Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”
or the “Company”) today reported its financial and
operating results for the fourth quarter and full year 2023.
Fourth Quarter and Full Year 2023
highlights
Financial
- Attributable net loss for the
quarter of $92.3 million or $0.30 per share after non-cash
impairment charges of $90.6 million in Q4 2023, totaling an
attributable net loss of $50.8 million for the full year 2023
- Attributable adjusted net income1
of $20.6 million or $0.07 per share in Q4 2023, totaling $64.9
million, or $0.22 per share for the full year 2023
- Net cash generated by operations
for the quarter was $105.1 million or $0.36 per share in Q4 2023,
totaling $296.3 million or $ 1.0 per share for the full year
2023
- Free cash flow from ongoing
operations1 of $66.2 million in Q4 2023; totaling $153.5 million
for the full year 2023
- The Company repaid $41.0 million of
its corporate credit facility in the fourth quarter and the total
net debt1 at year end stands at $83.0 million. An additional
payment of $25.0 million was made subsequent to year end.
- Liquidity as at December 31, 2023
was $213.1 million
Operational
- Record gold equivalent production
of 136,154 ounces3 in Q4 2023 and record annual gold equivalent
production of 452,389 ounces3; representing increases of 6 and 13
percent compared to the respective periods in 2022
- Record gold production of 107,376
ounces in Q4 2023 and 326,638 ounces for the full year 2023
- Silver production of 1,354,003
ounces in Q4 2023 and 5,883,691 ounces for the full year 2023
- Consolidated cash cost per gold
equivalent ounce1 of $840 in Q4 2023 and $874 for the full year
2023
- Consolidated AISC per gold
equivalent ounce1 of $1,509 for Q4 2023 and $1,508 for the full
year 2023
- Continuous trend of improvement in
annual safety performance across the business with a Total
Recordable Injury Frequency Rate (TRIFR) of 1.22, and a Lost Time
Injury Frequency Rate (LTIFR) of 0.36, compared to 2.32 and 0.39 in
2022
Growth and Development
- During the fourth quarter of 2023
the Company initiated a 45,000-meter drill program at its newly
acquired Diamba Sud project in Senegal. Subject to results the
Company plans to produce a Preliminary Economic Assessment by the
end of 2024
- At the end of December 2023, the
Séguéla Mine processing facility was performing 26% above name
plate capacity. For 2024 management has identified opportunities to
further optimize and debottleneck throughput.
|
1 Refer to Non-IFRS financial measures |
|
2 AISC/oz Ag Eq calculated at realized metal prices, refer to mine
site results for realized prices and Non-IFRS Financial Measures
for silver equivalent ratio |
|
3 Gold equivalent production includes gold, silver, lead and zinc
and is calculated using the following metal prices: $1,802/oz Au,
$21.75/oz Ag, $2,161/t Pb and $3,468/t Zn or Au:Ag = 1:82.89, Au:Pb
= 1:0.83, Au:Zn = 1:0.52 |
|
|
Jorge A. Ganoza, President and CEO, commented,
“In the fourth quarter Fortuna delivered strong free cash-flow from
ongoing operations of $65 million compared to $70 million in the
third quarter. The Company also achieved record gold equivalent
production of 136,154 ounces and record sales of $265.3 million,
representing increases of 6% and 9% respectively compared to Q3.”
Mr. Ganoza added, “Fourth quarter net earnings were impacted by
non-cash write-downs and the remaining short life of reserves at
San Jose, where we have recorded a non-cash impairment charge of
$90.6 million. At San Jose our exploration continues pursuing the
discovery of new resources with the aim of extending production
beyond 2024.”
Mr. Ganoza continued, “Fortuna had a strong
close to 2023, with record annual gold production exceeding
guidance and silver falling short by 7%. Gold equivalent production
increased 13% to a record 452,389 gold equivalent ounces compared
to 2022, and we have guided further growth in 2024. Record annual
sales of $842.4 million were 24% above 2022. All our mines met or
improved site AISC guidance for the year with the only exception
being the San Jose Mine, which is operating on the tail end of
reserves and had to contest with an illegal blockade at the
beginning of the year.
Mr. Ganoza concluded, “For 2024 our capital
allocation priorities continue to be centered on providing maximum
balance sheet flexibility through further debt reduction, and
funding of aggressive organic growth programs with approximately
200,000 meters of exploration drilling planned across the
portfolio. The Diamba Sud project in Senegal and the Séguéla Mine
in Côte d´Ivoire are priorities for our exploration programs during
the year.”
Fourth Quarter 2023 and Full Year 2023
Consolidated Results
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Three months ended December 31, |
|
Years ended December 31, |
|
(Expressed in millions) |
|
2023 |
|
|
2022 |
|
|
% Change |
|
2023 |
|
|
2022 |
|
|
% Change |
|
Sales |
|
265.3 |
|
|
164.7 |
|
|
61 |
% |
|
842.4 |
|
|
681.5 |
|
|
24 |
% |
| Mine operating income |
|
51.9 |
|
|
26.0 |
|
|
100 |
% |
|
190.0 |
|
|
146.8 |
|
|
29 |
% |
| Operating loss |
|
(77.4 |
) |
|
(173.1 |
) |
|
55 |
% |
|
(0.4 |
) |
|
(113.6 |
) |
|
100 |
% |
| Attributable net loss |
|
(92.3 |
) |
|
(152.8 |
) |
|
40 |
% |
|
(50.8 |
) |
|
(128.1 |
) |
|
60 |
% |
| Attributable loss per share -
basic |
|
(0.30 |
) |
|
(0.52 |
) |
|
43 |
% |
|
(0.17 |
) |
|
(0.44 |
) |
|
61 |
% |
| Adjusted attributable net
income1 |
|
20.6 |
|
|
6.4 |
|
|
222 |
% |
|
64.9 |
|
|
41.4 |
|
|
57 |
% |
| Adjusted EBITDA1 |
|
120.3 |
|
|
55.8 |
|
|
116 |
% |
|
335.1 |
|
|
245.5 |
|
|
36 |
% |
| Net cash provided by operating
activities |
|
105.1 |
|
|
49.6 |
|
|
112 |
% |
|
296.9 |
|
|
194.2 |
|
|
53 |
% |
| Free cash flow from ongoing
operations1 |
|
66.2 |
|
|
4.4 |
|
|
1,405 |
% |
|
153.5 |
|
|
69.2 |
|
|
122 |
% |
| Production cash cost ($/oz Au
Eq) |
|
840 |
|
|
873 |
|
|
(4 |
%) |
|
874 |
|
|
849 |
|
|
3 |
% |
| All-in sustaining cash cost
($/oz Au Eq) |
|
1,509 |
|
|
1,579 |
|
|
(4 |
%) |
|
1,508 |
|
|
1,431 |
|
|
5 |
% |
| Capital expenditures2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
46.8 |
|
|
33.9 |
|
|
38 |
% |
|
136.1 |
|
|
98.1 |
|
|
39 |
% |
|
Non-sustaining3 |
|
1.8 |
|
|
(2.3 |
) |
|
178 |
% |
|
5.2 |
|
|
8.2 |
|
|
(37 |
%) |
|
Séguéla construction |
|
- |
|
|
23.5 |
|
|
(100 |
%) |
|
50.0 |
|
|
107.7 |
|
|
(54 |
%) |
|
Brownfields |
|
5.5 |
|
|
6.5 |
|
|
(15 |
%) |
|
16.1 |
|
|
23.3 |
|
|
(31 |
%) |
| As at |
