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Fortuna Reports Results for the Fourth Quarter and Full Year 2023

Fortuna Reports Results for the Fourth Quarter and Full Year 2023

(All amounts expressed in US dollars, tabular amounts in millions, unless otherwise stated)

VANCOUVER, British Columbia, March 06, 2024 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the fourth quarter and full year 2023.

Fourth Quarter and Full Year 2023 highlights

Financial

  • Attributable net loss for the quarter of $92.3 million or $0.30 per share after non-cash impairment charges of $90.6 million in Q4 2023, totaling an attributable net loss of $50.8 million for the full year 2023
  • Attributable adjusted net income1 of $20.6 million or $0.07 per share in Q4 2023, totaling $64.9 million, or $0.22 per share for the full year 2023
  • Net cash generated by operations for the quarter was $105.1 million or $0.36 per share in Q4 2023, totaling $296.3 million or $ 1.0 per share for the full year 2023
  • Free cash flow from ongoing operations1 of $66.2 million in Q4 2023; totaling $153.5 million for the full year 2023
  • The Company repaid $41.0 million of its corporate credit facility in the fourth quarter and the total net debt1 at year end stands at $83.0 million. An additional payment of $25.0 million was made subsequent to year end.
  • Liquidity as at December 31, 2023 was $213.1 million

Operational

  • Record gold equivalent production of 136,154 ounces3 in Q4 2023 and record annual gold equivalent production of 452,389 ounces3; representing increases of 6 and 13 percent compared to the respective periods in 2022
  • Record gold production of 107,376 ounces in Q4 2023 and 326,638 ounces for the full year 2023
  • Silver production of 1,354,003 ounces in Q4 2023 and 5,883,691 ounces for the full year 2023
  • Consolidated cash cost per gold equivalent ounce1 of $840 in Q4 2023 and $874 for the full year 2023
  • Consolidated AISC per gold equivalent ounce1 of $1,509 for Q4 2023 and $1,508 for the full year 2023
  • Continuous trend of improvement in annual safety performance across the business with a Total Recordable Injury Frequency Rate (TRIFR) of 1.22, and a Lost Time Injury Frequency Rate (LTIFR) of 0.36, compared to 2.32 and 0.39 in 2022

Growth and Development

  • During the fourth quarter of 2023 the Company initiated a 45,000-meter drill program at its newly acquired Diamba Sud project in Senegal. Subject to results the Company plans to produce a Preliminary Economic Assessment by the end of 2024
  • At the end of December 2023, the Séguéla Mine processing facility was performing 26% above name plate capacity. For 2024 management has identified opportunities to further optimize and debottleneck throughput.

1 Refer to Non-IFRS financial measures

2 AISC/oz Ag Eq calculated at realized metal prices, refer to mine site results for realized prices and Non-IFRS Financial Measures for silver equivalent ratio

3 Gold equivalent production includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,802/oz Au, $21.75/oz Ag, $2,161/t Pb and $3,468/t Zn or Au:Ag = 1:82.89, Au:Pb = 1:0.83, Au:Zn = 1:0.52  

 

Jorge A. Ganoza, President and CEO, commented,

“In the fourth quarter Fortuna delivered strong free cash-flow from ongoing operations of $65 million compared to $70 million in the third quarter. The Company also achieved record gold equivalent production of 136,154 ounces and record sales of $265.3 million, representing increases of 6% and 9% respectively compared to Q3.” Mr. Ganoza added, “Fourth quarter net earnings were impacted by non-cash write-downs and the remaining short life of reserves at San Jose, where we have recorded a non-cash impairment charge of $90.6 million. At San Jose our exploration continues pursuing the discovery of new resources with the aim of extending production beyond 2024.”

Mr. Ganoza continued,

“Fortuna had a strong close to 2023, with record annual gold production exceeding guidance and silver falling short by 7%. Gold equivalent production increased 13% to a record 452,389 gold equivalent ounces compared to 2022, and we have guided further growth in 2024. Record annual sales of $842.4 million were 24% above 2022. All our mines met or improved site AISC guidance for the year with the only exception being the San Jose Mine, which is operating on the tail end of reserves and had to contest with an illegal blockade at the beginning of the year.

Mr. Ganoza concluded,

“For 2024 our capital allocation priorities continue to be centered on providing maximum balance sheet flexibility through further debt reduction, and funding of aggressive organic growth programs with approximately 200,000 meters of exploration drilling planned across the portfolio. The Diamba Sud project in Senegal and the Séguéla Mine in Côte d´Ivoire are priorities for our exploration programs during the year.”

Fourth Quarter 2023 and Full Year 2023 Consolidated Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Years ended December 31,

(Expressed in millions)

 

2023

 

 

2022

 

 

% Change

 

2023

 

 

2022

 

 

% Change

Sales

 

265.3

 

 

164.7

 

 

61

%

 

842.4

 

 

681.5

 

 

24

%

Mine operating income

 

51.9

 

 

26.0

 

 

100

%

 

190.0

 

 

146.8

 

 

29

%

Operating loss

 

(77.4

)

 

(173.1

)

 

55

%

 

(0.4

)

 

(113.6

)

 

100

%

Attributable net loss

 

(92.3

)

 

(152.8

)

 

40

%

 

(50.8

)

 

(128.1

)

 

60

%

Attributable loss per share - basic

 

(0.30

)

 

(0.52

)

 

43

%

 

(0.17

)

 

(0.44

)

 

61

%

Adjusted attributable net income1

 

20.6

 

 

6.4

 

 

222

%

 

64.9

 

 

41.4

 

 

57

%

Adjusted EBITDA1

 

120.3

 

 

55.8

 

 

116

%

 

335.1

 

 

245.5

 

 

36

%

Net cash provided by operating activities

 

105.1

 

 

49.6

 

 

112

%

 

296.9

 

 

194.2

 

 

53

%

Free cash flow from ongoing operations1

 

66.2

 

 

4.4

 

 

1,405

%

 

153.5

 

 

69.2

 

 

122

%

Production cash cost ($/oz Au Eq)

 

840

 

 

873

 

 

(4

%)

 

874

 

 

849

 

 

3

%

All-in sustaining cash cost ($/oz Au Eq)

 

1,509

 

 

1,579

 

 

(4

%)

 

1,508

 

 

1,431

 

 

5

%

Capital expenditures2

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

46.8

 

 

33.9

 

 

38

%

 

136.1

 

 

98.1

 

 

39

%

Non-sustaining3

 

1.8

 

 

(2.3

)

 

178

%

 

5.2

 

 

8.2

 

 

(37

%)

Séguéla construction

 

-

 

 

23.5

 

 

(100

%)

 

50.0

 

 

107.7

 

 

(54

%)

Brownfields

 

5.5

 

 

6.5

 

 

(15

%)

 

16.1

 

 

23.3

 

 

(31

%)

As at

 

 

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

Cash and cash equivalents

 

 

 

128.1

 

 

80.5

 

 

59

%

Net liquidity position (excluding letters of credit)

 

 

 

 

 

 

 

213.1

 

 

150.5

 

 

42

%

Shareholder's equity attributable to Fortuna shareholders

 

 

 

 

 

 

 

1,238.4

 

 

1,244.8

 

 

(1

%)

Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

Capital expenditures are presented on a cash basis

 

3 Non-sustaining expenditures include greenfields exploration

 

Figures may not add due to rounding

 

 

 

Fourth Quarter 2023 Results

Attributable Net Loss and Adjusted Net Income
Attributable net loss for the period was $92.3 million compared to an attributable net loss of $152.8 million in Q4 2022 The loss in the quarter is explained by the following items:

  • An impairment charge of $90.6 million related to the anticipated closure of the San Jose Mine in late 2024, as the updated mine plan is scheduled to exhaust Mineral Reserves by the end of the year compared to mid-2025 as previously planned
  • A write-down of materials inventory of $10.1 million at the San Jose, Yaramoko and Lindero Mines
  • A write-down of low-grade ore stockpiles of $5.4 million at the Lindero Mine
  • A $6.4 million severance provision associated with the scheduled closure of the San Jose Mine
  • A write-down of $5.9 million related to greenfield exploration projects in Mexico and Argentina

After adjusting for impairment charges and other non-recurring items, adjusted attributable net income was $20.6 million or $0.07 per share compared to $6.4 million or $0.02 per share in Q4 2022. The increase was primarily due to higher gold sales volume and higher gold prices. Higher gold sales volume was mainly due to the contribution of Séguéla in its second full quarter of production. This was combined with 7% higher sales at Yaramoko from higher processed head grade. This was partially offset by lower sales at San Jose related to lower head grades consistent with the Mineral Reserve and a reduction in mined tonnage related to operational challenges in backfilling and blasting activities. The realized gold price was $1,990 per ounce in Q4 2023 compared to $1,737 per ounce in Q4 2022.

Other items impacting the adjusted net income for the quarter compared to Q4 2022 were higher G&A of $3.3 million, mostly related to the addition of Séguéla G&A and timing of execution on certain corporate G&A items; higher foreign exchange loss of $2.4 million primarily related to 118% devaluation of the official exchange rate in Argentina as part of the measures taken by the new elected government to achieve a more sustainable real exchange rate in the short term; Other expenses of $2.7 million related to administrative penalties at Yaramoko, and a higher interest expense of $4.0 million as a result of higher interest rates and $1.4 million of interest charges capitalized in Q4 2022 vs nil in Q4 2023. This was partially offset by $12.4 million of investment income related to cross-border, Argentine pesos denominated bond trades.

Depreciation and Depletion
Depreciation and depletion increased $27.1 million to $71.6 million in the fourth quarter of 2023 compared to $44.5 million in the comparable period of 2022. The increase was primarily due to an increase in ounces sold as well as higher depletion per ounce at Séguéla due to the depletion of the purchase price allocation from the Roxgold acquisition of $17.1 million.

