Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”
or the “Company”) today reported its consolidated
financial and operating results for the fourth quarter and full
year 2021.
Fourth Quarter 2021
Highlights
- Record sales of $198.9 million, an
increase of 92% from the $103.5 million reported in Q4 2020, due
primarily to the contribution of gold sales from the Yaramoko Mine
of $52.2 million and from the Lindero Mine of $65.6 million
- Cost of sales of $140.6 million
compared to $56.6 million reported in Q4 2020
- Net income of $16.6 million or
$0.05 per share, compared to $18.6 million or $0.1 net income per
share reported in Q4 2020
- Adjusted net income1 of $29.1
million compared to $23.0 million reported in Q4 2020
- Adjusted EBITDA1 of $89.6 million
compared to $44.8 million reported in Q4 2020
- Net cash provided by operating
activities of $57.1 million, compared to $31.3 million reported in
Q4 2020
- Free cash flow from ongoing
operations1 of $30.9 million compared to $34.5 million reported in
Q4 2020
Full Year 2021 Highlights
- Sales of $599.9 million, compared
to $279.0 million in 2020
- Cost of sales of $394.4 million, compared to $168.7 million in
2020
- Net income of $59.4 million, compared to $21.6 million in
2020
- Adjusted net income1 of $100.6 million, compared to $31.8
million in 2020
- Adjusted EBITDA1 of $280.7 million, compared to $112.6 million
in 2020
- Net cash provided by operating
activities of $147.1 million, compared to $93.4 million reported in
Q4 2020
- Free cash flow1 from ongoing operations1 of $97.0 million,
compared to $78.9 million in 2020
- Cash and cash equivalents as at December 31, 2021 was $107.1
million, compared to $131.9 million in 2020
- Silver and gold production of
7,498,701 ounces and 207,192 ounces, respectively, compared to
7,133,717 ounces and 55,349 ounces in 2020, respectively
- AISC1 per ounce of gold sold of
$1,116 and $1,317 for the Lindero and Yaramoko mines,
respectively
- AISC1,2 per silver equivalent ounce
of payable silver sold of $14.38 and $18.94 for the San Jose and
Caylloma mines, respectively, compared to $11.56 and $17.37 in
2020, respectively
Jorge A. Ganoza, President and CEO, commented,
“Fortuna’s record sales and adjusted EBITDA in the fourth
quarter of approximately $199 million and $90 million
respectively, reflect strong operating results across our four
mines in Latin America and West Africa. Lindero’s solid
performance in the quarter is particularly worth highlighting as
the mine delivered 36,072 ounces of gold, in line with expectations
and 37% above its gold production for the third quarter.” Mr.
Ganoza added, “With free cash flow generation from operations1 of
$33 million in the quarter and the expansion of our corporate
revolving credit facility to $200 million, we closed 2021 with a
strong liquidity position of $187 million, $51 million over
the third quarter considering $20 million in funding for the
construction of the Séguéla Mine.” Mr. Ganoza concluded,
“Throughout 2022, we expect to spend $110 million in Séguéla and
$20 million in Brownfields exploration, which includes $7.4 million
at San Jose and $7.2 million at Séguéla.”
Notes:
- Refer to the Non-IFRS Financial Measures section at the end of
this news release and to the MD&A accompanying the Company’s
financial statements on SEDAR at www.sedar.com for a description of
the calculation of these measures.
- AISC ($/oz Ag Eq) is calculated at realized metal prices, refer
to mine site results for realized prices and to the Non-IFRS
Financial Measures section for silver equivalent ratio
Fourth Quarter 2021 and Full Year 2021 Consolidated
Results
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Three months ended December 31 |
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Years ended December 31 |
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2021 |
|
2020 |
|
% Change |
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2021 |
|
2020 |
|
% Change |
Sales |
|
198.9 |
|
103.5 |
|
92 |
% |
|
599.9 |
|
279.0 |
|
115 |
% |
Mine operating income |
|
58.3 |
|
46.9 |
|
24 |
% |
|
205.5 |
|
110.2 |
|
86 |
% |
Operating income |
|
38.9 |
|
28.2 |
|
38 |
% |
|
136.9 |
|
57.2 |
|
139 |
% |
Net income |
|
16.6 |
|
18.6 |
|
(11 |
)% |
|
59.4 |
|
21.6 |
|
175 |
% |
Earnings (loss) per share -
basic |
|
0.05 |
|
0.10 |
|
(48 |
)% |
|
0.24 |
|
0.12 |
|
100 |
% |
Adjusted net income1 |
|
29.1 |
|
23.0 |
|
27 |
% |
|
100.6 |
|
31.8 |
|
216 |
% |
Adjusted EBITDA1 |
|
89.6 |
|
44.8 |
|
100 |
% |
|
280.7 |
|
112.6 |
|
149 |
% |
Net cash provided by operating
activities |
|
57.1 |
|
31.3 |
|
82 |
% |
|
147.1 |
|
93.4 |
|
57 |
% |
Free cash flow from ongoing
operations1 |
|
30.9 |
|
34.5 |
|
(10 |
)% |
|
97.0 |
|
78.9 |
|
23 |
% |
Capital expenditures2 |
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|
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|
Sustaining |
|
31.6 |
|
7.4 |
|
328 |
% |
|
77.2 |
|
18.1 |
|
326 |
% |
Non-sustaining3 |
|
2.6 |
|
0.6 |
|
354 |
% |
|
9.5 |
|
1.1 |
|
734 |
% |
Lindero construction |
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- |
|
20.4 |
|
(100 |
)% |
|
12.8 |
|
68.9 |
|
(81 |
)% |
Séguéla construction |
|
19.8 |
|
- |
|
100 |
% |
|
34.2 |
|
- |
|
100 |
% |
Brownfields |
|
8.2 |
|
1.8 |
|
351 |
% |
|
18.9 |
|
4.9 |
|
284 |
% |
As at |
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|
|
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|
|
December 31, 2021 |
|
December 31, 2020 |
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% Change |
Cash
and cash equivalents |
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|
|
107.1 |
|
131.9 |
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(19 |
)% |
1 Refer to Non-IFRS
Financial Measures section at the end of this news release and to
the MD&A accompanying the Company’s financial statements on
SEDAR at www.sedar.com for a description of the calculation of
these measures. |
2 Capital
expenditures are presented on a cash basis |
|
3 Non-sustaining
expenditures include greenfields exploration |
|
Figures may not add
due to rounding |
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Fourth Quarter 2021 Results
Sales for the quarter were $198.9 million, a 92%
increase from the $103.5 million reported in the same period in
2020. The increase was driven by the contribution from the Lindero
and Yaramoko mines. Lindero recognized adjusted sales of $65.6
million from the sale of 36,389 ounces of gold. Yaramoko recognized
adjusted sales of $52.2 million from the sale of 29,077 ounces of
gold. The San Jose Mine recognized adjusted sales of $56.7 million,
a 6% decrease from the $60.5 million reported in the same period in
2020. Lower sales at San Jose were driven by a 6% decrease in the
volume of gold ounces sold. The Caylloma Mine recognized adjusted
sales of $24.4 million, a 7% increase from the $22.7 million
reported in the same period in 2020. The increased sales at
Caylloma were driven by higher lead and zinc prices, partially
offset by lower volumes of metal sold.
Operating income for the quarter was $38.9
million, a $10.7 million increase from the $28.2 million reported
in the same period in 2020. The higher operating income was driven
by the contribution of Lindero and Yaramoko, partially offset by
lower operating income at San Jose and low-grade inventory
write-downs in the current quarter of $5.3 million (Yaramoko: $4.2
million; Lindero: $1.1 million).