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
% Change |
| Cash and cash
equivalents |
|
|
|
128.1 |
|
|
80.5 |
|
|
59 |
% |
| Net liquidity position
(excluding letters of credit) |
|
|
|
|
|
|
|
213.1 |
|
|
150.5 |
|
|
42 |
% |
|
Shareholder's equity attributable to Fortuna shareholders |
|
|
|
|
|
|
|
1,238.4 |
|
|
1,244.8 |
|
|
(1 |
%) |
|
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 |
|
| |
|
Fourth Quarter 2023 Results
Attributable Net Loss and Adjusted Net
IncomeAttributable net loss for the period was $92.3 million
compared to an attributable net loss of $152.8 million in Q4 2022
The loss in the quarter is explained by the following items:
- An impairment charge of $90.6
million related to the anticipated closure of the San Jose Mine in
late 2024, as the updated mine plan is scheduled to exhaust Mineral
Reserves by the end of the year compared to mid-2025 as previously
planned
- A write-down of materials inventory
of $10.1 million at the San Jose, Yaramoko and Lindero Mines
- A write-down of low-grade ore
stockpiles of $5.4 million at the Lindero Mine
- A $6.4 million severance provision
associated with the scheduled closure of the San Jose Mine
- A write-down of $5.9 million
related to greenfield exploration projects in Mexico and
Argentina
After adjusting for impairment charges and other
non-recurring items, adjusted attributable net income was $20.6
million or $0.07 per share compared to $6.4 million or $0.02 per
share in Q4 2022. The increase was primarily due to higher gold
sales volume and higher gold prices. Higher gold sales volume was
mainly due to the contribution of Séguéla in its second full
quarter of production. This was combined with 7% higher sales at
Yaramoko from higher processed head grade. This was partially
offset by lower sales at San Jose related to lower head grades
consistent with the Mineral Reserve and a reduction in mined
tonnage related to operational challenges in backfilling and
blasting activities. The realized gold price was $1,990 per ounce
in Q4 2023 compared to $1,737 per ounce in Q4 2022.
Other items impacting the adjusted net income
for the quarter compared to Q4 2022 were higher G&A of $3.3
million, mostly related to the addition of Séguéla G&A and
timing of execution on certain corporate G&A items; higher
foreign exchange loss of $2.4 million primarily related to 118%
devaluation of the official exchange rate in Argentina as part of
the measures taken by the new elected government to achieve a more
sustainable real exchange rate in the short term; Other expenses of
$2.7 million related to administrative penalties at Yaramoko, and a
higher interest expense of $4.0 million as a result of higher
interest rates and $1.4 million of interest charges capitalized in
Q4 2022 vs nil in Q4 2023. This was partially offset by $12.4
million of investment income related to cross-border, Argentine
pesos denominated bond trades.
Depreciation and DepletionDepreciation and
depletion increased $27.1 million to $71.6 million in the fourth
quarter of 2023 compared to $44.5 million in the comparable period
of 2022. The increase was primarily due to an increase in ounces
sold as well as higher depletion per ounce at Séguéla due to the
depletion of the purchase price allocation from the Roxgold
acquisition of $17.1 million.
Adjusted EBITDA and Cash FlowAdjusted EBITDA for
the quarter was $120.3 million, a margin of 45% over sales,
compared to $55.8 million and margin over sales of 34%, reported in
the same period in 2022. The main driver for the increase in EBITDA
was the contribution from Séguéla with EBITDA margin of 73% in Q4
2023, combined with higher EBITDA from Yaramoko related to higher
gold output. In addition, adjusted EBITDA reflects the positive
impact from the inclusion of $12.4 million of investment income at
our Argentine operations. The trade associated with the investment
income was a one-off event executed under a time limited waiver
granted by the government of Argentina in Q4 to allow exporters a
partial recovery of economic losses incurred from the accumulated
lag of the nominal exchange rate with respect to inflation.
Net cash generated by operations for the quarter
was $105.1 million or $0.34 per share compared to $49.6 million or
$0.17 per share in Q4 2022. The increase of $54.8 million reflects
higher EBITDA of $61.8 million.
Free cash flow from ongoing operations for the
quarter was $66.2 million compared to $4.4 million in Q4 2022. The
increase reflects higher net cash generated by operations.
Cash cost per ounce and AISC Cash cost per
gold equivalent ounce was $840, a decrease from the $873 reported
in Q4 2022 as the contribution of lower cost ounces from Séguéla in
Q4 2023 was offset by partially offset by higher cost per ounce at
San Jose, which increased by over 64% due to lower production and
higher costs year over year. This combined with higher cost per
gold ounce at Lindero and Yaramoko of $120 and $131 respectively
associated with lower head grades at Lindero and higher costs in Q4
2023 at Yaramoko. AISC per gold equivalent ounce was $1,509
in Q4, slightly below the $1,579 recorded the prior year due to
lower capex on a per ounce basis, partially offset by higher
royalties related to the higher realized gold price.
Full Year 2023 Results
Attributable Net Loss and Adjusted Net
IncomeAttributable net loss for the year was $50.8 million,
compared to an attributable net loss of $128.1 million in 2022. The
loss in 2023 is explained by impairment charges of $90.6 million at
the San Jose Mine explained above.
After adjusting for impairment charges and other
non-recurring items, attributable adjusted net income for 2023 was
$64.9 million or $0.22 per share, compared to $41.4 million or
$0.14 per share in 2022. The increase was primarily due to higher
gold sales volume and higher gold prices. Higher gold sales
volume was mainly due to the contribution of Séguéla in the second
half of the year upon successful commissioning and ramp-up in Q2
2023, and higher sales volume at Yaramoko explained by higher
processed head grades in 2023. This was partially offset by lower
production at Lindero, aligned with the grade profile in the mine
plan, and lower head grades and processed ore at San Jose,
explained by declining head grades in reserves and the impact of
the 15 day mine stoppage in Q2 and related lingering operational
challenges during the year. The realized gold price was $1,948 per
ounce in 2023 compared to $1,802 per ounce in 2022.
