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Fortuna reports record production and financial results for the third quarter of 2023

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Fortuna reports record production and financial results for the third quarter of 2023

 

 

 

 

 

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reported its financial and operating results for the third quarter of 2023.

 

Third Quarter 2023 highlights

 

Financial

  • Net income4 of $27.5 million or $0.09 per share, compared to $3.1 million or $0.01 per share in Q2 2023
  • Adjusted net income4,1 of $29.6 million or $0.10 per share, compared to $2.5 million or $0.01 per share in Q2 2023
  • Adjusted EBITDA1 of $104.6 million, compared to $44.4 million in Q2 2023
  • Net cash provided by operating activities of $106.5 million and free cash flow from ongoing operations1 of $70.0 million, compared to $44.2 million and $9.5 million, respectively, in Q2 2023
  • Company paid down $40.0 million of its revolving credit facility. At the close of the quarter total net debt was $133.4 million and the total net debt to adjusted EBITDA ratio1 was 0.5
  • Liquidity as of September 30, 2023 was $162.3 million5, compared to $97.9 million at the end of Q2 2023

 

Operational

  • Gold production of 94,821 ounces, compared to 64,348 ounces in Q2 2023
  • Silver production of 1,680,751 ounces, compared to 1,262,561 ounces in Q2 2023
  • Gold equivalent6 production of 128,671 ounces, compared to 93,454 ounces in Q2 2023
  • Consolidated cash costs1 per ounce of gold equivalent sold of $814, compared to $968 in Q2 2023
  • Consolidated all-in sustaining costs (AISC)1 per ounce of gold equivalent sold of $1,312, compared to $1,799 in Q2 2023
  • Year to date Lost Time Injury Frequency Rate (LTIFR) of 0.38 and Total Recordable Injury Frequency Rate of 0.86.

 

Growth and Development

  • The third quarter was the first full reporting period for the Séguéla Mine
  • The acquisition of Chesser Resources Limited and its Diamba Sud project was completed on September 20, 2023 (Refer to the News Release dated September 20, 2023).

 

Jorge A. Ganoza, President and CEO, commented, “Fortuna has delivered record production and financial results for all its key metrics driven by the first full quarter contribution of our flagship Séguéla gold mine.” Mr. Ganoza continued, “Compared to the first half of the year, the reduction in our consolidated all-in sustaining cost to $1,312 is primarily the result of Séguéla’s industry leading AISC of $788 per ounce, abating inflation, optimization initiatives across the business, and higher gold production at the Yaramoko mine driven by new high grade zones.” Mr. Ganoza concluded, “As we shift from a two-year capital-intensive phase to strong free cash flow generation, we will prioritize strengthening our balance sheet through debt reduction and advancing high value opportunities in our exploration portfolio. We currently maintain eleven drill rigs turning across our properties including three at our newly acquired Diamba Sud gold project in Senegal.”

 

_______________________
4 Attributable to Fortuna Shareholders
5 Excluding letters of credit
6 Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,924/oz Au, $23.70/oz Ag, $2,136/t Pb and $2,428/t Zn or Au:Ag = 1:81.19, Au:Pb = 1:0.90, Au:Zn = 0.79 for Q3 2023, and the following metal prices: $1,975/oz Au, $24.10/oz Ag, $0.96/t Pb and $1.23/t Zn or Au:Ag = 1:81.96, Au:Pb = 1:0.93, Au:Zn = 1:0.73 for Q2 2023.

 

Third Quarter 2023 Consolidated Results

 

                         
    Three months ended September 30,   Nine months ended September 30,
(Expressed in millions)   2023   2022     % Change   2023   2022   % Change
Sales   243.1   166.6     46 %   577.1   516.8   12 %
Mine operating income   65.9   24.7     167 %   138.2   120.8   14 %
Operating income   45.4   5.7     696 %   77.0   59.6   29 %
Attributable net income (loss)   27.5   (3.7 )   843 %   41.5   24.6   69 %
Attributable Earnings per share – basic   0.09   (0.01 )   1,000 %   0.14   0.08   75 %
Attributable Adjusted net income1   29.6   2.9     921 %   44.3   35.0   27 %
Adjusted EBITDA1   104.6   54.4     92 %   214.0   189.7   13 %
Net cash provided by operating activities   106.5   64.7     65 %   191.8   144.6   33 %
Free cash flow from ongoing operations1   70.0   34.0     106 %   87.3   64.8   35 %
Production cash cost ($/oz Au Eq)   814   881     (8 %)   887   841   5 %
All-in sustaining cash cost ($/oz Au Eq)   1,312   1,431     (8 %)   1,507   1,383   9 %
Capital expenditures2                        
Sustaining   27.2   23.2     17 %   89.3   64.3   39 %
Non-sustaining3   1.3   4.0     (68 %)   3.4   10.4   (67 %)
Séguéla construction   1.9   23.5     (92 %)   50.0   87.6   (43 %)
Brownfields   3.3   9.6     (66 %)   10.7   17.1   (37 %)
As at               September 30, 2023   December 31, 2022   % Change
Cash and cash equivalents       117.8   80.5   46 %
Net liquidity position (excluding letters of credit)               162.3   150.5   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.
2 Capital expenditures are presented on a cash basis  
3 Non-sustaining expenditures include greenfields exploration  
Figures may not add due to rounding  
   

 

Third Quarter 2023 Results

 

