Fortuna reports consolidated financial results for the third quarter 2017
VANCOUVER, British Columbia, Nov. 08, 2017 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) today reported net income of $10.3 million, Adjusted EBITDA of $30.6 million, and revenue of $64.0 million in the third quarter of 2017.
Jorge A. Ganoza, President and CEO, commented, "We have had yet another quarter of strong operating and financial results at our operating mines in Peru and Mexico, positioning the company well on track to meet our annual production targets and financial objectives." Mr. Ganoza continued, "Having announced a positive construction decision for our Lindero gold Project in Argentina, we expect free cash flow from our operations to contribute significantly towards the funding of the construction capital requirements."
Third quarter consolidated financial highlights
- Sales of $64.0 million, compared to $65.2 million in Q3 2016
- Net income of $10.3 million, compared to $10.2 million in Q3 2016
- Earnings per share of $0.06, compared to $0.08 in Q3 2016
- Adjusted net income of $13.1 compared to $10.0 million in Q3 2016
- Adjusted EBITDA of $30.6 million and Adjusted EBITDA margin over sales of 48%
- Cash flow from operations before changes in non-cash working capital of $26.2 million, compared to $26.5 million in Q3 2016
- Cash position, including short term investments, and working capital as at September 30, 2017 were $195.8 million and $197.6 million, respectively
- Silver and gold production of 2,009,362 and 13,412 ounces, respectively
- AISC1 per ounce of payable silver was $6.1
1 All-in sustaining cash cost is net of by-product credits for gold, lead and zinc (Non-GAAP financial measure)
Third quarter consolidated financial results
|Consolidated Financial Metrics||
|Figures expressed in $ millions except per share information and AISC|
|Mine operating income||24.9||28.4||-12||%||74.3||59.9||24||%|
|Earnings per share (basic)||0.06||0.08||-25||%||0.20||0.08||150||%|
|Earnings per share (diluted)||0.06||0.07||-14||%||0.20||0.08||150||%|
|Adjusted net income1||13.1||10.0||31||%||36.4||11.0||231||%|
|Cash provided by operating activities||20.4||29.0||-30||%||41.2||26.9||53||%|
|Cash generated by operating activities before changes in working capital||26.2||26.5||-1||%||61.3||39.6||55||%|
|All-in sustaining cash cost||6.1||7.5||-20||%||6.8||8.8||-23||%|
|Cash, cash equivalents, and short-term investments2||195.8||123.6||58||%||195.8||123.6||58||%|
|Non-current bank loan2||39.8||39.6||1||%||39.8||39.6||1||%|
|1 refer to Non-GAAP Financial Measures|
|2 Comparative figures are as at December 31, 2016|
Net income for the third quarter ended September 30, 2017 was $10.3 million or $0.06 per share compared to a net income of $10.2 million or $0.08 per share for the comparable quarter in 2016. The slightly higher net income was driven mostly by lower income tax expense of $5.2 million as the effective tax rate for the third quarter was 34.7% compared to 51.2% for the comparable quarter in 2016. Adjusted net income was $13.1 million compared to $10.0 million in 2016, mostly after adjusting for a $2.2 million loss on financial instruments, net of tax, in the current quarter.
Operating income for the third quarter ended September 30, 2017 was $18.9 million, 11% below the comparable quarter in 2016, attributable mostly to lower financial results at our San Jose Mine related in turn to a lower realized silver price of 14% and higher unit costs of 13%. These were partially offset by stronger financial results at our Caylloma Mine driven by strong zinc and lead prices and lower share based payments of $0.1 million, compared to $2.6 million in the third quarter of 2016.
A graph accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/78cdb59e-03c7-4d52-a704-92e21d2c1bb3
Cash provided by operating activities in the third quarter of 2017 was $20.4 million, a $8.6 million decrease from $29.0 million in the comparable quarter of 2016. The decrease was due primarily to negative changes in working capital in the third quarter of 2017 compared to positive changes in Q3 2016. The negative changes in the current quarter are related to trade receivables and inventory. Cash provided by operating activities before changes in working capital was $26.2 million, a $0.3 million decrease from $26.5 million in the third quarter of 2016.