Other items impacting the adjusted net income
compared to 2022 were higher G&A of $2.7 million, mostly
related to the addition of Séguéla G&A; higher foreign exchange
loss of $4.6 million mostly related to the devaluation of the
Argentine peso as described above; higher other expenses of $9.7
million related to $3.5 million of stand-by charges at San Jose and
Yaramoko in Q2 2023, $2.8 million related to a new agreement with
the worker´s union at San Jose in Q2 2023, and $3.7 million of
administrative penalties at Yaramoko payable to the Ministry of
Mines recorded in Q2 and Q4 2023, and a higher interest expense of
$7.5 million as a result of an increased debt balance outstanding,
higher interest rates and discontinued capitalized interest charges
in the second half of the year. This was partially offset by $12.4
million of investment income related to cross-border, Argentine
pesos denominated bond trades.
Depreciation and DepletionDepreciation and
depletion for 2023 increased $46.8 million to $219.7 million
compared to $172.8 million in 2022. The increase was primarily due
an increase in ounces sold, the start of depletion at Séguéla,
including $25.3 million related to the purchase price allocation
from Roxgold, and higher depletion at Yaramoko due to declining
reserves which increased the depletion rate of new capital
additions underground.
Adjusted EBITDA and Free Cash FlowAdjusted
EBITDA for the year was $335.1 million, a margin of 40% over sales,
compared to $245.5 million reported in 2022, representing a margin
of 36% over sales. The main drivers for the increase were the
contribution of Séguéla with EBITDA margin of 69%, and higher
production and improved margins at Yaramoko. In addition, adjusted
EBITDA reflects the positive impact from the inclusion of $12.4
million of investment income at our Argentine operations as
described above.
Net cash generated by operations for 2023 was
$296.9 million or $1.00 per share compared to $194.2 million or
$0.67 per share in 2022. The increase of $102.7 million is
explained by higher EBITDA of $89.6 million combined with lower
income tax paid of $16.3 million in 2023 primarily due to lower
taxes paid at the San Jose Mine, no taxes paid at the Séguéla Mine
in 2023 and higher repatriation withholding taxes incurred in
2022.
Free cash flow from ongoing operations for 2023
was $153.5 million compared to $69.2 million in 2022. The increase
of $84.3 million reflects higher net cash generated by operations,
partially offset by higher sustaining capital expenditures,
including brownfields explorations. Sustaining capital expenditures
on a cash basis increased by $27.6 million to $143.6 million
explained by higher CAPEX at Lindero related to the leach-pad
expansion and capex incurred at Séguéla in the second half of
2023.
Cash cost per ounce and AISC Cash cost per
equivalent gold ounce was $874, slightly above the $849 reported in
2022 as the contribution of lower cost ounces from Séguéla in the
second half of 2023 was offset by higher cost per gold ounce at
Lindero of $182 related mainly to lower planned head grades in
2023, and higher cost per equivalent gold ounce at San Jose of $379
explained primarily by lower processed ore and lower head grades.
AISC per ounce of gold equivalent of $1,508 in
2023 was $77 above the $1,431 recorded the prior year due mainly to
higher cash cost per gold equivalent ounce and higher capex at
Lindero related to the leach pad expansion.
Liquidity
Total liquidity available to the Company as at
December 31, 2023 was $213.1 million, comprised of $128.1 million
of cash and cash equivalents and $85.0 million undrawn (excluding
letters of credit) on the Company’s revolving $250.0 million credit
facility. Total net debt as of the end of the quarter was $83.2
million.
Subsequent to the year end the Company paid down
an additional $25.0 million on its corporate credit facility,
taking the outstanding debt amount to $140.0 million.
Lindero Mine, Argentina
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Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes placed on the leach pad |
|
|
1,556,000 |
|
|
1,334,509 |
|
|
6,005,049 |
|
|
5,498,064 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.63 |
|
|
0.80 |
|
|
0.64 |
|
|
0.81 |
|
Production (oz) |
|
|
29,591 |
|
|
29,301 |
|
|
101,238 |
|
|
118,418 |
|
Metal sold (oz) |
|
|
29,308 |
|
|
27,847 |
|
|
103,503 |
|
|
117,076 |
|
Realized price ($/oz) |
|
|
1,993 |
|
|
1,732 |
|
|
1,942 |
|
|
1,803 |
| |
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|
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|
|
|
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|
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|
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| Unit Costs |
|
|
|
|
|
|
|
|
|
|
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|
Cash cost ($/oz Au)1 |
|
|
934 |
|
|
814 |
|
|
920 |
|
|
739 |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,557 |
|
|
1,219 |
|
|
1,565 |
|
|
1,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
10,607 |
|
|
3,973 |
|
|
39,358 |
|
|
18,035 |
|
Sustaining leases |
|
|
598 |
|
|
567 |
|
|
2,393 |
|
|
2,398 |
|
Non-sustaining |
|
|
1,302 |
|
|
– |
|
|
1,978 |
|
|
169 |
|
Brownfields |
|
|
– |
|
|
184 |
|
|
– |
|
|
1,288 |
|
1 Cash cost and AISC 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. |
| |
In the fourth quarter of 2023, a total of 1,556,000 tonnes of
ore were placed on the heap leach pad, with an average gold grade
of 0.63 g/t, containing an estimated 31,665 ounces of gold. Gold
production for Q4 2023 totaled 29,591 ounces. This represents a 1%
increase in total ounces, from the previous quarter. Gold
production was comprised of 24,977 ounces in doré bars, 4,443
ounces of gold contained in fine carbon, and 171 ounces contained
in copper concentrate. Ore mined was 2.1 million tonnes, with a
stripping ratio of 0.6:1. The stripping ratio in the fourth quarter
was 45 percent lower than the third quarter of 2023.
For the full year 2023 gold production totaled
101,238 ounces, achieving midpoint of annual production guidance.
Gold production comprised of 94,905 ounces in doré bars, 6,015
ounces in gold contained in fine carbon, and 319 ounces contained
in copper concentrate. The stripping ratio for 2023 was 1.14:1,
aligned with the mining plan for the year.
The cash cost per ounce of gold for the quarter
ending December 31, 2023, was $934 compared to $814 in the same
period of 2022. For the year ending December 31, 2023, the cash
cost per ounce was $920, an increase from $739 in 2022. The
increase in cash cost per ounce of gold for both the quarter and
for the full year was primarily due to lower processed gold grades
in accordance with the mine plan.
The all-in sustaining cash cost per gold ounce
sold during Q4 2023 was $1,557, up from $1,219 in the fourth
quarter of 2022. For the full year of 2023, the all-in sustaining
cash cost was $1,565, compared to $1,140 in 2022. The increase both
for the quarter and the year was driven by higher cash costs, along
with increased sustaining capital expenditures related to the leach
pad expansion. This was partially mitigated by higher copper
by-product credits.
