|
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|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
1.61 |
|
|
1.71 |
|
|
1.80 |
|
|
1.74 |
Recovery (%) |
|
|
91 |
|
|
91 |
|
|
92 |
|
|
91 |
Production (oz) |
|
|
12,387 |
|
|
13,248 |
|
|
41,692 |
|
|
40,773 |
Metal sold (oz) |
|
|
12,098 |
|
|
12,817 |
|
|
40,943 |
|
|
40,079 |
Realized price ($/oz) |
|
|
1,211 |
|
|
1,280 |
|
|
1,285 |
|
|
1,251 |
|
|
|
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|
|
|
|
|
|
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|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/oz Ag)1,2 |
|
|
1.8 |
|
|
1.5 |
|
|
0.3 |
|
|
1.3 |
Production cash cost ($/oz Ag Eq)1,3 |
|
|
6.1 |
|
|
6.5 |
|
|
5.7 |
|
|
6.3 |
Production cash cost ($/t)1 |
|
|
63.3 |
|
|
62.2 |
|
|
63.0 |
|
|
60.3 |
Unit Net Smelter Return ($/t) |
|
|
157.3 |
|
|
162.6 |
|
|
183.8 |
|
|
165.8 |
AISC ($/oz Ag)1,2 |
|
|
6.4 |
|
|
7.8 |
|
|
5.0 |
|
|
7.4 |
AISC ($/oz Ag Eq)1,3 |
|
|
9.1 |
|
|
10.5 |
|
|
8.8 |
|
|
10.3 |
1 Non-GAAP financial measure. Refer to the Non-GAAP Measures at the
end of this news release and in the associated MD&A for a
description and calculation of these measures |
2 Net of by-product credits from gold |
3 AISC/oz Ag Eq calculated at realized metal prices of $1,211/oz Au
and $14.8/oz Ag |
|
The San Jose Mine produced 1,991,211 ounces of
silver, representing a 12% increase in silver production over the
same period in 2017 while gold production declined 6% to 12,387
ounces compared to 13,248 ounces during the same period in 2017.
Average head grades for silver and gold were 258 g/t and 1.61 g/t
which were 13% higher and 6% lower than the same period in
2017.
Cash cost per tonne of processed ore increased
2% to $63.3 for the third quarter compared to $62.2 for the same
quarter in 2017 due primarily to higher energy tariffs and
partially offset by lower mining costs. Cash cost per for the nine
months ended September 30, 2018 increased 4% to $63.0 compared to
$60.3 for the comparable period in 2017 and was slightly above our
annual guidance. Cash cost per tonne for the year is expected to
remain within 5% of our annual guidance of $61.2.
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Caylloma Mine, Peru |
|
|
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|
Three months ended September 30, |
|
|
Nine months ended September 30, |
Mine Production |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Tonnes milled |
|
|
135,996 |
|
|
|
133,726 |
|
|
|
399,739 |
|
|
|
395,069 |
|
Average tonnes milled per day |
|
|
1,511 |
|
|
|
1,486 |
|
|
|
1,503 |
|
|
|
1,480 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
65 |
|
|
|
66 |
|
|
|
64 |
|
|
|
66 |
|
Recovery (%) |
|
|
85 |
|
|
|
83 |
|
|
|
85 |
|
|
|
84 |
|
Production (oz) |
|
|
239,253 |
|
|
|
234,806 |
|
|
|
692,101 |
|
|
|
704,624 |
|
Metal sold (oz) |
|
|
250,255 |
|
|
|
226,155 |
|
|
|
696,765 |
|
|
|
691,659 |