Net income attributable to Fortuna for the quarter was $27.5 million compared to an attributable net loss of $3.7 million in Q3 2022. After adjusting for non-cash and non-recurring items, adjusted attributable net income for the quarter was $29.6 million compared to $2.9 million in Q3 2022. The increase in net income and adjusted net income is explained mainly by increased gold sales volume, higher realized gold and silver prices and lower cost of sales per gold equivalent ounce. Higher gold sales volume was primarily due to the contribution from the first quarter of commercial production at Séguéla and higher grades at Yaramoko. This was partially offset by lower gold sales volume at Lindero related to lower grades, in line with the mine plan. The realized gold and silver prices were $1,925 and $23.7 per ounce, respectively, in Q3 2023 compared to $1,718 and $19.2 per ounce, respectively, in the prior year. The lower cash cost of sales per gold equivalent ounce was mainly due to the contribution of low-cost production from Séguéla and lower cost of sales per ounce of gold at Yaramoko related to higher grades. This was partially offset by higher costs of sales per ounce at Lindero and San Jose. Other items impacting net income in the quarter were higher interest expenses of $5.7 million as a result of interest costs no longer being capitalized in the quarter, higher outstanding debt and increased interest rates; lower depletion at Séguéla which is expected to increase in the coming quarters from depletion of the purchase price; and a low effective income tax rate in the quarter of 17.6% as no income taxes were recorded at Séguéla.

 

General and administrative expenses for the quarter of $14.6 million were higher than the same period in 2022 as Séguéla transitioned to operations and costs are no longer being capitalized. G&A is comprised of the following items:

 

                         
    Three months ended September 30,   Nine months ended September 30,
(Expressed in millions)   2023   2022   % Change   2023   2022   % Change
Mine G&A   8.4   5.4   56 %   20.5   15.8   30 %
Corporate G&A   5.5   5.4   2 %   19.7   22.3   (12 %)
Share-based payments   0.5   1.9   (74 %)   3.8   5.9   (36 %)
Workers’ participation   0.2   0.3   (33 %)   0.2   0.7   (71 %)
Total   14.6   13.0   12 %   44.2   44.7   (1 %)

 

Net cash generated by operations for the quarter increased $41.6 to $106.5 million. The increase reflects higher EBITDA of $51.2 million offset by lower changes in working capital in Q3 2023 of $0.2 million compared to a change in Q3 2022 of $11.5 million. Income tax paid in the quarter of $3.2 million was $5.6 million lower than in Q3 2022 as no income tax was paid at Séguéla in Q3 2023. It is expected Séguéla will start incurring current income taxes in Q4 2023 and paying income taxes in 2024.

 

In the third quarter of 2023 capital expenditures on a cash basis was $37.0 million consisting primarily of $30.6 million in sustaining capital, including brownfields exploration, and $4.0 million of non-sustaining exploration.

 

Free cash flow from ongoing operations for the quarter was $70.0 million, compared to $34.0 million in Q3 2022. The increase of $36.0 million is the result of higher net cash generated by operations of $41.8 million partially offset by higher sustaining capex and brownfields exploration at our operating mines of $5.8 million in Q3 2023.

 

Consolidated All-in Sustaining Cost

 

Consolidated AISC per gold equivalent ounce sold for the third quarter of 2023 was $1,312 per ounce compared to $1,431 per ounce for the comparable quarter in 2022. The lower AISC was driven by a decrease of $67 in cash cost of sales per gold equivalent ounce to $814 and lower capital costs per ounce driven by higher volume.

 

Liquidity

 

The Company’s total liquidity available as of September 30, 2023 was $162.3 million comprised of $117.8 million in cash and cash equivalents, and $44.5 million undrawn on the $250.0 million revolving credit facility (excluding letters of credit).

 

Lindero Mine, Argentina

 

                 
    Three months ended September 30,   Nine months ended September 30,
    2023   2022   2023   2022
Mine Production                
Tonnes placed on the leach pad   1,467,578   1,365,726   4,449,049   4,163,555
                 
Gold                
Grade (g/t)   0.62   0.83   0.65   0.83
Production (oz)   20,933   30,032   71,647   89,116
Metal sold (oz)   22,242   30,064   74,194   89,229
Realized price ($/oz)   1,910   1,719   1,923   1,825
                 
Unit Costs                
Cash cost ($/oz Au)1   988   772   916   717
All-in sustaining cash cost ($/oz Au)1   1,611   1,159   1,569   1,117
                 
Capital Expenditures ($000’s) 2                
Sustaining   7,669   4,814   28,751   14,062
Non-sustaining   353     676   169
Brownfields     314     1,104


1
Cash cost and All-in sustaining cash cost 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.

Quarterly Operating and Financial Highlights

 

In the third quarter of 2023, a total of 1,467,578 tonnes of ore were placed on the heap leach pad, with an average gold grade of 0.62 g/t, containing an estimated 29,068 ounces of gold. Gold production for Q3 2023 totaled 20,933 ounces. This represents a 30% decrease in total ounces to the comparable quarter of 2022. This decline in gold production can be primarily explained by the lower head grade of ore placed on the leach pad, in accordance with the mining sequence and the Mineral Reserves. Ore mined was 1.9 million tonnes, with a stripping ratio of 1.1:1. The stripping ratio in the third quarter is 59 percent lower than the second quarter and is expected to continue declining through to the end of the year.

 

Higher stripping of waste in the first nine months of the year will allow improved access to higher grade material scheduled in the mine plan for the fourth quarter. As a result, Lindero anticipates placing approximately 1.6 million tonnes of ore on the leach pad in Q4 2023 at a higher average grade of 0.67 g/t Au.

 

Cash cost per ounce of gold for the quarter ended September 30, 2023, was $988 compared to $772 in the same period in 2022. Cash cost per ounce of gold was higher due to lower head grades in line with the mine plan, partially offset by lower processing costs.

 

All-in sustaining cash cost per gold ounce sold was $1,611 during Q3 2023 compared with $1,159 in the same period of 2022. All-in sustaining cash cost for the third quarter of 2023 was impacted by lower production described above and higher sustaining capital expenditures.

