Fortuna Silver Mines’ Operating Cash Flow Surges 76%
Fortuna Silver Mines (FVI.TSX, NYSE: FSM) reported it second quarter financial results, highlighted by a 76% increase in cash flow from operating activities on a year-over-year basis. The Canadian-based silver mining company announced adjusted net income of $6.89 million, a 37% rise over the prior year period. Fortuna also noted that it is on pace to surpass its full-year production guidance of 4.6 million silver equivalent ounces.
Highlights:
* Fortuna Silver Mines generated revenue of $38.69 million, a 58% increase over the second quarter of 2011
* Mine operating income rose 15% to $17.08 million
* Silver production surged 110% to 996,194 ounces
* Cash position and working capital at June 30, 2012 were $60.65 million and US$84.91 million, respectively
Jorge Ganoza, President and CEO of Fortuna Silver Mines:
“Our strong financial performance for the quarter is backed by solid operating and production results from our mines. At San Jose we are advancing our expansion to 1500 tonnes per day, scheduled for commissioning in mid 2013, which will further improve operating margins. At Caylloma, costs to mid-year are generally in line with budget. We are assessing various initiatives-including rebalancing production mix from narrow veins to mitigate new cost-inflationary pressures.”
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.”
2012-08-10 03:27:04
Source: http://www.goldalert.com/2012/08/fortuna-silver-mines-operating-cash-flow-surges-76/
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