Adjusted EBITDA and Cash Flow
Adjusted EBITDA for the quarter was $120.3 million, a margin of 45% over sales, compared to $55.8 million and margin over sales of 34%, reported in the same period in 2022. The main driver for the increase in EBITDA was the contribution from Séguéla with EBITDA margin of 73% in Q4 2023, combined with higher EBITDA from Yaramoko related to higher gold output. In addition, adjusted EBITDA reflects the positive impact from the inclusion of $12.4 million of investment income at our Argentine operations. The trade associated with the investment income was a one-off event executed under a time limited waiver granted by the government of Argentina in Q4 to allow exporters a partial recovery of economic losses incurred from the accumulated lag of the nominal exchange rate with respect to inflation.

Net cash generated by operations for the quarter was $105.1 million or $0.34 per share compared to $49.6 million or $0.17 per share in Q4 2022. The increase of $54.8 million reflects higher EBITDA of $61.8 million.

Free cash flow from ongoing operations for the quarter was $66.2 million compared to $4.4 million in Q4 2022. The increase reflects higher net cash generated by operations.

Cash cost per ounce and AISC 
Cash cost per gold equivalent ounce was $840, a decrease from the $873 reported in Q4 2022 as the contribution of lower cost ounces from Séguéla in Q4 2023 was offset by partially offset by higher cost per ounce at San Jose, which increased by over 64% due to lower production and higher costs year over year. This combined with higher cost per gold ounce at Lindero and Yaramoko of $120 and $131 respectively associated with lower head grades at Lindero and higher costs in Q4 2023 at Yaramoko.  AISC per gold equivalent ounce was $1,509 in Q4, slightly below the $1,579 recorded the prior year due to lower capex on a per ounce basis, partially offset by higher royalties related to the higher realized gold price.  

Full Year 2023 Results

Attributable Net Loss and Adjusted Net Income
Attributable net loss for the year was $50.8 million, compared to an attributable net loss of $128.1 million in 2022. The loss in 2023 is explained by impairment charges of $90.6 million at the San Jose Mine explained above.

After adjusting for impairment charges and other non-recurring items, attributable adjusted net income for 2023 was $64.9 million or $0.22 per share, compared to $41.4 million or $0.14 per share in 2022. The increase was primarily due to higher gold sales volume and higher gold prices.  Higher gold sales volume was mainly due to the contribution of Séguéla in the second half of the year upon successful commissioning and ramp-up in Q2 2023, and higher sales volume at Yaramoko explained by higher processed head grades in 2023. This was partially offset by lower production at Lindero, aligned with the grade profile in the mine plan, and lower head grades and processed ore at San Jose, explained by declining head grades in reserves and the impact of the 15 day mine stoppage in Q2 and related lingering operational challenges during the year. The realized gold price was $1,948 per ounce in 2023 compared to $1,802 per ounce in 2022. 

Other items impacting the adjusted net income compared to 2022 were higher G&A of $2.7 million, mostly related to the addition of Séguéla G&A; higher foreign exchange loss of $4.6 million mostly related to the devaluation of the Argentine peso as described above; higher other expenses of $9.7 million related to $3.5 million of stand-by charges at San Jose and Yaramoko in Q2 2023, $2.8 million related to a new agreement with the worker´s union at San Jose in Q2 2023, and $3.7 million of administrative penalties at Yaramoko payable to the Ministry of Mines recorded in Q2 and Q4 2023, and a higher interest expense of $7.5 million as a result of an increased debt balance outstanding, higher interest rates and discontinued capitalized interest charges in the second half of the year. This was partially offset by $12.4 million of investment income related to cross-border, Argentine pesos denominated bond trades.

Depreciation and Depletion
Depreciation and depletion for 2023 increased $46.8 million to $219.7 million compared to $172.8 million in 2022. The increase was primarily due an increase in ounces sold, the start of depletion at Séguéla, including $25.3 million related to the purchase price allocation from Roxgold, and higher depletion at Yaramoko due to declining reserves which increased the depletion rate of new capital additions underground.

Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA for the year was $335.1 million, a margin of 40% over sales, compared to $245.5 million reported in 2022, representing a margin of 36% over sales. The main drivers for the increase were the contribution of Séguéla with EBITDA margin of 69%, and higher production and improved margins at Yaramoko. In addition, adjusted EBITDA reflects the positive impact from the inclusion of $12.4 million of investment income at our Argentine operations as described above.

Net cash generated by operations for 2023 was $296.9 million or $1.00 per share compared to $194.2 million or $0.67 per share in 2022. The increase of $102.7 million is explained by higher EBITDA of $89.6 million combined with lower income tax paid of $16.3 million in 2023 primarily due to lower taxes paid at the San Jose Mine, no taxes paid at the Séguéla Mine in 2023 and higher repatriation withholding taxes incurred in 2022.

Free cash flow from ongoing operations for 2023 was $153.5 million compared to $69.2 million in 2022. The increase of $84.3 million reflects higher net cash generated by operations, partially offset by higher sustaining capital expenditures, including brownfields explorations. Sustaining capital expenditures on a cash basis increased by $27.6 million to $143.6 million explained by higher CAPEX at Lindero related to the leach-pad expansion and capex incurred at Séguéla in the second half of 2023.

Cash cost per ounce and AISC 
Cash cost per equivalent gold ounce was $874, slightly above the $849 reported in 2022 as the contribution of lower cost ounces from Séguéla in the second half of 2023 was offset by higher cost per gold ounce at Lindero of $182 related mainly to lower planned head grades in 2023, and higher cost per equivalent gold ounce at San Jose of $379 explained primarily by lower processed ore and lower head grades.  

AISC per ounce of gold equivalent of $1,508 in 2023 was $77 above the $1,431 recorded the prior year due mainly to higher cash cost per gold equivalent ounce and higher capex at Lindero related to the leach pad expansion.   

Liquidity

Total liquidity available to the Company as at December 31, 2023 was $213.1 million, comprised of $128.1 million of cash and cash equivalents and $85.0 million undrawn (excluding letters of credit) on the Company’s revolving $250.0 million credit facility. Total net debt as of the end of the quarter was $83.2 million.

Subsequent to the year end the Company paid down an additional $25.0 million on its corporate credit facility, taking the outstanding debt amount to $140.0 million.

Lindero Mine, Argentina

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

    

 

2023

 

 

2022

 

 

2023

 

 

2022

Mine Production

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes placed on the leach pad

 

 

1,556,000

 

 

1,334,509

 

 

6,005,049

 

 

5,498,064

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

0.63

 

 

0.80

 

 

0.64

 

 

0.81

Production (oz)

 

 

29,591

 

 

29,301

 

 

101,238

 

 

118,418

Metal sold (oz)

 

 

29,308

 

 

27,847

 

 

103,503

 

 

117,076

Realized price ($/oz)

 

 

1,993

 

 

1,732

 

 

1,942

 

 

1,803

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit Costs

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost ($/oz Au)1

 

 

934

 

 

814

 

 

920

 

 

739

All-in sustaining cash cost ($/oz Au)1

 

 

1,557

 

 

1,219

 

 

1,565

 

 

1,140

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures ($000's) 2

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

 

10,607

 

 

3,973

 

 

39,358

 

 

18,035

Sustaining leases

 

 

598

 

 

567

 

 

2,393

 

 

2,398

Non-sustaining

 

 

1,302

 

 

 

 

1,978

 

 

169

Brownfields

 

 

 

 

184

 

 

 

 

1,288

 

Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

2 Capital expenditures are presented on a cash basis.

 

In the fourth quarter of 2023, a total of 1,556,000 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.63 g/t, containing an estimated 31,665 ounces of gold. Gold production for Q4 2023 totaled 29,591 ounces. This represents a 1% increase in total ounces, from the previous quarter. Gold production was comprised of 24,977 ounces in doré bars, 4,443 ounces of gold contained in fine carbon, and 171 ounces contained in copper concentrate. Ore mined was 2.1 million tonnes, with a stripping ratio of 0.6:1. The stripping ratio in the fourth quarter was 45 percent lower than the third quarter of 2023.

For the full year 2023 gold production totaled 101,238 ounces, achieving midpoint of annual production guidance. Gold production comprised of 94,905 ounces in doré bars, 6,015 ounces in gold contained in fine carbon, and 319 ounces contained in copper concentrate. The stripping ratio for 2023 was 1.14:1, aligned with the mining plan for the year.

The cash cost per ounce of gold for the quarter ending December 31, 2023, was $934 compared to $814 in the same period of 2022. For the year ending December 31, 2023, the cash cost per ounce was $920, an increase from $739 in 2022. The increase in cash cost per ounce of gold for both the quarter and for the full year was primarily due to lower processed gold grades in accordance with the mine plan.

The all-in sustaining cash cost per gold ounce sold during Q4 2023 was $1,557, up from $1,219 in the fourth quarter of 2022. For the full year of 2023, the all-in sustaining cash cost was $1,565, compared to $1,140 in 2022. The increase both for the quarter and the year was driven by higher cash costs, along with increased sustaining capital expenditures related to the leach pad expansion. This was partially mitigated by higher copper by-product credits.

As of December 31, 2023, the leach pad expansion project is approximately 23% complete. Mobilization of the civil contractor’s personnel and equipment has advanced with earth moving activities having commenced in January. Deliveries of geomembrane and geosynthetic clay liner are on-track, with the remaining materials expected to arrive on site in the first quarter of 2024. The leach pad expansion remains on schedule for completion during the second half of 2024.