|
Realized price ($/oz) |
|
|
15.01 |
|
|
|
16.89 |
|
|
|
16.07 |
|
|
|
17.19 |
|
|
|
|
|
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|
|
|
|
|
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|
Lead |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
2.74 |
|
|
|
2.87 |
|
|
|
2.70 |
|
|
|
2.77 |
|
Recovery (%) |
|
|
92 |
|
|
|
91 |
|
|
|
91 |
|
|
|
91 |
|
Production (000's lbs) |
|
|
7,576 |
|
|
|
7,650 |
|
|
|
21,802 |
|
|
|
22,031 |
|
Metal sold (000's lbs) |
|
|
7,822 |
|
|
|
7,291 |
|
|
|
21,972 |
|
|
|
21,454 |
|
Realized price ($/lb) |
|
|
0.96 |
|
|
|
1.06 |
|
|
|
1.06 |
|
|
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
4.24 |
|
|
|
4.26 |
|
|
|
4.27 |
|
|
|
4.16 |
|
Recovery (%) |
|
|
90 |
|
|
|
90 |
|
|
|
90 |
|
|
|
90 |
|
Production (000's lbs) |
|
|
11,483 |
|
|
|
11,241 |
|
|
|
33,947 |
|
|
|
32,670 |
|
Metal sold (000's lbs) |
|
|
11,647 |
|
|
|
10,867 |
|
|
|
34,154 |
|
|
|
32,512 |
|
Realized price ($/lb) |
|
|
1.15 |
|
|
|
1.35 |
|
|
|
1.37 |
|
|
|
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/oz Ag)1,2 |
|
|
(22.6 |
) |
|
|
(39.5 |
) |
|
|
(40.1 |
) |
|
|
(31.2 |
) |
Production cash cost ($/oz Ag Eq)1,3 |
|
|
8.5 |
|
|
|
7.2 |
|
|
|
7.4 |
|
|
|
8.0 |
|
Production cash cost ($/t)1 |
|
|
88.5 |
|
|
|
76.0 |
|
|
|
81.4 |
|
|
|
78.1 |
|
Unit Net Smelter Return ($/t) |
|
|
151.7 |
|
|
|
170.4 |
|
|
|
173.7 |
|
|
|
159.9 |
|
AISC ($/oz Ag)1,2 |
|
|
1.4 |
|
|
|
(18.8 |
) |
|
|
(16.8 |
) |
|
|
(11.2 |
) |
AISC ($/oz Ag Eq)1,3 |
|
|
12.3 |
|
|
|
10.5 |
|
|
|
10.8 |
|
|
|
11.4 |
|
1 Non-GAAP financial measure. Refer to the Non-GAAP Measures at the
end of this news release and in the associated MD&A for a
description and calculation of these measures |
2 Net of by-product credits from gold, lead, and zinc. |
3 AISC/oz Ag Eq calculated at realized metal prices of $1,211/oz
Au, $15.0/oz Ag, $1.0/lb Pb, and $1.2/lb Zn |
|
The Caylloma Mine produced 7.6 million pounds of
lead and 11.5 million pounds of zinc during the third quarter of
2018 representing a 2% increase in zinc production a 1% decrease in
lead production over the same period in 2017. Average head grades
for lead and zinc were 2.74% and 4.24%. Silver production was
239,253 ounces which was 2% higher than the comparable period in
2017.
Cash cost per tonne of processed ore for the
third quarter of 2018 was $88.5 or 16% higher than the $76.0 cash
cost for the comparable quarter in 2017. Cash cost per tonne on a
year-to-date basis was $81.4 or 4% above 2017. The slightly higher
cash cost for the nine months ended September 30, 2018 was due to
higher labour and related personnel expenses that came into effect
on August 2018. The Company expects an incremental cost of
approximately $1.1 in the fourth quarter relating to a community
support agreement entered into in the third quarter. Cash cost per
tonne for the year is expected to be within 5% of our annual
guidance of $81.3.
