LONDON, UK / ACCESSWIRE / June 15, 2017 / Pro-Trader Daily publishes post-earnings coverage on Fortuna Silver Mines Inc. (NYSE: FSM) following the Company's release of its first quarter fiscal 2017 (Q1 FY17) earnings on May 24, 2017. The Vancouver, Canada-based Company's diluted EPS surged 300% y-o-y; beating Wall Street's estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

During the Q1 FY17, Fortuna Silver reported sales of $64.83 million, rising 52% from $42.69 million in Q1 FY16. In the reported quarter, Silver and gold metal sales increased 22% and 41%, respectively. Realized metal prices increased 17% for silver, 2% for gold, 65% for zinc, and 31% for lead.

The precious metal mining Company reported net income of $13.00 million, or $0.08 per diluted share in Q1 FY17, versus $2.58 million, or $0.02 per diluted share, in the prior year's comparable quarter. Wall Street had expected the Company to report net income of $0.05 per diluted share. Additionally, the Company's adjusted net income for Q1 FY17 came in at $14.13 million compared to $2.58 million in Q1 FY16.

Operating Metrics

In Q1 FY17, mine operating earnings surged to $27.18 million from $15.55 million in the year ago same period. The Company's operating income for the reported quarter stood at $19.56 million in Q1 FY17 versus $6.13 million in Q1 FY16.

All-in sustaining cash cost (AISC) per ounce of payable silver was $6.08 in Q1 FY17 compared to $9.38 per ounce of payable silver in Q1 FY16. Furthermore, the Company reported adjusted EBITDA of $30.35 million in Q1 FY17 compared to $12.36 million in Q1 FY16.

Metal Metrics

The Company's silver production during Q1 FY17 was 2.03 million oz compared with 1.62 million oz in Q1 FY16. Silver sales during the quarter were 2.02 million oz compared to 1.65 million oz in the prior year's same quarter. Furthermore, silver realized price increased to $17.45 per oz in Q1 FY17 from $15.00 per oz in Q1 FY16.

Fortuna Silver mined 13,200 oz of gold in Q1 FY17, up from 9,264 oz in Q1 FY16. Gold volume sales increased in Q1 FY17 to 13,040 oz from 9,241 oz in Q1 FY16. Additionally, the Company realized $1,220 per oz on gold sale, up from $1,200 per oz in Q1 FY16.

Zinc production also increased in the reported quarter to 10.82 million lbs from 10.39 million lbs in last year's comparable period. Meanwhile, lead production decreased from 9.11 million lbs in Q1 FY16 to 7.21 million lbs in Q1 FY7.

Cash Flow and Balance Sheet

In the three months ended March 31, 2017, net cash generated by operating activities was $8.89 million, against net cash used if operating activities of $0.33 million the prior year quarter. As on March 31, 2017, cash and cash equivalents balance stood at $82.21 million compared to $82.48 million as on December 31, 2016. Bank loan balance as on March 31, 2017 was $39.79 million, compared to $39.77 million as on December 31, 2016.

Earnings Outlook

In its guidance for full year FY17, Fortuna Silver has silver production outlook 8.1 million oz. Gold production during the year is expected to be 52.4 koz. The Company projects lead and zinc production volumes during FY17 to be 30.0 million lbs and 41.0 million lbs, respectively. Furthermore, AISC for full year FY17 is forecasted to be $9.8.

Stock Performance

On Wednesday, June 14, 2017, the stock closed the trading session at $4.83, slipping 3.78% from its previous closing price of $5.02. A total volume of 3.92 million shares have exchanged hands, which was higher than the 3-month average volume of 1.89 million shares. Fortuna Silver Mines' stock price gained 6.15% in the last one month. The stock is trading at a PE ratio of 25.16. At Wednesday's closing price, the stock's net capitalization stands at $769.05 million.

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