Net income for the quarter was $16.6 million, a
$2.0 million decrease from the $18.6 million reported in the same
period in 2020. The lower net income was due to a $4.2 million loss
on derivative contracts, higher interest expense of $2.7 million,
and a higher effective tax rate (Q4 2021: 45%; Q4 2020: 34%).
Adjusted net income for the quarter was $29.1
million compared to $23.0 million reported in the same period in
2020.
Adjusted EBITDA for the quarter was $89.6 million, a margin of
45% over sales, compared to $44.8 million reported in the same
period in 2020, a margin of 43% over sales.
Full Year 2021 Results
Consolidated sales for the year ended December
31, 2021 increased 115% to $599.9 million compared to
$279.0 million for the same period in 2020. The increase was
driven by the contribution of Yaramoko and Lindero as well as
higher silver prices in 2021 compared to 2020. Lindero recognized
$179.0 million in gold doré sales comprising 100,177 ounces of
gold. Yaramoko recognized $101.3 million of gold doré sales
comprising 56,571 ounces of gold. Sales at San Jose increased 13%
to $216.1 million as realized silver price increased 18%
compared to 2020, along with a 3% increase in the volume of silver
and gold ounces sold. Sales at Caylloma increased 53% to $103.5
million due primarily to an increase in the volume of metals sold
and increases in the realized prices of lead and zinc of 20% and
32%, respectively, compared to realized prices in 2020.
Operating income for the the year ended December
31, 2021 was $136.9 million, a $79.7 million increase from the
$57.2 million reported in the same period in 2020. The higher
operating income was driven mainly by the contribution of Lindero
of $45.2 million and Yaramoko of $17.0 million, and higher
operating income at Caylloma of $23.9 million. This was partially
offset by the San Jose Progreso royalty settlement of $14.3
million, and low-grade inventory write-downs amounting $7.0 million
of which, Yaramoko and Lindero accounted for $4.2 million and $2.8
million, respectively.
Net income for the year ended December 31, 2021
was $59.4 million, a $37.8 million increase from the $21.6 million
reported in 2020. The higher net income was offset by $14.1 million
in transaction costs associated with the Company's acquisition (the
"Roxgold Acquisition") of all of the issued and outstanding common
shares of Roxgold Inc., as well as higher interest expenses of
$10.2 million. Interest expense was $8.7 million higher in 2021
compared to 2020 as $9.4 million was capitalized in 2020 related to
the construction of the Lindero Mine.
Adjusted net income for the year ended December
31, 2021 was $100.6 million compared to $31.8 million in 2020.
Adjusted EBITDA for the year ended December 31,
2021 was $280.7 million compared to $112.6 million in 2020.
Liquidity
Free cash flow from ongoing operations for the
three months ended December 31, 2021 was $30.9 million compared to
$34.5 million in the same period in 2020. Free cash flow from
ongoing operations for the year ended December 31, 2021 was $97.0
million compared to $78.9 million in 2020.
Total liquidity available to the Company as at
December 31, 2021 was $187.1 million. The Company’s $200.0 million
revolving credit facility was fully available as at the end of
December 2021 and $80.0 million remained undrawn.
Lindero Mine, Argentina
The table below shows the key metrics used to
measure the operating performance of the Lindero Mine for the
fourth quarter of 2021 and for the year ended December 31, 2021:
throughput, head grade, recovery, and gold production. The Lindero
Mine was under construction during a portion of the fourth quarter
of 2020, with first gold poured in October 2020.
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Three months ended December 31, |
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Years ended December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
Mine Production |
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Tonnes placed on the leach pad |
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1,459,513 |
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950,000 |
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6,453,647 |
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|
1,610,000 |
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Gold |
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Grade (g/t) |
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1.04 |
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|
1.13 |
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|
0.96 |
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|
1.00 |
Production (oz) |
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|
36,072 |
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|
13,435 |
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|
104,161 |
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|
13,435 |
Metal sold (oz) |
|
|
36,389 |
|
|
10,935 |
|
|
100,177 |
|
|
10,935 |
Realized price ($/oz) |
|
|
1,802 |
|
|
1,853 |
|
|
1,785 |
|
|
1,853 |
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Unit Costs2 |
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Cash cost ($/oz Au)1 |
|
|
585 |
|
|
657 |
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|
617 |
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|
657 |
All-in sustaining cash cost ($/oz Au)1 |
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|
994 |
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|
- |
|
|
1,116 |
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|
- |
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|
Capital expenditures
($000's) |
|
|
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|
|
|
|
|
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Sustaining |
|
|
7,214 |
|
|
1,410 |
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|
27,522 |
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|
1,410 |
Non-sustaining |
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|
233 |
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- |
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|
323 |
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|
- |
Brownfields |
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|
389 |
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|
- |
|
|
875 |
|
|
- |
1 Cash cost and
AISC are non-IFRS financial measures. Refer to Non-IFRS Financial
Measures section at the end of this news release and to the
MD&A accompanying the Company’s financial statements on SEDAR
at www.sedar.com for a description of the calculation of these
measures. |
2 First gold was
poured at Lindero in October 2020. |
During the fourth quarter of 2021, the onsite
impact of COVID-19 continued to be minimal as the site reported 60
positive cases with no disruptions to operations. Travel
restrictions in Argentina were also lifted in November 2021 which
led to an improvement in lead times and onsite technical assistance
from foreign vendors.
In the fourth quarter of 2021, a total of
1,459,513 tonnes of ore were placed on the heap leach pad averaging
1.04 g/t gold, containing an estimated 48,900 ounces of gold.
Total gold production was 36,072 ounces of gold. Gold production
for 2021 totaled 104,161 ounces, comprised of 99,313 ounces in
doré, 730 ounces of gold contained in precipitate/sludge and 4,118
ounces of gold-in-carbon (GIC) inventory, in the upper range of the
updated production and cost guidance issued in July 2021 (refer to
Fortuna news release dated July 19, 2021, “Fortuna reports
production of 55,953 gold equivalent ounces for the second quarter
and issues updated guidance for 2021”).
All processing areas performed according to
plan:
- 1,444,260 tonnes of ore crushed and
placed on the leach pad via conveyor stacking during the fourth
quarter, a 17% increase over the previous quarter.
- Conveyor stacking averaged 16,228
tonnes per day during the fourth quarter, an increase of 21% over
the previous quarter; including 31 days of conveyor stacking
throughput over 18,750 tonnes per day
- The SART plant reached full design
capacity of 393 cubic meters per hour in December of 2021, in line
with plan
- The expansion of the carbon columns
at the ADR plant was successfully commissioned in the fourth
quarter of 2021 and is performing according to plan
Cash cost per ounce of gold for the three and
twelve months ended December 31, 2021 was $585 and $617 per ounce,
respectively.
All-in sustaining cash costs per gold ounce sold
was $994 during Q4 2021 and $1,116 in 2021 in line with the
Company’s updated cost guidance.
Total sustaining capital expenditures of $7.2
million during the quarter were primarily related to the completion
of the ADR plant expansion, $4.2 million, and capitalized
stripping, $2.0 million.
Yaramoko Mine, Burkina Faso
The table below shows the key metrics used to
measure the operating performance of the Yaramoko Mine for the
fourth quarter of 2021 and for the year ended December 31, 2021:
throughput, head grade, recovery, and gold production. The Company
acquired the Yaramoko Mine in connection with the Roxgold
Acquisition, which closed on July 2, 2021. Accordingly, all
production, operating and financial results in respect of the
Yaramoko Mine for the year ended December 31, 2021 included in this
news release reflect only those results from July 2, 2021 to
December 31, 2021, unless indicated otherwise.