Non-GAAP Financial Measures
The following tables represent the computation
of certain Non-GAAP Financial Measures as referenced in this news
release.
|
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|
|
|
|
|
Q3 2018 |
|
Adjustments |
|
Q3 2018 Adjusted |
|
Q3 2017 |
|
Adjustments |
|
Q3 2017 Adjusted |
Sales |
$ |
59.6 |
|
$ |
- |
|
$ |
59.6 |
|
$ |
64.0 |
|
$ |
- |
|
$ |
64.0 |
|
Cost of sales |
|
43.1 |
|
|
(1.4 |
) |
|
41.7 |
|
|
39.1 |
|
|
- |
|
|
39.1 |
|
Mine operating income |
|
16.5 |
|
|
1.4 |
|
|
17.9 |
|
|
24.9 |
|
|
- |
|
|
24.9 |
|
Selling, general and administration |
|
5.0 |
|
|
- |
|
|
5.0 |
|
|
5.0 |
|
|
- |
|
|
5.0 |
|
Exploration and evaluation |
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
- |
|
|
- |
|
|
- |
|
Share of loss of equity-accounted investee |
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
Foreign exchange loss (gain) |
|
0.8 |
|
|
- |
|
|
0.8 |
|
|
0.1 |
|
|
- |
|
|
0.1 |
|
Other expenses |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|
0.8 |
|
|
0.6 |
|
|
1.4 |
|
Operating Income |
|
10.5 |
|
|
1.5 |
|
|
12.0 |
|
|
18.9 |
|
|
(0.5 |
) |
|
18.4 |
|
Interest and finance costs |
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
0.1 |
|
|
- |
|
|
0.1 |
|
Gain (loss) on financial assets and liabilities carried at fair
value |
|
2.1 |
|
|
(1.2 |
) |
|
0.9 |
|
|
(3.2 |
) |
|
3.2 |
|
|
- |
|
Income before taxes |
|
12.8 |
|
|
0.3 |
|
|
13.1 |
|
|
15.8 |
|
|
2.7 |
|
|
18.5 |
|
Current income tax expense |
|
6.0 |
|
|
- |
|
|
6.0 |
|
|
6.7 |
|
|
(0.1 |
) |
|
6.6 |
|
Deferred income tax recovery |
|
- |
|
|
- |
|
|
- |
|
|
(1.2 |
) |
|
- |
|
|
(1.2 |
) |
Net income and adjusted net income for the
period |
$ |
6.8 |
|
$ |
0.3 |
|
$ |
7.1 |
|
$ |
10.3 |
|
$ |
2.8 |
|
$ |
13.1 |
|
Earnings per share - basic |
$ |
0.04 |
|
$ |
- |
|
$ |
0.04 |
|
$ |
0.06 |
|
$ |
- |
|
$ |
0.06 |
|
|
|
YTD 2018 |
|
Adjustments |
|
YTD 2018 Adjusted |
|
YTD 2017 |
|
Adjustments |
|
YTD 2017 Adjusted |
Sales |
$ |
203.7 |
|
$ |
- |
|
$ |
203.7 |
|
$ |
192.8 |
|
$ |
- |
|
$ |
192.8 |
|
Cost of sales |
|
124.5 |
|
|
(1.4 |
) |
|
123.1 |
|
|
118.4 |
|
|
- |
|
|
118.4 |
|
Mine operating income |
|
79.2 |
|
|
1.4 |
|
|
80.6 |
|
|
74.4 |
|
|
- |
|
|
74.4 |
|
Selling, general and administration |
|
19.9 |
|
|
- |
|
|
19.9 |
|
|
16.2 |
|
|
- |
|
|
16.2 |
|
Exploration and evaluation |
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
0.2 |
|
|
- |
|
|
0.2 |
|
Share of loss of equity-accounted investee |
|
(0.1 |
) |
|
0.1 |
|
|
- |
|
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
Foreign exchange loss (gain) |
|
2.5 |
|
|
- |
|
|
2.5 |
|
|
3.3 |
|
|
- |
|
|
3.3 |
|
Other expenses |
|
1.0 |
|
|
(1.0 |
) |
|
- |
|
|
1.8 |
|
|
(1.8 |
) |
|
0.0 |
|
Operating Income |
|
55.3 |
|
