Make Kitco Your Homepage

Fortuna Silver boosts free cash flow from ongoing operations 129% in 2020

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) today reported full-year 2020 net income of $21.6 million, adjusted net income of $31.8 million, and adjusted EBITDA of $112.6 million.

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.

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.