Fortuna reports consolidated financial results for the first quarter 2018
(All amounts expressed in US dollars, unless otherwise stated)
VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) today reported net income of $13.8 million, EPS of $0.09, and Adjusted EBITDA of $31.8 million in the first quarter of 2018.
Jorge A. Ganoza, President, CEO and Director, commented, "We are pleased with our results for the first quarter which provide a good start to 2018 with all our key operating and financial indicators reflecting the strength of our assets." Mr. Ganoza added, "The Company achieved record silver and gold production along with industry leading margins and cash flow generation." Mr. Ganoza concluded, "Fortuna's business strength and liquidity will provide the necessary flexibility to meet funding requirements for the development of the Lindero Project."
First quarter consolidated financial highlights:
- Sales of $70.4 million compared to $64.8 million in Q1 2017
- Net income of $13.8 million compared to $13.0 million in Q1 2017
- EPS of $0.09 compared to $0.08 in Q1 2017
- Cash flow from operations of $20.1 million and Adjusted EBITDA of $31.8 million compared to $8.9 million and $30.2 million in Q1 2017
- Cash position, including short term investments, as at March 31, 2018 was $217.3 million
- Silver and gold production of 2,401,458 and 15,041 ounces, respectively
- AISC(1) per ounce of payable silver was $2.11
(1) All-in sustaining cash cost is net of by-product credits for gold, lead and zinc
First quarter consolidated financial results
|Consolidated Metrics||Q1 2018||Q1 2017||% Change|
|Financial (Expressed in $ millions except per share information)|
|Mine operating income||31.3||27.2||15||%|
|Earnings per share (basic)||0.09||0.08||13||%|
|Earnings per share (diluted)||0.09||0.08||13||%|
|Adjusted net income||13.0||14.0||-7||%|
|Cash provided by operating activities||20.1||8.9||126||%|
|Cash generated by operating activities before changes in working capital||15.2||15.6||-3||%|
|Mar 31, 2018||Dec 31, 2017||% Change|
|Cash, cash equivalents, and short-term investments||$||217.3||$||212.6||2||%|
|Non-current bank loan||$||39.6||$||39.9||-1||%|
Net income for the three months ended March 31, 2018 was $13.8 million or $0.09 per share compared to $13.0 million or $0.08 per share for the comparable quarter in 2017. Higher sales of 9% over the comparable quarter resulted in turn in higher operating income of 14% which was partially offset at the net income level by a higher income tax expense. The effective tax rate for the first quarter 2018 was 38% compared to 26% for the same quarter in 2017. The low effective tax rate in 2017 was due to a high inflation rate and a strong Mexican Peso against the US dollar in Q1 2017 which have a positive impact on our Mexican operation, and lowered the income tax expense.
Adjusted net income was $13.0 million compared to $14.0 million in 2017, a decrease of $1.0 million after adjusting for unrealized gains on lead and zinc derivative contracts.
Silver and gold sold were 7% and 9% lower than actual metal produced reflecting higher concentrate inventory at the end of the first quarter associated with a change in our sales contract at the San Jose mine in the first quarter which involves a shift from local delivery of the concentrates to export of concentrate. This increased our concentrate inventory 618 tonnes with an estimated value of $4.1 million. The delay in the recognition of this sale would have contributed approximately $2.7 million to pre-tax earnings or $0.01 per share after tax.
A photo accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/ea037562-3817-4597-a0fe-b8f60f97c76a
Adjusted EBITDA in the first quarter of 2018 increased $1.6 million over the prior year to $31.8 million as higher sales of $5.6 million over the comparable period in 2017 were partially offset by increases of $1.5 million in mine operating costs, $0.8 million in mine selling, general and administration costs, $1.3 million in share-based payment expense and $1.0 million in realized losses from commodity derivative contracts.
Cash provided by operating activities was $20.1 million or 126% higher than the $8.9 million for the same period in 2017.