|
2.3 |
|
|
57.6 |
|
|
52.6 |
|
|
1.9 |
|
|
54.6 |
|
Interest and finance costs |
|
(0.1 |
) |
|
0.5 |
|
|
0.4 |
|
|
(0.4 |
) |
|
- |
|
|
(0.4 |
) |
Gain (loss) on financial assets and liabilities carried at fair
value |
|
4.9 |
|
|
(5.4 |
) |
|
(0.5 |
) |
|
(4.2 |
) |
|
4.1 |
|
|
(0.1 |
) |
Income before taxes |
|
60.2 |
|
|
(2.6 |
) |
|
57.6 |
|
|
48.0 |
|
|
6.0 |
|
|
54.1 |
|
Current income tax expense |
|
27.9 |
|
|
(1.0 |
) |
|
26.9 |
|
|
23.5 |
|
|
1.8 |
|
|
25.3 |
|
Deferred income tax recovery |
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
(7.6 |
) |
|
- |
|
|
(7.6 |
) |
Net income and adjusted net income for the
period |
$ |
31.8 |
|
$ |
(1.6 |
) |
$ |
30.2 |
|
$ |
32.2 |
|
$ |
4.2 |
|
$ |
36.3 |
|
Earnings per share - basic |
$ |
0.20 |
|
$ |
- |
|
$ |
0.20 |
|
$ |
0.20 |
|
$ |
- |
|
$ |
0.20 |
|
|
|
Q3 2018 |
|
Q3 2017 |
|
YTD 2018 |
|
YTD 2018 |
Net
Income for the period |
$ |
6.9 |
|
$ |
10.3 |
|
$ |
31.8 |
|
$ |
32.2 |
Add back: |
|
|
|
|
|
|
|
|
Community support provision |
|
1.4 |
|
|
- |
|
|
1.4 |
|
|
- |
Net finance items |
|
(0.2 |
) |
|
(0.1 |
) |
|
- |
|
|
0.4 |
Depreciation, depletion, and amortization |
|
11.4 |
|
|
10.8 |
|
|
34.0 |
|
|
32.9 |
Income taxes |
|
5.9 |
|
|
5.5 |
|
|
28.4 |
|
|
15.8 |
Share of (income) loss of equity-accounted investee |
|
0.1 |
|
|
- |
|
|
(0.1 |
) |
|
0.1 |
Non-cash (gain) loss on financial instruments |
|
(1.2 |
) |
|
3.3 |
|
|
(5.4 |
) |
|
4.1 |
Other operating expenses |
|
(0.1 |
) |
|
0.8 |
|
|
1.1 |
|
|
1.8 |
Adjusted EBITDA |
$ |
24.2 |
|
$ |
30.6 |
|
$ |
91.2 |
|
$ |
87.3 |
(Expressed in $ millions) |
|
Q3 2018 |
|
Q3 2017 |
|
YTD 2018 |
|
YTD 2017 |
Free Cash Flow |
Net cash provided by operating activities |
$ |
21.9 |
|
$ |
20.4 |
|
$ |
64.2 |
|
$ |
41.2 |
|
Less: Purchases of mineral properties, plant and equipment |
|
(34.8 |
) |
|
(11.7 |
) |
|
(62.3 |
) |
|
(32.4 |
) |
Less: Deposits on long term assets, net |
|
(6.6 |
) |
|
0.5 |
|
|
(29.8 |
) |
|
(3.2 |
) |
Less: Current income tax expense |
|
(6.0 |
) |
|
(6.7 |
) |
|
(27.9 |
) |
|
(23.5 |
) |
Add: Income taxes paid |
|
6.2 |
|
|
5.8 |
|
|
28.9 |
|
|
27.8 |
|
Free cash flow |
$ |
(19.3 |
) |
$ |
8.3 |
|
$ |
(26.9 |
) |
$ |
9.9 |
|
Add: Lindero construction capital expenditures |
|
25.1 |
|
|
2.7 |
|
|
37.3 |
|
|
7.1 |
|
Add: Greenfield capital expenditures |
|
0.7 |
|
|
0.7 |
|
|
2.2 |
|
|
0.7 |
|
Add: Deposits on long term assets - Lindero construction |
|
7.1 |
|
|
- |
|
|
29.6 |
|
|
- |
|
Free cash flow excluding Lindero construction
costs |
$ |
13.6 |
|
$ |
11.7 |
|
$ |
42.2 |
|
$ |
17.7 |
|
|
|
|
|
|
|
|
|
|
The financial statements and MD&A are
available on SEDAR and have also been posted on the Company's
website at
https://www.fortunasilver.com/investors/financials/2018/.
