Nasdaq GlobeNewswire

Fortuna reports consolidated financial results for the first quarter 2018

Del

(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)
Sales $   70.4  $   64.8 9 %
Mine operating income     31.3     27.2 15 %
Operating income     22.4     19.6 14 %
Net income     13.8     13.0 6 %
           
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 %
Adjusted EBITDA     31.8     30.2 5 %
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 %
Capex (sustaining)     4.1     5.1 -19 %
Capex (non-sustaining)     4.9     1.9 157 %
Capex (Brownfield)     2.3     2.7 -17 %
AISC1     2.1     6.1 -65 %
           
    Mar 31, 2018   Dec 31, 2017 % Change
Cash, cash equivalents, and short-term investments $   217.3  $   212.6 2 %
           
Total assets $   707.5  $   706.6 0 %
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,    
Mine Production     2018        2017    
Tonnes milled     258,204       267,268    
Average tonnes milled per day                                                                  3,011       3,108    
               
Silver              
  Grade (g/t)     284       226    
  Recovery (%)     93       92    
  Production (oz)     2,185,913       1,792,967    
  Metal sold (oz)     2,011,260       1,779,203    
  Realized price ($/oz)     16.65       17.46    
               
Gold              
  Grade (g/t)     1.94       1.67    
  Recovery (%)     92       91    
  Production (oz)     14,882       13,116    
  Metal sold (oz)     13,748       13,040    
  Realized price ($/oz)     1,329       1,220    
               
Unit Costs              
  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,  
Mine Production     2018        2017  
Tonnes milled     129,620       129,369  
Average tonnes milled per day                                                              1,473       1,470  
             
Silver            
  Grade (g/t)     61       68  
  Recovery (%)     84       85  
  Production (oz)     215,545       240,224  
  Metal sold (oz)     220,290       236,068  
  Realized price ($/oz)     16.79       17.33  
             
Lead            
  Grade (%)     2.72       2.76  
  Recovery (%)     91       92  
  Production (000's lbs)     7,040       7,211  
  Metal sold (000's lbs)     7,269       7,037  
  Realized price ($/lb)     1.14       1.03  
             
Zinc            
  Grade (%)     4.31       4.17  
  Recovery (%)     90       91  
  Production (000's lbs)     11,028       10,816  
  Metal sold (000's lbs)     11,078       10,702  
  Realized price ($/lb)     1.55       1.26  
             
Unit Costs            
  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

Quarterly Results

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

  Q1 2018 Adjustments Q1 2018 
adjusted
Q1 2017 Adjustments Q1 2017 
adjusted
Sales   70.4       70.4     64.8       64.8  
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  
Operating Income   22.3     (0.2 )   22.1     19.6     0.1     19.7  
Interest income   (0.6 )     (0.6 )   (0.3 )     (0.3 )
Interest expense   0.5       0.5     0.5       0.5  
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  
EPS 0.09   (0.00 ) 0.09   0.08   0.00   0.08  

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

Investor Relations:

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.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
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

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

Brookfield Completes Acquisition of Forest City Realty Trust7.12.2018 19:24Pressemelding

NEW YORK and CLEVELAND, Dec. 07, 2018 (GLOBE NEWSWIRE) -- Brookfield Asset Management Inc. (“Brookfield”) (NYSE: BAM) (TSX: BAM.A) (Euronext: BAMA) and Forest City Realty Trust, Inc. (“Forest City”) (NYSE: FCEA) today announced the completion of the acquisition of Forest City by a Brookfield real estate investment fund. The transaction was approved at a special meeting of Forest City’s stockholders held on November 15, 2018. Forest City’s diversified real estate portfolio is comprised of a number of iconic assets across major gateway U.S. cities. The portfolio, which features many natural synergies with Brookfield’s existing real estate operating business, includes 6.3 million square feet of high-quality office space, 2.3 million square feet of premier life sciences assets, 2.2 million square feet of retail space and 18,500 multifamily units. In addition, the portfolio features five large-scale development projects in the New York Metro area, San Francisco and Washington, DC. In connec

Oxford Immunotec Announces Regulatory Acceptance of T-Cell Select™ in China7.12.2018 15:00Pressemelding