As of December 31, 2023, the leach pad expansion
project is approximately 23% complete. Mobilization of the civil
contractor’s personnel and equipment has advanced with earth moving
activities having commenced in January. Deliveries of geomembrane
and geosynthetic clay liner are on-track, with the remaining
materials expected to arrive on site in the first quarter of 2024.
The leach pad expansion remains on schedule for completion during
the second half of 2024.
Yaramoko Mine, Burkina Faso
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|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
110,445 |
|
|
142,694 |
|
|
531,579 |
|
|
546,651 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
7.16 |
|
|
6.45 |
|
|
6.81 |
|
|
6.37 |
|
Recovery (%) |
|
|
98 |
|
|
98 |
|
|
98 |
|
|
98 |
|
Production (oz) |
|
|
28,235 |
|
|
26,190 |
|
|
117,711 |
|
|
106,108 |
|
Metal sold (oz) |
|
|
28,229 |
|
|
26,250 |
|
|
117,676 |
|
|
107,433 |
|
Realized price ($/oz) |
|
|
1,984 |
|
|
1,742 |
|
|
1,945 |
|
|
1,802 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
949 |
|
|
818 |
|
|
809 |
|
|
840 |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
1,720 |
|
|
1,829 |
|
|
1,499 |
|
|
1,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
12,620 |
|
|
18,994 |
|
|
49,938 |
|
|
45,665 |
|
Sustaining leases |
|
|
1,077 |
|
|
1,419 |
|
|
4,758 |
|
|
5,692 |
|
Brownfields |
|
|
1,261 |
|
|
2,855 |
|
|
4,917 |
|
|
5,873 |
|
1 Cash cost and AISC 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 28,235 ounces of gold
in the fourth quarter of 2023 with an average gold head grade of
7.16 g/t, 8% and 11% increases when compared to the same period in
2022. Higher production was due to higher grades partially offset
by lower mill throughput in the fourth quarter and a planned
maintenance shutdown in December.
Gold production in 2023 totaled 117,711 ounces,
achieving the higher end of the annual guidance range.
The cash cost per ounce of gold sold for the
quarter ended December 31, 2023, was $949 compared to $818 in the
same period in 2022. The increase for the quarter is mainly
attributed to higher mining costs, particularly due to equipment,
energy, and overhead expenses, but was partially offset by higher
gold production. For the year ending December 31, 2023, the cash
cost per ounce of gold sold was $809, a decrease from $840 in 2022.
The full year decrease is mainly due to increased production and
lower mining costs during prior quarters.
The all-in sustaining cash cost per gold ounce
sold was $1,720 for the quarter ended December 31, 2023, compared
to $1,829 in the same period of 2022. The change in the quarter was
primarily due to the increased cash cost described above, increased
royalties and an administrative penalty in Q4, offset by reduced
capital expenditures. For the full year, the all-in sustaining cash
cost per gold ounces sold was $1,499 in 2023, compared to $1,529 in
2022. The increased royalties and administrative penalty costs in
Q4 2023 were offset by increased production and decreased costs
earlier in the year.
Exploration and grade control drilling success
in conjunction with underground development extended mineralization
on the western side of the Zone 55 mineralized structure. This
provided additional mining areas which demonstrated wider and
higher-grade extensions of mineralization within and beyond the
existing resource boundary.
Séguéla Mine, Côte d'Ivoire
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
387,624 |
|
|
- |
|
|
807,617 |
|
|
- |
|
Average tonnes crushed per day |
|
|
4,123 |
|
|
- |
|
|
3,282 |
|
|
- |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
3.62 |
|
|
- |
|
|
3.42 |
|
|
- |
|
Recovery (%) |
|
|
95 |
|
|
- |
|
|
94 |
|
|
- |
|
Production (oz) |
|
|
43,096 |
|
|
- |
|
|
78,617 |
|
|
- |
|
Metal sold (oz) |
|
|
43,018 |
|
|
- |
|
|
78,521 |
|
|
- |
|
Realized price ($/oz) |
|
|
1,994 |
|
|
- |
|
|
1,963 |
|
|
- |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost ($/oz Au)1 |
|
|
323 |
|
|
- |
|
|
357 |
|
|
- |
|
All-in sustaining cash cost ($/oz Au)1 |
|
|
737 |
|
|
- |
|
|
760 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
7,765 |
|
|
- |
|
|
10,912 |
|
|
- |
|
Sustaining leases |
|
|
2,285 |
|
|
- |
|
|
5,329 |
|
|
- |
| 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 |
| |
In the fourth quarter of 2023, mined material
totaled 387,624 tonnes of ore, averaging 3.62 g/t Au, and
containing an estimated 43,096 ounces of gold from the Antenna Pit.
Movement of waste during the quarter totaled 2,110,209 tonnes, for
a strip ratio of 5.4:1. Séguéla produced 43,096 ounces of gold, a
37% increase and a 5% decrease, respectively, compared to the third
quarter of 2023. The increase in gold production is directly
related to the mill achieving consistently higher throughput,
processing 387,624 tonnes, a 25% increase over the previous
quarter.
Gold production in 2023 totaled 78,617 ounces,
exceeding the higher end of the annual guidance range.
Reconciliation of tonnes, grade, and gold ounces
mined for the fourth quarter from Antenna show a positive
correlation when compared to the long-term reserve model with 6%
higher ore tonnes mined at 16% higher grades resulting in 24% more
gold ounces extracted than predicted in the model.
Process plant performance continued to improve
as feed characteristics were stabilized and initial bottlenecks
addressed. Recovery in the fourth quarter increased to 94.9%, ahead
of feasibility study assumptions. Plant productivity also continued
to improve with throughput in the fourth quarter being 186
tonnes/hour, a 20% increase on the 154 tonnes/hour nameplate
capacity.
Cash cost per gold ounce sold was $323 for Q4
2023 and $357 for the full year, which was below plan and guidance,
primarily due to higher production, higher head grades, lower
consumable consumption, and lower service costs.
All-in sustaining cash cost per gold ounce sold
was $737 for Q4 2023 and $760 for the full year, which was below
plan and guidance, primarily due to lower cash cost and higher
sales volume, partially offset by higher capital expenditures.