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Three months ended December 31, |
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Years ended December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
Mine Production |
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Tonnes milled |
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132,188 |
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|
- |
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258,866 |
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- |
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Gold |
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Grade (g/t) |
|
|
6.99 |
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|
- |
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|
7.13 |
|
|
- |
Production (oz) |
|
|
28,787 |
|
|
- |
|
|
57,538 |
|
|
- |
Metal sold (oz) |
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|
29,077 |
|
|
- |
|
|
56,571 |
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|
- |
Realized price ($/oz) |
|
|
1,796 |
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|
- |
|
|
1,789 |
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|
- |
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Unit Costs |
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Cash cost ($/oz Au)1 |
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|
754 |
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- |
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|
739 |
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- |
All-in sustaining cash cost ($/oz Au)1 |
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1,436 |
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- |
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1,317 |
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- |
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Capital expenditures
($000's) |
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Sustaining |
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13,520 |
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- |
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21,387 |
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- |
Non-sustaining |
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– |
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– |
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— |
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- |
Brownfields |
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47 |
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- |
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138 |
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- |
1 Cash cost and
AISC are non-IFRS financial measures. Refer to Non-IFRS Financial
Measures section at the end of this news release and to the
MD&A accompanying the Company’s financial statements on SEDAR
at www.sedar.com for a description on the calculation of these
measures. |
2 The Yaramoko
Mine was acquired as part of the Roxgold Acquisition. As such
comparative figures for previous quarters and years are not
presented. Operating and financial results for the year ended
December 31, 2021 are for the period from July 2, 2021 to December
31, 2021. |
The Yaramoko Mine produced 28,787 ounces of gold
in the fourth quarter of 2021 with an average gold head grade of
6.99 g/t; below the plan for the quarter. Total gold production for
the second semester of 2021 totaled 57,538 ounces of gold which was
below guidance for the period. The production shortfall was the
result of lower than planned mill feed grade in the fourth quarter
of 2021, caused by the delay in mining of several high-grade stopes
and some localized grade variability in the 55 Zone. The unmined
stopes was resequenced into the mine plan in the first quarter of
2022.
Cash cost per gold ounce sold was $754, which
was above plan, primarily due to lower production during Q4 2021
and $739 for the second semester of 2021.
All-in sustaining cash cost per gold ounce sold
was $1,436 and $1,317 for Q4 2021 and for the second semester of
2021, respectively, which were above the Company’s guidance. Higher
all-in sustaining cash costs were the result of lower ounces sold
due to the mine sequencing issue described.
Sustaining capital expenditures of $21.5 million
during the second half of the year were related primarily to
underground mine development costs and construction of a
ventilation raise.
San Jose Mine, Mexico
The following table shows the key metrics used
to measure the operating performance of the San Jose Mine for the
fourth quarter of 2021 and for the year ended December 31, 2021:
throughput, head grade, recovery, gold and silver production and
unit costs:
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Three months ended December 31, |
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Years ended December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
Mine Production |
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Tonnes milled |
|
|
262,802 |
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|
272,179 |
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|
1,041,154 |
|
|
934,381 |
Average tonnes milled per day |
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|
2,920 |
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|
3,024 |
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|
2,964 |
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|
2,647 |
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Silver |
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Grade (g/t) |
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|
219 |
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206 |
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209 |
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|
224 |
Recovery (%) |
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|
93 |
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|
91 |
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|
92 |
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|
92 |
Production (oz) |
|
|
1,717,533 |
|
|
1,648,816 |
|
|
6,425,029 |
|
|
6,165,606 |
Metal sold (oz) |
|
|
1,729,152 |
|
|
1,721,697 |
|
|
6,433,808 |
|
|
6,225,433 |
Realized price ($/oz) |
|
|
23.39 |
|
|
24.45 |
|
|
25.15 |
|
|
21.26 |
|
|
|
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|
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|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
1.27 |
|
|
1.26 |
|
|
1.29 |
|
|
1.38 |
Recovery (%) |
|
|
92 |
|
|
91 |
|
|
91 |
|
|
91 |
Production (oz) |
|
|
9,929 |
|
|
10,095 |
|
|
39,406 |
|
|
37,805 |
Metal sold (oz) |
|
|
9,983 |
|
|
10,594 |
|
|
39,404 |
|
|
38,391 |
Realized price ($/oz) |
|
|
1,797 |
|
|
1,875 |
|
|
1,798 |
|
|
1,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
|
|
79.66 |
|
|
71.48 |
|
|
75.80 |
|
|
68.79 |
Production cash cost ($/oz Ag Eq)1,2 |
|
|
9.35 |
|
|
8.75 |
|
|
9.30 |
|
|
7.63 |
Net smelter return ($/t) |
|
|
207.57 |
|
|
203.80 |
|
|
210.99 |
|
|
199.22 |
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
14.92 |
|
|
13.33 |
|
|
14.38 |
|
|
11.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
($000's) |
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
5,137 |
|
|
4,022 |
|
|
14,492 |
|
|
10,787 |
Non-sustaining |
|
|
518 |
|
|
568 |
|
|
2,294 |
|
|
942 |
Brownfields |
|
|
2,176 |
|
|
1,643 |
|
|
8,784 |
|
|
4,406 |
1 Production cash
cost silver equivalent and All-in sustaining cash cost silver
equivalent are calculated using realized metal prices for each
period respectively |
2 Production cash
cost, Production cash cost silver equivalent, and All-in sustaining
cash cost silver equivalent are non-IFRS financial measures, refer
to Non-IFRS Financial Measures section at the end of this news
release, and the to the MD&A accompanying the Company’s
financial statements on SEDAR at www.sedar.com for a description of
the calculation of these measures. |
The San Jose Mine produced 1,717,533 ounces of
silver and 9,929 ounces of gold during the three months ended
December 31, 2021, which represents an 4% increase and 2% decrease
over the same period in 2020, respectively. The decrease in gold
production was due to lower tonnes milled.
Annual production of silver and gold totaled
6,425,029 ounces and 39,406 ounces, an increase of 4% for both from
2020 annual production, respectively, which was in line with
guidance.
The cash cost per tonne for the three months
ended December 31, 2021 was $79.66 per tonne compared to $71.48 per
tonne in the same period in 2020 primarily due to higher indirect
costs. Cash cost per tonne for the full year 2021 increased to
$75.80 compared to $68.79 for 2020 due to higher mine preparation
and support and higher indirect costs.
The all-in sustaining cash cost of payable
silver equivalent for the full year 2021 increased 24% to $14.38
per ounce compared to $11.56 for the same period in 2020. The
increase was primarily as a result of additional sustaining capital
expenditures and Brownfields exploration which were limited in 2020
due to the impacts of business restrictions relating to the
COVID-19 pandemic. All-in sustaining cash costs for the year were
in line with guidance.