At September 30, 2017, the Company had cash, cash equivalents, and short-term investments of $195.8 million (December 31, 2016 - $123.6 million), an increase of $7.8 million over the end of June 2017, and of $72.2 million since the beginning of the year. The increase over year end 2016 was due primarily to a bought deal equity financing in the first quarter of 2017 for net proceeds of $70.9 million.
The Company is in the process of amending its existing credit facility with Scotiabank from $40 million to $120 million. This will provide an additional $80 million of liquidity on top of the $40 million which have been drawn as of September 30, 2017 and completes our funding requirement for the construction of the Lindero Project.
San Jose Mine, Mexico
|QUARTERLY RESULTS||YEAR TO DATE RESULTS|
|San Jose||Three months ended,
|Nine months ended,
|Average t milled per day||3,038||3,056||3,054||2,425|
|Metal sold (oz)||1,739,066||1,761,101||5,392,495||4,270,370|
|Realized price ($/oz)||16.85||19.47||17.16||17.37|
|Metal sold (oz)||12,817||13,739||40,079||32,155|
|Realized price ($/oz)||1,280||1,327||1,251||1,268|
|Production cash cost ($/oz Ag)1||1.53||0.73||1.29||1.74|
|Production cash cost ($/t)||62.23||54.83||60.31||57.69|
|Unit Net Smelter Return ($/t)||162.62||175.61||165.76||160.73|
|All-in sustaining cash cost ($/oz Ag)1||7.75||6.94||7.35||7.95|
|1 Net of by-product credits from gold|
The San Jose Mine produced 1,774,556 ounces of silver and 13,248 ounces of gold in the third quarter, 4% and 7% higher than plan. Compared to the third quarter of 2016 silver was slightly slower by 0.4% and gold was 5% lower. The decrease in gold compared to 2016 was the result of lower head grades of 3% and lower throughput of 2%.
Cash cost per tonne of processed ore for the third quarter ended September 30, 2017 was $62.2, which includes approximately $0.6 per tonne of non-recurring items mainly related to mine support works due to a major earthquake in September and $0.70 per tonne due to the appreciation of the Mexican Peso against the US dollar. Excluding non-recurring items and exchange rate effects the increase compared to budget was 4% and was related to higher mine support cost and local inflation on the cost of energy and materials. Cash cost per tonne of processed ore for the quarter was 13% higher than the $54.8 cash cost for the comparable quarter in 2016. Cash cost for 2017 is expected to remain within 5% of annual guidance (see Fortuna news release dated January 11, 2017).
All-in sustaining cash cost per payable ounce of silver, net of by-product credits, was $7.4 for the first nine months of 2017 and was below the annual guidance of $8.4 as a result of higher gold credits.
Caylloma Mine, Peru
|QUARTERLY RESULTS||YEAR TO DATE RESULTS|
|Caylloma||Three months ended,
|Nine months ended,
|Average t milled per day||1,486||1,473||1,480||1,417|
|Metal sold (oz)||226,155||309,813||691,659||980,418|
|Realized price ($/oz)||16.89||19.56||17.19||16.91|
|Production (000's lbs)||7,650||7,452||22,031||25,383|
|Metal sold (000's lbs)||7,291||7,454||21,454||25,826|
|Realized price ($/lb)||1.06||0.85||1.03||0.80|
|Production (000's lbs)||11,241||10,606||32,670||32,198|
|Metal sold (000's lbs)||10,867||10,600||32,512||32,504|
|Realized price ($/lb)||1.35||1.02||1.26||0.89|
|Production cash cost ($/oz Ag)1||(39.53||)||(8.49||)||(31.22||)||(4.41||)|
|Production cash cost ($/t)||76.00||71.83||78.12||72.16|
|Unit Net Smelter Return ($/t)||170.37||134.17||159.86||123.59|
|All-in sustaining cash cost ($/oz Ag)1||(18.79||)||3.27||(11.23||)||5.14|
|1 Net of by-product credits from gold, lead and zinc|
Silver production at the Caylloma Mine for the third quarter of 2017 was 234,806 ounces, 24% lower than the comparable period in 2016. Lead and zinc production were 7.7 million and 11.2 million pounds, respectively; 3%, and 6% higher than the comparable quarter in 2016. Lower silver production for the third quarter was due to lower head grades of 25%. Higher lead production of 3% was the result of higher head grades of 6% partially offset by lower recovery of 4%, while higher zinc production of 6% was the result of higher head grade of 4%. Compared to plan silver and lead production were 6% and 3% below budget, while zinc production was 5% above budget.