San Jose Mine, Mexico
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
241,035 |
|
|
259,500 |
|
|
930,200 |
|
|
1,029,590 |
|
Average tonnes milled per day |
|
|
2,678 |
|
|
2,883 |
|
|
2,643 |
|
|
2,925 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Silver |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
145 |
|
|
194 |
|
|
171 |
|
|
191 |
|
Recovery (%) |
|
|
91 |
|
|
91 |
|
|
91 |
|
|
91 |
|
Production (oz) |
|
|
1,023,525 |
|
|
1,473,627 |
|
|
4,656,631 |
|
|
5,762,563 |
|
Metal sold (oz) |
|
|
1,040,888 |
|
|
1,482,452 |
|
|
4,659,611 |
|
|
5,755,330 |
|
Realized price ($/oz) |
|
|
23.35 |
|
|
21.37 |
|
|
23.36 |
|
|
21.73 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.91 |
|
|
1.13 |
|
|
1.06 |
|
|
1.14 |
|
Recovery (%) |
|
|
90 |
|
|
90 |
|
|
90 |
|
|
90 |
|
Production (oz) |
|
|
6,345 |
|
|
8,499 |
|
|
28,559 |
|
|
34,124 |
|
Metal sold (oz) |
|
|
6,406 |
|
|
8,621 |
|
|
28,524 |
|
|
34,201 |
|
Realized price ($/oz) |
|
|
1,983 |
|
|
1,734 |
|
|
1,942 |
|
|
1,802 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
|
|
103.89 |
|
|
86.26 |
|
|
98.98 |
|
|
81.33 |
|
Production cash cost ($/oz Ag Eq)1,2 |
|
|
17.57 |
|
|
11.16 |
|
|
14.40 |
|
|
10.56 |
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
21.98 |
|
|
15.53 |
|
|
19.40 |
|
|
15.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
3,190 |
|
|
3,695 |
|
|
14,018 |
|
|
15,731 |
|
Sustaining leases |
|
|
246 |
|
|
169 |
|
|
878 |
|
|
658 |
|
Non-sustaining |
|
|
505 |
|
|
– |
|
|
1,682 |
|
|
869 |
|
Brownfields |
|
|
1,257 |
|
|
961 |
|
|
4,215 |
|
|
5,606 |
|
1 Production cash cost silver equivalent and All-in sustaining cash
cost silver equivalent are calculated using realized metal prices
for each period respectively. |
| 2
Production cash cost, Production cash cost silver equivalent, and
All-in sustaining cash cost 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 fourth quarter of 2023, San Jose produced
1,023,525 ounces of silver and 6,345 ounces of gold, 31% and 25%
decreases respectively, at average head grades for silver and gold
of 145 g/t and 0.91 g/t, 25% and 20% decreases respectively, when
compared to the same period in 2022. The decrease in silver and
gold production for the quarter is explained by the declining grade
profile of Mineral Reserves in the mine plan, as well as lower
tonnage extracted from the mine. The reduction in tonnage is due to
operational challenges leading to delays in backfilling and
blasting operations in stopes P and Q during December 2023. During
the fourth quarter, the processing plant milled 241,035 tonnes at
an average of 2,678 tonnes per day.
Production in 2023 totaled 4,656,631 ounces of
silver and 28,559 ounces of gold, 12% and 16% below annual guidance
range, respectively. The decrease in production is attributed
primarily to the 15-day illegal union blockade in the second
quarter, the associated disruption to operations thereafter, and a
silver and gold head grade reconciliation to reserves at the lower
end of guidance range.
The cash cost per silver equivalent ounce for
the three months ending December 31, 2023, was $17.57, an increase
from $11.16 in the same period of 2022. This increase was primarily
attributed to lower head grades, as discussed above, and higher
cash costs per tonne primarily related to the appreciation of the
Mexican peso, higher mining contractor tariffs, and a 7% decrease
in processed ore. For the year ending December 31, 2023 the cash
cost per silver equivalent ounce sold was $14.40 compared to
$10.56. The full year increase was driven by lower head grades, and
higher cash cost per tonne, which was similarly influenced by the
appreciation of the Mexican Peso and 10% lower tonnes
processed.
The all-in sustaining cash cost of payable
silver equivalent for the three months ended December 31, 2023
increased by 42% to $21.98 per ounce, and full year 2023 increased
by 28% to $19.40 per ounce. This compares to $15.53 per ounce and
$15.11 per ounce for the same periods in 2022. These increases were
mainly driven by higher cash costs and lower production, slightly
mitigated by lower workers' participation costs.
The decrease in Brownfields expenditures is
primarily attributable to reduced drilling activity in 2023.
Drilling in 2023 was however higher than initially anticipated,
owing to the emergent drilling campaign at the Yessi vein,
discovered in the third quarter of the year. Exploration at the
Yessi vein continues.
Caylloma Mine, Peru
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Mine Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
|
140,800 |
|
|
138,491 |
|
|
543,876 |
|
|
546,186 |
|
Average tonnes milled per day |
|
|
1,564 |
|
|
1,556 |
|
|
1,528 |
|
|
1,539 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Silver |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
88 |
|
|
75 |
|
|
85 |
|
|
80 |
|
Recovery (%) |
|
|
83 |
|
|
81 |
|
|
83 |
|
|
81 |
|
Production (oz) |
|
|
330,478 |
|
|
273,119 |
|
|
1,227,060 |
|
|
1,144,714 |
|
Metal sold (oz) |
|
|
353,935 |
|
|
289,870 |
|
|
1,229,298 |
|
|
1,156,381 |
|
Realized price ($/oz) |
|
|
23.06 |
|
|
21.28 |
|
|
23.37 |
|
|
21.81 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (g/t) |
|
|
0.11 |
|
|
0.12 |
|
|
0.13 |
|
|
0.14 |
|
Recovery (%) |
|
|
21 |
|
|
22 |
|
|
22 |
|
|
32 |
|
Production (oz) |
|
|
109 |
|
|
122 |
|
|
513 |
|
|
777 |
|
Metal sold (oz) |
|
|
— |
|
|
— |
|
|
40 |
|
|
603 |
|
Realized price ($/oz) |
|
|
— |
|
|
— |
|
|
1,902 |
|
|
1,864 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Lead |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
3.84 |
|
|
3.22 |
|
|
3.74 |
|
|
3.27 |
|
Recovery (%) |
|
|
91 |
|
|
89 |
|
|
91 |
|
|
88 |
|
Production (000's lbs) |
|
|
10,798 |
|
|
8,735 |
|
|
40,852 |
|
|
34,588 |
|
Metal sold (000's lbs) |
|
|
11,641 |
|
|
9,118 |
|
|
41,074 |
|
|
34,869 |
|
Realized price ($/lb) |
|
|
0.97 |
|
|
0.96 |
|
|
0.98 |
|
|
0.98 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%) |
|
|
5.00 |
|
|
4.63 |
|
|
5.11 |
|
|
4.32 |
|
Recovery (%) |
|
|
90 |
|
|
89 |
|
|
90 |
|
|
89 |
|
Production (000's lbs) |
|
|
13,933 |
|
|
12,575 |
|
|
55,060 |
|
|
46,176 |
|
Metal sold (000's lbs) |
|
|
14,407 |
|
|
11,027 |
|
|
56,166 |
|
|
44,770 |
|
Realized price ($/lb) |
|
|
1.13 |
|
|
1.35 |
|
|
1.23 |
|
|
1.57 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Unit Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production cash cost ($/t)2 |
|
|
100.71 |
|
|
95.70 |
|
|
100.40 |
|
|
92.96 |
|
Production cash cost ($/oz Ag Eq)1,2 |
|
|
13.67 |
|
|
12.46 |
|
|
14.28 |
|
|
12.34 |
|
All-in sustaining cash cost ($/oz Ag Eq)1,2 |
|
|
22.34 |
|
|
20.30 |
|
|
19.90 |
|
|
17.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Expenditures ($000's)
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining |
|
|
8,635 |
|
|
7,188 |
|
|
17,903 |
|
|
18,694 |
|
Sustaining leases |
|
|
912 |
|
|
845 |
|
|
3,538 |
|
|
3,350 |
|
Brownfields |
|
|
966 |
|
|
473 |
|
|
2,302 |
|
|
1,202 |
|
1 Production cash cost silver equivalent and All-in sustaining cash
cost silver equivalent are calculated using realized metal prices
for each period respectively. |
| 2
Production cash cost, Production cash cost silver equivalent, and
All-in sustaining cash cost 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 fourth quarter, the Caylloma Mine
produced 330,478 ounces of silver at an average head grade of 88
g/t, a 21% and 17% increase, respectively, when compared to the
previous quarter. Silver production for 2023 totaled 1,227,060
ounces, exceeding the upper end of annual guidance range by
10%.
Lead and zinc production for the quarter was
10.8 million pounds of lead, and 13.9 million pounds of zinc. Lead
and zinc production rose by 24% and 11%, respectively, compared to
the same period in 2022. Head grades averaged 3.84%, and 5.00%, a
19% and 8% increase, respectively, when compared to the previous
quarter. Record lead and zinc production for 2023 totaled 40.9 and
55.1 million pounds, respectively. Increased production is the
result of positive grade reconciliation to the reserve model in
levels 16 and 18 of the Animas vein. Gold production for the
quarter totaled 109 ounces with an average head grade of 0.11
g/t.
The cash cost per silver equivalent ounce sold
for the quarter ended December 31, 2023, was $13.67 compared to
$12.46 in the same period in 2022. The increase for the quarter is
attributed primarily due to higher cash cost per tonne, higher
treatment charges and the impact of higher silver prices on the
calculation of silver equivalent ounces . For the year ended
December 31, 2023, the cash cost per ounce of gold sold was $14.3,
compared to $12.3 in 2022. The full year increase was driven mainly
by the same factors explained above for the quarter.
The all-in sustaining cash cost per ounce of
payable silver equivalent for the three months ended December 31,
2023, increased 10% to $22.34, compared to $20.30 for the same
period in 2022. The all-in sustaining cash cost per ounce of
payable silver equivalent for the full year 2023 increased 11% to
$19.90, compared to $17.97 in 2022. The increases were mainly
driven by the impact of higher silver prices on the calculation of
silver equivalent ounces, higher cash costs per ounce and higher
capital costs.
Underground development for the quarter was
mainly focused on mine levels 15, 16, and 18. The increase in
Brownfields expenditures is primarily attributable to greater
meterage and additional diamond drilling.
Qualified Person
Eric Chapman, Senior Vice President of Technical
Services, is a Professional Geoscientist of the Association of
Professional Engineers and Geoscientists of the Province 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.
Fourth Quarter Unaudited and Annual
Audited Income Statement and Cash Flow
Income Statement
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
Note |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
| Sales |
20 |
|
$ |
265,314 |
|
|
$ |
164,723 |
|
|
$ |
842,428 |
|
|
$ |
681,491 |
|
| Cost of
sales |
21 |
|
|
213,462 |
|
|
|
138,683 |
|
|
|
652,403 |
|
|
|
534,695 |
|
| Mine
operating income |
|
|
|
51,852 |
|
|
|
26,040 |
|
|
|
190,025 |
|
|
|
146,796 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and
administration |
22 |
|
|
19,909 |
|
|
|
16,676 |
|
|
|
64,073 |
|
|
|
61,456 |
|
| Foreign exchange loss |
|
|
|
2,430 |
|
|
|
442 |
|
|
|
10,885 |
|
|
|
8,866 |
|
| Impairment of mineral
properties, plant and equipment |
32 |
|
|
90,615 |
|
|
|
182,842 |
|
|
|
90,615 |
|
|
|
182,842 |
|
| Write-off of mineral
properties |
|
|
|
5,263 |
|
|
|
372 |
|
|
|
5,985 |
|
|
|
5,874 |
|
| Other
(income) expenses |
23 |
|
|
11,009 |
|
|
|
(1,186 |
) |
|
|
18,874 |
|
|
|
1,310 |
|
|
|
|
|
|
129,226 |
|
|
|
199,146 |
|
|
|
190,432 |
|
|
|
260,348 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating loss |
|
|
|
(77,374 |
) |
|
|
(173,106 |
) |
|
|
(407 |
) |
|
|
(113,552 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment gains |
5 |
|
|
12,395 |
|
|
|
— |
|
|
|
12,395 |
|
|
|
- |
|
| Interest and finance costs,
net |
24 |
|
|
(7,535 |
) |
|
|
(3,111 |
) |
|
|
(21,790 |
) |
|
|
(12,057 |
) |
| (Loss)
gain on derivatives |
20 |
|
|
(301 |
) |
|
|
453 |
|
|
|
(1,249 |
) |
|
|
500 |
|
|
|
|
|
|
4,559 |
|
|
|
(2,658 |
) |
|
|
(10,644 |
) |
|
|
(11,557 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
|
(72,815 |
) |
|
|
(175,764 |
) |
|
|
(11,051 |
) |
|
|
(125,109 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax expense |
25 |
|
|
27,057 |
|
|
|
7,756 |
|
|
|
42,636 |
|
|
|
35,783 |
|
|
Deferred income tax expense (recovery) |
25 |
|
|
(10,033 |
) |
|
|
(23,086 |
) |
|
|
(10,057 |
) |
|
|
(24,986 |
) |
|
|
|
|
|
17,024 |
|
|
|
(15,330 |
) |
|
|
32,579 |
|
|
|
10,797 |
|
| Net
loss for the year |
|
|
$ |
(89,839 |
) |
|
$ |
(160,434 |
) |
|
$ |
(43,630 |
) |
|
$ |
(135,906 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fortuna shareholders |
|
|
$ |
(92,316 |
) |
|
$ |
(152,772 |
) |
|
$ |
(50,836 |
) |
|
$ |
(128,132 |
) |
|
Non-controlling interest |
30 |
|
|
2,477 |
|
|
|
(7,662 |
) |
|
|
7,206 |
|
|
|
(7,774 |
) |
|
|
|
|
$ |
(89,839 |
) |
|
$ |
(160,434 |
) |
|
$ |
(43,630 |
) |
|
$ |
(135,906 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss per share |
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
(0.30 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.44 |
) |
|
Diluted |
|
|
$ |
(0.30 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.44 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of common shares outstanding (000's) |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
306,511 |
|
|
|
291,429 |
|
|
|
295,067 |
|
|
|
291,281 |
|
|
Diluted |
|
|
|
306,511 |
|
|
|
291,429 |
|
|
|
295,067 |
|
|
|
291,281 |
|
Statement of Cash Flow
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months ended December 31, |
|
Years ended December 31, |
|
|