 

During the quarter, increased sustaining capital expenditures were primarily driven by the development of Phase 2 of the leach pad and capitalized stripping. As of September 30, 2023, the leach pad expansion project (Project) is approximately 13 percent complete. The procurement construction and management (PCM) service has been awarded to Knight Piésold, the accommodation camp expansion and PCM offices for the Project have been finalized, and PCM personnel are already onsite. Mobilization of the contractor’s personnel and equipment has commenced. The first shipments of geomembrane and geosynthetic clay liner are in transit, and the Project remains on schedule for completion during the second half of 2024.

 

Yaramoko Mine Complex, Burkina Faso

 

                 
    Three months ended September 30,   Nine months ended September 30,
    2023   2022   2023   2022
Mine Production                
Tonnes milled   137,281   137,202   421,133   403,957
                 
Gold                
Grade (g/t)   7.72   6.21   6.52   6.34
Recovery (%)   99   97   98   97
Production (oz)   34,036   27,130   89,476   79,918
Metal sold (oz)   33,971   27,055   89,448   81,183
Realized price ($/oz)   1,932   1,716   1,932   1,821
                 
Unit Costs                
Cash cost ($/oz Au)1   752   934   764   847
All-in sustaining cash cost ($/oz Au)1   1,211   1,630   1,429   1,433
                 
Capital Expenditures ($000’s) 2                
Sustaining   9,451   10,225   37,318   26,671
Brownfields   1,447   2,530   3,656   3,018


1
Cash cost and All-in sustaining cash cost 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 34,036 ounces of gold in the third quarter of 2023 with an average gold head grade of 7.72g/t, 25% and 24% increases when compared to the same period in 2022. Increased production resulted from higher average grades and greater widths of mineralization encountered in development headings, which contributed 42% of total mill feed.

 

As a result of the aforementioned higher grades in development and production zones within the mine plan, the Company has revised Yaramoko’s annual gold production guidance upwards to 110 to 120 thousand ounces from the original guidance of 92 to 102 thousand ounces, an increase of approximately 14 percent. Gold production for the first nine months of 2023 totaled 89,476 ounces.

 

Cash cost per ounce of gold sold for the quarter ended September 30, 2023, was $752 compared to $934 in the same period in 2022. Cash cost per ounce decreased due to higher production, improved head grades of ore processed, reduced mining costs related to ore development and decreased transportation costs.

 

All-in sustaining cash cost per gold ounce sold was $1,211 for Q3 2023, compared to $1,630 for the same period in 2022. This decrease was as a result of higher production, and cash cost savings described above.

 

Sustaining capital for Q3 2023 was higher due to more intensive mine development. Brownfields expenditure was primarily related to diamond drilling. Drilling focused on infill grade control and exploring for extensions beyond the mineralized resource envelope in the deeper eastern portion of Zone 55. During the fourth quarter, drilling will continue on the western portion of Zone 55, testing for up and down-dip continuity of the recently discovered extensions to the resource boundary.

 

Séguéla Mine, Côte d’Ivoire

 

                 
    Three months ended September 30,   Nine months ended September 30,
    2023   2022   2023   2022
Mine Production                
Tonnes milled   310,387     419,992  
                 
Gold                
Grade (g/t)   3.83     3.28  
Recovery (%)   93     94  
Production (oz)   31,498     35,521  
Metal sold (oz)   35,503     35,503  
Realized price ($/oz)   1,927     1,927  
                 
Unit Costs                
Cash cost ($/oz Au)1   397     397  
All-in sustaining cash cost ($/oz Au)1   788     788  
                 
Capital Expenditures ($000’s) 2                
Sustaining   3,147     3,147  
Brownfields        
 
1 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
 

 

From Séguéla’s first gold pour on May 24th to the successful completion of the processing plant performance test in August, the operation is now exceeding nameplate capacity. Séguéla is well positioned to achieve the mid-point of its gold production guidance of 60 to 75 thousand ounces for the second half of 2023.

 

In the third quarter of 2023, mine production totaled 502,326 tonnes of ore, averaging 3.48 g/t Au, and containing an estimated 56,136 ounces of gold from the Antenna Pit. Movement of waste during the quarter totaled 1,156,540 tonnes, for a strip ratio of 2.3:1.

 

Cash cost per gold ounce sold was $397 for Q3 2023, which was below plan, primarily higher due to head grades and lower energy and diesel consumption.

 

All-in sustaining cash cost per gold ounce sold was $788 for Q3 2023, which was below plan, primarily due to lower cash cost, lower capital expenditures, and higher sale volume.

 

Sustaining capital for Q3 2023 consisted primarily of mine development. The first stage of grade control drilling was completed at the Ancien deposit during the third quarter, with results currently being processed. Construction of the access road continued as planned, with stripping and initial mining of oxide material scheduled to begin this quarter.

 

At the Koula deposit, initial grade control drilling started and should be completed early this quarter.

 

San Jose Mine, Mexico

 

                 
    Three months ended September 30,   Nine months ended September 30,
    2023   2022   2023   2022
Mine Production                
Tonnes milled   247,542   267,198   689,165   770,090
Average tonnes milled per day   2,845   3,071   2,790   2,939
                 
Silver                
Grade (g/t)   189   196   180   189
Recovery (%)   91   92   91   91
Production (oz)   1,372,530   1,545,410   3,633,107   4,288,936
Metal sold (oz)   1,347,719   1,539,382   3,618,723   4,272,878
Realized price ($/oz)   23.65   19.14   23.37   21.86
                 
Gold                
Grade (g/t)   1.14   1.16   1.11   1.14
Recovery (%)   91   91   90   91
Production (oz)   8,205   9,091   22,215   25,624
Metal sold (oz)   8,068   9,064   22,118   25,580
Realized price ($/oz)   1,932   1,722   1,930   1,825
                 