Cash cost per tonne of processed ore for the third quarter ended September 30, 2017 was $76.0, which was 6% higher than the $71.8 cash cost for the comparable quarter in 2016 and 1% higher than budget. The increase over the third quarter of 2016 was mainly due to higher energy, ground support and labour costs. Cash cost for full year 2017 is expected to remain within 5% of annual guidance (see Fortuna news release dated January 11, 2017).
All-in sustaining cash cost per payable ounce of silver, net of by-product credits, was a negative $11.2 for the first nine months of the year and was significantly below the annual guidance of $10.8 due primarily to higher by-product credits.
The financial statements and MD&A are available on SEDAR and have also been posted on the Company's website at http://www.fortunasilver.com/s/financial_reports.asp.
Conference call details:
Date: Thursday, November 9, 2017
Time: 9:00 a.m. Pacific | 12:00 p.m. Eastern
Dial in number (Toll Free): +1.888.567.1603
Dial in number (International): +1.404.267.0368
Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay Passcode: 10434
Playback of the conference call will be available until November 23, 2017 at 11:59 p.m. Eastern. Playback of the webcast will be available until February 9, 2018. In addition, a transcript of the call will be archived in the company's website:
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 photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.
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
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
MyoGen: Leaders of an Anabolic Revolution22.5.2018 23:00 | Pressemelding
GUJARAT, India, May 23, 2018 (GLOBE NEWSWIRE) -- Myogen will make you rethink what the human body is capable of. To be an athlete means to partake on a never-ending quest for self-improvement. An obsession to search for a winning edge. Even when we are competing against ourselves, our desire to overcome our physical limitations and achieve new heroic and record setting performances becomes an overwhelming primary focus. Today marks an evolution in what the human body is capable of, with the launch of the MyoGen range of anabolic products. Myogen, the essence of "muscles". MyoGen takes its source from the Greek words "Myo" meaning "Muscle" and "Genesis" meaning "Birth". This implicit historical reference, of the origin of the muscle, displays both the commitment and professionalism of Myogen, and their unwavering focus on peak physical performance. The brightest leader's blaze trails. The Myogen brand is managed by an international team of experts who are committed to making athletes st
Constellation Brands Promotes Jim Sabia to Newly Created Role of Chief Marketing Officer22.5.2018 22:30 | Pressemelding
New role will serve as a member of the company's Executive Management Committee VICTOR, N.Y., May 22, 2018 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE:STZ) (NYSE:STZ.B), a leading beverage alcohol company, announced today that it has promoted Jim Sabia to the newly created role of Executive Vice President and Chief Marketing Officer, Constellation Brands. In this new role, Sabia will serve as the marketing lead for the company's Beer and Wine & Spirits Divisions, responsible for all aspects of marketing across Constellation's entire beverage alcohol portfolio. Sabia will serve as a member of the company's Executive Management Committee and report directly to Bill Newlands, President and Chief Operating Officer. "Our company's core mission is to build brands consumers love and Jim has been a driving force behind the success of our beer brands over the years," said Newlands. "It is critically important that the voice of the consumer and brand-building principles have strong repr
Algeco Announces First Quarter 2018 Financial Results Conference Call22.5.2018 17:52 | Pressemelding