Yaramoko Mine, Burkina Faso

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

    

 

2023

    

 

2022

    

 

2023

    

 

2022

Mine Production

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled

 

 

110,445

 

 

142,694

 

 

531,579

 

 

546,651

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

7.16

 

 

6.45

 

 

6.81

 

 

6.37

Recovery (%)

 

 

98

 

 

98

 

 

98

 

 

98

Production (oz)

 

 

28,235

 

 

26,190

 

 

117,711

 

 

106,108

Metal sold (oz)

 

 

28,229

 

 

26,250

 

 

117,676

 

 

107,433

Realized price ($/oz)

 

 

1,984

 

 

1,742

 

 

1,945

 

 

1,802

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit Costs

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost ($/oz Au)1

 

 

949

 

 

818

 

 

809

 

 

840

All-in sustaining cash cost ($/oz Au)1

 

 

1,720

 

 

1,829

 

 

1,499

 

 

1,529

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures ($000's) 2

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

 

12,620

 

 

18,994

 

 

49,938

 

 

45,665

Sustaining leases

 

 

1,077

 

 

1,419

 

 

4,758

 

 

5,692

Brownfields

 

 

1,261

 

 

2,855

 

 

4,917

 

 

5,873

 

1 Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

2 Capital expenditures are presented on a cash basis.

 

The Yaramoko Mine produced 28,235 ounces of gold in the fourth quarter of 2023 with an average gold head grade of 7.16 g/t, 8% and 11% increases when compared to the same period in 2022. Higher production was due to higher grades partially offset by lower mill throughput in the fourth quarter and a planned maintenance shutdown in December.

Gold production in 2023 totaled 117,711 ounces, achieving the higher end of the annual guidance range.

The cash cost per ounce of gold sold for the quarter ended December 31, 2023, was $949 compared to $818 in the same period in 2022. The increase for the quarter is mainly attributed to higher mining costs, particularly due to equipment, energy, and overhead expenses, but was partially offset by higher gold production. For the year ending December 31, 2023, the cash cost per ounce of gold sold was $809, a decrease from $840 in 2022. The full year decrease is mainly due to increased production and lower mining costs during prior quarters.

The all-in sustaining cash cost per gold ounce sold was $1,720 for the quarter ended December 31, 2023, compared to $1,829 in the same period of 2022. The change in the quarter was primarily due to the increased cash cost described above, increased royalties and an administrative penalty in Q4, offset by reduced capital expenditures. For the full year, the all-in sustaining cash cost per gold ounces sold was $1,499 in 2023, compared to $1,529 in 2022. The increased royalties and administrative penalty costs in Q4 2023 were offset by increased production and decreased costs earlier in the year.

Exploration and grade control drilling success in conjunction with underground development extended mineralization on the western side of the Zone 55 mineralized structure. This provided additional mining areas which demonstrated wider and higher-grade extensions of mineralization within and beyond the existing resource boundary.

Séguéla Mine, Côte d'Ivoire

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

    

 

2023

    

 

2022

    

 

2023

    

 

2022

Mine Production

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled

 

 

387,624

 

 

-

 

 

807,617

 

 

-

Average tonnes crushed per day

 

 

4,123

 

 

-

 

 

3,282

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

3.62

 

 

-

 

 

3.42

 

 

-

Recovery (%)

 

 

95

 

 

-

 

 

94

 

 

-

Production (oz)

 

 

43,096

 

 

-

 

 

78,617

 

 

-

Metal sold (oz)

 

 

43,018

 

 

-

 

 

78,521

 

 

-

Realized price ($/oz)

 

 

1,994

 

 

-

 

 

1,963

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit Costs

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost ($/oz Au)1

 

 

323

 

 

-

 

 

357

 

 

-

All-in sustaining cash cost ($/oz Au)1

 

 

737

 

 

-

 

 

760

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures ($000's) 2

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

 

7,765

 

 

-

 

 

10,912

 

 

-

Sustaining leases

 

 

2,285

 

 

-

 

 

5,329

 

 

-

Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.

2 Capital expenditures are presented on a cash basis

 

In the fourth quarter of 2023, mined material totaled 387,624 tonnes of ore, averaging 3.62 g/t Au, and containing an estimated 43,096 ounces of gold from the Antenna Pit. Movement of waste during the quarter totaled 2,110,209 tonnes, for a strip ratio of 5.4:1. Séguéla produced 43,096 ounces of gold, a 37% increase and a 5% decrease, respectively, compared to the third quarter of 2023. The increase in gold production is directly related to the mill achieving consistently higher throughput, processing 387,624 tonnes, a 25% increase over the previous quarter.

Gold production in 2023 totaled 78,617 ounces, exceeding the higher end of the annual guidance range.

Reconciliation of tonnes, grade, and gold ounces mined for the fourth quarter from Antenna show a positive correlation when compared to the long-term reserve model with 6% higher ore tonnes mined at 16% higher grades resulting in 24% more gold ounces extracted than predicted in the model.

Process plant performance continued to improve as feed characteristics were stabilized and initial bottlenecks addressed. Recovery in the fourth quarter increased to 94.9%, ahead of feasibility study assumptions. Plant productivity also continued to improve with throughput in the fourth quarter being 186 tonnes/hour, a 20% increase on the 154 tonnes/hour nameplate capacity.

Cash cost per gold ounce sold was $323 for Q4 2023 and $357 for the full year, which was below plan and guidance, primarily due to higher production, higher head grades, lower consumable consumption, and lower service costs.

All-in sustaining cash cost per gold ounce sold was $737 for Q4 2023 and $760 for the full year, which was below plan and guidance, primarily due to lower cash cost and higher sales volume, partially offset by higher capital expenditures.

San Jose Mine, Mexico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

    

 

2023

    

 

2022

    

 

2023

    

 

2022

Mine Production

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled

 

 

241,035

 

 

259,500

 

 

930,200

 

 

1,029,590

Average tonnes milled per day

 

 

2,678

 

 

2,883

 

 

2,643

 

 

2,925

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

145

 

 

194

 

 

171

 

 

191

Recovery (%)

 

 

91

 

 

91

 

 

91

 

 

91

Production (oz)

 

 

1,023,525

 

 

1,473,627

 

 

4,656,631

 

 

5,762,563

Metal sold (oz)

 

 

1,040,888

 

 

1,482,452

 

 

4,659,611

 

 

5,755,330

Realized price ($/oz)

 

 

23.35

 

 

21.37

 

 

23.36

 

 

21.73

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

0.91

 

 

1.13

 

 

1.06

 

 

1.14

Recovery (%)

 

 

90

 

 

90

 

 

90

 

 

90

Production (oz)

 

 

6,345

 

 

8,499

 

 

28,559

 

 

34,124

Metal sold (oz)

 

 

6,406

 

 

8,621

 

 

28,524

 

 

34,201

Realized price ($/oz)

 

 

1,983

 

 

1,734

 

 

1,942

 

 

1,802

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit Costs

 

 

 

 

 

 

 

 

 

 

 

 

Production cash cost ($/t)2

 

 

103.89

 

 

86.26

 

 

98.98

 

 

81.33

Production cash cost ($/oz Ag Eq)1,2

 

 

17.57

 

 

11.16

 

 

14.40

 

 

10.56

All-in sustaining cash cost ($/oz Ag Eq)1,2

 

 

21.98

 

 

15.53

 

 

19.40

 

 

15.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures ($000's) 3

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

 

3,190

 

 

3,695

 

 

14,018

 

 

15,731

Sustaining leases

 

 

246

 

 

169

 

 

878

 

 

658

Non-sustaining

 

 

505

 

 

 

 

1,682

 

 

869

Brownfields

 

 

1,257

 

 

961

 

 

4,215

 

 

5,606

 

Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively.

2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

Capital expenditures are presented on a cash basis.

 

In the fourth quarter of 2023, San Jose produced 1,023,525 ounces of silver and 6,345 ounces of gold, 31% and 25% decreases respectively, at average head grades for silver and gold of 145 g/t and 0.91 g/t, 25% and 20% decreases respectively, when compared to the same period in 2022. The decrease in silver and gold production for the quarter is explained by the declining grade profile of Mineral Reserves in the mine plan, as well as lower tonnage extracted from the mine. The reduction in tonnage is due to operational challenges leading to delays in backfilling and blasting operations in stopes P and Q during December 2023. During the fourth quarter, the processing plant milled 241,035 tonnes at an average of 2,678 tonnes per day.

Production in 2023 totaled 4,656,631 ounces of silver and 28,559 ounces of gold, 12% and 16% below annual guidance range, respectively. The decrease in production is attributed primarily to the 15-day illegal union blockade in the second quarter, the associated disruption to operations thereafter, and a silver and gold head grade reconciliation to reserves at the lower end of guidance range.

The cash cost per silver equivalent ounce for the three months ending December 31, 2023, was $17.57, an increase from $11.16 in the same period of 2022. This increase was primarily attributed to lower head grades, as discussed above, and higher cash costs per tonne primarily related to the appreciation of the Mexican peso, higher mining contractor tariffs, and a 7% decrease in processed ore. For the year ending December 31, 2023 the cash cost per silver equivalent ounce sold was $14.40 compared to $10.56. The full year increase was driven by lower head grades, and higher cash cost per tonne, which was similarly influenced by the appreciation of the Mexican Peso and 10% lower tonnes processed.

The all-in sustaining cash cost of payable silver equivalent for the three months ended December 31, 2023 increased by 42% to $21.98 per ounce, and full year 2023 increased by 28% to $19.40 per ounce. This compares to $15.53 per ounce and $15.11 per ounce for the same periods in 2022. These increases were mainly driven by higher cash costs and lower production, slightly mitigated by lower workers' participation costs.

The decrease in Brownfields expenditures is primarily attributable to reduced drilling activity in 2023. Drilling in 2023 was however higher than initially anticipated, owing to the emergent drilling campaign at the Yessi vein, discovered in the third quarter of the year. Exploration at the Yessi vein continues.