Caylloma Mine, Peru
The following table shows the key metrics used
to measure the operating performance of the Caylloma Mine for the
fourth quarter of 2021 and for the year ended December 31, 2021:
throughput, head grade, recovery, silver, lead and zinc production
and unit costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
137,838 |
|
|
136,132 |
|
|
539,779 |
|
|
510,047 |
Average tonnes milled per day |
|
|
1,549 |
|
|
1,530 |
|
|
1,525 |
|
|
1,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
73 |
|
|
73 |
|
|
76 |
|
|
72 |
Recovery (%) |
|
|
81 |
|
|
82 |
|
|
82 |
|
|
82 |
Production (oz) |
|
|
262,710 |
|
|
263,921 |
|
|
1,073,672 |
|
|
968,111 |
Metal sold (oz) |
|
|
243,869 |
|
|
262,356 |
|
|
1,074,364 |
|
|
967,199 |
Realized price ($/oz) |
|
|
23.39 |
|
|
24.30 |
|
|
25.25 |
|
|
20.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.44 |
|
|
0.60 |
|
|
0.49 |
|
|
0.41 |
Recovery (%) |
|
|
70 |
|
|
69 |
|
|
71 |
|
|
61 |
Production (oz) |
|
|
1,374 |
|
|
1,827 |
|
|
6,086 |
|
|
4,109 |
Metal sold (oz) |
|
|
1,297 |
|
|
1,768 |
|
|
6,140 |
|
|
4,049 |
Realized price ($/oz) |
|
|
1,798 |
|
|
1,865 |
|
|
1,792 |
|
|
1,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lead |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
3.20 |
|
|
3.16 |
|
|
3.16 |
|
|
3.00 |
Recovery (%) |
|
|
87 |
|
|
89 |
|
|
88 |
|
|
88 |
Production (000's lbs) |
|
|
8,419 |
|
|
8,426 |
|
|
32,990 |
|
|
29,628 |
Metal sold (000's lbs) |
|
|
7,945 |
|
|
8,386 |
|
|
33,299 |
|
|
29,582 |
Realized price ($/lb) |
|
|
1.06 |
|
|
0.86 |
|
|
1.00 |
|
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
4.25 |
|
|
4.69 |
|
|
4.56 |
|
|
4.61 |
Recovery (%) |
|
|
87 |
|
|
88 |
|
|
88 |
|
|
88 |
Production (000's lbs) |
|
|
11,380 |
|
|
12,434 |
|
|
47,549 |
|
|
45,545 |
Metal sold (000's lbs) |
|
|
11,053 |
|
|
12,154 |
|
|
47,828 |
|
|
45,154 |
Realized price ($/lb) |
|
|
1.51 |
|
|
1.18 |
|
|
1.36 |
|
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
|
|
97.87 |
|
|
81.65 |
|
|
88.41 |
|
|
77.19 |
Production cash cost ($/oz Ag Eq)1,2 |
|
|
13.83 |
|
|
14.61 |
|
|
13.46 |
|
|
14.06 |
Net smelter return ($/t) |
|
|
186.71 |
|
|
163.57 |
|
|
192.02 |
|
|
131.40 |
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
20.71 |
|
|
18.69 |
|
|
18.94 |
|
|
17.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
($000's) |
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
5,755 |
|
|
1,950 |
|
|
13,758 |
|
|
5,909 |
Brownfields |
|
|
1,027 |
|
|
170 |
|
|
3,731 |
|
|
514 |
1 Production cash
cost silver equivalent and All-in sustaining cash cost silver
equivalent are calculated using realized metal prices for each
period respectively |
2 Production cash
cost, Production cash cost silver equivalent, and All-in sustaining
cash cost silver equivalent are non-IFRS financial measures, refer
to Non-IFRS Financial Measures section at the end of this news
release and to the MD&A accompanying the Company’s financial
statements on SEDAR at www.sedar.com for a description on the
calculation of these measures. |
The Caylloma Mine produced 262,710 ounces of
silver, 8.4 million pounds of lead and 11.4 million pounds of zinc
during the three months ended December 31, 2021, which was in line
with the same period in 2020 except for zinc which was lower by 8%
due to a lower head grade. Gold production totaled 1,374 ounces
with an average head grade of 0.44 g/t.
Annual production of silver, lead and zinc
totaled 1,073,672 ounces of silver, 33.0 million pounds of lead,
and 47.5 million pounds of zinc, which represent an 11% increase in
silver, 11% increase in lead, and a 4% increase in zinc production
compared to 2020. Gold production for the full year 2021 totaled
6,086 ounces, which was an increase of 48% over 2020, with an
average head grade of 0.49 g/t. Production for the year was in line
with guidance.
The cash cost per tonne of processed ore for the
three months ended December 31, 2021 increased 20% to $97.87
compared to $81.65 in the same period in 2020. The increase was the
result of higher mining costs related to shotcrete and
transportation and higher energy costs at the plant. Cash cost per
tonne for the full year 2021 increased to $88.41 compared to $76.59
for 2020 due to higher mine preparation and support and higher
indirect costs related to administration and energy.
The all-in sustaining cash cost for the three
months ended December 31, 2021 increased 11% to $20.71 per ounce
compared to $18.69 per ounce for the same period in 2020. The
increase was driven by higher sustaining capital expenditures and
Brownfields exploration .
The all-in sustaining cash cost for the full
year 2021 increased 9% to $18.94 per ounce compared to $17.37 per
ounce in 2020 due to higher sustaining capital expenditures and
Brownfields exploration. The increase was primarily due to the
significantly decreased capital expenditures in 2020 due to the
impacts of business restrictions relating to COVID-19 pandemic. The
Caylloma Mine finished 2021 slightly below cost guidance as a
result of higher silver equivalent metal sales.
Qualified Person
Eric N. Chapman, Senior Vice President of
Technical Services of Fortuna, is a Professional Geoscientist of
the Association of Professional Engineers and Geoscientists of the
Province of British Columbia (Registration Number 36328), and is
the Company’s Qualified Person (as defined by National Instrument
43-101). Mr. Chapman has reviewed and approved the scientific and
technical information contained in this news release and has
verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial
measures and ratios in this news release which are not defined
under the International Financial Reporting Standards (“IFRS”), as
issued by the International Accounting Standards Board, and are not
disclosed in the Company’s financial statements, including but not
limited to: cash cost per ounce of gold sold; all-in sustaining
cash cost per ounce of gold sold; all-in cash cost per ounce of
gold sold; total production cash cost per tonne; cash cost per
payable ounce of silver equivalent sold; all-in sustaining cash
cost per payable ounce of silver equivalent sold; all-in cash cost
per payable ounce of silver equivalent sold; free cash flow from
ongoing operations; adjusted net income; and adjusted EBITDA.
These non-IFRS financial measures and non-IFRS
ratios are widely reported in the mining industry as benchmarks for
performance and are used by management to monitor and evaluate the
Company’s operating performance and ability to generate cash. The
Company believes that, in addition to financial measures and ratios
prepared in accordance with IFRS, certain investors use these
non-IFRS financial measures and ratios to evaluate the Company’s
performance. However, the measures do not have a standardized
meaning under IFRS and may not be comparable to similar financial
measures disclosed by other companies. Accordingly, non-IFRS
financial measures and non-IFRS ratios should not be considered in
isolation or as a substitute for measures and ratios of the
Company’s performance prepared in accordance with IFRS. The Company
has calculated these measures consistently for all periods
presented.
To facilitate a better understanding of these
measures and ratios as calculated by the Company, descriptions are
provided below. In addition, see “Non-IFRS Financial Measures” in
the Company’s management’s discussion and analysis for the fiscal
year ended December 31, 2021 (“2021 MD&A”), which section is
incorporated by reference in this news release, for additional
information regarding each non-IFRS financial measure and non-IFRS
ratio disclosed in this news release, including an explanation of
their composition; an explanation of how such measures and ratios
provide useful information to an investor and the additional
purposes, if any, for which management of Fortuna uses such
measures and ratio. The 2021 MD&A may be accessed on SEDAR at
www.sedar.com under the Company’s profile, Fortuna Silver Mines
Inc.
