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The market loved the news - ^8%+!!!
Fortuna Reports Operating Income of US$ 14.38 Million and Net Income of US$ 0.62 Million on Revenue of US$ 51.43 Million for 2009
VANCOUVER, March 22, 2010 /PRNewswire via COMTEX/ -- Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI) has filed its audited financial statements and MD&A for 2009. The full documents are available on SEDAR and have also been posted on the Company's website at www.fortunasilver.com.
2009 Financial Statements and MD&A Highlights:
- Operating income of US$ 14.38 million, compared to a loss of
US$ 5.59 million in 2008
- Net cash provided by operating activities of US$ 13.69 million,
compared to US$ 8.36 million in 2008
- Cash cost of negative US$ 4.93 per silver ounce, net of by product
credits
- Cash production cost per tonne of ore was US$ 46 and the
corresponding unit net smelter return (NSR) was US$ 124
- Sales of US$ 51.43 million compared to US$ 24.87 million in 2008
- Record metal production: 1,685,026 ounces of silver, 11,485 tonnes of
lead and 12,901 tonnes of zinc; up 109%, 52% and 22% respectively
over 2008
- Net income of US$ 0.62 million, compared to a loss of
US$ 0.91 million in 2008
- The Company's cash position and working capital as at year end were
US$36.79 million and $36.13 million respectively
Jorge Ganoza, President, CEO and Director, commented: "In 2009, Fortuna delivered its third consecutive year of production expansion and improved financial performance. 2010 is an even more exciting year for the Company as we are already working on pre-construction activities with the aim of commissioning our second underground mine at San Jose in Mexico in the third quarter of 2011. Management is focused on building Fortuna into a leading silver miner with a commitment to profitability, growth of silver reserves and annual production; all within a framework that fosters the well being of our workers, the environment and neighboring communities."
Financial Results
Expressed in millions
-------------------------
Year ended December 31,
-------------------------
2009 2008
-------------------------------------------------------------------------
Revenue US$ 51.43 US$24.87
Mine operating income 27.73 3.90
Operating income (loss) 14.38 (5.59)
Net income (loss) 0.62 (0.91)
Cash flow from operations before changes in
non-cash working capital items 15.91 8.65
Cash cost per Ag oz net of by-product
credits (US$/oz) (4.93) (3.78)
-------------------------------------------------------------------------
Summary of financial results (US$):
During 2009, the Company generated US$ 51.43 million of sales compared to US$ 24.87 million in 2008. This increase in revenues was mainly driven by higher silver and lead head grades (up 64% and 25% respectively), higher throughput and reduced treatment charges.
Fortuna recorded an operating income of US$ 14.38 million for 2009 compared to a loss of US$ 5.59 million in 2008. This result was partially offset by a loss on the Company's commodity hedging contracts of US$ 7.36 million, which includes a mark-to-market component of US$ 2.17 million (US$ 1.36 million net of tax). Net Income for the period was US$ 0.62 million after deducting an income tax provision of US$5.87 million.
Adjusting for the mark-to-market effect on hedging contracts, 2009 resulted in adjusted net income of US$ 1.98 million compared to a loss of US$ 1.30 million for the same period in 2008.
Reconciliation of adjusted net income to net income in the consolidated statement of operations (US$):
Expressed in millions
-------------------------
Year ended December 31,
-------------------------
2009 2008
-------------------------------------------------------------------------
NET (LOSS) INCOME FOR THE PERIOD $ 0.62 $ (0.91)
Items of note, net of tax:
Mark to Market effect on derivatives 1.36 (0.39)
-------------------------------------------------------------------------
ADJUSTED NET INCOME (LOSS) FOR THE PERIOD(1) $ 1.98 $ (1.30)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) A non-GAAP measure
Operating Results
-----------------
In 2009, throughput increased at Caylloma to 395,560 tonnes of ore; up 19% compared to 2008. Silver production was 1,685,026 oz; increased 109% with respect to 2008 and 5.3% above the 2009 production guidance. Lead and zinc metal production also increased 52% and 22% respectively.