Caylloma Mine, Peru

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

    

 

2023

    

 

2022

    

 

2023

    

 

2022

Mine Production

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled

 

 

140,800

 

 

138,491

 

 

543,876

 

 

546,186

Average tonnes milled per day

 

 

1,564

 

 

1,556

 

 

1,528

 

 

1,539

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

88

 

 

75

 

 

85

 

 

80

Recovery (%)

 

 

83

 

 

81

 

 

83

 

 

81

Production (oz)

 

 

330,478

 

 

273,119

 

 

1,227,060

 

 

1,144,714

Metal sold (oz)

 

 

353,935

 

 

289,870

 

 

1,229,298

 

 

1,156,381

Realized price ($/oz)

 

 

23.06

 

 

21.28

 

 

23.37

 

 

21.81

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold

 

 

 

 

 

 

 

 

 

 

 

 

Grade (g/t)

 

 

0.11

 

 

0.12

 

 

0.13

 

 

0.14

Recovery (%)

 

 

21

 

 

22

 

 

22

 

 

32

Production (oz)

 

 

109

 

 

122

 

 

513

 

 

777

Metal sold (oz)

 

 

 

 

 

 

40

 

 

603

Realized price ($/oz)

 

 

 

 

 

 

1,902

 

 

1,864

 

 

 

 

 

 

 

 

 

 

 

 

 

Lead

 

 

 

 

 

 

 

 

 

 

 

 

Grade (%)

 

 

3.84

 

 

3.22

 

 

3.74

 

 

3.27

Recovery (%)

 

 

91

 

 

89

 

 

91

 

 

88

Production (000's lbs)

 

 

10,798

 

 

8,735

 

 

40,852

 

 

34,588

Metal sold (000's lbs)

 

 

11,641

 

 

9,118

 

 

41,074

 

 

34,869

Realized price ($/lb)

 

 

0.97

 

 

0.96

 

 

0.98

 

 

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

 

 

 

 

 

 

 

 

 

 

Grade (%)

 

 

5.00

 

 

4.63

 

 

5.11

 

 

4.32

Recovery (%)

 

 

90

 

 

89

 

 

90

 

 

89

Production (000's lbs)

 

 

13,933

 

 

12,575

 

 

55,060

 

 

46,176

Metal sold (000's lbs)

 

 

14,407

 

 

11,027

 

 

56,166

 

 

44,770

Realized price ($/lb)

 

 

1.13

 

 

1.35

 

 

1.23

 

 

1.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit Costs

 

 

 

 

 

 

 

 

 

 

 

 

Production cash cost ($/t)2

 

 

100.71

 

 

95.70

 

 

100.40

 

 

92.96

Production cash cost ($/oz Ag Eq)1,2

 

 

13.67

 

 

12.46

 

 

14.28

 

 

12.34

All-in sustaining cash cost ($/oz Ag Eq)1,2

 

 

22.34

 

 

20.30

 

 

19.90

 

 

17.97

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures ($000's) 3

 

 

 

 

 

 

 

 

 

 

 

 

Sustaining

 

 

8,635

 

 

7,188

 

 

17,903

 

 

18,694

Sustaining leases

 

 

912

 

 

845

 

 

3,538

 

 

3,350

Brownfields

 

 

966

 

 

473

 

 

2,302

 

 

1,202

 

Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively.

2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.

Capital expenditures are presented on a cash basis.

 

In the fourth quarter, the Caylloma Mine produced 330,478 ounces of silver at an average head grade of 88 g/t, a 21% and 17% increase, respectively, when compared to the previous quarter. Silver production for 2023 totaled 1,227,060 ounces, exceeding the upper end of annual guidance range by 10%.

Lead and zinc production for the quarter was 10.8 million pounds of lead, and 13.9 million pounds of zinc. Lead and zinc production rose by 24% and 11%, respectively, compared to the same period in 2022. Head grades averaged 3.84%, and 5.00%, a 19% and 8% increase, respectively, when compared to the previous quarter. Record lead and zinc production for 2023 totaled 40.9 and 55.1 million pounds, respectively. Increased production is the result of positive grade reconciliation to the reserve model in levels 16 and 18 of the Animas vein. Gold production for the quarter totaled 109 ounces with an average head grade of 0.11 g/t.

The cash cost per silver equivalent ounce sold for the quarter ended December 31, 2023, was $13.67 compared to $12.46 in the same period in 2022. The increase for the quarter is attributed primarily due to higher cash cost per tonne, higher treatment charges and the impact of higher silver prices on the calculation of silver equivalent ounces . For the year ended December 31, 2023, the cash cost per ounce of gold sold was $14.3, compared to $12.3 in 2022. The full year increase was driven mainly by the same factors explained above for the quarter.

The all-in sustaining cash cost per ounce of payable silver equivalent for the three months ended December 31, 2023, increased 10% to $22.34, compared to $20.30 for the same period in 2022. The all-in sustaining cash cost per ounce of payable silver equivalent for the full year 2023 increased 11% to $19.90, compared to $17.97 in 2022. The increases were mainly driven by the impact of higher silver prices on the calculation of silver equivalent ounces, higher cash costs per ounce and higher capital costs.

Underground development for the quarter was mainly focused on mine levels 15, 16, and 18. The increase in Brownfields expenditures is primarily attributable to greater meterage and additional diamond drilling.

Qualified Person

Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company’s Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.

Fourth Quarter Unaudited and Annual Audited Income Statement and Cash Flow

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

Note

    

2023

 

    

2022

 

    

2023

 

    

2022

 

Sales

20

 

$

265,314

 

 

$

164,723

 

 

$

842,428

 

 

$

681,491

 

Cost of sales

21

 

 

213,462

 

 

 

138,683

 

 

 

652,403

 

 

 

534,695

 

Mine operating income

 

 

 

51,852

 

 

 

26,040

 

 

 

190,025

 

 

 

146,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administration

22

 

 

19,909

 

 

 

16,676

 

 

 

64,073

 

 

 

61,456

 

Foreign exchange loss

 

 

 

2,430

 

 

 

442

 

 

 

10,885

 

 

 

8,866

 

Impairment of mineral properties, plant and equipment

32

 

 

90,615

 

 

 

182,842

 

 

 

90,615

 

 

 

182,842

 

Write-off of mineral properties

 

 

 

5,263

 

 

 

372

 

 

 

5,985

 

 

 

5,874

 

Other (income) expenses

23

 

 

11,009

 

 

 

(1,186

)

 

 

18,874

 

 

 

1,310

 

 

 

 

 

129,226

 

 

 

199,146

 

 

 

190,432

 

 

 

260,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

 

(77,374

)

 

 

(173,106

)

 

 

(407

)

 

 

(113,552

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment gains

5

 

 

12,395

 

 

 

 

 

 

12,395

 

 

 

-

 

Interest and finance costs, net

24

 

 

(7,535

)

 

 

(3,111

)

 

 

(21,790

)

 

 

(12,057

)

(Loss) gain on derivatives

20

 

 

(301

)

 

 

453

 

 

 

(1,249

)

 

 

500

 

 

 

 

 

4,559

 

 

 

(2,658

)

 

 

(10,644

)

 

 

(11,557

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

 

(72,815

)

 

 

(175,764

)

 

 

(11,051

)

 

 

(125,109

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

25

 

 

27,057

 

 

 

7,756

 

 

 

42,636

 

 

 

35,783

 

Deferred income tax expense (recovery)

25

 

 

(10,033

)

 

 

(23,086

)

 

 

(10,057

)

 

 

(24,986

)

 

 

 

 

17,024

 

 

 

(15,330

)

 

 

32,579

 

 

 

10,797

 

Net loss for the year

 

 

$

(89,839

)

 

$

(160,434

)

 

$

(43,630

)

 

$

(135,906

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fortuna shareholders

 

 

$

(92,316

)

 

$

(152,772

)

 

$

(50,836

)

 

$

(128,132

)

Non-controlling interest

30

 

 

2,477

 

 

 

(7,662

)

 

 

7,206

 

 

 

(7,774

)

 

 

 

$

(89,839

)

 

$

(160,434

)

 

$

(43,630

)

 

$

(135,906

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

19

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

(0.30

)

 

$

(0.52

)

 

$

(0.17

)

 

$

(0.44

)

Diluted

 

 

$

(0.30

)

 

$

(0.52

)

 

$

(0.17

)

 

$

(0.44

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (000's)

 

 

 

 

 

 

 

 

 

Basic

 

 

 

306,511

 

 

 

291,429

 

 

 

295,067

 

 

 

291,281

 

Diluted

 

 

 

306,511

 

 

 

291,429

 

 

 

295,067

 

 

 

291,281

 

 

Statement of Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Years ended December 31,

 

Note

    

2023

 

    

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year

 

 

$

(89,839

)

 

 

(160,434

)

 

$

(43,630

)

 

$

(135,906

)

Items not involving cash

 

 

 

 

 

 

 

 

 

 

 

 

 

Depletion and depreciation

 

 

 

71,602

 

 

 

44,499

 

 

 

219,688

 

 

 

172,809

 

Accretion expense

24

 

 

1,597

 

 

 

1,256

 

 

 

6,773

 

 

 

4,830

 

Income taxes

 

 

 

17,023

 

 

 

(15,329

)

 

 

32,579

 

 

 

10,797

 

Interest expense, net

24

 

 

5,933

 

 

 

1,855

 

 

 

15,017

 

 

 

7,227

 

Share-based payments, net of cash settlements

 

 

 

2,602

 

 

 

2,961

 

 

 

2,017

 

 

 

(1

)

Impairment of mineral properties, plant and equipment

32

 

 

90,615

 

 

 

182,841

 

 

 

90,615

 

 

 

182,841

 

Inventory net realizable value adjustments

6

 

 

5,260

 

 

 

3,809

 

 

 

6,188

 

 

 

8,898

 

Inventory obsolescence adjustments

6

 

 

10,097

 

 

 

-

 

 

 

10,097

 

 

 

-

 

Write-off of mineral properties

9

 

 

5,210

 

 

 

372

 

 

 

5,985

 

 

 

5,874

 

Unrealized foreign exchange loss

 

 

 

4,441

 

 

 

(1,911

)

 

