Fortuna Mining Corp. reports operating and financial developments for a Canadian precious metals miner that produces gold and silver from three operating mines and a portfolio of exploration projects.
Recurring updates include quarterly production in gold-equivalent ounces, cash costs and all-in sustaining costs, cash flow, liquidity, safety performance and capital actions through normal course issuer bid activity. Company news also covers Mineral Reserve and Mineral Resource estimates, drilling at deposits such as Sunbird at Séguéla, exploration projects including Diamba Sud in Senegal, project agreements in the Guyana Shield, annual reporting and MD&A releases.
Fortuna Silver Mines (NYSE: FSM) announced the expiration of common share purchase Warrants for Medgold Resources Corp. on October 16, 2020. The Warrants, allowing for the purchase of 1,079,700 shares at C$0.40, expired unexercised. Following this, Fortuna holds 21,079,700 shares of Medgold, totaling 15.64% of its issued shares. Fortuna may adjust its ownership in Medgold in the future based on market conditions. An early warning report has been filed regarding this ownership change.
Fortuna Silver Mines Inc. (NYSE: FSM) reported Q3 2020 production results, achieving 2.1 million ounces of silver and 12,791 ounces of gold, reflecting increases of 10% and 12% year-over-year, respectively. Despite these gains, lead and zinc production declined by 6% and 10%, respectively. The company suspended production guidance due to COVID-19 uncertainties. For the first nine months of 2020, silver and gold production totaled 5.2 million ounces and 29,992 ounces, respectively. The Lindero Project faced delays, impacting the average gold grade of ore placed.
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Fortuna Silver Mines (NYSE: FSM) has commenced irrigation and leaching of ore at its Lindero gold Project in Argentina, with the first gold pour expected in early October 2020. As of August 31, 2020, 277,000 tonnes of ore averaging 0.87 g/t Au were placed on the heap leach pad. Night shift operations began in mid-August, achieving up to 93% of design capacity. Pre-commissioning of the ADR plant is 80% complete, and the company is advancing construction amid COVID-19 challenges effectively.
Fortuna Silver Mines reported a net loss of $5.7 million for Q2 2020, marking a significant decline from a net income of $10.3 million in the same quarter last year. Sales dropped to $44.5 million from $67.9 million in Q2 2019. The company achieved adjusted EBITDA of $9.4 million, down from $27.2 million in the prior year. Despite challenges from pandemic-induced shutdowns, Fortuna maintained neutral free cash flow of $0.2 million from ongoing operations. Production figures included 1,273,922 ounces of silver and 7,099 ounces of gold.