Make Kitco Your Homepage

Fortuna Silver reports net income of $27 million in first 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 (TSX: FVI) announced Wednesday its Q1 2022 gold and silver production of 66,800 ounces and 1,670,128 ounces, respectively, an increase of 93% and a decrease of 13% respectively compared to Q1 2021.

The company said that all mine operations performed in line with annual guidance projections. The company added it continues to monitor the impact of inflationary pressures on its cost structure and any deviation this could create from the guidance the company issued at the beginning of the year.

The company's operating income for the three months ended March 30, 2022 was $40.7 million, a slight increase of $0.3 million compared to Q1 2021 as higher operating income at Lindero and the contribution from Yaramoko were offset by lower operating income at San Jose, higher corporate expenses.

Net income was $27.0 million or $0.09 per share, compared to $26.4 million or $0.14 net income per share reported in Q1 2021. Adjusted net income was $33.4 million compared to $27.5 million reported in Q1 2021.

President and CEO Jorge A. Ganoza commented, "Our net income in the quarter of $27.0 million and adjusted EBITDA of $80.3 million with margins of 44% attest to the strong operational performance of our four mines. We are running a thriving business in an $1,800 per ounce gold price environment and are confident of the resiliency of our assets throughout the precious metal cycle. We maintain a strong balance sheet with low debt leverage and a healthy liquidity position of $150.4 million."

Fortuna Silver Mines is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d'Ivoire.

Pan American Silver reports net income of $76.8 million in Q1, maintains its 2022 guidance

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.