Unit Costs                
Production cash cost ($/t)2   103.47   79.37   97.26   79.66
Production cash cost ($/oz Ag Eq)1,2   13.84   9.70   13.48   10.35
All-in sustaining cash cost ($/oz Ag Eq)1,2   18.04   14.23   18.65   14.95
                 
Capital Expenditures ($000’s) 3                
Sustaining   3,462   4,410   10,828   12,036
Non-sustaining   385     1,178   869
Brownfields   1,082   1,548   2,958   4,645


1
Production cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.

2 Production cash cost per tonne, production cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of 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.
3 Capital expenditures are presented on a cash basis

 

In the third quarter of 2023, the San Jose Mine produced 1,372,530 ounces of silver at an average head grade of 189 g/t Ag and 8,205 ounces of gold at an average head grade of 1.14 g/t Au, 11% and 10% lower, respectively, when compared to the same period in 2022. The decrease in silver and gold production for the third quarter of 2023, when compared to the third quarter of 2022, is explained by the declining grade profile of Mineral Reserves in the mine plan. The processing plant milled 247,542 tonnes at an average of 2,845 tonnes per day during the third quarter, in line with the plan for the period.

 

Gold production is expected to fall slightly below the annual guidance range of 34 to 37 thousand ounces, resulting from lost production days in the second quarter due to the illegal union blockade, and gold head grade reconciliation to reserves in the low end of range. The San Jose Mine remains positioned to deliver annual silver production within the guidance range of between 5.3 to 5.8 million ounces.

 

The cash cost per tonne for the three months ended September 30, 2023, was $103.47 compared to $79.37 in the same period in 2022. The increase was primarily due to higher use of contractors to make up for lost production in the second quarter of 2023 related to the illegal blockade, higher maintenance and indirect costs and the appreciation of the Mexican Peso.

 

All-in sustaining cash cost of payable silver equivalent for the three months ended September 30, 2023, increased 26% to $18.04 per ounce, compared to $14.23 per ounce for the same period in 2022. The increase was driven by higher cash cost, lower production, and lower equivalent silver ounces per gold ounce. This was offset slightly by lower capital expenditures and lower workers’ participation costs.

 

In the third quarter of 2023, sustaining capital expenditures were higher than the same period in 2022. This increase was primarily due to the execution of development meters, which had been postponed from Q2 2023 because of the blockade. Brownfields expenditures were in line with the plan. Expenditures are however expected to increase, due to the emergent drilling campaign at the Yessi vein.

 

Infill drilling at the San Jose Mine during the quarter led to the discovery of the Yessi vein, a blind structure, located 200 horizontal meters from existing underground infrastructure. The discovery hole SJOM-1387 intersected 1,299 g/t Ag Eq over 9.9 meters, and drill hole SJOM-1391 intersected 621 g/t Ag Eq over 5 meters (Refer to the News Release filled on SEDAR+ on September 5, 2023 titled “Fortuna intersects 1,299 g/t Ag Eq over a true width of 9.9 meters at the San Jose Mine, Mexico” for full details of the drilling program). Additional drilling is currently underway from both surface and underground to define the extent and geometry of this discovery. Mineralization remains open along strike to the north and south, and at depth.

 

Caylloma Mine, Peru

                 
    Three months ended September 30,   Nine months ended September 30,
    2023   2022   2023   2022
Mine Production                
Tonnes milled   140,077   139,143   403,076   407,695
Average tonnes milled per day   1,556   1,546   1,515   1,533
                 
Silver                
Grade (g/t)   83   79   84   82
Recovery (%)   82   82   82   81
Production (oz)   308,221   292,096   896,583   871,593
Metal sold (oz)   275,708   293,159   875,365   866,511
Realized price ($/oz)   23.93   19.31   23.50   21.98
                 
Gold                
Grade (g/t)   0.13   0.11   0.13   0.14
Recovery (%)   24   19   24   35
Production (oz)   149   91   404   656
Metal sold (oz)   18     40   603
Realized price ($/oz)   1,921     1,902   1,864
                 
Lead                
Grade (%)   3.66   3.33   3.66   3.29
Recovery (%)   92   89   92   88
Production (000’s lbs)   10,337   9,085   30,053   25,856
Metal sold (000’s lbs)   9,232   9,155   29,433   25,751
Realized price ($/lb)   0.97   0.90   0.98   0.99
                 
Zinc                
Grade (%)   5.07   4.37   5.07   4.22
Recovery (%)   90   89   90   89
Production (000’s lbs)   14,037   11,885   41,125   33,598
Metal sold (000’s lbs)   13,959   12,277   41,759   33,743
Realized price ($/lb)   1.10   1.48   1.26   1.65
                 
Unit Costs                
Production cash cost ($/t)2   99.25   93.12   100.29   92.03
Production cash cost ($/oz Ag Eq)1,2   15.62   11.32   14.50   12.25
All-in sustaining cash cost ($/oz Ag Eq)1,2   21.14   15.66   19.03   17.16
                 
Capital Expenditures ($000’s) 3                
Sustaining   3,514   3,764   9,267   11,506
Brownfields   797   198   1,337   729


1
Production cash cost per ounce of silver equivalent and All-in sustaining cash cost per ounce of silver equivalent are calculated using realized metal prices for each period respectively.

2 Production cash cost per tonne, production cash cost per ounce of silver equivalent, and all-in sustaining cash cost per ounce of 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.
3 Capital expenditures are presented on a cash basis.

 

The Caylloma Mine produced 308,221 ounces of silver, 10.3 million pounds of lead, and 14.0 million pounds of zinc during the third quarter of 2023. Silver production was 6% higher compared to the same quarter in 2022. Lead and zinc production rose by 14% and 18% respectively, compared to the same period in 2022. Increased production was the result of positive grade reconciliation to the reserve model in levels 16 and 18 of the Animas vein. Increased recoveries for lead and zinc were also driven by the higher grades. Gold production totaled 149 ounces with an average head grade of 0.13 g/t.

