Fortuna Silver Mines (FVI.TSX, NYSE: FSM) released its first quarter financial results, highlighted by a 132% increase in net income to $11.11 million. The Canadian-based silver producer generated cash flow from operating activities before changes in working capital of $14.69 million, a 144% rise over the first quarter of 2011. Fortuna also produced a quarterly record 953,091 ounces of silver and 5,137 ounces of gold.
Highlights:
* Revenue of $40.60 million, up 86% over the prior year period
* Operating income of $16.53 million, up 105% over Q1 2011
* Cash position (including short term investments) and working capital as of March 31, 2012 were $53.85 million and $77.06 million, respectively
* Cash cost per silver ounce, net of by-product credits, was $3.18
Jorge Ganoza, President and CEO of Fortuna Silver Mines:
“Fortuna has delivered a record profitable quarter with strong cash flow generation reflecting the positive impact of the San Jose operation in our performance. Our current focus is on sustaining our status as a low cost producer through the implementation of various initiatives incorporated in our capital projects and execution of San Jose’s production expansion to three million ounces of silver and twenty-five thousand ounces of gold annual production rate by next year. Our exploration efforts continue throughout our extensive land holdings around our mines and with the evaluation of new opportunities throughout the Americas.”
Graeme Jennings, Cormark Securities:
“We believe that the Company offers investors exposure to an undervalued ‘best in class’ mid-tier silver producer with a rapidly growing production profile supported by high quality in-situ resources and exploration assets.”
