FVI earns $4.9 million in Q1
posted on
May 13, 2014 12:55AM
Building the Foundations of a Leading Silver Miner
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.