Fortuna concluded two material investment projects in 2009: the expansion of the processing plant capacity from 1,000 tpd to 1,200 tpd and the commissioning of the copper flotation circuit. Of particular importance as a driver of improved operating margins and silver metal output during the period is the 64% increase in silver head grades and the associated improvement in metallurgical recoveries.
The average cash cost per tonne of treated ore for the year was US$ 46 and the corresponding unit net smelter return (NSR) was US$ 124.
San Jose Project
----------------
Fortuna has all of the key permits for construction at San Jose. Project staffing for the construction phase is currently being conducted and the EPCM contract for the construction of the plant and ancillary facilities is in the process of being granted. The Company has initiated pre-construction activities in the field for the water project and tailings facilities.
The Company plans to publish a pre-feasibility study and commence with full construction activities in late March. Commissioning of San Jose is planned for the third quarter of 2011; driving further growth in Fortuna's silver production.
Conference Call to Review 2009 Year End Financial Results
---------------------------------------------------------
The Company will hold a conference call to discuss the financial results on Wednesday, March 24, 2010 at 12:00 p.m. (Eastern Time) / (9:00 a.m. Pacific Time). Hosting the call will be Jorge Ganoza, President, CEO and Director, and Luis 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 http://www.investorcalendar.com/IC/CEPage.asp?ID=156726 or over the phone by dialling just prior to the starting time.
Conference call details:
Date: Wednesday, March 24, 2010
Time: 12:00 p.m. (Eastern Time) / 9:00 a.m. (Pacific Time)
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 Passcodes (both are required for playback):
Account #: 286
Conference ID #: 347550
Playback of the webcast will be available until June 25, 2010. Playback of the conference call will be available until 11:59 p.m. (Eastern Time) on April 7, 2010. In addition, the call will be archived in the Company's website.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Symbol: TSX: FVI / Lima Stock Exchange: FVI
SOURCE Fortuna Silver Mines Inc.
http://www.marketwatch.com/story/fortuna-reports-operating-income-of-us-1438-million-and-net-income-of-us-062-million-on-revenue-of-us-5143-million-for-2009-2010-03-22?siteid=nbsh
I'm eagerly waiting!
Fortuna Announces Fourth Quarter 2009 Results Conference Call
VANCOUVER, March 19, 2010 /PRNewswire via COMTEX/ -- Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI) is pleased to announce that a conference call to discuss the Company's 2009 year end financial results will be held on Wednesday, March 24, 2010 at 12:00 p.m. (Eastern time) / 9:00 a.m. (Pacific time). Hosting the call will be Jorge Ganoza, President, CEO and Director and Luis Dario 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 http://www.investorcalendar.com/IC/CEPage.asp?ID=156726 or over the phone by dialing just prior to the starting time.
Conference call details:
Date: Wednesday, March 24, 2010
Time: 12:00 p.m. (Eastern Time) / 9:00 a.m. (Pacific Time)
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 Passcodes (both are required for playback):
Account #: 286
Conference ID #: 347550
Playback of the webcast will be available until June 25, 2010. Playback of the conference call will be available until 11:59 p.m. (Eastern Time) on April 7, 2010. In addition, the call will be archived in the Company's website.
Fortuna intends to file the financial results for the fourth quarter of 2009 on SEDAR and issue a news release thereon on Monday, March 22, 2010.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
http://www.marketwatch.com/story/fortuna-announces-fourth-quarter-2009-results-conference-call-2010-03-19?siteid=nbsh
The January effect is magnifying the move which is driven by value news... your 119's are sweet now!!!
Fortuna increased silver output 96% in 2009
By: Liezel Hill
18th January 2010
http://www.miningweekly.com/article/fortuna-increased-silver-output-96-in-2009-2010-01-18
TORONTO (miningweekly.com) – Vancouver-based Fortuna Silver Mines produced 1,69-million ounces of silver in 2009 from its Caylloma mine, in Peru, 96% more than a year earlier, the company reported on Monday.
Zinc output also rose 22%, to 28,2-million pounds, and lead production increased 52%, to 25,1-million pounds.
The company produced 189 000 lb of copper. It had no copper production in 2009.
The increases were owing to improved mine output, mill throughput, silver grades and recoveries, Fortuna said.
The firm expects to report gross revenue of more than $50-million for 2009, compared with 2008's figure of $26,3-million.
"The Caylloma mine is a success story for Fortuna,” said CEO Jorge Ganoza.
“It has delivered three consecutive years of silver production expansion and unit cost reduction.”
The company expects to achieve similar production levels in 2010, although its copper output will be higher.
Fortuna also plans to start construction of its second mine, the San Jose project in Mexico, in the first quarter of this year, Ganoza said.
The firm has secured all the necessary permits for the project and expects to commission San Jose in 2011.
Production in 2010 is forecast at 1,7-million ounces of silver, 28,4-million pounds of zinc, 25,2-million pounds of lead and one-million pounds of copper.
Shares in TSX-listed Fortuna Silver rose 7,3% on Monday, to C$2,79 apiece by 15:58 in Toronto.
Edited by: Liezel Hill
Sure looks strong... does not want to break.
Wait until the full stochastic craters in oversold territory and then consider buying all you are able according to your comfort level...
This company seems compelling as a silver play, but has run considerably. What would be a good price target to buy shares on a pull back? I have an order in at 1.19, and wonder if I should raise it. The market will pull back considerably in general, as it has been manipulated in a no earnings bubble. any ideas
Lots of great pics from Fortuna -
http://www.fortunasilver.com/s/PhotoImageGallery.asp
Interesting link from Fortuna... Silver News -
http://www.fortunasilver.com/s/Silver.asp
Top 5 Performing Silver Equities: 04 Sep 09
Company - Symbol - Price - Volume - Change $ - Change %
Fortuna Silver Mines Inc - FVI.V - 1.42 CAD - 480758 +0.13 +10.08%
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=41249886
On watch - Kiwi
NAME/SYMBOL CHANGES
DL Date Date Old Symbol/Name New Symbol/Name
6/28/2005 6/29/2005 FVITF Fortuna Ventures Inc Ordinary Shares (Canada) FVITF Fortuna Silver Mines Inc Ordinary Shares (Canada)
http://www.otcbb.com/asp/dailylist_search.asp?SearchSymbolForm=TRUE&OTCBB=ALL&searchby=symbol&searchfor=fvitf&searchwith=Starting
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Latin American Expertise
Fortuna's key strength is industry expertise in Latin America. Management's knowledge of regional mining, business practices, exploration, geology and regulatory environments has allowed Fortuna to identify and seize opportunities within the region. We are aggressively pursuing and evaluating further accretive acquisitions throughout the Americas.
Two Key Assets
The 100%-owned Caylloma silver-zinc-lead mine lies within the mineral-rich Caylloma Mining District in the southern highlands of Arequipa, Peru. It is a high grade epithermal vein system with significant untested potential within its over 12,000 hectare land package. Fortuna operates the mine at over 1,000 tpd and is working on the permitting to further increase throughput to 1,500 tpd. Exploration activities include testing of high grade silver and base metal targets within the Caylloma Mining District and evaluation of surrounding properties to identify opportunities warranting more advanced exploration and development.
The 100% owned San Jose silver-gold project is a low sulphidation epithermal system located within the Taviche Mining District located in southern Oaxaca, Mexico. A 33,000 meter in-fill drill program has just been completed in the Trinidad Area of the San Jose Project and the Company expects to release a new 43 -- 101 compliant resource estimation by the end of second quarter of 2009. Currently, Indicated Resources are 17.7 M ounces of silver equivalent with 262 g/t Ag + 2.2 g/t Au and Inferred Resources are 49.1 M ounces of silver equivalent with 260 g/t Ag + 2.6 g/t Au. Management expects to bring a construction decision to the Board of Directors by the end of third quarter of 2009, start construction in 2010 and production in 2011. Once San Jose enters production, Fortuna will deliver approximately 5 million ounces of silver equivalent per year.