OXFORD, United Kingdom and MARLBOROUGH, Mass., Dec. 07, 2018 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, high-growth diagnostics company, today announced regulatory acceptance of the T-Cell Select kit by the China Food and Drug Administration (CFDA). The T-Cell Select kit was designed as an immune cell separation reagent kit to simplify workflow, improve throughput, and reduce hands-on time and labor costs in performing the T-SPOT®.TB test. With the T-Cell Select kit, blood samples collected in a single standard blood tube can be stored for up to 54 hours at room temperature before use, further extending the company’s unrivaled simplicity and logistics advantages for customers. For additional information, please visit: http://www.oxfordimmunotec.com/international/products-services/t-cell-select/. About Oxford Immunotec Oxford Immunotec Global PLC is a global, high-growth diagnostics company focused on developing and commercializing proprietary assays for im

Colliers International Announces Leadership Change6.12.2018 22:05Pressemelding

Dylan Taylor tapped to lead Colliers Real Estate Services TORONTO, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI), a global leader in commercial real estate services and investment management, announced today that effective January 1, 2019, Dylan Taylor will become CEO of Colliers Real Estate Services focusing exclusively on the growth, operational effectiveness and client service opportunities in the Company’s rapidly growing real estate services segment. Jay Hennick, Global Chairman and CEO will continue to be responsible for overall strategy and execution across all the Company’s businesses including its recently established platform in investment management. “Dylan Taylor’s appointment to CEO of Colliers Real Estate Services recognizes his success in building our operations over the last nine years. He will continue to be the driving force behind our growth in real estate services globally and perhaps most importantly, delivering exceptio

H&R Block Selects eGain for AI-Powered Customer Engagement6.12.2018 19:30Pressemelding

Tax preparation giant will use eGain Virtual Assistant for on-demand help SUNNYVALE, Calif., Dec. 06, 2018 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the leading provider of cloud-based customer engagement solutions, today announced that tax preparation giant H&R Block (NYSE: HRB) has selected eGain Solve™ to automate service and sales interactions for taxpayers at scale. The solution will be used to power H&R Block’s new Ask a Tax Pro service, which was announced today. According to a 2018 Accenture global survey, 70 percent of taxpayers said they would use AI to improve the accuracy of tax filings. In the same survey, 40 percent of respondents reported making a filing error in the last 24 months. As the market leader in tax preparation services, H&R Block wanted to provide high-quality DIY and advisor-assisted experiences at scale using AI, Machine Learning and Virtual Assistance. H&R Block selected eGain based on the company’s connected and rich solution capabilities, domain expertis

Constellation Brands to Invest $100 Million in Women-Led Start-Ups by 20286.12.2018 15:00Pressemelding

Focus on Female Founders Program Provides Resources to Help Women Entrepreneurs Address Untapped Growth Opportunities in the Beverage Alcohol Space and Adjacent Categories VICTOR, N.Y., Dec. 06, 2018 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that Constellation Brands Ventures (CBV), the company’s corporate venture capital group, intends to invest $100 million in female-founded or female-led businesses in the beverage alcohol space and adjacent categories by 2028 through a new program, Focus on Female Founders. The company has completed its first investments in two specialty beverage companies: Austin Cocktails and Vivify Beverages. “Our Focus on Female Founders program reinforces our commitment to supporting the advancement of women within our company, within our industry, and in our local communities,” said Mallika Monteiro, chief growth officer, Constellation Brands. “This program is designed to make mean

Seclore Increases the Security of Emails & Attachments with Advanced Automation Capability6.12.2018 15:00Pressemelding

Seclore Email Auto-Protector attaches persistent, encryption and usage controls to sensitive emails without end user involvement MILPITAS, Calif., Dec. 06, 2018 (GLOBE NEWSWIRE) -- Seclore, providers of the first open Data-Centric Security Platform, today announced the expansion of their Seclore Email Protector. The new Email Auto-Protector automatically attaches persistent, granular usage controls to sensitive emails and attachments based on predefined rules. The solution offers two key ways to automate email protection. Rules can be defined in the Seclore Email Auto-Protector to automatically apply usage controls to both outgoing and incoming emails and attachments that are sensitive Seclore Email Auto-Protector automatically applies the appropriate usage controls to emails and attachments by leveraging rules defined in other Enterprise Systems such as DLP, Data Classification and Enterprise Applications. “One of the biggest challenges with Encryption and Rights Management technologi

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom