Welcome To The Fortuna Silver Mines Hub On AGORACOM

Building the Foundations of a Leading Silver Miner

Free
Message: FVI earns $4.9 million in Q1

Fortuna Silver Mines earns $4.9-million in Q1 2014

2014-05-12 09:08 ET

Mr. Jorge Ganoza reports

FORTUNA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER 2014

Fortuna Silver Mines Inc. had record revenue of $45.5-million, cash generated from operations, before changes in working capital, of $16.9-million and net income of $4.9-million in the first quarter of 2014.

Jorge A. Ganoza, president and chief executive officer, commented: "We have reported record quarterly revenue and strong operating margins underpinned by excellent production results and cost performance. We are pleased with our results for the first quarter of 2014 and look forward to a second quarter that reflects the ramp-up at San Jose delivered in April from 1,800 to 2,000 tonnes per day."

First-quarter financial highlights:

                          CAYLLOMA MINE, PERU
                                               Three months ended March 31,
                                                        2014          2013
Mine production                                       
Tonnes milled                                        114,115       111,416
Average tonnes milled per day                          1,297         1,266
Silver
Grade (g/t)                                              174           173
Recovery (%)                                              85            81
Production (oz)                                      539,824       499,445
Gold
Grade (g/t)                                             0.32          0.38
Recovery (%)                                              44            40
Production (oz)                                          524           532
Lead
Grade (%)                                               1.66          2.10
Recovery (%)                                              93            89
Production (000s lb)                                   3,893         4,614
Zinc
Grade (%)                                               2.87          2.79
Recovery (%)                                              90            86
Production (000s lb)                                   6,529         5,936
Unit costs
Production cash cost (U.S.$/oz Ag)                      6.92          6.91
Production cash cost (U.S.$/tonne)                     87.85         94.20
Unit net smelter return (U.S.$/tonne)                 148.59        194.30
All-in sustaining cash cost (U.S.$/oz Ag)              13.18         23.65

Silver production was 10 per cent above budget, mainly due to an improvement in silver metallurgical recovery from 81 per cent to 85 per cent. Silver's average head grade was 174 grams per tonne, or 7 per cent above plan and metallurgical recovery was 85 per cent, or 3 per cent above budget.

When compared with the prior-year period, silver production increased 8 per cent due to a 5-per-cent increase in metallurgical recoveries. Zinc production increased 10 per cent as a result of higher head grade. Lead production decreased 16 per cent when compared with the prior-year period.

Cash cost per tonne at Caylloma was $87.85 per tonne of processed ore, 7 per cent lower than the first quarter of 2013, and 1 per cent below guidance. This decrease is the result of cost-reducing measures undertaken at the beginning of the third quarter of 2013 which consisted mainly of an optimization in mine preparation activities and reductions in related personnel expenses and technical services. All-in sustaining cash cost per payable ounce of silver at Caylloma was $13.18, below the company's annual guidance due to lower sustaining capital expenditures in the period.

Conference call to review 2014 first-quarter financial and operations results

Date: Tuesday, May 13, 2014

Time: 9 a.m. Pacific/12 p.m. Eastern/11 a.m. Lima

Dial-in number (toll-free): 1-877-407-8035

Dial-in number (international): 1-201-689-8035

Replay number (toll-free): 1-877-660-6853

Replay number (international): 1-201-612-7415

Replay passcode: 13581678

Playback of the webcast will be available until Aug. 13, 2014. Playback of the conference call will be available until May 27, 2014, at 11:59 p.m. Eastern. In addition, a transcript of the call will be archived in the company's website.

Share
New Message
Please login to post a reply