Fortuna Silver Mines has announced its financial and operational results for the first quarter of 2024, showing significant financial recovery and operational advancements.
Financial Highlights:
- The company reported a net income of $26.3 million or $0.09 per share, a substantial improvement from a net loss of $92.3 million in the previous quarter.
- Adjusted net income stood at $26.7 million, also up from $20.6 million in Q4 2023.
- Fortuna generated $84.3 million in cash flow from operations before changes in working capital, with free cash flow from ongoing operations at $12.1 million.
- Debt reduction was a key focus, with $40 million paid down on its revolving credit facility, bringing the total net debt down to $83 million.
- The net debt to adjusted EBITDA ratio improved to 0.2:1.
Operational Highlights:
- Gold equivalent production was 112,543 ounces, down from 136,154 ounces in Q4 2023.
- Gold production decreased to 89,678 ounces, and silver production to 1,074,571 ounces.
- The company maintained solid control over costs, reporting consolidated cash costs per ounce of gold equivalent sold at $879 and all-in sustaining costs (AISC) at $1,495 per ounce.
Growth and Development:
- At Seguela, mill throughput exceeded design capacity, averaging 195 tonnes per hour.
- The discovery of the Kingfisher prospect at Seguela and ongoing exploration at the Yessi Vein at San Jose highlighted significant potential for resource expansion.
Return to Shareholders:
- Fortuna returned $3.5 million to shareholders through its normal course issuer bid (NCIB) program and announced the renewal of the NCIB to purchase up to 5% of its outstanding common shares.