 

The cash cost per tonne of processed ore for the three months ended September 30, 2023, increased 7% to $99.25 compared to $93.12 in the same period in 2022. This increase was primarily due to higher processing and indirect costs.

 

The all-in sustaining cash cost per ounce of payable silver equivalent for the three months ended September 30, 2023, increased 35% to $21.14, compared to $15.66 for the same period in 2022. The increase was driven by higher cash cost and the impact of metal prices on the calculation of silver equivalent ounces.

 

Capital costs for the period mainly consisted of underground development in mine levels 15, 16, and 18. The increase in Brownfields expenditures is primarily attributable to additional long hole drilling.

 

Qualified Person

 

Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Engineers and Geoscientists 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.

 

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 sold; all-in sustaining cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold equivalent sold; all-in cash cost per ounce of gold sold; production cash cost per ounce of gold equivalent; 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; adjusted EBITDA 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 three and nine months ended September 30, 2023 (“Q3 2023 MDA”), 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 the Company uses such measures and ratio. The Q3 2023 MD&A may be accessed on SEDAR+ at www.sedarplus.ca under the Company’s profile.

 

Except as otherwise described in the Q3 2023 MD&A, the Company has calculated these measures consistently for all periods presented.

 

Reconciliation to Total Net debt and Net debt to Adjusted EBITDA ratio for September 30, 2023

 

   
(Expressed in millions except Total net debt to Adjusted EBITDA ratio) As at September 30, 2023
Credit facility $ 205.5  
Convertible debenture   45.7  
Debt   251.2  
Less: Cash and Cash Equivalents   (117.8 )
Total net debt1 $ 133.4  
Adjusted EBITDA (last four quarters) $ 270.1  
Total net debt to adjusted EBITDA ratio   0.5:1  
1 Excluding letters of credit    

Reconciliation to adjusted attributable net income for the three and nine months ended September 30, 2023 and 2022

 

                 
    Three months ended September 30,   Nine months ended September 30,
(Expressed in millions) 2023   2022   2023   2022  
Net income (loss) attributable to shareholders   27.5     (3.8 )   41.5     24.6  
Adjustments, net of tax:                
Community support provision and accruals1           (0.1 )    
Foreign exchange loss, Séguéla Mine   0.1     0.3         1.1  
Write off of mineral properties   0.5     3.4     0.5     4.9  
Unrealized loss (gain) on derivatives   (0.1 )   1.7     (0.3 )   (0.5 )
Inventory adjustment       0.8     0.7     3.8  
Accretion on right of use assets   1.5     0.5     2.6     1.7  
Other non-cash/non-recurring items   0.1         (0.6 )   (0.6 )
Adjusted attributable net income   29.6     2.9     44.3     35.0  
1 Amounts are recorded in Cost of sales                

Reconciliation to adjusted attributable net income for the three months ended June 30, 2023

 

     
    June 30
(Expressed in millions) 2023  
Net income (loss) attributable to shareholders   3.1  
Adjustments, net of tax:    
Foreign exchange loss, Séguéla Mine   (0.2 )
Unrealized loss (gain) on derivatives   (1.3 )
Inventory adjustment   0.7  
Accretion on right of use assets   0.6  
Other non-cash/non-recurring items   (0.4 )
Adjusted attributable net income   2.5  
1 Amounts are recorded in Cost of sales    
     

 

Reconciliation to adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022

 

                 
    Three months ended September 30,   Nine months ended September 30,
Consolidated (in millions of US dollars)   2023     2022     2023     2022  
Net income   30.9     (4.1 )   46.2     24.5  
Adjustments:                
Community support provision and accruals   (0.1 )       (0.2 )    
Inventory adjustment       1.1     0.9     5.1  
Foreign exchange loss, Séguéla Mine   0.1     0.3         1.2  
Net finance items   8.2     2.4     14.3     8.9  
Depreciation, depletion, and amortization   63.9     46.9     148.0     127.4  
Income taxes   6.6     5.8     15.6     26.1  
Other non-cash/non-recurring items   (5.0 )   2.0     (10.8 )   (3.5 )
Adjusted EBITDA   104.6     54.4     214.0     189.7  

Figures may not add due to rounding

 

Reconciliation of free cash flow from ongoing operations for the three and nine months ended September 30, 2023 and 2022

 

In 2022, the Company changed the method for calculating free cash flow from ongoing operations. The calculation now uses taxes paid as opposed to the previous method which used current income taxes. While this may create larger quarter over quarter fluctuations due to the timing of income tax payments, management believes the revised method is a better representation of the free cash flow generated by the Company’s ongoing operations.

 

                 
    Three months ended September 30,   Nine months ended September 30,
(Expressed in millions) 2023   2022   2023     2022  
                 
Net cash provided by operating activities   106.5     64.7     191.8     144.6  
Adjustments                
Séguéla, working capital           4.4      
Additions to mineral properties, plant and equipment   (30.6 )   (27.8 )   (97.3 )   (73.8 )
Mexican royalty payment               3.0  
Other adjustments   (5.9 )   (2.9 )   (11.6 )   (9.0 )
Free cash flow from ongoing operations   70.0     34.0     87.3     64.8  

Figures may not add due to rounding

 

Reconciliation of cash cost per ounce of gold sold for the three and nine months ended September 30, 2023 and 2022

 