Except as otherwise described in the 2021
MD&A, the Company has calculated these measures consistently
for all periods presented.
Reconciliation to Adjusted Net Income for the three and
twelve months ended December 31, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
Consolidated |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
|
16.6 |
|
|
18.6 |
|
|
59.4 |
|
|
21.6 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals1 |
|
1.3 |
|
|
0.2 |
|
|
1.4 |
|
|
0.2 |
|
Foreign exchange loss, Lindero Mine2 |
|
0.3 |
|
|
3.2 |
|
|
4.1 |
|
|
11.8 |
|
Share of loss from associates |
|
- |
|
|
- |
|
|
- |
|
|
0.1 |
|
Investment income |
|
- |
|
|
- |
|
|
- |
|
|
(3.3 |
) |
Roxgold transaction costs |
|
- |
|
|
- |
|
|
14.1 |
|
|
- |
|
SGM Royalty settlement |
|
1.0 |
|
|
- |
|
|
9.8 |
|
|
- |
|
Inventory adjustment |
|
4.6 |
|
|
- |
|
|
6.3 |
|
|
- |
|
Accretion on right of use
assets |
|
1.0 |
|
|
- |
|
|
2.2 |
|
|
- |
|
Other non-cash/non-recurring items |
|
4.3 |
|
|
1.0 |
|
|
3.3 |
|
|
1.4 |
|
Adjusted Net Income (loss) |
|
29.1 |
|
|
23.0 |
|
|
100.6 |
|
|
31.8 |
|
1 Amounts are recorded in Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
2 Amounts are recorded in General
and Administration |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Adjusted EBITDA for
the three and twelve months ended December 31, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Net income |
|
16.6 |
|
|
18.6 |
|
|
|
59.4 |
|
|
21.6 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals |
|
2.1 |
|
|
(0.4 |
) |
|
|
1.9 |
|
|
(0.4 |
) |
Inventory adjustment |
|
5.3 |
|
|
- |
|
|
|
7.0 |
|
|
- |
|
Foreign exchange loss, Lindero Mine |
|
0.3 |
|
|
3.2 |
|
|
|
4.1 |
|
|
11.8 |
|
Foreign exchange loss, Séguéla Project |
|
0.2 |
|
|
- |
|
|
|
0.2 |
|
|
- |
|
Net finance items |
|
3.7 |
|
|
0.2 |
|
|
|
12.3 |
|
|
1.2 |
|
Depreciation, depletion, and amortization |
|
44.8 |
|
|
13.9 |
|
|
|
122.3 |
|
|
45.7 |
|
Income taxes |
|
13.5 |
|
|
9.1 |
|
|
|
47.7 |
|
|
37.4 |
|
Share of loss from associates |
|
- |
|
|
- |
|
|
|
- |
|
|
0.1 |
|
Investment income |
|
- |
|
|
- |
|
|
|
- |
|
|
(3.3 |
) |
SGM Royalty settlement |
|
- |
|
|
- |
|
|
|
9.6 |
|
|
- |
|
Roxgold transaction costs |
|
- |
|
|
- |
|
|
|
14.1 |
|
|
- |
|
Other non-cash/non-recurring items |
|
3.1 |
|
|
0.2 |
|
|
|
2.1 |
|
|
(1.5 |
) |
Adjusted EBITDA |
|
89.6 |
|
|
44.8 |
|
|
|
280.7 |
|
|
112.6 |
|
Reconciliation of free cash flow from
ongoing operations for three and twelve months ended December 31,
2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
Consolidated |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Restated) |
Net cash provided by operating
activities |
|
57.1 |
|
|
|
31.3 |
|
|
|
147.1 |
|
|
|
93.4 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Roxgold Acquisition transaction costs |
|
- |
|
|
|
- |
|
|
|
27.9 |
|
|
|
- |
|
Change in long term receivables and assets |
|
0.0 |
|
|
|
0.9 |
|
|
|
0.0 |
|
|
|
(0.1 |
) |
Additions to mineral properties, plant and equipment |
|
(35.3 |
) |
|
|
(9.2 |
) |
|
|
(90.7 |
) |
|
|
(23.0 |
) |
Impact of adoption in IAS 16 and Production costs |
|
- |
|
|
|
21.9 |
|
|
|
- |
|
|
|
21.9 |
|
Current income tax expense |
|
(16.5 |
) |
|
|
(13.3 |
) |
|
|
(51.7 |
) |
|
|
(38.8 |
) |
Income taxes paid |
|
19.1 |
|
|
|
5.6 |
|
|
|
62.7 |
|
|
|
28.2 |
|
Other adjustments |
|
6.4 |
|
|
|
(2.7 |
) |
|
|
1.6 |
|
|
|
(2.7 |
) |
Free
cash flow from ongoing operations |
|
30.9 |
|
|
|
34.5 |
|
|
|
97.0 |
|
|
|
78.9 |
|
Reconciliation of cash cost per ounce of gold sold for
the three and twelve months ended December 31, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindero
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Cost of sales |
|
|
46,915 |
|
|
|
- |
|
|
122,889 |
|
|
|
- |
Changes in doré inventory |
|
|
353 |
|
|
|
- |
|
|
2,066 |
|
|
|
- |
Inventory adjustment |
|
|
(1,072 |
) |
|
|
- |
|
|
(2,815 |
) |
|
|
- |
Export duties |
|
|
(4,891 |
) |
|
|
- |
|
|
(13,410 |
) |
|
|
- |
Depletion and
depreciation |
|
|
(19,154 |
) |
|
|
- |
|
|
(43,665 |
) |
|
|
- |
By
product credits |
|
|
(77 |
) |
|
|
- |
|
|
(260 |
) |
|
|
- |
Production cash cost |
|
|
22,074 |
|
|
|
- |
|
|
64,805 |
|
|
|
- |
Changes in doré inventory |
|
|
(353 |
) |
|
|
- |
|
|
(2,066 |
) |
|
|
- |
Realized gain in diesel hedge |
|
|
(438 |
) |
|
|
- |
|
|
(963 |
) |
|
|
- |
Cash cost applicable per gold
ounce sold |
A |
|
21,283 |
|
|
|
- |
|
|
61,776 |
|
|
|
- |
Ounces
of gold sold |
B |
|
36,375 |
|
|
|
- |
|
|
100,137 |
|
|
|
- |
Cash
cost per ounce of gold sold ($/oz) |
=A/B |
|
585 |
|
|
|
- |
|
|
617 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Yaramoko
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Cost of sales |
|
|
42,381 |
|
|
|
- |
|
|
80,812 |
|
|
|
- |
Changes in doré inventory |
|
|
719 |
|
|
|
- |
|
|
1,542 |
|
|
|
- |
Inventory adjustment |
|
|
(4,153 |
) |
|
|
- |
|
|
(4,153 |
) |
|
|
- |
Export duties |
|
|
(3,018 |
) |
|
|
- |
|
|
(5,993 |
) |
|
|
- |
Depletion and
depreciation |
|
|
(13,235 |
) |
|
|
- |
|
|
(28,974 |
) |
|
|
- |
By
product credits |
|
|
(195 |
) |
|
|
- |
|
|
(134 |
) |
|
|
- |
Production cash cost |
|
|
22,499 |
|
|
|
- |
|
|
43,100 |
|
|
|
- |
Changes in doré inventory |
|
|
(719 |
) |
|
|
- |
|
|
(1,542 |
) |
|
|
- |
Refining charges |
|
|
133 |
|
|
|
- |
|
|
271 |
|
|
|
- |
Cash cost applicable per gold
ounce sold |
A |
|
21,913 |
|
|
|
- |
|
|
41,829 |
|
|
|
- |
Ounces
of gold sold |
B |
|
29,077 |
|
|
|
- |
|
|
56,571 |
|
|
|
- |
Cash
cost per ounce of gold sold ($/oz) |
=A/B |
|
754 |
|
|
|
- |
|
|
739 |
|
|
|
- |
Reconciliation of all-in sustaining cash cost per ounce
of gold sold for the three and twelve months ended December 31,
2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindero
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
|
|
21,283 |
|
|
- |
|
|
61,776 |
|
|
- |
Export duties and mining
taxes |
|
|
4,891 |
|
|
- |
|
|
13,410 |
|
|
- |
General
and administrative expenses (operations) |
|
|