BALTIMORE, May 22, 2018 (GLOBE NEWSWIRE) -- Algeco Investments B.V. (together with its subsidiaries, "Algeco"), the leading global business services provider of modular space, secure portable storage solutions and remote workforce accommodations, today announced that it will hold its first quarter 2018 financial results conference call on Tuesday, June 5, 2018 at 10:00 a.m., Eastern Time. To access the call, please dial (847) 585-4422 or (888) 424-8151 (US toll free) and enter participant PIN code 9192211# approximately ten minutes prior to the start of the call. You will be placed on hold until the event begins. The conference call will also be broadcast over the internet with an accompanying slide presentation. To join the web conference, go to http://web.meetme.net/r.aspx?p=2&a=UTzMrdwdRriEIu. Please enter your name, email address and company to join the call. The customer service team can be reached at any time by pressing *0 on your telephone keypad. On Wednesday, May 30, 2018 at
Hitachi Named a Visionary in Inaugural Gartner Magic Quadrant for Industrial IoT Platforms22.5.2018 15:00 | Pressemelding
Hitachi Positioned in Visionaries Quadrant for Completeness of Vision and Ability To Execute TOKYO and SANTA CLARA, Calif., May 22, 2018 (GLOBE NEWSWIRE) -- Hitachi, Ltd. (TSE:6501) and Hitachi Vantara, today announced that Hitachi has been positioned in the Visionaries quadrant of the inaugural Gartner Magic Quadrant for Industrial IoT Platforms1based on Gartner, Inc.'s evaluation of the company, which included Hitachi's Lumada IoT platform. Gartner describes the market for IIoT platforms as "a set of integrated software capabilities. These capabilities span efforts to improve asset management decision-making, as well as operational visibility and control for plants, depots, infrastructure and equipment within asset-intensive industries." In the report, Gartner predicts: "By 2020, on-premises Internet of Things (IoT) platforms coupled with edge computing will account for up to 60% of industrial IoT (IIoT) analytics, up from less than 10% today." The report also notes: "Gartner believe
Oxford Immunotec Announces Launch of the Accutix(TM) Brand22.5.2018 14:30 | Pressemelding
OXFORD, United Kingdom and MARLBOROUGH, Mass., May 22, 2018 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, high-growth diagnostics company, today announced the launch of the Accutix brand for its tick-borne disease offering. "Incorporating the feedback of our customers was a key consideration in our selection of a new brand name," said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. "Tick-borne disease specialists value the accuracy of our tests and the history and credibility of our lab in helping them diagnose Lyme and other tick-borne diseases. The Accutix name embodies these qualities and will assist us in building a market leadership position in the tick-borne disease diagnostics market." The Accutix brand aligns Oxford Immunotec's tick-borne disease offering, which includes over 20 testing options targeting eight tick-borne diseases, under a unified name. The Company will continue to develop new assays for both existing and emergin
Cemtrex SmartDesk Now Available for Preorder22.5.2018 14:30 | Pressemelding
Cemtrex Launches SmartDesk to Reinvent the Personal Workspace and Revolutionize Desktop Workstation Productivity FARMINGDALE, N.Y., May 22, 2018 (GLOBE NEWSWIRE) -- Cemtrex Inc. (Nasdaq:CETX) (Nasdaq:CETXP) (Nasdaq:CETXW), a world leading technology and manufacturing company, today announced the launch of the Cemtrex SmartDesk, the most advanced workstation on the market. The SmartDesk is a blend of futuristic hardware and groundbreaking productivity software, delivering the next generation desktop experience in a luxurious package, and Cemtrex is now taking preorders. "The world is ready for a SmartDesk. It is 2018 but our workspaces have not evolved like most things we interact with on a daily basis like our smartphones, smart cars and smart homes," said Cemtrex's CEO and Chairman, Saagar Govil. "With the SmartDesk we intend to transform and disrupt the $500 billion annual PC market globally, as it will streamline workflows, improve productivity with its many features, and provide su
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom