FORTUNA SILVER MINES INC. A MID-TIER
Gold and silver producer
established in premier mining jurisdictions
Q1 2024 Financial and Operational
Results Webcast
MAY 8, 2024
NYSE: FSM | TSX: FVI
Q1 2024 Highlights
Lindero Mine, Argentina
2
Q1 2024 Highlights
Solid production and financial results
PRODUCTION | Au Eq1,2 | AISC $/oz Au Eq5,6 |
Strong gold equivalent production | ||
112.5 koz | $1,495 | |
20% increase compared to Q1 2023 | ||
Q1 2023: 94.1 koz | Q1 2023: $1,514 |
FINANCIAL RESULTS
EPS of $0.09, an increase from $0.04 reported in Q1 2023 CFPS before working capital of $0.284
Cash from operations | FCF from operations5 |
before WC3 | $12.1 M |
$84.3 M | Q1 2023: $8.5 M |
Q1 2023: $52.5 M |
GROWTH AND DEVELOPMENT
Kingfisher discovery emphasizes continued exploration potential at Séguéla Mine
Séguéla mill throughput achieved 25 % above budget
Kingfisher prospect7 | Séguéla mill throughput |
5.2 g/t Au | 25 % |
over an estimated true width | above budget |
of 8.4 meters from 98 meters | |
Drillhole: SGRD1724 |
FINANCIAL POSITION
$40 M repaid on revolving credit facility; $121 M paid since Q3 2023 Returned $3.5 M of capital through share repurchase program
Improved economics at Séguéla by repurchasing one-half of the 1.2 % NSR
Total net debt 5,6 | Liquidity6 |
$83.0 M | $212.7 M |
At end of Q1 2024 | At end of Q1 2024 |
Yaramoko Mine, Burkina Faso |
See Appendix for Notes and non-IFRS measures | 3 |
Q1 2024 Production and AISC
All mines delivered within guidance
GOLD PRODUCTION | Q1 2024 Au1 | Q4 2023 Au1 | |
89.7 koz | 107.4 koz | ||
Q1 2023: 60.1 koz | |||
Q1 2024 Silver1 | Q4 2023 Silver1 | ||
SILVER PRODUCTION | 1.1 Moz | 1.4 Moz | |
Q1 2023: 1.6 Moz | |||
Q1 20242 | Q4 20232,4 | ||
CONSOLIDATED CASH COST3 | $879/oz Au Eq | $840/oz Au Eq | |
Q1 2023: $916 / oz Au Eq | |||
Q1 20242 | Q4 20232,4 | ||
CONSOLIDATED AISC3 | $1,495/oz Au Eq | $1,509/oz Au Eq | |
Q1 2023: $1,514 / oz Au Eq | Séguéla Mine, Côte d'Ivoire | ||
See Appendix for Notes and non-IFRS measures | 4 |
Financial Overview
Yaramoko Mine, Burkina Faso
5
Q1 2024 Consolidated Sales
Sales of $224.9 million; a 28% increase from the same period in 2023
Precious metals
contribution2
91%
Silver | Net Sales of | 81% | Gold | |||
10% | $224.9 M | |||||
Copper 5%
Zinc 4%
Lead
Realized Precious Metals Prices1
28.00
24.00 | $23.43 |
20.00
16.00Silver ($/oz)
12.00 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
2,200 | $2,087 |
2,000 |
1,800
1,600Gold ($/oz)
1,400 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
See Appendix for Notes | 6 |
Q1 2024 Financial Highlights
Strong adjusted EBITDA margin of 42 %1
($M, except in earnings per share figure) | Q1 2024 | Q1 2023 | % Change |
/ Q1 2023 | |||
Sales | 224.9 | 175.7 | 28 % |
Operating income | 47.1 | 23.9 | 97 % |
Attributable net income1 | 26.3 | 10.9 | 141 % |
EPS, basic | 0.09 | 0.04 | 125 % |
Adjusted attributable net income1 | 26.7 | 12.2 | 119 % |
Adjusted EBITDA1 | 95.2 | 65.3 | 46 % |
Net cash provided by operating activities | 48.9 | 41.8 | 17 % |
Free Cash Flow from ongoing operations1 | 12.1 | 8.5 | 42 % |
- Adjusted net income attributable to Fortuna shareholders was $26.7 M or $0.09, above Q1 2023 primarily due to the contribution of Séguéla that was still under construction in the comparable period
- Free cash flow from ongoing operations1 of $12.1 M was driven by Séguéla's contribution and was partially offset by negative working capital changes in Q1 2024 of $35.3 M compared to a negative of $10.8 M in Q1 2023.
Séguéla Mine, Côte d'Ivoire
See Appendix for Notes and non-IFRS measures | 7 |
Q1 2024 Financial Highlights
Strong liquidity quarter over quarter from strong free cash flow
Quarterly Total Liquidity ($M)
Cash | Undrawn credit facility | |||||||||
162 | 213 | 213 | ||||||||
130 | 85 | 5 | ||||||||
98 | 45 | 125 | ||||||||
45 | ||||||||||
5 | 118 | 128 | ||||||||
85 | 93 | 88 | ||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||
Total Liquidity | 130 | 98 | 162 | 213 | 213 | |||||
Total Debt2 | 251 | 292 | 252 | 211 | 171 | |||||
Senior secured debt | 205 | 246 | 206 | 165 | 125 | |||||
Convertible debenture | 46 | 46 | 46 | 46 | 46 | |||||
Total Net Debt2 | 166 | 198 | 134 | 83 | 83 |
Numbers in the table have been rounded
- An additional $40 million of debt was repaid in Q1 2024 for a cumulative total of $121 million repaid in the last three quarters upon the commissioning of the Séguéla Mine
- Total liquidity includes $125 M1 undrawn amount from the $250 M revolving credit facility
- Total net debt: $83 M2
- Total net debt to adjusted EBITDA ratio: 0.2:13
Lindero Mine, Argentina
See Appendix for Notes and non-IFRS measures | 8 |
Q1 2024 Operations Highlights
Lindero Mine, Argentina
9
Operations
Strong gold production of 89.7 koz; 49% higher than Q1 2023
Séguéla Mine | CÔTE D'IVOIRE
Gold Production (oz) | Cash Cost1 ($/oz Au) | AISC1 ($/oz Au) | |
34,556 | $459 | $948 | |
Q1 2023: N/A | Q1 2023: N/A | Q1 2023: N/A | |
Lindero Mine | ARGENTINA | |||
Gold Production (oz) | Cash Cost1 ($/oz Au) | AISC1 ($/oz Au) | |
23,262 | $1,008 | $1,634 | |
Q1 2023: 25,258 | Q1 2023: $891 | Q1 2023: $1,424 | |
Yaramoko Mine | BURKINA FASO | |||
Gold Production (oz) | Cash Cost1 ($/oz Au) | AISC1 ($/oz Au) | |
27,177 | $752 | $1,373 | |
Q1 2023: 26,437 | Q1 2023: $819 | Q1 2023: $1,509 | |
See Appendix for Notes and non-IFRS measures | 10 |
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Disclaimer
Fortuna Silver Mines Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 07:24:01 UTC.