As at March 31, 2018, the Company had cash and short-term investments of $217.3 million (December 31, 2017: $212.6 million). On January 26, 2018 the Company closed an amendment to its existing credit facility with Scotiabank to expand the facility from $40.0 million to $120.0 million. This takes our total sources of liquidity as at the end of the quarter to over $290.0 million which along with the current rate of free cash flow generated from our existing operations should provide sufficient liquidity to meet our funding needs during the construction of the Lindero project.
San Jose Mine, Mexico
|Three months ended March 31,|
|Average tonnes milled per day||3,011||3,108|
|Metal sold (oz)||2,011,260||1,779,203|
|Realized price ($/oz)||16.65||17.46|
|Metal sold (oz)||13,748||13,040|
|Realized price ($/oz)||1,329||1,220|
|Production cash cost ($/oz Ag)1||-0.33||1.34|
|Production cash cost ($/t)||65.26||56.85|
|Unit Net Smelter Return ($/t)||203.81||161.75|
|All-in sustaining cash cost ($/oz Ag)1||4.03||6.60|
|1 Net of by-product credits from gold|
The San Jose Mine produced 2,185,913 ounces of silver and 14,882 ounces of gold in the first quarter of 2018 which were 22% and 13% above the comparable period in 2017. Average head grades for silver and gold were 284 g/t and 1.94 g/t which were 25% and 16% higher than the comparable period in 2017.
Cash cost per tonne of processed ore was $65.3, or 15% above the $56.9 cash cost for the comparable quarter in 2017 and 7% above annual guidance of $61.2. The higher cost compared to guidance was due to one-time items related to the operations of the dry stack tailings facility ($3.4/tonne), higher transportation costs due to increased shipments ($2.4/tonne) and faster execution of community relations program ($1.5/tonne). Cash cost per tonne for the remainder of the year is expected to be in line with guidance.
All-in sustaining cash cost per payable ounce of silver, net of by-product credits, was $4.0 for first quarter of 2018 and was below the annual guidance of $6.6 as a result of lower execution on sustaining capital and improvements in concentrate commercial terms.
Caylloma Mine, Peru
|Three months ended March 31,|
|Average tonnes milled per day||1,473||1,470|
|Metal sold (oz)||220,290||236,068|
|Realized price ($/oz)||16.79||17.33|
|Production (000's lbs)||7,040||7,211|
|Metal sold (000's lbs)||7,269||7,037|
|Realized price ($/lb)||1.14||1.03|
|Production (000's lbs)||11,028||10,816|
|Metal sold (000's lbs)||11,078||10,702|
|Realized price ($/lb)||1.55||1.26|
|Production cash cost ($/oz Ag)1||(54.08||)||(31.54||)|
|Production cash cost ($/t)||78.68||73.30|
|Unit Net Smelter Return ($/t)||190.33||158.92|
|All-in sustaining cash cost ($/oz Ag)1||(31.36||)||(11.97||)|
|1 Net of by-product credits from gold, lead and zinc|
The Caylloma Mine produced 7.0 million pounds of lead and 11.0 million pounds of zinc which were 2% below and 2% above the comparable quarter in 2017. Average head grades for lead and zinc were 2.72% and 4.31%. Silver production was 215,545 ounces which was 10% lower than the comparable period in 2017 and average silver head grade was 10% lower than in 2017. Metallurgical recovery was 84% or 1% lower than in 2017.
Cash cost per tonne of processed ore for the first quarter of 2018 was $78.7, which was 7% higher than the $73.3 cash cost for the comparable quarter in 2017 and 3% below annual guidance of $81.3.
All-in sustaining cash cost per payable ounce of silver, net of by-product credits, was a negative $31.4 for the first quarter 2018 which was significantly below the annual guidance of a negative $5.2 as a result of higher by-product credits.
Reconciliation to Adjusted Net Income
|Cost of sales||39.1||39.1||37.7||37.7|
|Mine operating income||31.3||-||31.3||27.2||-||27.2|
|Selling, general and administration||6.9||6.9||5.3||5.3|
|Exploration and evaluation||0.1||0.1||0.1||0.1|
|Share of loss of equity-accounted investee||(0.2||)||0.2||-||0.1||(0.1||)||-|
|Foreign exchange loss (gain)||2.2||2.2||2.1||2.1|
|Other finance items||0.4||(0.4||)||-||-||-|
|Accretion of provisions||0.2||0.2||0.2||0.2|
|(Gain) loss on financial assets and liabilities carried at fair value||(0.4||)||1.4||1.0||1.6||(0.6||)||1.0|
|Income before taxes||22.3||(1.2||)||21.1||17.6||0.7||18.3|
|Current income tax expense||9.7||(0.4||)||9.3||8.0||(0.3||)||7.7|
|Deferred income tax recovery||(1.2||)||(1.2||)||(3.4||)||(3.4||)|
|Net income for the year||13.8||(0.8||)||13.0||13.0||1.0||14.0|
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 first quarter 2018 financial and operational results
A conference call to discuss first quarter 2018 financial and operational results will be held on Thursday, May 10, 2018 at 9:00 a.m. Pacific | 12:00 p.m. Eastern. Hosting the call will be Jorge A. Ganoza, President and CEO, and Luis D. 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=176642 or over the phone by dialing just prior to the starting time.
Conference call details:
Date: Thursday, May 10, 2018
Time: 9:00 a.m. Pacific | 12:00 p.m. Eastern
Dial in number (Toll Free): +1.877.407.8035
Dial in number (International): +1.201.689.8035
Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay Passcode: 10450
Playback of the conference call will be available until May 24, 2018 at 11:59 p.m. Eastern. Playback of the webcast will be available until August 10, 2018. In addition, a transcript of the call will be archived in the company's website: https://www.fortunasilver.com/investors/financials/2018/.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented, precious metal producer focused on mining opportunities in Latin America. The Company's primary assets are 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.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
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; adjusted net (loss) income; operating cash flow per share before changes in working capital, 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.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Fortuna Silver Mines Inc. via Globenewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Følg saker fra GlobeNewswire
Registrer deg med din epostadresse under for å få de nyeste sakene fra GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra GlobeNewswire
Open Compute Project Announces Updated Market Forecast22.2.2019 16:39:00 | Pressemelding
Open Source Foundation Exceeds 2018 Forecast for Non-Board Member Adoption, Tops $2.56 billion and expected to surpass $10 billion by 2022. Austin, Texas, Feb. 22, 2019 (GLOBE NEWSWIRE) -- The Open Compute Project Foundation (OCP) announces today the high level results of a follow up assessment of the market impact of the Open Compute Project worldwide. For a second year, OCP has engaged IHS Markit, a world leader in critical information, analytics and solutions, to determine the adoption and impact of OCP gear in the technology industry. Since its inception, OCP has worked to drive innovation in and around the data center industry, bringing together thousands of engineers from nearly two hundred member organizations. The demands on the modern datacenter continue to expand with the growth of IOT, security and edge computing, as well as increasing energy consumption requirements. IHS Markit interviewed OCP members, suppliers and service providers, as well as incorporated their own in-de
Magna Announces Fourth Quarter and 2018 Results and Raises Quarterly Cash Dividend by 11%22.2.2019 11:00:00 | Pressemelding
Fourth Quarter 2018 Highlights Record fourth quarter sales of $10.1 billion up 5% from the fourth quarter of 2017 Cash from operations of $1.6 billion Returned $585 million to shareholders through share repurchases and dividends Raised quarterly cash dividend by 11% to $0.365 per share Full Year 2018 Highlights Record sales of $40.8 billion, up 12% from 2017 Record diluted earnings per share of $6.61, an increase of 13% Record cash from operations of $3.7 billion Returned approximately $2.3 billion to shareholders through share repurchases and dividends AURORA, Ontario, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the fourth quarter and year ended December 31, 2018. THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2018 2017 (2) 2018 2017 (2) Reported Sales $ 10,137 $ 9,684 $ 40,827 $ 36,588 Income from operations before income taxes $ 607 $ 765 $ 2,951 $ 2,985 Net income attributable to Magna International I