1,640 |
|
|
- |
|
|
5,643 |
|
|
- |
Adjusted operating cash
cost |
|
|
27,814 |
|
|
- |
|
|
80,829 |
|
|
- |
Sustaining leases |
|
|
752 |
|
|
- |
|
|
2,548 |
|
|
- |
Sustaining capital
expenditures1 |
|
|
7,214 |
|
|
- |
|
|
27,522 |
|
|
- |
Brownfields exploration expenditures1 |
|
|
389 |
|
|
- |
|
|
875 |
|
|
- |
All-in sustaining cash
cost |
|
|
36,169 |
|
|
- |
|
|
111,774 |
|
|
- |
Non-sustaining capital expenditures1 |
|
|
233 |
|
|
- |
|
|
323 |
|
|
- |
All-in cash cost |
|
|
36,402 |
|
|
- |
|
|
112,097 |
|
|
- |
Ounces
of gold sold |
|
|
36,375 |
|
|
- |
|
|
100,137 |
|
|
- |
All-in
sustaining cash cost per ounce of gold sold |
|
|
994 |
|
|
- |
|
|
1,116 |
|
|
- |
All-in
cash cost per ounce of gold sold |
|
|
1,001 |
|
|
- |
|
|
1,119 |
|
|
- |
1 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
Yaramoko
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
|
|
21,913 |
|
|
- |
|
|
41,829 |
|
|
- |
Inventory net realizable value
adjustment |
|
|
1,285 |
|
|
- |
|
|
1,285 |
|
|
- |
Export duties and mining
taxes |
|
|
3,018 |
|
|
- |
|
|
5,993 |
|
|
- |
General
and administrative expenses (operations) |
|
|
514 |
|
|
- |
|
|
953 |
|
|
- |
Adjusted operating cash
cost |
|
|
26,730 |
|
|
- |
|
|
50,060 |
|
|
- |
Sustaining leases |
|
|
1,467 |
|
|
- |
|
|
2,934 |
|
|
- |
Sustaining capital
expenditures1 |
|
|
13,520 |
|
|
- |
|
|
21,387 |
|
|
- |
Brownfields exploration expenditures1 |
|
|
47 |
|
|
- |
|
|
138 |
|
|
- |
All-in
sustaining cash cost |
|
|
41,764 |
|
|
- |
|
|
74,519 |
|
|
- |
All-in cash cost |
|
|
41,764 |
|
|
- |
|
|
74,519 |
|
|
- |
Ounces
of gold sold |
|
|
29,077 |
|
|
- |
|
|
56,571 |
|
|
- |
All-in
sustaining cash cost per ounce of gold sold |
|
|
1,436 |
|
|
- |
|
|
1,317 |
|
|
- |
All-in
cash cost per ounce of gold sold |
|
|
1,436 |
|
|
- |
|
|
1,317 |
|
|
- |
1 Presented on a
cash basis |
2 Adjustment related
to current stockpile |
Reconciliation of production cash cost per tonne and
cash cost per payable ounce of silver equivalent sold for the three
and twelve months ended December 31, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
San Jose
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cost of sales |
|
|
32,705 |
|
|
|
31,027 |
|
|
|
122,756 |
|
|
|
104,315 |
|
Changes in concentrate
inventory |
|
|
(118 |
) |
|
|
(1,477 |
) |
|
|
163 |
|
|
|
(1,200 |
) |
Depletion and depreciation in
concentrate inventory |
|
|
11 |
|
|
|
967 |
|
|
|
32 |
|
|
|
380 |
|
Inventory adjustment |
|
|
(52 |
) |
|
|
16 |
|
|
|
(6 |
) |
|
|
18 |
|
Royalties and mining
taxes |
|
|
(1,587 |
) |
|
|
(1,411 |
) |
|
|
(5,955 |
) |
|
|
(4,289 |
) |
Workers participation |
|
|
(1,236 |
) |
|
|
(1,501 |
) |
|
|
(5,809 |
) |
|
|
(6,560 |
) |
Depletion and depreciation |
|
|
(8,789 |
) |
|
|
(8,165 |
) |
|
|
(32,257 |
) |
|
|
(28,387 |
) |
Cash cost |
A |
|
20,934 |
|
|
|
19,456 |
|
|
|
78,924 |
|
|
|
64,277 |
|
Total
processed ore (tonnes) |
B |
|
262,802 |
|
|
|
272,179 |
|
|
|
1,041,154 |
|
|
|
934,382 |
|
Production cash cost per tonne ($/t) |
=A/B |
|
79.66 |
|
|
|
71.48 |
|
|
|
75.80 |
|
|
|
68.79 |
|
Cash cost |
A |
|
20,934 |
|
|
|
19,456 |
|
|
|
78,924 |
|
|
|
64,277 |
|
Changes in concentrate
inventory |
|
|
118 |
|
|
|
1,477 |
|
|
|
(163 |
) |
|
|
1,200 |
|
Depletion and depreciation in
concentrate inventory |
|
|
(11 |
) |
|
|
(967 |
) |
|
|
(32 |
) |
|
|
(380 |
) |
Inventory adjustment |
|
|
52 |
|
|
|
(16 |
) |
|
|
6 |
|
|
|
(18 |
) |
Treatment charges |
|
|
190 |
|
|
|
303 |
|
|
|
(251 |
) |
|
|
406 |
|
Refining charges |
|
|
1,157 |
|
|
|
976 |
|
|
|
4,318 |
|
|
|
3,530 |
|
Cash cost applicable per
payable ounce sold |
C |
|
22,440 |
|
|
|
21,229 |
|
|
|
82,802 |
|
|
|
69,015 |
|
Payable
ounces of silver equivalent sold1 |
D |
|
2,400,989 |
|
|
|
2,425,395 |
|
|
|
8,902,680 |
|
|
|
9,044,605 |
|
Cash
cost per ounce of payable silver equivalent sold2 ($/oz) |
=C/D |
|
9.35 |
|
|
|
8.75 |
|
|
|
9.30 |
|
|
|
7.63 |
|
Mining cost per tonne |
|
|
37.90 |
|
|
|
36.67 |
|
|
|
38.74 |
|
|
|
35.43 |
|
Milling cost per tonne |
|
|
16.56 |
|
|
|
16.02 |
|
|
|
16.68 |
|
|
|
16.31 |
|
Indirect cost per tonne |
|
|
16.84 |
|
|
|
11.56 |
|
|
|
13.72 |
|
|
|
9.69 |
|
Community relations cost per
tonne |
|
|
5.15 |
|
|
|
0.87 |
|
|
|
4.79 |
|
|
|
0.97 |
|
Distribution cost per tonne |
|
|
3.20 |
|
|
|
6.36 |
|
|
|
1.88 |
|
|
|
6.39 |
|
Production cash cost per tonne ($/t) |
|
|
79.66 |
|
|
|
71.48 |
|
|
|
75.80 |
|
|
|
68.79 |
|
1 Silver equivalent
sold for Q4 2021 is calculated using a silver to gold ratio of
76.8:1 (Q4 2020: 76.7:1) and for Year 2021 is calculated using a
silver to gold ratio of 71.5:1 (Year 2020: 84.0:1) |
2 Silver equivalent
is calculated using the realized prices for gold and silver. Refer
to Financial Results – Sales and Realized Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
Caylloma
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cost of sales |
|
|
18,585 |
|
|
|
15,475 |
|
|
|
67,917 |
|
|
|
54,357 |
|
Changes in concentrate
inventory |
|
|
939 |
|
|
|
318 |
|
|
|
297 |
|
|
|
345 |
|
Depletion and depreciation in
concentrate inventory |
|
|
165 |
|
|
|
(229 |
) |
|
|
61 |
|
|
|
(2 |
) |
Inventory adjustment |
|
|
(61 |
) |
|
|
(13 |
) |
|
|
(61 |
) |
|
|
(13 |
) |
Royalties and mining
taxes |
|
|
(188 |
) |
|
|
(133 |
) |
|
|
(345 |
) |
|
|
(523 |
) |
Provision for community
support |
|
|
(2,125 |
) |
|
|
- |
|
|
|
(2,125 |
) |
|
|
101 |
|
Workers participation |
|
|
(214 |
) |
|
|
(488 |
) |
|
|
(1,838 |
) |
|
|
(899 |
) |
Depletion and depreciation |
|
|
(3,607 |
) |
|
|
(3,815 |
) |
|
|
(16,182 |
) |
|
|
(13,994 |
) |
Cash cost |
A |
|
13,494 |
|
|
|
11,115 |
|
|
|
47,724 |
|
|
|
39,372 |
|
Total
processed ore (tonnes) |
B |
|
137,838 |
|
|
|
136,132 |
|
|
|
539,779 |
|
|
|
510,048 |
|
Production cash cost per tonne ($/t) |
=A/B |
|
97.89 |
|
|
|
81.65 |
|
|
|
88.41 |
|
|
|
77.19 |
|
Cash cost |
A |
|
13,494 |
|
|
|
11,115 |
|
|
|
47,724 |
|
|
|
39,372 |
|
Changes in concentrate
inventory |
|
|