 

5,706

 

 

 

4,554

 

Investment gains

5

 

 

(12,395

)

 

 

-

 

 

 

(12,395

)

 

 

-

 

Unrealized gains on derivatives

 

 

 

81

 

 

 

182

 

 

 

(170

)

 

 

(1,194

)

Other

23

 

 

4,462

 

 

 

(239

)

 

 

5,142

 

 

 

-

 

Closure and reclamation payments

16

 

 

(599

)

 

 

(270

)

 

 

(1,203

)

 

 

(623

)

Changes in working capital

29

 

 

887

 

 

 

38

 

 

 

(9,737

)

 

 

(18,021

)

Cash provided by operating activities

 

 

 

116,977

 

 

 

59,630

 

 

 

332,672

 

 

 

242,085

 

Income taxes paid

 

 

 

(6,271

)

 

 

(7,351

)

 

 

(25,872

)

 

 

(42,222

)

Interest paid

 

 

 

(6,916

)

 

 

(3,366

)

 

 

(13,545

)

 

 

(7,465

)

Interest received

 

 

 

1,287

 

 

 

660

 

 

 

3,654

 

 

 

1,851

 

Net cash provided by operating activities

 

 

 

105,076

 

 

 

49,573

 

 

 

296,909

 

 

 

194,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs related to Chesser acquisition, net of cash acquired

8

 

 

(10,260

)

 

 

-

 

 

 

(13,321

)

 

 

-

 

Restricted cash

 

 

 

-

 

 

 

-

 

 

 

 

 

 

(1,911

)

Additions to mineral properties and property, plant and equipment

 

 

 

(51,852

)

 

 

(70,402

)

 

 

(217,314

)

 

 

(251,236

)

Contractor advances on Séguéla construction

 

 

 

-

 

 

 

-

 

 

 

(8

)

 

 

(2,186

)

Purchases of investments

5

 

 

(9,359

)

 

 

-

 

 

 

(9,359

)

 

 

-

 

Proceeds from sale of investments

5

 

 

21,754

 

 

 

-

 

 

 

21,754

 

 

 

-

 

Other investing activities

 

 

 

(1,283

)

 

 

-

 

 

 

1,364

 

 

 

-

 

Cash used in investing activities

 

 

 

(51,000

)

 

 

(70,402

)

 

 

(216,884

)

 

 

(255,333

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction costs on credit facility

14

 

 

-

 

 

 

-

 

 

 

 

 

 

(688

)

Proceeds from credit facility

14

 

 

10,000

 

 

 

15,000

 

 

 

75,500

 

 

 

80,000

 

Repayment of credit facility

14

 

 

(50,500

)

 

 

-

 

 

 

(90,500

)

 

 

(20,000

)

Repurchase of common shares

18

 

 

-

 

 

 

-

 

 

 

 

 

 

(5,929

)

Issuance of common shares from option exercise

 

 

 

301

 

 

 

-

 

 

 

301

 

 

 

-

 

Payments of lease obligations

 

 

 

(4,976

)

 

 

(2,988

)

 

 

(16,625

)

 

 

(12,209

)

Dividend payment to non-controlling interest

 

 

 

(87

)

 

 

-

 

 

 

(1,392

)

 

 

(2,708

)

Cash (used in) provided by financing activities

 

 

 

(45,262

)

 

 

12,012

 

 

 

(32,716

)

 

 

38,466

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

1,551

 

 

 

1,457

 

 

 

346

 

 

 

(3,986

)

Increase (decrease) in cash and cash equivalents during the year

 

 

 

10,365

 

 

 

(7,360

)

 

 

47,655

 

 

 

(26,604

)

Cash and cash equivalents, beginning of the year

 

 

 

117,780

 

 

$

116,126

 

 

 

80,493

 

 

 

107,097

 

Cash and cash equivalents, end of the year

 

 

$

128,145

 

 

$

108,766

 

 

$

128,148

 

 

$

80,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

$

106,135

 

 

$

65,140

 

 

$

106,135

 

 

$

65,140

 

Cash equivalents

 

 

 

22,013

 

 

 

15,353

 

 

 

22,013

 

 

 

15,353

 

Cash and cash equivalents, end of the year

 

 

$

128,148

 

 

$

80,493

 

 

$

128,148

 

 

$

80,493

 

Supplemental cash flow information (Note 29)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS Financial Measures

The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, and are not disclosed in the Company's financial statements, including but not limited to: cash cost per ounce of gold equivalent sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold equivalent sold; total production cash cost per tonne; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow from ongoing operations; adjusted net income; attributable adjusted net income; adjusted EBITDA; net debt and working capital.

These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS. The Company has calculated these measures consistently for all periods presented.

To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition, see “Non-IFRS Financial Measures” in the Company’s management’s discussion and analysis for the fiscal year ended December 31, 2023 (“2023 MD&A”), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor and the additional purposes, if any, for which management of Fortuna uses such measures and ratio. The 2023 MD&A may be accessed on SEDAR+ at www.sedarplus.ca under the Company’s profile, Fortuna Silver Mines Inc.

Except as otherwise described in the 2023 MD&A, the Company has calculated these measures consistently for all periods presented.

Reconciliation to Adjusted Net Income for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

Consolidated (in millions of US dollars)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income

 

(89.8

)

 

 

(160.4

)

 

 

(43.6

)

 

 

(135.9

)

Adjustments, net of tax:

 

 

 

 

 

 

 

 

 

 

 

Community support provision and accruals1

 

(0.4

)

 

 

(0.1

)

 

 

(0.5

)

 

 

(0.1

)

Foreign exchange loss, Séguéla Mine2

 

-

 

 

 

(0.4

)

 

 

-

 

 

 

0.8

 

Write off of mineral properties

 

4.0

 

 

 

0.3

 

 

 

4.5

 

 

 

5.1

 

Unrealized loss on derivatives

 

0.1

 

 

 

0.1

 

 

 

(0.3

)

 

 

(0.4

)

Impairment of mineral properties, plant and equipment

 

90.6

 

 

 

164.5

 

 

 

90.6

 

 

 

164.5

 

Inventory adjustment

 

13.5

 

 

 

3.8

 

 

 

14.2

 

 

 

8.0

 

Accretion on right of use assets

 

0.5

 

 

 

0.5

 

 

 

3.3

 

 

 

2.3

 

Other non-cash/non-recurring items

 

4.9

 

 

 

(1.1

)

 

 

4.4

 

 

 

(1.7

)

Adjusted Net Income

 

23.4

 

 

 

7.2

 

 

 

72.6

 

 

 

42.6

 

Amounts are recorded in Cost of sales

 

 

 

 

 

 

 

 

 

 

 

Amounts are recorded in General and Administration

 

 

 

 

 

 

 

 

 

 

 

Figures may not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Attributable Adjusted Net Income for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

Consolidated (in millions of US dollars)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net loss attributable to shareholders

 

(92.3

)

 

 

(152.8

)

 

 

(50.8

)

 

 

(128.1

)

Adjustments, net of tax:

 

 

 

 

 

 

 

 

 

 

 

Community support provision and accruals1

 

(0.4

)

 

 

(0.1

)

 

 

(0.5

)

 

 

(0.1

)

Foreign exchange loss, Séguéla Mine2

 

 

 

 

(0.4

)

 

 

 

 

 

1.1

 

Write off of mineral properties

 

4.0

 

 

 

0.3

 

 

 

4.5

 

 

 

5.1

 

Unrealized loss (gain) on derivatives

 

0.1

 

 

 

0.1

 

 

 

(0.3

)

 

 

(0.4

)

Impairment of mineral properties, plant and equipment

 

90.6

 

 

 

155.9

 

 

 

90.6

 

 

 

155.9

 

Inventory adjustment

 

13.2

 

 

 

3.8

 

 

 

13.9

 

 

 

7.6

 

Accretion on right of use assets

 

0.5

 

 

 

0.5

 

 

 

3.1

 

 

 

2.3

 

Other non-cash/non-recurring items

 

4.9

 

 

 

(0.9

)

 

 

4.4

 

 

 

(2.0

)

Attributable Adjusted Net Income

 

20.6

 

 

 

6.4

 

 

 

64.9

 

 

 

41.4

 

Amounts are recorded in Cost of sales

 

 

 

 

 

 

 

 

 

 

 

Amounts are recorded in General and Administration

 

 

 

 

 

 

 

 

 

 

 

Figures may not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Adjusted EBITDA for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

Consolidated (in millions of US dollars)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income

 

(89.8

)

 

 

(160.4

)

 

 

(43.6

)

 

 

(135.9

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Community support provision and accruals

 

(0.5

)

 

 

(0.1

)

 

 

(0.7

)

 

 

(0.1

)

Inventory adjustment

 

15.4

 

 

 

3.8

 

 

 

16.3

 

 

 

8.9

 

Foreign exchange loss, Séguéla Mine

 

-

 

 

 

(0.4

)

 

 

0.8

 

 

 

0.8

 

Net finance items

 

7.5

 

 

 

3.1

 

 

 

21.8

 

 

 

12.1

 

Depreciation, depletion, and amortization

 

71.6

 

 

 

45.3

 

 

 

219.6

 

 

 

172.8

 

Income taxes

 

17.0

 

 

 

(15.3

)

 

 

32.6

 

 

 

10.8

 

Impairment of mineral properties, plant and equipment

 

90.6

 

 

 

182.8

 

 

 

90.6

 

 

 

182.8

 

Other non-cash/non-recurring items

 

8.5

 

 

 

(3.0

)

 

 

(2.3

)

 

 

(6.7

)

Adjusted EBITDA

 

120.3

 

 

 

55.8

 

 

 

335.1

 

 

 

245.5

 

Figures may not add due to rounding

Reconciliation of Free Cash Flow from ongoing operations for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

Consolidated (in millions of US dollars)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

105.1

 

 

 

49.6

 

 

 

