Consistent silver production growth has fueled a 167% rise in the shares of Fortuna Silver Mines over the past 52 weeks

SILVER PRICE NEWS - The silver price ascent over the past year has provided a significant boost to silver stocks and Fortuna Silver Mines (FVI.TSX) is a prime example. While the silver price has gained $4.05 per ounce, or 30.5%, during the past 52 weeks, shares of Fortuna Silver have surged 167% over the same time frame. Shares of this emerging silver producer have rallied on the back of not only its leverage to the silver price, but also a number of positive, company-specific developments.

Fortuna Silver’s 167% rise has surpassed that of most mid- and large-cap silver stocks - including Pan American Silver Corp. (PAAS), Silver Standard Resources (SSRI), and Silver Wheaton (SLW) - which have advanced 68% and 39%, and 151%, respectively.

Based in Vancouver, Canada, Fortuna Silver Mines is a silver and base metal producer focused on mining opportunities in Latin America. The company’s primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico - each acquired in late 2005. Over the past several years, Fortuna has transitioned itself from a relatively small silver explorer into an emerging mid-tier silver mining producer - an impressive feat given the abundance of mining companies in the industry unable to achieve commercial success mining precious metals. CEO Jorge Ganoza and his team have continued to deliver their goal of providing investors with silver price leverage in a manner that focuses on generating positive cash flow.

With its San Jose project moving forward to production, the addition of a second mine will transform Fortuna into a multi-project operator and diversify the company’s growing revenue base. This process has also helped vault Fortuna onto the watch lists of institutional shareholders. Fortuna has begun to garner increasing support from institutional investors as it continues to separate itself from its peers - evident by both the share price appreciation as well as the increase in the company’s average daily volume.

Over the past two months, positive analyst reports on Fortuna Silver have been released by the likes of Salman Partners and Casey’s International Speculator, while the latest report was issued by CIBC. Coverage of Fortuna was initiated by CIBC, which issued a “Sector Outperformer” rating and a 12-18 month price target of C$3.75 per share - a 48.8% premium to yesterday’s closing price of C$2.52. In its report, CIBC stated that it believes the Canadian-based silver mining company has “one of the best operations teams in the junior silver producer space,” due to its cost controls at Caylloma and Fortuna’s ability to consistently generate free cash flow over the past three years.

CIBC went on to assert that the “flexibility and exploration upside” at Caylloma and revenue from San Jose will provide the capacity the company with silver price and gold price leverage - and ensure strong operating margins going forward. Furthermore, the research highlighted Fortuna’s attractiveness as an acquisition target, given the company’s high-grade, near-term development project and the strong free cash flow from its operating mine. CIBC argued that these features make Fortuna “more likely than most” silver stocks to be taken out by a larger mining company looking to enhance its leverage to the silver price.

In afternoon trading, shares of Fortuna Silver Mines fell C$0.01 to C$2.51, while the gold price declined $0.57 to $1,121.55 per ounce and the silver price climbed $0.07 to $17.30 per ounce.