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Highlights

  • Fortuna Silver Mines Inc (TSX: FVI) has its business operations of mining and related activities across Latin America.
  • The commencement of the operations at Séguéla with its the first gold pour and sale, will be a key milestone for the company.
  • Silver Mines has bought 100% fully paid common shares in Chesser Resources, strengthening its foothold in West Africa. 
  • In Q2 2023, Silver Mines secured positive free cash flow of USD 9.5 million from ongoing operations.

Canada-based precious metals producer Fortuna Silver Mines Inc (TSX: FVI) has its business operations of mining and related activities across Latin America. The main focus areas include exploration, extraction, and processing of silver- lead, zinc, and silver-gold and the sale of these products.

Currently, the company is working on its new flagship asset Séguéla Gold Mine, which is expected to produce high margin ounces to its portfolio. The commencement of the operations at Séguéla with its the first gold pour and sale, will be a key milestone for the company.

In another major development, Fortuna Silver Mines bought 100% fully paid common shares in Chesser Resources, strengthening its foothold in West Africa. The company is anticipating strong growth potential from Chesser's Diamba Sud Gold Project. It is looking forward to incorporate Diamba Sud into its portfolio.

In the second quarter of the year 2023, Fortuna Silver Mines secured positive free cash flow of USD 9.5 million from ongoing operations. The firm expects surge in margins and growth in free cash flow in Q3 and Q4 2023, owing to the contribution from Séguéla asset in its first full quarter of production in Q3 as well as restoration of regular operations at San Jose.

In the reporting period, Fortuna Silver Mines registered a decline of 5.6% in its revenue to USD 158.4 million, as compared to USD 167.8 million in the previous corresponding period. The fall was mainly because of the lower volume produced and sold of sliver. This resulted in a decrease in mine operating income in the quarter. Fortuna Silver Mines’ income before taxes stood at USD 4.5 million in Q2 2023.

Overall, the net income of the company was registered at USD 3.4 million for the reporting period, versus USD 1.6 million in Q2 2022.

For the full year 2023, Fortuna Silver Mines is expecting higher production that the last fiscal year of 2022. Its combined gold production is likely to be between 282 and 320 Koz, and silver production to range between 6.3 and 6.9 Moz.

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Stock Price Performance
FVI’s stock price has dropped 4.90% in last one month. It has declined by approximately 14.01% over the last three months. The stock’s 52-week high and low price stand at CAD 5.61 and CAD 2.92, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 28, 2023. The reference data in this report has been partly sourced from EODHD/Others.