296.9

 

 

 

194.2

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

Séguéla, working capital

 

-

 

 

 

-

 

 

 

4.4

 

 

 

-

 

Additions to mineral properties, plant and equipment

 

(46.3

)

 

 

(39.6

)

 

 

(143.6

)

 

 

(113.4

)

Gain on blue chip swap investments

 

12.4

 

 

 

-

 

 

 

12.4

 

 

 

-

 

Mexican royalty payment

 

-

 

 

 

-

 

 

 

-

 

 

 

3.0

 

Other adjustments

 

(5.0

)

 

 

(5.6

)

 

 

(16.6

)

 

 

(14.6

)

Free cash flow from ongoing operations

 

66.2

 

 

 

4.4

 

 

 

153.5

 

 

 

69.2

 

Figures may not add due to rounding

Reconciliation of Cash Cost per Gold Equivalent Ounce Sold for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Gold Equivalent Ounce Sold - Q4 2023

    

Lindero

 

    

Yaramoko

 

    

Séguéla

 

    

San Jose

 

    

Caylloma

 

    

GEO Cash Costs

 

Cost of sales

 

57,913

 

 

49,598

 

 

46,239

 

 

41,108

 

 

18,599

 

 

213,457

 

Inventory adjustment

 

(7,884

)

 

(3,033

)

 

 

 

(4,407

)

 

(683

)

 

(16,007

)

Depletion, depreciation, and amortization

 

(15,061

)

 

(15,345

)

 

(25,972

)

 

(11,407

)

 

(3,476

)

 

(71,261

)

Royalties and taxes

 

(3,916

)

 

(4,437

)

 

(6,364

)

 

(815

)

 

(227

)

 

(15,759

)

By-product credits

 

(4,183

)

 

 

 

 

 

 

 

 

 

(4,183

)

Right of use

 

 

 

 

 

 

 

219

 

 

365

 

 

584

 

Other

 

 

 

 

 

 

 

344

 

 

(397

)

 

(53

)

Production cash costs

 

26,869

 

 

26,783

 

 

13,903

 

 

25,042

 

 

14,181

 

 

106,778

 

Inventory adjustment

 

 

 

 

 

 

 

(147

)

 

683

 

 

536

 

Right of use

 

 

 

 

 

 

 

(219

)

 

(365

)

 

(584

)

Depletion and depreciation in concentrate inventory

 

 

 

 

 

 

 

56

 

 

10

 

 

66

 

Realized gain on diesel hedge

 

 

 

 

 

 

 

 

 

 

 

 

Treatment and refining charges

 

 

 

 

 

 

 

1,505

 

 

4,241

 

 

5,746

 

Cash cost applicable per gold equivalent ounce sold

 

26,869

 

 

26,783

 

 

13,903

 

 

26,237

 

 

18,750

 

 

112,542

 

Ounces of gold equivalent sold

 

28,779

 

 

28,229

 

 

43,018

 

 

17,650

 

 

16,236

 

 

133,912

 

Cash cost per ounce of gold equivalent sold ($/oz)

 

934

 

 

949

 

 

323

 

 

1,487

 

 

1,155

 

 

840

 

Gold equivalent was calculated using the realized prices for gold of $1,990/oz Au, $23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn for Q4 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Gold Equivalent Ounce Sold - Q4 2022

    

Lindero

 

    

Yaramoko

 

    

Séguéla

    

San Jose

 

    

Caylloma

 

    

GEO Cash Costs

 

Cost of sales

 

43,057

 

 

42,084

 

 

 

34,775

 

 

16,676

 

 

136,592

 

Inventory adjustment

 

(312

)

 

 

 

 

27

 

 

216

 

 

(69

)

Depletion, depreciation, and amortization

 

(13,441

)

 

(17,884

)

 

 

(10,557

)

 

(2,960

)

 

(44,842

)

Royalties and taxes

 

(3,353

)

 

(2,732

)

 

 

(1,260

)

 

(181

)

 

(7,526

)

By-product credits

 

(982

)

 

 

 

 

 

 

 

 

(982

)

Right of use

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

(601

)

 

(497

)

 

(1,098

)

Production cash costs

 

24,969

 

 

21,468

 

 

 

22,384

 

 

13,254

 

 

82,075

 

Inventory adjustment

 

(1,379

)

 

 

 

 

(27

)

 

(216

)

 

(1,622

)

Right of use

 

 

 

 

 

 

 

 

 

 

 

Depletion and depreciation in concentrate inventory

 

 

 

 

 

 

47

 

 

(120

)

 

(73

)

Realized gain on diesel hedge

 

(1,105

)

 

 

 

 

 

 

 

 

(1,105

)

Treatment and refining charges

 

 

 

 

 

 

947

 

 

3,128

 

 

4,075

 

Cash cost applicable per gold equivalent ounce sold

 

22,485

 

 

21,468

 

 

 

23,351

 

 

16,046

 

 

83,350

 

Ounces of gold equivalent sold

 

27,634

 

 

26,250

 

 

 

25,747

 

 

15,795

 

 

95,426

 

Cash cost per ounce of gold equivalent sold ($/oz)

 

814

 

 

818

 

 

 

907

 

 

1,016

 

 

873

 

Gold equivalent was calculated using the realized prices for gold of $1,737/oz Au, $21.4/oz Ag, $2,106/t Pb, and $2,986/t Zn for Q4 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Gold Equivalent Ounce Sold - Year 2023

    

Lindero

 

    

Yaramoko

 

    

Séguéla

 

    

San Jose

 

    

Caylloma

 

    

GEO Cash Costs

 

Cost of sales

 

176,696

 

 

186,757

 

 

79,472

 

 

140,068

 

 

69,408

 

 

652,401

 

Inventory adjustment

 

(10,693

)

 

(3,859

)

 

 

 

(4,564

)

 

(576

)

 

(19,692

)

Depletion, depreciation, and amortization

 

(51,258

)

 

(73,064

)

 

(40,529

)

 

(40,058

)

 

(13,390

)

 

(218,299

)

Royalties and taxes

 

(14,958

)

 

(14,678

)

 

(10,932

)

 

(4,390

)

 

(1,078

)

 

(46,036

)

By-product credits

 

(7,921

)

 

 

 

 

 

 

 

 

 

(7,921

)

Right of use

 

 

 

 

 

 

 

758

 

 

1,933

 

 

2,691

 

Other

 

 

 

 

 

 

 

253

 

 

(1,692

)

 

(1,439

)

Production cash costs

 

91,866

 

 

95,156

 

 

28,011

 

 

92,067

 

 

54,605

 

 

361,705

 

Inventory adjustment

 

2,823

 

 

 

 

 

 

10

 

 

576

 

 

3,409

 

Right of use

 

 

 

 

 

 

 

(758

)

 

(1,933

)

 

(2,691

)

Depletion and depreciation in concentrate inventory

 

 

 

 

 

 

 

30

 

 

76

 

 

106

 

Realized gain on diesel hedge

 

 

 

 

 

 

 

 

 

 

 

 

Treatment and refining charges

 

 

 

 

 

 

 

4,352

 

 

19,974

 

 

24,326

 

Cash cost applicable per gold equivalent ounce sold

 

94,689

 

 

95,156

 

 

28,011

 

 

95,701

 

 

73,298

 

 

386,855

 

Ounces of gold equivalent sold

 

102,896

 

 

117,676

 

 

78,521

 

 

80,458

 

 

63,229

 

 

442,780

 

Cash cost per ounce of gold equivalent sold ($/oz)

 

920

 

 

809

 

 

357

 

 

1,189

 

 

1,159

 

 

874

 

Gold equivalent was calculated using the realized prices for gold of $1,948/oz Au, $23.4/oz Ag, $2,155/t Pb, and $2,706/t Zn for year 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Gold Equivalent Ounce Sold - Year 2022

    

Lindero

    

Yaramoko

    

Séguéla

    

San Jose

    

Caylloma

    

GEO Cash Costs

Cost of sales

 

164,179

 

 

171,846

 

 

 

129,088

 

 

67,491

 

 

532,604

 

Inventory adjustment

 

293

 

 

(6,397

)

 

 

156

 

 

48

 

 

(5,900

)

Depletion, depreciation, and amortization

 

(54,644

)

 

(64,894

)

 

 

(37,773

)

 

(14,108

)

 

(171,419

)

Royalties and taxes

 

(15,545

)

 

(11,630

)

 

 

(5,262

)

 

(867

)

 

(33,304

)

By-product credits

 

(1,214

)

 

(25

)

 

 

 

 

 

 

(1,239

)

Right of use

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

(329

)

 

 

(2,477

)

 

(1,789

)

 

(4,595

)

Production cash costs

 

93,069

 

 

88,571

 

 

 

83,732

 

 

50,775

 

 

316,147

 

Inventory adjustment

 

(1,984

)

 

1,320

 

 

 

(156

)

 

(48

)

 

(868

)

Right of use

 

 

 

 

 

 

 

 

 

 

 

Depletion and depreciation in concentrate inventory

 

 

 

 

 

 

(2

)

 

76

 

 

74

 

Realized gain on diesel hedge

 

(4,620

)

 

 

 

 

 

 

 

 

(4,620

)

Treatment and refining charges

 

 

 

329

 

 

 

3,508

 

 

15,476

 

 

19,313

 

Cash cost applicable per gold equivalent ounce sold

 

86,465

 

 

90,220

 

 

 

87,082

 

 

66,279

 

 

330,046

 

Ounces of gold equivalent sold

 

116,950

 

 

107,433

 

 

 

99,439

 

 

64,952

 

 

388,774

 

Cash cost per ounce of gold equivalent sold ($/oz)

 

739

 

 

840

 

 

 

876

 

 

1,020

 

 

849

 

Gold equivalent was calculated using the realized prices for gold of $1,802/oz Au, $21.8/oz Ag, $2,161/t Pb, and $3,468/t Zn for year 2022.

