Fortuna Silver boosts free cash flow from ongoing operations 129% in 2020
The company's operating income for the year ended December 31, 2020 was $57.2 million, a $23.0 million increase from the $34.2 million reported in the same period in 2019. The higher operating income was driven by higher precious metal prices and the contribution of $10.2 million of mine operating income from Lindero.
Net income for the year ended December 31, 2020 was $21.6 million, a $2.2 million decrease from the $23.8 million reported in 2019 as higher operating income was offset by lower investment gains in 2020 of $7.7 million, lower deferred tax credit of $11.0 million, and higher current taxes of $6.2 million.
Adjusted net income for the year ended December 31, 2020 was $31.8 million compared to $28.4 million in 2019.
Free cash flow from ongoing operations for the year ended December 31, 2020 was $78.9 million compared to $34.5 million in 2019.
President and CEO Jorge A. Ganoza commented, “Fourth quarter marks a continuation of very strong financial results in the second half of 2020 driven by favourable metal prices, sustained production, and cost containment in spite of a challenging operating environment.”
“With the Lindero mine starting to contribute to our margins and free cash flow through early recognition of sales in the fourth quarter, we look forward to a progressively higher impact on our operational and financial results as the mine continues to gradually ramp-up production according to our 2021 guidance,” concluded Ganoza.
Fortuna Silver Mines is a Canadian precious metals mining company with operations in Peru, Mexico and Argentina.