Make Kitco Your Homepage

Fortuna Silver reports record sales and consolidated EBITDA margins above 45% in second quarter

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 Q2 2021 net income of $16.2 million, adjusted net income of $21.5 million, and adjusted EBITDA of $54.9 million, compared to a net loss of $5.7 million, adjusted net loss of $5.1 million, and adjusted EBITDA of $9.4 million in Q2 2020.

The company also reported record sales of $120.5 million, an increase of 171% from the $44.5 million reported in the same period in 2020, due to higher gold and silver sales volumes and higher realized prices for all metals, and sales from the Lindero mine of $ 34.2 million. The company's silver and gold production in Q2 2021 was 1,892,822 ounces and 31,048 ounces, respectively.

Additionally, Fortuna noted that it had completed the business combination with Roxgold on July 2, 2021 creating a low-cost intermediate global precious metals producer with extensive brownfields and greenfields organic growth potential in the Americas and West Africa.

President and CEO Jorge A. Ganoza commented, "In spite of COVID-19 related challenges at Lindero, which have led us to revise guidance for the year, our second quarter results continue to reflect the strength of our business with record sales of $120.5 million and consolidated EBITDA margins above 45%."

"We look forward to the contribution of the Roxgold acquisition to our financial performance starting in Q3, with the forecasted addition of 62,000 to 66,000 gold ounces of production from the Yaramoko mine for the second half of 2021 at an AISC below $1,150 per ounce," added Ganoza.

Fortuna Silver Mines is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and an advanced development project in Côte d'Ivoire.

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.