Note |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year |
|
|
$ |
(89,839 |
) |
|
|
(160,434 |
) |
|
$ |
(43,630 |
) |
|
$ |
(135,906 |
) |
|
Items not involving cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletion and depreciation |
|
|
|
71,602 |
|
|
|
44,499 |
|
|
|
219,688 |
|
|
|
172,809 |
|
|
Accretion expense |
24 |
|
|
1,597 |
|
|
|
1,256 |
|
|
|
6,773 |
|
|
|
4,830 |
|
|
Income taxes |
|
|
|
17,023 |
|
|
|
(15,329 |
) |
|
|
32,579 |
|
|
|
10,797 |
|
|
Interest expense, net |
24 |
|
|
5,933 |
|
|
|
1,855 |
|
|
|
15,017 |
|
|
|
7,227 |
|
|
Share-based payments, net of cash settlements |
|
|
|
2,602 |
|
|
|
2,961 |
|
|
|
2,017 |
|
|
|
(1 |
) |
|
Impairment of mineral properties, plant and equipment |
32 |
|
|
90,615 |
|
|
|
182,841 |
|
|
|
90,615 |
|
|
|
182,841 |
|
|
Inventory net realizable value adjustments |
6 |
|
|
5,260 |
|
|
|
3,809 |
|
|
|
6,188 |
|
|
|
8,898 |
|
|
Inventory obsolescence adjustments |
6 |
|
|
10,097 |
|
|
|
- |
|
|
|
10,097 |
|
|
|
- |
|
|
Write-off of mineral properties |
9 |
|
|
5,210 |
|
|
|
372 |
|
|
|
5,985 |
|
|
|
5,874 |
|
|
Unrealized foreign exchange loss |
|
|
|
4,441 |
|
|
|
(1,911 |
) |
|
|
5,706 |
|
|
|
4,554 |
|
|
Investment gains |
5 |
|
|
(12,395 |
) |
|
|
- |
|
|
|
(12,395 |
) |
|
|
- |
|
|
Unrealized gains on derivatives |
|
|
|
81 |
|
|
|
182 |
|
|
|
(170 |
) |
|
|
(1,194 |
) |
|
Other |
23 |
|
|
4,462 |
|
|
|
(239 |
) |
|
|
5,142 |
|
|
|
- |
|
|
Closure and reclamation payments |
16 |
|
|
(599 |
) |
|
|
(270 |
) |
|
|
(1,203 |
) |
|
|
(623 |
) |
|
Changes in working capital |
29 |
|
|
887 |
|
|
|
38 |
|
|
|
(9,737 |
) |
|
|
(18,021 |
) |
|
Cash provided by operating activities |
|
|
|
116,977 |
|
|
|
59,630 |
|
|
|
332,672 |
|
|
|
242,085 |
|
|
Income taxes paid |
|
|
|
(6,271 |
) |
|
|
(7,351 |
) |
|
|
(25,872 |
) |
|
|
(42,222 |
) |
|
Interest paid |
|
|
|
(6,916 |
) |
|
|
(3,366 |
) |
|
|
(13,545 |
) |
|
|
(7,465 |
) |
|
Interest received |
|
|
|
1,287 |
|
|
|
660 |
|
|
|
3,654 |
|
|
|
1,851 |
|
|
Net cash provided by operating activities |
|
|
|
105,076 |
|
|
|
49,573 |
|
|
|
296,909 |
|
|
|
194,249 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to Chesser acquisition, net of cash acquired |
8 |
|
|
(10,260 |
) |
|
|
- |
|
|
|
(13,321 |
) |
|
|
- |
|
|
Restricted cash |
|
|
|
- |
|
|
|
- |
|
|
|
— |
|
|
|
(1,911 |
) |
|
Additions to mineral properties and property, plant and
equipment |
|
|
|
(51,852 |
) |
|
|
(70,402 |
) |
|
|
(217,314 |
) |
|
|
(251,236 |
) |
|
Contractor advances on Séguéla construction |
|
|
|
- |
|
|
|
- |
|
|
|
(8 |
) |
|
|
(2,186 |
) |
|
Purchases of investments |
5 |
|
|
(9,359 |
) |
|
|
- |
|
|
|
(9,359 |
) |
|
|
- |
|
|
Proceeds from sale of investments |
5 |
|
|
21,754 |
|
|
|
- |
|
|
|
21,754 |
|
|
|
- |
|
|
Other investing activities |
|
|
|
(1,283 |
) |
|
|
- |
|
|
|
1,364 |
|
|
|
- |
|
|
Cash used in investing activities |
|
|
|
(51,000 |
) |
|
|
(70,402 |
) |
|
|
(216,884 |
) |
|
|
(255,333 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs on credit facility |
14 |
|
|
- |
|
|
|
- |
|
|
|
— |
|
|
|
(688 |
) |
|
Proceeds from credit facility |
14 |
|
|
10,000 |
|
|
|
15,000 |
|
|
|
75,500 |
|
|
|
80,000 |
|
|
Repayment of credit facility |
14 |
|
|
(50,500 |
) |
|
|
- |
|
|
|
(90,500 |
) |
|
|
(20,000 |
) |
|
Repurchase of common shares |
18 |
|
|
- |
|
|
|
- |
|
|
|
— |
|
|
|
(5,929 |
) |
|
Issuance of common shares from option exercise |
|
|
|
301 |
|
|
|
- |
|
|
|
301 |
|
|
|
- |
|
|
Payments of lease obligations |
|
|
|
(4,976 |
) |
|
|
(2,988 |
) |
|
|
(16,625 |
) |
|
|
(12,209 |
) |
|
Dividend payment to non-controlling interest |
|
|
|
(87 |
) |
|
|
- |
|
|
|
(1,392 |
) |
|
|
(2,708 |
) |
|
Cash (used in) provided by financing activities |
|
|
|
(45,262 |
) |
|
|
12,012 |
|
|
|
(32,716 |
) |
|
|
38,466 |
|
| Effect
of exchange rate changes on cash and cash equivalents |
|
|
|
1,551 |
|
|
|
1,457 |
|
|
|
346 |
|
|
|
(3,986 |
) |
| Increase (decrease) in cash
and cash equivalents during the year |
|
|
|
10,365 |
|
|
|
(7,360 |
) |
|
|
47,655 |
|
|
|
(26,604 |
) |
| Cash
and cash equivalents, beginning of the year |
|
|
|
117,780 |
|
|
$ |
116,126 |
|
|
|
80,493 |
|
|
|
107,097 |
|
| Cash
and cash equivalents, end of the year |
|
|
$ |
128,145 |
|
|
$ |
108,766 |
|
|
$ |
128,148 |
|
|
$ |
80,493 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents
consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
$ |
106,135 |
|
|
$ |
65,140 |
|
|
$ |
106,135 |
|
|
$ |
65,140 |
|
|
Cash equivalents |
|
|
|
22,013 |
|
|
|
15,353 |
|
|
|
22,013 |
|
|
|
15,353 |
|
| Cash
and cash equivalents, end of the year |
|
|
$ |
128,148 |
|
|
$ |
80,493 |
|
|
$ |
128,148 |
|
|
$ |
80,493 |
|
| Supplemental cash flow
information (Note 29) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 equivalent sold; all-in
sustaining cash cost per ounce of gold equivalent sold; all-in cash
cost per ounce of gold equivalent sold; 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;
attributable adjusted net income; adjusted EBITDA; net debt 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 fiscal
year ended December 31, 2023 (“2023 MD&A”), 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 Fortuna uses such
measures and ratio. The 2023 MD&A may be accessed on SEDAR+ at
www.sedarplus.ca under the Company’s profile, Fortuna Silver Mines
Inc.
