Make Kitco Your Homepage

Fortuna: 1Q Profit Declines; Lindero Construction 47% Done

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

Fortuna Silver Mines Inc. (NYSE: FSM; TSX: FVI) reports a smaller first-quarter profit than a year ago and outlines continued progress on construction of the Lindero mine in Argentina. Fortuna lists adjusted net income in the first quarter of $8.4 million, down from $13.2 million in the same quarter of 2018. The decrease was blamed at lower sales at both San Jose and Caylloma, partially offset by gains on commodity derivative contracts, the company says. Net income was $2.2 million, or a penny per share, compared to $13.8 million, or 9 cents, in the same quarter in 2018.Sales fell to $59 million from 70.4 million a year ago due to lower prices of metals and fewer sales of gold and silver, the company says. Silver and gold production was 2.2 million and 13,314 ounces, respectively. "As of the end of April, Lindero construction progress is at 47% completion, with 97% of the direct capital expenditures committed, and 61% of the total projected capital spent,” says Jorge A. Ganoza, president and chief executive officer. “With mine preparation set to be concluded in May and construction of the crushing and leach pad facilities advancing according to schedule, we plan to initiate placing ore on the leach pad early in Q4 2019."

By Allen Sykora of Kitco News;


Mandalay Reports Adjusted Loss But CEO Cites Improvements

Wednesday May 15, 2019 08:45

The chief executive of Mandalay Resources Corp. (TSX: MND) says the company’s profitability has improved over recent quarters as output at the Björkdal mine improved. The company lists a first-quarter adjusted net loss of $459,000, or zero cents per share, a turnaround from a $939,000 profit, also zero cents, a year ago. However, the January-March result was a big improvement from a fourth-quarter adjusted loss of $11.5 million, or 3 cents a share. The company reports a net loss of $1.3 million, or zero cents per share, compared to $1.2 million in the same period a year ago. However, the January-March result was an improvement from a fourth-quarter loss of $31.3 million, or 7 cents. Revenue fell by $9.8 million from the year-ago period to $29.9 million, the company says, citing fewer gold-equivalent ounces sold and lower prices for metals. Gold-equivalent output was 21,940 ounces, down from 23,172 in the year-ago quarter. Production improved at Björkdal, but fell at Costerfield due to lower grades, officials say. “Mandalay’s financial and operational performance in the first quarter of 2019 marks a significant improvement over the past several quarters,” says Dominic Duffy, president and chief executive officer. “On a revenue, adjusted EBITDA, and adjusted net income basis, Mandalay’s first-quarter 2019 results are stronger than the three quarters that preceded it. Mandalay’s financial results from the first quarter of 2019 show that the company is steadily turning around its financial position. This improved performance comes as a result of Mandalay working through, and overcoming, several operational challenges that it faced in 2018.” In particular, he cites improvements at Björkdal, which benefited from a full quarter of having a new underground haulage fleet. Output of 14,385 ounces of gold at the mine exceeded company expectations and was the most since the fourth quarter of 2017, Duffy says. “We expect the higher production rates at Björkdal to remain stable for the remainder of 2019,” the CEO adds.

By Allen Sykora of Kitco News;


Jaguar Mining Reports 1Q Loss; Output Declines

Wednesday May 15, 2019 08:45

Jaguar Mining Inc. (TSX: JAG) lists a January-March net loss of $1.84 million, or a penny per share, compared to $1.78 million, also a penny, in the same period a year ago. Consolidated gold production of 16,365 ounces declined 13% from 18,865 a year ago. Jaguar reports lower output from both the Turmalina and Pilar mines but says improvements are expected to hike future output.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News