 

Reconciliation of All-in Sustaining Cash Cost per Ounce of Gold Equivalent Sold for the Three and Twelve Months ended December 31, 2023 and 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Gold Equivalent Ounce Sold - Q4 2023

    

Lindero

    

Yaramoko

 

    

Séguéla

    

San Jose

 

    

Caylloma

    

Corporate

    

GEO AISC

 

Cash cost applicable per gold equivalent ounce sold

 

26,869

 

26,783

 

 

13,903

 

26,237

 

 

18,750

 

 

112,542

 

Inventory net realizable value adjustment

 

 

 

 

 

 

 

 

 

 

Royalties and taxes

 

3,916

 

4,437

 

 

6,364

 

815

 

 

227

 

 

15,759

 

Worker's participation

 

 

 

 

 

(430

)

 

399

 

 

(31

)

General and administration

 

2,833

 

(336

)

 

1,398

 

1,789

 

 

1,344

 

12,603

 

19,631

 

Stand-by

 

 

2,700

 

 

 

 

 

 

 

2,700

 

Total cash costs

 

33,618

 

33,584

 

 

21,665

 

28,411

 

 

20,720

 

12,603

 

150,601

 

Sustaining capital1

 

11,205

 

14,958

 

 

10,050

 

4,693

 

 

10,513

 

 

51,419

 

All-in sustaining costs

 

44,823

 

48,542

 

 

31,715

 

33,104

 

 

31,233

 

12,603

 

202,020

 

Gold equivalent ounces sold

 

28,779

 

28,229

 

 

43,018

 

17,650

 

 

16,236

 

 

133,912

 

All-in sustaining costs per ounce

 

1,557

 

1,720

 

 

737

 

1,876

 

 

1,924

 

 

1,509

 

Gold equivalent was calculated using the realized prices for gold of $1,990/oz Au, $23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn for Q4 2023.

1 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Gold Equivalent Ounce Sold - Q4 2022

    

Lindero

    

Yaramoko

    

Séguéla

    

San Jose

    

Caylloma

    

Corporate

    

GEO AISC

Cash cost applicable per gold equivalent ounce sold

 

22,485

 

21,468

 

 

23,351

 

16,046

 

 

83,350

Inventory net realizable value adjustment

 

1,052

 

 

 

 

 

 

1,052

Royalties and taxes

 

3,353

 

2,732

 

 

1,260

 

181

 

 

7,526

Worker's participation

 

 

 

 

751

 

480

 

 

1,231

General and administration

 

2,081

 

531

 

 

2,319

 

928

 

10,329

 

16,188

Stand-by

 

 

 

 

 

 

 

Total cash costs

 

28,971

 

24,731

 

 

27,681

 

17,635

 

10,329

 

109,347

Sustaining capital3

 

4,724

 

23,268

 

 

4,825

 

8,506

 

 

41,323

All-in sustaining costs

 

33,695

 

47,999

 

 

32,506

 

26,141

 

10,329

 

150,670

Gold equivalent ounces sold

 

27,634

 

26,250

 

 

25,747

 

15,795

 

 

95,426

All-in sustaining costs per ounce

 

1,219

 

1,829

 

 

1,263

 

1,655

 

 

1,579

Gold equivalent was calculated using the realized prices for gold of $1,737/oz Au, $21.4/oz Ag, $2,106/t Pb, and $2,986/t Zn for Q4 2022.

1 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Gold Equivalent Ounce Sold - Year 2023

    

Lindero

    

Yaramoko

    

Séguéla

    

San Jose

    

Caylloma

    

Corporate

    

GEO AISC

Cash cost applicable per gold equivalent ounce sold

 

94,689

 

95,156

 

28,011

 

95,701

 

 

73,298

 

 

386,855

Inventory net realizable value adjustment

 

 

334

 

 

 

 

 

 

334

Royalties and taxes

 

14,958

 

14,678

 

10,932

 

4,390

 

 

1,078

 

 

46,036

Worker's participation

 

 

 

 

(316

)

 

1,927

 

 

1,611

General and administration

 

9,624

 

919

 

4,510

 

7,040

 

 

4,810

 

35,903

 

62,806

Stand-by

 

 

5,699

 

 

4,084

 

 

 

 

9,783

Total cash costs

 

119,271

 

116,786

 

43,453

 

110,899

 

 

81,113

 

35,903

 

507,425

Sustaining capital3

 

41,751

 

59,613

 

16,241

 

19,111

 

 

23,743

 

 

160,459

All-in sustaining costs

 

161,022

 

176,399

 

59,694

 

130,010

 

 

104,856

 

35,903

 

667,884

Gold equivalent ounces sold

 

102,896

 

117,676

 

78,521

 

80,458

 

 

63,229

 

 

442,780

All-in sustaining costs per ounce

 

1,565

 

1,499

 

760

 

1,616

 

 

1,658

 

 

1,508

Gold equivalent was calculated using the realized prices for gold of $1,948/oz Au, $23.4/oz Ag, $2,155/t Pb, and $2,706/t Zn for year 2023.

1 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Gold Equivalent Ounce Sold - Year 2022

    

Lindero

    

Yaramoko

    

Séguéla

    

San Jose

    

Caylloma

    

Corporate

    

GEO AISC

Cash cost applicable per gold equivalent ounce sold

 

86,465

 

90,220

 

 

87,082

 

66,279

 

 

330,046

Inventory net realizable value adjustment

 

1,052

 

3,125

 

 

 

 

 

4,177

Royalties and taxes

 

15,545

 

11,630

 

 

5,262

 

867

 

 

33,304

Worker's participation

 

 

 

 

3,096

 

2,087

 

 

5,183

General and administration

 

8,578

 

2,101

 

 

7,164

 

4,063

 

37,661

 

59,567

Stand-by

 

 

 

 

 

 

 

Total cash costs

 

111,640

 

107,076

 

 

102,604

 

73,296

 

37,661

 

432,277

Sustaining capital3

 

21,721

 

57,230

 

 

21,995

 

23,246

 

 

124,192

All-in sustaining costs

 

133,361

 

164,306

 

 

124,599

 

96,542

 

37,661

 

556,469

Gold equivalent ounces sold

 

116,950

 

107,433

 

 

99,439

 

64,952

 

 

388,774

All-in sustaining costs per ounce

 

1,140

 

1,529

 

 

1,253

 

1,486

 

 

1,431

Gold equivalent was calculated using the realized prices for gold of $1,802/oz Au, $21.8/oz Ag, $2,161/t Pb, and $3,468/t Zn for year 2022.

1 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Production Cash Cost per Tonne and Cash Cost per Payable Silver Equivalent Ounce Sold for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

Cash Cost Per Silver Equivalent Ounce Sold - Q4 2023

    

San Jose

 

    

Caylloma

 

    

SEO Cash Costs

 

Cost of sales

 

41,108

 

 

18,599

 

 

59,707

 

Inventory adjustment

 

(4,407

)

 

(683

)

 

(5,090

)

Depletion, depreciation, and amortization

 

(11,407

)

 

(3,476

)

 

(14,883

)

Royalties and taxes

 

(815

)

 

(227

)

 

(1,042

)

By-product credits

 

 

 

 

 

 

Right of use

 

219

 

 

365

 

 

584

 

Other

 

344

 

 

(397

)

 

(53

)

Production cash costs

 

25,042

 

 

14,181

 

 

39,223

 

Total tonnes

 

241,035

 

 

140,800

 

 

381,835

 

Production cash cost per tonne

 

104

 

 

101

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Costs

 

25,042

 

 

14,181

 

 

39,223

 

Inventory adjustment

 

(147

)

 

683

 

 

536

 

Depletion and depreciation in concentrate inventory

 

56

 

 

10

 

 

66

 

Treatment and refining charges

 

1,505

 

 

4,241

 

 

5,746

 

Cash cost applicable per silver equivalent sold

 

26,456

 

 

19,115

 

 

45,571

 

Ounces of silver equivalent sold1

 

1,505,763

 

 

1,398,062

 

 

2,903,825

 

Cash cost per ounce of silver equivalent sold ($/oz)

 

17.57

 

 

13.67

 

 

15.69

 

1 Silver equivalent sold for Q4 2023 for San Jose is calculated using a silver to gold ratio of 84.9:1. Silver equivalent sold for Q4 2023 for Caylloma is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:23.8 pounds, and silver to zinc ratio of 1:20.3 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Silver Equivalent Ounce Sold - Q4 2022

    

San Jose

 

    

Caylloma

 

    

SEO Cash Costs

 

Cost of sales

 

34,775

 

 

16,676

 

 

51,451

 

Inventory adjustment

 

27

 

 

216

 

 

243

 

Depletion, depreciation, and amortization

 

(10,557

)

 

(2,960

)

 

(13,517

)

Royalties and taxes

 

(1,260

)

 

(181

)

 

(1,441

)

By-product credits

 

 

 

 

 

 

Right of use

 

 

 

 

 

 

Other

 

(601

)

 

(497

)

 

(1,098

)

Production cash costs

 

22,384

 

 

13,254

 

 

35,638

 

Total tonnes

 

259,500

 

 

138,491

 

 

397,991

 

Production cash cost per tonne

 

86

 

 

96

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Costs

 

22,384

 

 

13,254

 

 

35,638

 

Inventory adjustment

 

(27

)

 

(216

)

 

(243

)

Depletion and depreciation in concentrate inventory

 

47

 

 

(120

)

 

(73

)

Treatment and refining charges

 

947

 

 

3,128

 

 

4,075

 

Cash cost applicable per silver equivalent sold

 

23,351

 

 

16,046

 

 

39,397

 

Ounces of silver equivalent sold1

 

2,092,500

 

 

1,287,998

 

 

3,380,498

 

Cash cost per ounce of silver equivalent sold ($/oz)

 

11.16

 

 

12.46

 

 

11.65

 

