Fortuna Silver Mines Announces Strong Gold and Silver Production in Q1 2024
Fortuna Silver Mines Inc. reported robust gold and silver production numbers for the first quarter of 2024 from its operations in West Africa and Latin America. The company produced a total of 89,678 ounces of gold and 1.1 million ounces of silver during this period, equivalent to 112,543 gold equivalent ounces when including lead and zinc by-products.
Maintaining its 2024 production guidance, Fortuna anticipates producing between 343 to 385 thousand ounces of gold and 4.0 to 4.7 million ounces of silver. This forecast translates to 457 to 497 thousand gold equivalent ounces, accounting for lead and zinc by-products.
Q1 2024 witnessed Fortuna repaying $40 million of its credit facility, totaling $121 million repaid since the third quarter of 2023. Additionally, the company repurchased 1,030,375 shares under its normal course issuer bid program at an average price of $3.42 per share, amounting to $3.52 million.
A significant move during this quarter was the exercise of Fortuna's right to acquire 50 percent of the 1.2 percent net smelter return at the Séguéla Mine for AUD$10 million, according to a royalty agreement with Franco Nevada Corp.
The first quarter saw a 20 percent increase in gold equivalent production compared to the first quarter of 2023, with gold production itself increasing by 49 percent over the same period last year. However, silver production experienced a 32 percent decrease from the first quarter of 2023.
The Séguéla Mine in Côte d'Ivoire showcased solid production with mill throughput surpassing design capacity, while the Yaramoko Mine in Burkina Faso continued to meet targets. The Lindero Mine in Argentina reported steady gold production, and the San Jose Mine in Mexico produced in line with its mine plan despite operational challenges and cost pressures.
The company's total recordable injury frequency rate for the quarter stood at 3.10, compared to 1.39 in the first quarter of 2023.