Rapid Growth
Fortuna is a growth oriented silver and base metal producer focused on mining opportunities in Latin America. We acquired both Caylloma and San Jose in late 2005. Caylloma was ramped up from 500 tpd to over 1,000 tpd by July of 2008 and management is fast tracking the Trinidad Zone into a mine at the San Jose Project. At Fortuna, we are aggressively pursuing additional accretive acquisition opportunities.
Vision
To be valued as a leading silver mining company centered on developing natural resources in Latin America; operating with a commitment to profitability, growth, high standards and well being of our workers, neighboring communities and the environment.
Mission
To maximize shareholder value through the rational acquisition, exploration, development and mining of silver in Latin America with a commitment to sustainable growth of geologic silver resources and annual metal production.
To promote a stimulating work environment of high-standards and best-practices which fosters respect, team work, social and environmental responsibility.
Values
The foundations of our company are:
Respect
Loyalty
Duty
FAQ Section | Press Center w/News, Photos and Links | |
http://www.fortunasilver.com/s/FAQ.asp | http://www.fortunasilver.com/s/Press.asp |
Management Profile | Board of Directors | |
http://www.fortunasilver.com/s/Management.asp | http://www.fortunasilver.com/s/Directors.asp |
Fortuna Silver Mines Inc. was created in 2004 with a mandate to acquire advanced silver exploration projects and/or producing silver mines in Latin America. In 2005, we acquired the Caylloma silver-lead-zinc Mine in Arequipa, Peru and in 2006, 76% of the San Jose silver-gold Project in Oaxaca, Mexico. In August 2008, Fortuna and Continuum Resources Ltd. announced an agreement whereby Fortuna would acquire all of the issued and outstanding securities of Continuum. In January of 2009, the acquisition was completed and Fortuna now owns 100% of the San Jose Project.
Peru
Peru has always been recognized as an important mining country in Latin America. A country with a lot of opportunities and resources but with a past history that did not attract foreign investment. Before 1990, the industry was technologically challenged and depended on private financing to develop projects or further expand existing operations. It was not until the defeat of terrorist organizations and the stabilization of the political arena that Peru's mining industry turned tables. Today, Peru is seen as a country with immense mining potential. A country were most, if not all, major producing mining companies have presence.
In 2007, Peru was the world's first silver producer with 3,494 MT (16.58 % of world's production), the fifth gold producer with 170.13 TM (6.8 % of world's production), the third zinc producer with 1,444,354 MT (14.28 % of world's production), the fourth lead producer with 329,154 MT (9.29 % of world's production) and the third copper producer with 1,190,281 MT (7.62 % of world's production).
Please refer to the links below to find out about Peru and its mining scene.
www.infomine.com/countries/peru.asp
www.economist.com/countries/Peru
www.cia.gov/library/publications/the-world-factbook/geos/pe.html
Mexico
Mexico's mining history dates back to before the arrival of the Spanish conquistadores. Nevertheless, domestic instability, low metal prices and restrictions on foreign investment hindered the development of a competitive mining industry. Hence, mining activities were undertaken by large local mining conglomerates and small miners.
The increase in demand for commodities and precious metals has revolutionized Mexican mining. The Fraser Institute has rated Mexico as a country with great geological potential and more than two hundred and fifty international companies have presence in the country.
In 2007, Mexico was the world's second silver producer with 2,300 MT and the twelfth copper producer with 323,000 MT.
Please refer to the links below to find out about Mexico and its mining scene:
www.infomine.com/countries/SOIR/mexico/welcome.asp
www.economist.com/countries/mexico/
www.cia.gov/library/publications/the-world-factbook/geos/mx.html
Investor Relations | Contact Us | |
http://www.fortunasilver.com/s/StockInfo.asp | http://www.fortunasilver.com/s/ContactUs.asp |
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