1 Silver equivalent sold for San Jose for Q4 2022 is 81.2:1.Silver equivalent sold for Caylloma for Q4 2022 is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3 pounds, and silver to zinc ratio 1:15.7.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Silver Equivalent Ounce Sold - Year 2023

    

San Jose

 

    

Caylloma

 

    

SEO Cash Costs

 

Cost of sales

 

140,068

 

 

69,408

 

 

209,476

 

Inventory adjustment

 

(4,564

)

 

(576

)

 

(5,140

)

Depletion, depreciation, and amortization

 

(40,058

)

 

(13,390

)

 

(53,448

)

Royalties and taxes

 

(4,390

)

 

(1,078

)

 

(5,468

)

By-product credits

 

 

 

 

 

 

Right of use

 

758

 

 

1,933

 

 

2,691

 

Other

 

253

 

 

(1,692

)

 

(1,439

)

Production cash costs

 

92,067

 

 

54,605

 

 

146,672

 

Total tonnes

 

930,200

 

 

543,877

 

 

1,474,077

 

Production cash cost per tonne

 

99

 

 

100

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Costs

 

92,067

 

 

54,605

 

 

146,672

 

Inventory adjustment

 

10

 

 

576

 

 

586

 

Depletion and depreciation in concentrate inventory

 

30

 

 

76

 

 

106

 

Treatment and refining charges

 

4,352

 

 

19,974

 

 

24,326

 

Cash cost applicable per silver equivalent sold

 

96,459

 

 

75,231

 

 

171,690

 

Ounces of silver equivalent sold1

 

6,700,419

 

 

5,269,540

 

 

11,969,959

 

Cash cost per ounce of silver equivalent sold ($/oz)

 

14.40

 

 

14.28

 

 

14.34

 

1 Silver equivalent sold for year 2023 for San Jose is calculated using a silver to gold ratio of 83.1:1. Silver equivalent sold for year 2023 for Caylloma is calculated using a silver to gold ratio of 81.4:1, silver to lead ratio of 1:23.9 pounds, and silver to zinc ratio of 1:19.0 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Cost Per Silver Equivalent Ounce Sold - Year 2022

    

San Jose

 

    

Caylloma

 

    

SEO Cash Costs

 

Cost of sales

 

129,088

 

 

67,491

 

 

196,579

 

Inventory adjustment

 

156

 

 

48

 

 

204

 

Depletion, depreciation, and amortization

 

(37,773

)

 

(14,108

)

 

(51,881

)

Royalties and taxes

 

(5,262

)

 

(867

)

 

(6,129

)

By-product credits

 

 

 

 

 

 

Right of use

 

 

 

 

 

 

Other

 

(2,477

)

 

(1,789

)

 

(4,266

)

Production cash costs

 

83,732

 

 

50,775

 

 

134,507

 

Total tonnes

 

1,029,590

 

 

546,186

 

 

1,575,776

 

Production cash cost per tonne

 

81

 

 

93

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Costs

 

83,732

 

 

50,775

 

 

134,507

 

Inventory adjustment

 

(156

)

 

(48

)

 

(204

)

Depletion and depreciation in concentrate inventory

 

(2

)

 

76

 

 

74

 

Treatment and refining charges

 

3,508

 

 

15,476

 

 

18,984

 

Cash cost applicable per silver equivalent sold

 

87,082

 

 

66,279

 

 

153,361

 

Ounces of silver equivalent sold1

 

8,243,436

 

 

5,372,277

 

 

13,615,713

 

Cash cost per ounce of silver equivalent sold ($/oz)

 

10.56

 

 

12.34

 

 

11.26

 

1 Silver equivalent sold for year 2022 for San Jose is calculated using a silver to gold ratio of 82.9:1. Silver equivalent sold for year 2022 for Caylloma is calculated using a silver to gold ratio of 85.5:1, silver to lead ratio of 1:22.9 pounds, and silver to zinc ratio of 1:13.9 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

 

 

 

 

 

 

 

Reconciliation of All-in Sustaining Cash Cost and All-in Cash Cost per Payable Silver Equivalent Ounce Sold for the Three and Twelve Months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

AISC Per Silver Equivalent Ounce Sold - Q4 2023

    

San Jose

 

    

Caylloma

    

SEO AISC

 

Cash cost applicable per silver equivalent ounce sold

 

26,237

 

 

18,750

 

44,987

 

Royalties and taxes

 

815

 

 

227

 

1,042

 

Worker's participation

 

(430

)

 

399

 

(31

)

General and administration

 

1,789

 

 

1,344

 

3,133

 

Stand-by

 

 

 

 

 

Total cash costs

 

28,411

 

 

20,720

 

49,131

 

Sustaining capital3

 

4,693

 

 

10,513

 

15,206

 

All-in sustaining costs

 

33,104

 

 

31,233

 

64,337

 

Silver equivalent ounces sold1

 

1,505,763

 

 

1,398,062

 

2,903,825

 

All-in sustaining costs per ounce2

 

21.98

 

 

22.34

 

22.16

 

1 Silver equivalent sold for Q4 2023 for San Jose is calculated using a silver to gold ratio of 84.9:1. Silver equivalent sold for Q4 2023 for Caylloma is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:23.8 pounds, and silver to zinc ratio of 1:20.3 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

3 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Silver Equivalent Ounce Sold - Q4 2022

    

San Jose

    

Caylloma

    

SEO AISC

Cash cost applicable per silver equivalent ounce sold

 

23,351

 

16,046

 

39,397

Royalties and taxes

 

1,260

 

181

 

1,441

Worker's participation

 

751

 

480

 

1,231

General and administration

 

2,319

 

928

 

3,247

Stand-by

 

 

 

Total cash costs

 

27,681

 

17,635

 

45,316

Sustaining capital3

 

4,825

 

8,506

 

13,331

All-in sustaining costs

 

32,506

 

26,141

 

58,647

Silver equivalent ounces sold1

 

2,092,500

 

1,287,998

 

3,380,498

All-in sustaining costs per ounce2

 

15.53

 

20.30

 

17.35

1 Silver equivalent sold for San Jose for Q4 2022 is 81.2:1.Silver equivalent sold for Caylloma for Q4 2022 is calculated using a silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3 pounds, and silver to zinc ratio 1:15.7.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

3 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Silver Equivalent Ounce Sold - Year 2023

    

San Jose

 

    

Caylloma

    

SEO AISC

Cash cost applicable per silver equivalent ounce sold

 

95,701

 

 

73,298

 

168,999

Royalties and taxes

 

4,390

 

 

1,078

 

5,468

Worker's participation

 

(316

)

 

1,927

 

1,611

General and administration

 

7,040

 

 

4,810

 

11,850

Stand-by

 

4,084

 

 

 

4,084

Total cash costs

 

110,899

 

 

81,113

 

192,012

Sustaining capital3

 

19,111

 

 

23,743

 

42,854

All-in sustaining costs

 

130,010

 

 

104,856

 

234,866

Silver equivalent ounces sold1

 

6,700,419

 

 

5,269,540

 

11,969,959

All-in sustaining costs per ounce2

 

19.40

 

 

19.90

 

19.62

1 Silver equivalent sold for year 2023 for San Jose is calculated using a silver to gold ratio of 83.1:1. Silver equivalent sold for year 2023 for Caylloma is calculated using a silver to gold ratio of 81.4:1, silver to lead ratio of 1:23.9 pounds, and silver to zinc ratio of 1:19.0 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

3 Presented on a cash basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AISC Per Silver Equivalent Ounce Sold - Year 2022

    

San Jose

    

Caylloma

    

SEO AISC

Cash cost applicable per silver equivalent ounce sold

 

87,082

 

66,279

 

153,361

Royalties and taxes

 

5,262

 

867

 

6,129

Worker's participation

 

3,096

 

2,087

 

5,183

General and administration

 

7,164

 

4,063

 

11,227

Stand-by

 

 

 

Total cash costs

 

102,604

 

73,296

 

175,900

Sustaining capital3

 

21,995

 

23,246

 

45,241

All-in sustaining costs

 

124,599

 

96,542

 

221,141

Silver equivalent ounces sold1

 

8,243,436

 

5,372,277

 

13,615,713

All-in sustaining costs per ounce2

 

15.11

 

17.97

 

16.24

1 Silver equivalent sold for year 2022 for San Jose is calculated using a silver to gold ratio of 82.9:1. Silver equivalent sold for year 2022 for Caylloma is calculated using a silver to gold ratio of 85.5:1, silver to lead ratio of 1:22.9 pounds, and silver to zinc ratio of 1:13.9 pounds.

2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices

3 Presented on a cash basis

 

 

 

 

 

 

 

Additional information regarding the Company’s financial results and activities underway are available in the Company’s audited consolidated financial statements for the year ended December 31, 2023 and accompanying 2023 MD&A, which are available for download on the Company’s website, www.fortunasilver.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.

Conference Call and Webcast

A conference call to discuss the financial and operational results will be held on Thursday, March 7, 2024 at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO; Luis D. Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer - Latin America; and David Whittle, Chief Operating Officer - West Africa.

Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at https://www.webcaster4.com/Webcast/Page/1696/49929 or over the phone by dialing in just prior to the starting time.

Conference call details:

Date: Thursday, March 7, 2024
Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time

Dial in number (Toll Free): +1. 888.506.0062
Dial in number (International): +1.973.528.0011
Entry code: 866537

Replay number (Toll Free): +1.877.481.4010
Replay number (International): +1.919.882.2331
Replay Passcode: 49929

Playback of the earnings call will be available until Thursday, March 21, 2024. Playback of the webcast will be available until Thursday, March 6, 2025. In addition, a transcript of the call will be archived on the Company’s website.

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website.

ON BEHALF OF THE BOARD

Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.

Investor Relations:

Carlos Baca | info@fortunasilver.com | www.fortunasilver.com | Twitter | LinkedIn | YouTube

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