Fortuna Silver boosts operating income 2,144% in Q1 2021
(Kitco News) - Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) today reported record first quarter 2021 net income of $26.4 million, adjusted net income of $27.5 million, and adjusted EBITDA of $60.8 million.
The company said that sales for the three months ended March 31, 2021 were $117.8 million, an increase of 148% from the $47.5 million reported in Q1 2020. Silver and gold prices increased 61% and 12%, respectively.
Operating income for the three months ended March 31, 2021 was $40.4 million, an increase of $38.6 million or 2,144% compared to Q1 2020 ($1.8 million). The increase was due primarily to higher silver and gold prices, and Lindero’s contribution to mine operating income of $11.7 million.
Net income for the three months ended March 31, 2021 was $26.4 million, a $30.9 million or 687% increase over the $4.5 million net loss reported in Q1 2020. Adjusted net income was $27.5 million, a 1,350% increase compared to $2.2 million net loss in Q1 2020.
Adjusted EBITDA for the three months ended March 31, 2021 was $60.8 million, an increase of $44.9 million or 282% compared to $15.9 million reported in Q1 2020. The increase reflects Lindero's contribution to adjusted EBITDA of $19.6 million as well as higher EBITDA at San Jose and Caylloma.
The company said that its record financial performance in the first quarter reflects the combination of strong operating performance at San Jose and Caylloma, Lindero's first full quarter of contribution to sales, and favourable metal prices.
Fortuna Silver asserted that it remains on track to meet its consolidated guidance of 178,000 to 202,000 ounces of gold and 6.8 million to 7.6 million ounces of silver in 2021.
Fortuna Silver Mines is a Canadian precious metals mining company with operations in Peru, Mexico, and Argentina. The company announced a business combination transaction with Roxgold on April 26, 2021.