Conference call to review third quarter
financial and operations results
Date: Friday, November 9, 2018Time: 9:00 a.m.
Pacific | 12:00 p.m. Eastern
Dial in number (Toll Free): +1.877.407.8035Dial
in number (International): +1.201.689.8035
Replay number (Toll Free): +1.877.481.4010Replay
number (International): +1.919.882.2331Replay Passcode: 10460
Playback of the conference call will be
available until November 23, 2018 at 11:59 p.m. Eastern. Playback
of the webcast will be available until November 8, 2019. In
addition, a transcript of the call will be archived on the
company’s website:
https://www.fortunasilver.com/investors/financials/2018/.
About Fortuna Silver Mines
Inc.
Fortuna is a growth oriented, precious metals
producer with its primary assets being the Caylloma silver mine in
southern Peru, the San Jose silver-gold mine in Mexico and the
Lindero gold Project in Argentina. The Company is selectively
pursuing acquisition opportunities throughout the Americas and in
select other areas. For more information, please visit its website
at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO and
DirectorFortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI Investor
Relations: Carlos Baca- T (Peru): +51.1.616.6060, ext. 0
Forward looking Statements
This news release contains forward looking
statements which constitute “forward looking information” within
the meaning of applicable Canadian securities legislation and
“forward looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995 (collectively, “Forward looking Statements”). All
statements included herein, other than statements of historical
fact, are Forward looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the Forward looking Statements. The Forward looking Statements
in this news release include, without limitation, statements about
the Company’s plans for its mines and mineral properties; the
Company’s business strategy, plans and outlook; the merit of the
Company’s mines and mineral properties; the future financial or
operating performance of the Company; and proposed expenditures.
Often, but not always, these Forward looking Statements can be
identified by the use of words such as “estimated”, “potential”,
“open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has
been”, “gain”, “planned”, “reflecting”, “will”, “containing”,
“remaining”, “to be”, or statements that events, “could” or
“should” occur or be achieved and similar expressions, including
negative variations.
Forward looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward looking Statements. Such
uncertainties and factors include, among others, changes in general
economic conditions and financial markets; changes in prices for
silver and other metals; technological and operational hazards in
Fortuna’s mining and mine development activities; risks inherent in
mineral exploration; uncertainties inherent in the estimation of
mineral reserves, mineral resources, and metal recoveries;
governmental and other approvals; political unrest or instability
in countries where Fortuna is active; labor relations issues; as
well as those factors discussed under “Risk Factors” in the
Company's Annual Information Form. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in Forward looking Statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended.
Forward looking Statements contained herein are
based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to expectations regarding the
Company’s plans for its mines and mineral properties; mine
production costs; expected trends in mineral prices and currency
exchange rates; the accuracy of the Company’s current mineral
resource and reserve estimates; that the Company’s activities will
be in accordance with the Company’s public statements and stated
goals; that there will be no material adverse change affecting the
Company or its properties; that all required approvals will be
obtained; that there will be no significant disruptions affecting
operations and such other assumptions as set out herein. Forward
looking Statements are made as of the date hereof and the Company
disclaims any obligation to update any Forward looking Statements,
whether as a result of new information, future events or results or
otherwise, except as required by law. There can be no assurance
that Forward looking Statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not
place undue reliance on Forward looking Statements.
This news release also refers to non-GAAP
financial measures, such as cash cost per tonne of processed ore;
cash cost per payable ounce of silver; total production cost per
tonne; all-in sustaining cash cost; all-in cash cost; all-in cash
cost per ounce of silver equivalent production; adjusted net (loss)
income; operating cash flow per share before changes in working
capital; free cashflow; 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.