IMImobile announces integration of WhatsApp Business solution into its enterprise cloud communications platform IMIconnect22.2.2019 10:37:00 | Pressemelding
The WhatsApp Business solution will be made available across its enterprise cloud communications platform IMIconnect allowing businesses to launch business-to-consumer communications on WhatsApp LONDON, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Global cloud communications software and solutions provider IMImobile PLC, today announced the integration of the WhatsApp Business solution into its enterprise cloud communications platform IMIconnect. The WhatsApp Business solution enables businesses to connect with over 1.5 billion users in a simple, reliable, and private way across 180 countries worldwide. As a WhatsApp Business solution provider, the IMIconnect platform will enable enterprises to seamlessly integrate the WhatsApp Business solution into their customer communications strategies, and drive engagement through intelligent and context-aware messaging. “We are excited to announce the integration of the WhatsApp Business solution today in our IMIconnect platform. We understand that today’s
Nordic Innovators Cloudstreet and Domos Partner to Deliver an End-to-End, Application-Aware 5G Experience to the Home22.2.2019 09:00:00 | Pressemelding
Cloudstreet’s carrier-grade API and Network Slicing platform with Domos’ Machine Learning Solution for home networks delivers intelligent connectivity out of the box Barcelona, Spain., Feb. 22, 2019 (GLOBE NEWSWIRE) -- Finland’s Cloudstreet, the US-patented Network Slicing Company, and Norway’s Domos, a leader in Machine Learning technologies for the smart home, are pleased to announce that they have teamed up to create the industry’s first end-to-end, intelligent application and context-aware network slicing solution for home networks. The solution will be on display February 25-28 at the Mobile World Congress in Barcelona in Hall 5, stand 5C41. A perfect example of MWC’s aspirational theme, “Intelligent Connectivity”, the solution closes the loop on delivering a 5G experience to fixed wireless home networks. The combined technologies solve two key, last-mile problems that have plagued mobile-enabled home networks: 1) How to build application-awareness into the network without comprom
General Electric Company: Doc re. GE Files Form 8-K22.2.2019 08:00:00 | Pressemelding
FAIRFIELD, Conn., Feb. 22, 2019 (GLOBE NEWSWIRE) -- Company General Electric Company ISIN US3696041033 Symbol London: GEC | Paris: GNE Headline Doc re: GE files Form 8-K February 21, 2019 On February 21, 2019, General Electric Company (the "Company") filed a Form 8-K with the U.S. Securities and Exchange Commission ("SEC"), which has been submitted to RNS. It is also available on the SEC's website at http://www.sec.gov and on the Company's website at https://www.ge.com/investor-relations/events-reports. http://www.rns-pdf.londonstockexchange.com/rns/8048Q_1-2019-2-21.pdf CONTACT: GE Jennifer Erickson +001 646 682 5620 email@example.com This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact firstname.lastname@example.org or visit
Northland Power Reports Full Year and Fourth Quarter 2018 Results22.2.2019 02:52:00 | Pressemelding
Results Reflect Successful Growth Strategy with Free Cash Flow per Share Up 30% and Adjusted EBITDA Up 17% TORONTO, Feb. 21, 2019 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today reported financial results for the three months and year ended December 31, 2018. “2018 was a significant year for Northland. We continued to operate safely and efficiently, achieving strong growth in free cash flow and adjusted EBITDA,” said Mike Crawley, President and Chief Executive Officer of Northland. “Construction of Deutsche Bucht project remains on time and on budget, and we also remain well-positioned for continued growth. Our expansion into Asia has gained further traction, with the first of the three Hai Long offshore wind projects securing all approvals and permits. The next step for this 300 MW project will be executing its PPA.” Highlights: 2018 Financial Results Sales increased 13% from $1.4 billion in 2017 to $1.6 billion and gross profit increased 17% t