                   
Lindero Mine     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022     2023     2022  
Cost of sales     36,778     43,928     118,783     121,122  
Changes in doré inventory     (1,504 )   (107 )   (2,824 )   605  
Inventory adjustment             15      
Export duties     (3,266 )   (3,900 )   (11,042 )   (12,192 )
Depletion and depreciation     (11,132 )   (14,898 )   (36,197 )   (41,203 )
By product credits     (454 )   (232 )   (3,738 )   (232 )
Production cash cost     20,422     24,791     64,997     68,100  
Changes in doré inventory     1,504     107     2,824     (605 )
Realized gain in diesel hedge         (1,696 )       (3,515 )
Cash cost applicable per gold ounce sold A   21,926     23,202     67,821     63,980  
Ounces of gold sold B   22,195     30,052     74,038     89,193  
Cash cost per ounce of gold sold ($/oz) =A/B   988     772     916     717  
 

 

                   
Yaramoko Mine     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022     2023     2022  
Cost of sales     53,943     47,481     137,159     129,762  
Changes in doré inventory                 (1,320 )
Inventory net realizable value adjustment         (1,050 )   (827 )   (5,077 )
Royalties and mining taxes     (3,793 )   (2,817 )   (10,241 )   (8,898 )
Depletion and depreciation     (24,563 )   (18,356 )   (57,719 )   (47,010 )
Refining charges                 (329 )
By product credits                 (25 )
Production cash cost     25,587     25,258     68,372     67,103  
Changes in doré inventory                 1,320  
Refining charges                 329  
Cash cost applicable per gold ounce sold A   25,587     25,258     68,372     68,752  
Ounces of gold sold B   34,029     27,055     89,447     81,183  
Cash cost per ounce of gold sold ($/oz) =A/B   752     934     764     847  
                   

 

 

                   
Séguéla Mine     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022   2023     2022
Cost of sales     33,233       33,233    
Royalties and mining taxes     (4,568 )     (4,568 )  
Depletion and depreciation     (14,556 )     (14,556 )  
Production cash cost     14,109       14,109    
Cash cost applicable per gold ounce sold A   14,109       14,109    
Ounces of gold sold B   35,503       35,503    
Cash cost per ounce of gold sold ($/oz) =A/B   397       397    
                   

 

Reconciliation of cash cost per ounce of gold equivalent sold for the three and nine months ended September 30, 2023 and 2022

 

                   
Consolidated     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022     2023     2022  
Cost of sales     177,181     141,860     438,944     396,016  
Changes in concentrate inventory and dore inventory     (1,387 )   (180 )   (2,770 )   (840 )
Cost of sales-Right of use     651         2,107      
Depletion and depreciation in concentrate inventory     50     39     (40 )   (147 )
Inventory adjustment     789     (1,229 )   (914 )   (4,989 )
Royalties, export duties and mining taxes     (13,071 )   (8,195 )   (30,277 )   (25,778 )
Provision for community support     109     123     32     98  
Workers’ participation     (789 )   (1,433 )   (1,417 )   (3,264 )
Depletion and depreciation     (63,445 )   (46,534 )   (146,998 )   (126,431 )
By product credits     (454 )   (232 )   (3,738 )   (257 )
Production cash cost     99,634     84,216     254,929     234,407  
Changes in concentrate inventory and dore inventory     1,387     180     2,770     840  
Cost of sales-Right of use     (651 )       (2,107 )    
Depletion and depreciation in concentrate inventory     (50 )   (39 )   40     147  
Inventory adjustment     (789 )   179     102     (87 )
Realized gain in diesel hedge         (1,696 )       (3,515 )
Treatment charges     4,768     2,855     15,191     10,967  
Refining charges     1,215     1,386     3,390     3,942  
Cash cost applicable per gold equivalent ounce sold A   105,514     87,083     274,315     246,701  
Ounces of gold equivalent sold B   129,627     98,872     309,196     293,423  
Cash cost per ounce of gold equivalent sold ($/oz) =A/B   814     881     887     841  
 

Gold equivalent was calculated using the realized prices for gold of $1,924/oz Au, $23.7/oz Ag, $2,136/t Pb, and $2,428/t Zn for Q3 2023 and using the realized prices for gold of $1,718/oz Au, $19.2/oz Ag, $1,989/t Pb, and $3,268/t Zn for Q3 2022.

Gold equivalent was calculated using the realized prices for gold of $1,927/oz Au, $23.4/oz Ag, $2,162/t Pb, and $2,778/t Zn for YTD 2023 and using the realized prices for gold of $1,823/oz Au, $21.9/oz Ag, $2,181/t Pb, and $3,634/t Zn for YTD 2022.
                   

 

Reconciliation of all-in sustaining cash cost per ounce of gold sold for the three and nine months ended September 30, 2023 and 2022

 

                 
Lindero Mine   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023   2022   2023   2022
Cash cost applicable   21,926   23,202   67,821   63,980
Export duties and mining taxes   3,266   3,900   11,042   12,192
General and administrative expenses (operations)   2,292   2,044   6,791   6,497
Adjusted operating cash cost   27,484   29,146   85,654   82,669
Sustaining leases   598   563   1,795   1,831
Sustaining capital expenditures1   7,669   4,814   28,751   14,062
Brownfields exploration expenditures1     314     1,104
All-in sustaining cash cost   35,751   34,837   116,200   99,666
Non-sustaining capital expenditures1   353     676   169
All-in cash cost   36,104   34,837   116,876   99,835
Ounces of gold sold   22,195   30,052   74,038   89,193
All-in sustaining cash cost per ounce of gold sold   1,611   1,159   1,569   1,117
All-in cash cost per ounce of gold sold   1,627   1,159   1,579   1,119
1 Presented on a cash basis

 

 