(939 |
) |
|
|
(318 |
) |
|
|
(297 |
) |
|
|
(345 |
) |
Depletion and depreciation in
concentrate inventory |
|
|
(165 |
) |
|
|
229 |
|
|
|
(61 |
) |
|
|
2 |
|
Inventory adjustment |
|
|
61 |
|
|
|
13 |
|
|
|
61 |
|
|
|
13 |
|
Treatment charges |
|
|
4,629 |
|
|
|
5,357 |
|
|
|
15,754 |
|
|
|
19,334 |
|
Refining charges |
|
|
378 |
|
|
|
410 |
|
|
|
1,670 |
|
|
|
1,493 |
|
Cash cost applicable per
payable ounce sold |
C |
|
17,458 |
|
|
|
16,806 |
|
|
|
64,851 |
|
|
|
59,869 |
|
Payable
ounces of silver equivalent sold1 |
D |
|
1,261,967 |
|
|
|
1,150,047 |
|
|
|
4,819,365 |
|
|
|
4,258,979 |
|
Cash
cost per ounce of payable silver equivalent sold2 ($/oz) |
=C/D |
|
13.83 |
|
|
|
14.61 |
|
|
|
13.46 |
|
|
|
14.06 |
|
Mining cost per tonne |
|
|
42.02 |
|
|
|
34.89 |
|
|
|
34.71 |
|
|
|
33.85 |
|
Milling cost per tonne |
|
|
16.27 |
|
|
|
15.62 |
|
|
|
15.34 |
|
|
|
14.39 |
|
Indirect cost per tonne |
|
|
29.45 |
|
|
|
23.21 |
|
|
|
29.49 |
|
|
|
21.62 |
|
Community relations cost per
tonne |
|
|
7.96 |
|
|
|
1.57 |
|
|
|
7.77 |
|
|
|
0.78 |
|
Distribution cost per tonne |
|
|
2.18 |
|
|
|
6.36 |
|
|
|
1.10 |
|
|
|
6.55 |
|
Production cash cost per tonne ($/t) |
|
|
97.87 |
|
|
|
81.65 |
|
|
|
88.41 |
|
|
|
77.19 |
|
1 Silver equivalent
sold for Q4 2021 is calculated using a silver to gold ratio of
76.9:1 (Q4 2020: 76.8:1), silver to lead ratio of 1:22.2 pounds (Q4
2020: 1:28.2), and silver to zinc ratio of 1:15.4 pounds (Q4 2020:
1:20.6). Year 2021 is calculated using a silver to gold ratio of
70.9:1 (Year 2020: 90.2:1), silver to lead ratio of 1:25.3 pounds
(Year 2020: 1:24.9), and silver to zinc ratio of 1:18.6 pounds
(Year 2020: 1:20.0) |
2 Silver equivalent
is calculated using the realized prices for gold, silver, lead, and
zinc. Refer to Financial Results - Sales and Realized Prices |
Reconciliation of All-in Sustaining Cash Cost and All-in
Cash Cost per Payable Ounce of Silver Equivalent Sold for three and
twelve months ended December 31, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
San Jose
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
|
|
22,440 |
|
|
21,229 |
|
|
82,802 |
|
|
69,015 |
Royalties and mining
taxes |
|
|
1,587 |
|
|
1,411 |
|
|
5,955 |
|
|
4,289 |
Workers' participation |
|
|
1,545 |
|
|
1,876 |
|
|
7,261 |
|
|
8,200 |
General
and administrative expenses (operations) |
|
|
2,779 |
|
|
2,086 |
|
|
8,111 |
|
|
6,027 |
Adjusted operating cash
cost |
|
|
28,351 |
|
|
26,602 |
|
|
104,129 |
|
|
87,531 |
Care and maintenance costs
(impact of COVID-19) |
|
|
- |
|
|
- |
|
|
- |
|
|
1,568 |
Sustaining leases |
|
|
161 |
|
|
63 |
|
|
608 |
|
|
251 |
Sustaining capital
expenditures3 |
|
|
5,137 |
|
|
4,022 |
|
|
14,492 |
|
|
10,787 |
Brownfields exploration expenditures3 |
|
|
2,176 |
|
|
1,643 |
|
|
8,784 |
|
|
4,406 |
All-in sustaining cash
cost |
|
|
35,825 |
|
|
32,330 |
|
|
128,013 |
|
|
104,543 |
Non-sustaining capital expenditures3 |
|
|
518 |
|
|
568 |
|
|
2,294 |
|
|
942 |
All-in cash cost |
|
|
36,343 |
|
|
32,898 |
|
|
130,307 |
|
|
105,485 |
Payable
ounces of silver equivalent sold1 |
|
|
2,400,989 |
|
|
2,425,395 |
|
|
8,902,680 |
|
|
9,044,605 |
All-in
sustaining cash cost per ounce of payable silver equivalent
sold2 |
|
|
14.92 |
|
|
13.33 |
|
|
14.38 |
|
|
11.56 |
All-in
cash cost per ounce of payable silver equivalent sold2 |
|
|
15.14 |
|
|
13.56 |
|
|
14.64 |
|
|
11.66 |
1 Silver equivalent
sold for Q4 2021 is calculated using a silver to gold ratio of
76.8:1 (Q4 2020: 76.7:1) and for Year 2021 is calculated using a
silver to gold ratio of 71.5:1 (Year 2020: 84.0:1) |
2 Silver equivalent
is calculated using the realized prices for gold and silver. Refer
to Financial Results - Sales and Realized Prices |
3 Presented on a
cash basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
Caylloma
Mine |
|
|
Three months endedDecember 31, |
|
|
Years endedDecember 31, |
(Expressed in $'000's, except unit costs) |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Cash cost applicable |
|
|
17,458 |
|
|
16,806 |
|
|
64,851 |
|
|
59,869 |
Royalties and mining
taxes |
|
|
188 |
|
|
133 |
|
|
345 |
|
|
523 |
Workers' participation |
|
|
244 |
|
|
559 |
|
|
2,129 |
|
|
1,036 |
General
and administrative expenses (operations) |
|
|
786 |
|
|
1,182 |
|
|
3,625 |
|
|
3,520 |
Adjusted operating cash
cost |
|
|
18,676 |
|
|
18,680 |
|
|
70,950 |
|
|
64,948 |
Sustaining leases |
|
|
681 |
|
|
696 |
|
|
2,851 |
|
|
2,626 |
Sustaining capital
expenditures3 |
|
|
5,755 |
|
|
1,950 |
|
|
13,758 |
|
|
5,909 |
Brownfields exploration expenditures3 |
|
|
1,027 |
|
|
170 |
|
|
3,731 |
|
|
514 |
All-in
sustaining cash cost |
|
|
26,139 |
|
|
21,496 |
|
|
91,290 |
|
|
73,997 |
All-in cash cost |
|
|
26,139 |
|
|
21,496 |
|
|
91,290 |
|
|
73,997 |
Payable
ounces of silver equivalent sold1 |
|
|
1,261,967 |
|
|
1,150,047 |
|
|
4,819,365 |
|
|
4,258,979 |
All-in
sustaining cash cost per ounce of payable silver equivalent
sold2 |
|
|
20.71 |
|
|
18.69 |
|
|
18.94 |
|
|
17.37 |
All-in
cash cost per ounce of payable silver equivalent sold2 |
|
|
20.71 |
|
|
18.69 |
|
|
18.94 |
|
|
17.37 |
1 Silver equivalent
sold for Q4 2021 is calculated using a silver to gold ratio of
76.9:1 (Q4 2020: 76.8:1) , silver to lead ratio of 1:22.2 pounds
(Q4 2020: 1:28.2), and silver to zinc ratio of 1:15.4 pounds (Q4
2020: 1:20.6). Year 2021 is calculated using a silver to gold ratio
of 70.9:1 (Year 2020: 90.2:1), silver to lead ratio of 1:25.3
pounds (Year 2020: 1:24.9), and silver to zinc ratio of 1:18.6
pounds (Year 2020: 1:20.0) |
2 Silver equivalent
is calculated using the realized prices for gold, silver, lead, and
zinc. Refer to Financial Results - Sales and Realized Prices |
3 Presented on a
cash basis |
Additional information regarding the Company’s financial results
and activities underway are available in the Company’s audited
consolidated financial statements for the year ended December 31,
2021 and accompanying 2021 MD&A, which are available for
