What do Record Gold Prices mean for Gold Stocks? Fortuna Silver CEO Discusses Growing Profit Margins

Gold Prices Hit All-time Record Price Highs! What does this mean for depressed Gold Mining Stocks? The President and CEO of Fortuna Silver, Jorge Ganoza, discusses the latest record quarterly production results which includes the second full quarter of high-margin gold production from the Séguéla Gold Mine in West Africa, which had its first gold pour in May of 2023.

We discuss what this means to the bottom line, and how positive free cash flow will transform the company in the coming quarters even further and I ask the CEO of Fortuna about the large non-cash impairment charges taken for the last quarter.

We discuss the positive production growth trend and forecasts for another record-setting year in 2024! Fortuna has announced its annual guidance of 457 to 497 koz Gold Equivalent ounces with strong production growth occurring in West Africa.

Ganoza explains:

Those are the margins that start getting people's attempts attention. The industry, just like everybody, over the last years has seen mounting pressures from increasing prices on consumable services...that is taking a toll on our margins. This move in gold – and hopefully, we see even a stronger move in following on the silver – will expand or margins. That's what we work for, right? The challenge for us now is keeping a lid on cost as prices continue or underlying commodities continue to rise. 

Jorge talks about the company's transforming move into West Africa a few years ago and how it is now rewarding the company with a healthier balance sheet. The strong quarterly free cash flow means the company was able to further reduce its debt by $41 million in the latest quarter, on top of $40 million the quarter prior! What else does 2024 hold for Fortuna Silver? Please watch this interview to learn more!

To learn more about Fortuna, please visit their website.

Please note, that employees at GoldSeek are long-term shareholders in Fortuna Silver Mines and the company has been a supportive sponsor of both GoldSeek.com and SilverSeek.com.