                 
Yaramoko Mine   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023     2022   2023   2022
Cash cost applicable   25,587     25,258   68,372   68,752
Inventory net realizable value adjustment       1,170   334   3,125
Royalties and mining taxes   3,793     2,817   10,241   8,898
General and administrative expenses (operations)   (243 )   688   1,255   1,570
Standby costs         2,999  
Adjusted operating cash cost   29,137     29,933   83,201   82,345
Sustaining leases   1,161     1,419   3,681   4,273
Sustaining capital expenditures1   9,451     10,225   37,318   26,671
Brownfields exploration expenditures1   1,447     2,530   3,656   3,018
All-in sustaining cash cost   41,196     44,107   127,856   116,307
All-in cash cost   41,196     44,107   127,856   116,307
Ounces of gold sold   34,029     27,055   89,447   81,183
All-in sustaining cash cost per ounce of gold sold   1,211     1,630   1,429   1,433
All-in cash cost per ounce of gold sold   1,211     1,630   1,429   1,433
1 Presented on a cash basis

 

 

                 
Séguéla Mine   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023   2022   2023   2022
Cash cost applicable   14,108     14,108  
Royalties and mining taxes   4,568     4,568  
General and administrative expenses (operations)   3,112     3,112  
Adjusted operating cash cost   21,788     21,788  
Sustaining leases   3,044     3,044  
Sustaining capital expenditures1   3,147     3,147  
All-in sustaining cash cost   27,979     27,979  
All-in cash cost   27,979     27,979  
Ounces of gold sold   35,503     35,503  
All-in sustaining cash cost per ounce of gold sold   788     788  
All-in cash cost per ounce of gold sold   788     788  
1 Presented on a cash basis
                 

 

Reconciliation of all-in sustaining cash cost per ounce of gold equivalent sold for the three and nine months ended September 30, 2023 and 2022

 

                 
Consolidated   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023   2022   2023   2022
Cash cost applicable   105,514   87,083   274,315   246,701
Inventory adjustment – cash portion     1,170   334   3,150
Royalties, export duties and mining taxes   13,071   8,195   30,277   25,778
Workers’ participation   936   1,745   1,642   3,952
General and administrative expenses (operations)   7,920   5,228   19,875   16,047
General and administrative expenses (Corporate)   6,219   7,283   23,300   27,328
Standby costs       7,083  
Adjusted operating cash cost   133,660   110,704   356,826   322,955
Sustaining leases   5,872   3,006   11,778   9,098
Sustaining capital expenditures   27,243   23,213   89,311   64,275
Brownfields exploration expenditures   3,326   4,590   7,951   9,495
All-in sustaining cash cost   170,101   141,513   465,866   405,824
Payable ounces of gold equivalent sold   129,627   98,873   309,196   293,423
All-in sustaining cash cost per ounce of gold equivalent sold   1,312   1,431   1,507   1,383
 

Gold equivalent was calculated using the realized prices for gold of $1,924/oz Au, $23.7/oz Ag, $2,136/t Pb, and $2,428/t Zn for Q3 2023 and using the realized prices for gold of $1,718/oz Au, $19.2/oz Ag, $1,989/t Pb, and $3,268/t Zn for Q3 2022.

Gold equivalent was calculated using the realized prices for gold of $1,927/oz Au, $23.4/oz Ag, $2,162/t Pb, and $2,778/t Zn for YTD 2023 and using the realized prices for gold of $1,823/oz Au, $21.9/oz Ag, $2,181/t Pb, and $3,634/t Zn for YTD 2022.

Reconciliation of production cash cost per tonne and cash cost per payable ounce of silver equivalent sold for the three and nine months ended September 30, 2023 and 2022

 

                   
San Jose Mine     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022     2023     2022  
Cost of sales     37,071     32,936     98,960     94,313  
Changes in concentrate inventory     (72 )   (209 )   (90 )   (137 )
Cost of sales-right of use     213         540      
Depletion and depreciation in concentrate inventory     25     68     26     49  
Inventory adjustment     228     312     (66 )   266  
Royalties and mining taxes     (1,278 )   (1,261 )   (3,575 )   (4,002 )
Workers participation     (341 )   (979 )   (91 )   (1,876 )
Depletion and depreciation     (10,233 )   (9,659 )   (28,677 )   (27,265 )
Cash cost3 A   25,613     21,208     67,027     61,348  
Total processed ore (tonnes) B   247,542     267,198     689,165     770,090  
Production cash cost per tonne ($/t) =A/B   103.47     79.37     97.26     79.66  
Cash cost3 A   25,613     21,208     67,027     61,348  
Changes in concentrate inventory     72     209     90     137  
Depletion and depreciation in concentrate inventory     (25 )   (68 )   (26 )   (49 )
Inventory adjustment     (228 )   (312 )   66     (266 )
Treatment charges     54     (173 )   279     (228 )
Refining charges     956     997     2,569     2,789  
Cash cost applicable per payable ounce sold C   26,442     21,861     70,005     63,731  
Payable ounces of silver equivalent sold1 D   1,910,609     2,254,673     5,194,670     6,159,782  
Cash cost per ounce of payable silver equivalent sold2 ($/oz) =C/D   13.84     9.70     13.48     10.35  
Mining cost per tonne     49.98     37.72     44.86     37.48  
Milling cost per tonne     20.92     17.49     21.47     18.74  
Indirect cost per tonne     21.77     16.09     21.05     15.48  
Community relations cost per tonne     3.87     2.68     3.28     2.55  
Distribution cost per tonne     6.93     5.39     6.60     5.41  
Production cash cost per tonne ($/t)     103.47     79.37     97.26     79.66  
1 Silver equivalent sold for Q3 2023 is calculated using a silver to gold ratio of 81.7:1 (Q3 2022: 90.0:1). Silver equivalent sold for YTD 2023 is calculated using silver to gold ratio of 82.6:1 (YTD 2022: 83.5:1)
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results – Sales and Realized Prices

 

 

