|Fortuna Silver Mines Inc. - FVI.t operates two key producing mines. The San Jose Mine is located in southern Oaxaca, Mexico and the Caylloma Mine is located in the southern highlands of Arequipa, Peru. |
Fortuna forecasts 2016 production of 7.0 million ounces of silver and 42,800 ounces of gold at a consolidated AISC of US$11.1 per ounce of silver.
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) today reported revenue of $154.7 million, net loss of $10.6 million and an adjusted net income of $6.7 million.
Jorge A. Ganoza, President and CEO, commented, "Our 2015 operational and financial results reflect Fortuna's capacity to perform soundly in a challenging metal price environment. Adjusting for a $25.0 million impairment at our Caylloma Mine, the company delivered $6.7 million of adjusted net income." Mr. Ganoza continued, "San Jose exceeded its silver and gold production guidance while Caylloma successfully shifted mining to high grade polymetallic zones in the Animas Vein, resulting in increased zinc and lead output that helped improve margins." Mr. Ganoza added, "All-in sustaining cash cost of $14.51 per silver ounce, 13% below annual guidance, is the result of higher by-product credits and material savings in our CAPEX budget; For 2016 we have provided guidance for an All-in sustaining cash cost of $11.1 per silver ounce as we transition in July to the expanded new rate of 3,000 tpd at San Jose."
2015 Consolidated Financial Statements and MD&A Highlights:
- Sales of $154.7 million, compared to $174.0 million in 2014
- Net loss of $10.6 million, compared to net income of $15.6 million in 2014
- Impairment of Caylloma Mine of $25.0 million, before tax in 2015
- Adjusted net income of $6.7 million, compared to $15.7 million in 2014
- Adjusted earnings per share of $0.05, compared to $0.12 in 2014
- Cash position, including short term investments as at December 31, 2015 was $108.2 million
- Silver and gold production of 6,624,635 ounces and 39,689 ounces, respectively
- Cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $3.59
- All-in sustaining cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $14.51
- Sales of $37.0 million, compared to $37.8 million in the fourth quarter of 2014
- Adjusted net loss of $0.1 million, compared to adjusted net income of $0.2 million in the fourth quarter of 2014
- Silver and gold production of 1,585,315 ounces and 9,955 ounces, respectively
- Cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $2.77
- All-in sustaining cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $18.13
For 2015 net loss amounted to $10.6 million (2014: income $15.6 million) as a result of a $25.0 million impairment charge, before tax, at the Caylloma Mine. Adjusted net income decreased 57% to $6.7 million compared to $15.7 million in 2014. This was due mainly to lower metal prices partially offset by higher gold and base metal production and lower unit costs at both operations. General and administrative expenses were $7.5 million lower compared to 2014. This was mostly due to a stock based compensation charge of $1.5 million in 2015, compared to $6.7 million in 2014 and $1.5 million less in corporate expenses.