download on the Company’s website, on SEDAR and on EDGAR.
Conference Call and Webcast
A conference call to discuss the financial and
operational results will be held on Thursday, March 24, 2022 at
9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call
will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief
Financial Officer, Cesar Velasco, Chief Operating Officer - Latin
America, and Paul Criddle, Chief Operating Officer - West
Africa.
Shareholders, analysts, media and interested
investors are invited to listen to the live conference call by
logging onto the webcast or over the phone by dialing in just prior
to the starting time.
Conference call details:
Date: Thursday, March 24, 2022Time: 9:00 a.m. Pacific time |
12:00 p.m. Eastern time
Dial in number (Toll Free): +1.888.506.0062Dial in number
(International): +1.973.528.0011Entry code: 382909
Replay number (Toll Free): +1.877.481.4010Replay number
(International): +1.919.882.2331Replay Passcode: 44738
Playback of the earnings call will be available
until Thursday, April 7, 2022. Playback of the webcast will be
available until Saturday, March 25, 2023. In addition, a transcript
of the call will be archived on the Company’s website.
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with four operating mines in Argentina,
Burkina Faso, Mexico and Peru, and a fifth mine under construction
in Côte d’Ivoire. Sustainability is integral to all our operations
and relationships. We produce gold and silver and generate shared
value over the long-term for our stakeholders through efficient
production, environmental protection, and social responsibility.
For more information, please visit our website.
ON BEHALF OF THE BOARD
Jorge A. GanozaPresident, CEO,
and DirectorFortuna Silver Mines Inc.
Investor Relations: Carlos Baca
| info@fortunasilver.com
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 United States 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 anticipated performance in 2022;
estimated capital expenditures in 2022 and exploration spending in
2022, including amounts for exploration activities at the Séguéla
and San Jose properties; the Company’s plans for the construction
of an open pit mine at the Séguéla project in Cote d’Ivoire; the
economics for the construction of the mine at the Séguéla project
as set out in the feasibility study, the estimated construction
capital expenditures for the project, the timelines and schedules
for the construction and production of gold at the Séguéla project;
statements regarding the Company's liquidity; the Company's
business strategy, plans and outlook; the merit of the Company's
mines and mineral properties; mineral resource and reserve
estimates; production costs; timelines; the future financial or
operating performance of the Company; anticipated approvals and
other matters. Often, but not always, these Forward-looking
Statements can be identified by the use of words such as
"estimated", “expected”, “anticipated”, "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; the impact of the
COVID-19 pandemic on the Company’s mining operations and
construction activities; the risks relating to a global pandemic,
including the COVID-19 pandemic, as well as risks associated with
war or other geo-political hostilities, such as the Ukrainian –
Russian conflict, any of which could continue to cause a disruption
in global economic activity; the risks associated with the
completion of the Roxgold Acquisition, including the ability of the
Company to successfully consolidate functions, integrate
operations, procedures and personnel; adverse changes in prices for
gold, silver and other metals; the ability of the Company to obtain
an extension of the San Jose environmental impact authorization
("EIA"), including the Company's success in challenging an alleged
typographical error in the San Jose EIA received by the Company in
December 2021 and in obtaining a permanent injunction or equivalent
court protection to allow the continued operation of the San Jose
mine pending the approval of an extension to the San Jose EIA;
fluctuation in currencies and foreign exchange rates; inflation;
the imposition of capital controls in countries in which the
Company operates; any extension of the currency controls in
Argentina; changes in the prices of key supplies; 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; changes to current estimates of mineral
reserves and resources; changes to production and cost estimates;
changes in the position of regulatory authorities with respect to
the granting of approvals or permits; governmental and other
approvals; changes in government, 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 the accuracy of the
Company’s current mineral resource and reserve estimates; that the
Company’s activities will be conducted in accordance with the
Company’s public statements and stated goals; that there will be no
material adverse change affecting the Company, its properties or
changes to production estimates (which assume accuracy of projected
ore grade, mining rates, recovery timing, and recovery rate
estimates and may be impacted by unscheduled maintenance, labour
and contractor availability and other operating or technical
difficulties); the duration and impacts of COVID-19 and other
geo-political uncertainties on the Company’s production, workforce,
business, operations and financial condition; the expected trends
in mineral prices and currency exchange rates; that the Company
will obtain succeed in challenging the alleged typographical error
in the December 2021 extension to the San Jose EIA; that all
required approvals and permits will be obtained for the Company’s
business and operations on acceptable terms; that there will be no
significant disruptions affecting the Company's 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 these
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.
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