                   
Caylloma Mine     Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)     2023     2022     2023     2022  
Cost of sales     16,159     17,512     50,810     50,815  
Changes in concentrate inventory     188     135     143     11  
Cost of sales-right of use     437         1,567      
Depletion and depreciation in concentrate inventory     25     (30 )   (66 )   (196 )
Inventory adjustment     561     (491 )   (36 )   (179 )
Royalties and mining taxes     (166 )   (218 )   (851 )   (686 )
Provision for community support     109     123     32     97  
Workers participation     (449 )   (455 )   (1,326 )   (1,389 )
Depletion and depreciation     (2,960 )   (3,619 )   (9,848 )   (10,952 )
Cash cost3 A   13,904     12,957     40,425     37,521  
Total processed ore (tonnes) B   140,077     139,143     403,077     407,695  
Production cash cost per tonne ($/t) =A/B   99.25     93.12     100.29     92.03  
Cash cost A   13,905     12,957     40,425     37,521  
Changes in concentrate inventory     (188 )   (135 )   (143 )   (11 )
Depletion and depreciation in concentrate inventory     (25 )   30     66     196  
Inventory adjustment     (561 )   491     36     179  
Treatment charges     4,714     3,028     14,913     11,195  
Refining charges     258     389     822     1,153  
Cash cost applicable per payable ounce sold C   18,103     16,760     56,119     50,233  
Payable ounces of silver equivalent sold1 D   1,158,881     1,480,688     3,869,253     4,101,900  
Cash cost per ounce of payable silver equivalent sold2,3 ($/oz) =C/D   15.62     11.32     14.50     12.25  
Mining cost per tonne     47.07     41.38     46.07     39.04  
Milling cost per tonne     13.16     14.57     14.56     15.24  
Indirect cost per tonne     29.58     28.46     29.92     29.50  
Community relations cost per tonne     0.70     1.30     0.72     0.93  
Distribution cost per tonne     8.74     7.43     9.02     7.34  
Production cash cost per tonne ($/t)     99.25     93.14     100.29     92.05  
1 Silver equivalent sold for Q3 2023 is calculated using a silver to gold ratio of 80.3:1 (Q3 2022: 0.0:1), silver to lead ratio of 1:24.7 pounds (Q3 2022: 1:21.4), and silver to zinc ratio of 1:21.7 pounds (Q3 2022: 1:13.0). Silver equivalent sold for YTD 2023 is calculated using a silver to gold ratio of 80.9:1 (YTD 2022: 84.8:1), silver to lead ratio of 1:24.0 pounds (YTD 2022: 1:22.2), and silver to zinc ratio of 1:18.6 pounds (YTD 2022: 1:13.3).
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 ounce of silver equivalent sold for the three and nine months ended September 30, 2023 and 2022

 

                 
San Jose Mine   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023     2022   2023     2022
Cash cost applicable   26,442     21,861   70,004     63,731
Cost of sales-right of use   (213 )     (540 )  
Royalties and mining taxes   1,278     1,261   3,575     4,002
Workers’ participation   426     1,224   114     2,345
General and administrative expenses (operations)   1,727     1,606   5,251     4,845
Stand-by costs         4,084    
Adjusted operating cash cost   29,660     25,952   82,488     74,923
Sustaining leases   256     183   632     489
Sustaining capital expenditures3   3,462     4,410   10,828     12,036
Brownfields exploration expenditures3   1,082     1,548   2,958     4,645
All-in sustaining cash cost   34,460     32,093   96,906     92,093
Non-sustaining capital expenditures3   385       1,178     869
All-in cash cost   34,845     32,093   98,084     92,962
Payable ounces of silver equivalent sold1   1,910,609     2,254,673   5,194,670     6,159,782
All-in sustaining cash cost per ounce of payable silver equivalent sold2   18.04     14.23   18.65     14.95
All-in cash cost per ounce of payable silver equivalent sold2   18.24     14.23   18.88     15.09
1 Silver equivalent sold for Q3 2023 is calculated using a silver to gold ratio of 81.7:1 (Q3 2022: 90.0:1). Silver equivalent sold for YTD 2023 is calculated using silver to gold ratio of 82.6:1 (YTD 2022: 83.5:1)
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results – Sales and Realized Prices
3 Presented on a cash basis

 

 

                 
Caylloma Mine   Three months ended September 30,   Nine months ended September 30,
(Expressed in $’000’s, except unit costs)   2023     2022   2023     2022
Cash cost applicable   18,103     16,760   56,118     50,233
Cost of sales-right of use   (437 )     (1,567 )  
Royalties and mining taxes   166     218   851     686
Workers’ participation   510     522   1,528     1,607
General and administrative expenses (operations)   1,032     890   3,466     3,135
Adjusted operating cash cost   19,374     18,390   60,396     55,661
Sustaining leases   813     841   2,626     2,505
Sustaining capital expenditures3   3,514     3,764   9,267     11,506
Brownfields exploration expenditures3   797     198   1,337     729
All-in sustaining cash cost   24,498     23,193   73,626     70,401
All-in cash cost   24,498     23,193   73,626     70,401
Payable ounces of silver equivalent sold1   1,158,881     1,480,688   3,869,253     4,101,900
All-in sustaining cash cost per ounce of payable silver equivalent sold2   21.14     15.66   19.03     17.16
All-in cash cost per ounce of payable silver equivalent sold2   21.14     15.66   19.03     17.16
1 Silver equivalent sold for Q3 2023 is calculated using a silver to gold ratio of 80.3:1 (Q3 2022: 0.0:1), silver to lead ratio of 1:24.7 pounds (Q3 2022: 1:21.4), and silver to zinc ratio of 1:21.7 pounds (Q3 2022: 1:13.0). Silver equivalent sold for YTD 2023 is calculated using a silver to gold ratio of 80.9:1 (YTD 2022: 84.8:1), silver to lead ratio of 1:24.0 pounds (YTD 2022: 1:22.2), and silver to zinc ratio of 1:18.6 pounds (YTD 2022: 1:13.3).
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 unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 and accompanying Q3 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.

 

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.

Posted November 8, 2023

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