Except as otherwise described in the 2023
MD&A, the Company has calculated these measures consistently
for all periods presented.
Reconciliation to Adjusted Net Income for the Three and
Twelve Months ended December 31, 2023 and 2022
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
Consolidated (in millions of US dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net income |
|
(89.8 |
) |
|
|
(160.4 |
) |
|
|
(43.6 |
) |
|
|
(135.9 |
) |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals1 |
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
|
Foreign exchange loss, Séguéla Mine2 |
|
- |
|
|
|
(0.4 |
) |
|
|
- |
|
|
|
0.8 |
|
|
Write off of mineral properties |
|
4.0 |
|
|
|
0.3 |
|
|
|
4.5 |
|
|
|
5.1 |
|
|
Unrealized loss on derivatives |
|
0.1 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
Impairment of mineral properties, plant and equipment |
|
90.6 |
|
|
|
164.5 |
|
|
|
90.6 |
|
|
|
164.5 |
|
|
Inventory adjustment |
|
13.5 |
|
|
|
3.8 |
|
|
|
14.2 |
|
|
|
8.0 |
|
|
Accretion on right of use assets |
|
0.5 |
|
|
|
0.5 |
|
|
|
3.3 |
|
|
|
2.3 |
|
|
Other non-cash/non-recurring items |
|
4.9 |
|
|
|
(1.1 |
) |
|
|
4.4 |
|
|
|
(1.7 |
) |
|
Adjusted Net Income |
|
23.4 |
|
|
|
7.2 |
|
|
|
72.6 |
|
|
|
42.6 |
|
| 1 Amounts are recorded in Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
| 2 Amounts are recorded in General
and Administration |
|
|
|
|
|
|
|
|
|
|
|
| Figures may not add due to
rounding |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Attributable Adjusted
Net Income for the Three and Twelve Months ended December 31, 2023
and 2022
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
Consolidated (in millions of US dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net loss attributable to
shareholders |
|
(92.3 |
) |
|
|
(152.8 |
) |
|
|
(50.8 |
) |
|
|
(128.1 |
) |
| Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
| Community support provision
and accruals1 |
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
| Foreign exchange loss, Séguéla
Mine2 |
|
– |
|
|
|
(0.4 |
) |
|
|
– |
|
|
|
1.1 |
|
| Write off of mineral
properties |
|
4.0 |
|
|
|
0.3 |
|
|
|
4.5 |
|
|
|
5.1 |
|
| Unrealized loss (gain) on
derivatives |
|
0.1 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
| Impairment of mineral
properties, plant and equipment |
|
90.6 |
|
|
|
155.9 |
|
|
|
90.6 |
|
|
|
155.9 |
|
| Inventory adjustment |
|
13.2 |
|
|
|
3.8 |
|
|
|
13.9 |
|
|
|
7.6 |
|
| Accretion on right of use
assets |
|
0.5 |
|
|
|
0.5 |
|
|
|
3.1 |
|
|
|
2.3 |
|
| Other
non-cash/non-recurring items |
|
4.9 |
|
|
|
(0.9 |
) |
|
|
4.4 |
|
|
|
(2.0 |
) |
|
Attributable Adjusted Net Income |
|
20.6 |
|
|
|
6.4 |
|
|
|
64.9 |
|
|
|
41.4 |
|
| 1 Amounts are recorded in Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
| 2 Amounts are recorded in General
and Administration |
|
|
|
|
|
|
|
|
|
|
|
| Figures may not add due to
rounding |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Adjusted EBITDA for
the Three and Twelve Months ended December 31, 2023 and
2022
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
Consolidated (in millions of US dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net income |
|
(89.8 |
) |
|
|
(160.4 |
) |
|
|
(43.6 |
) |
|
|
(135.9 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Community support provision and accruals |
|
(0.5 |
) |
|
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(0.1 |
) |
|
Inventory adjustment |
|
15.4 |
|
|
|
3.8 |
|
|
|
16.3 |
|
|
|
8.9 |
|
|
Foreign exchange loss, Séguéla Mine |
|
- |
|
|
|
(0.4 |
) |
|
|
0.8 |
|
|
|
0.8 |
|
|
Net finance items |
|
7.5 |
|
|
|
3.1 |
|
|
|
21.8 |
|
|
|
12.1 |
|
|
Depreciation, depletion, and amortization |
|
71.6 |
|
|
|
45.3 |
|
|
|
219.6 |
|
|
|
172.8 |
|
|
Income taxes |
|
17.0 |
|
|
|
(15.3 |
) |
|
|
32.6 |
|
|
|
10.8 |
|
|
Impairment of mineral properties, plant and equipment |
|
90.6 |
|
|
|
182.8 |
|
|
|
90.6 |
|
|
|
182.8 |
|
|
Other non-cash/non-recurring items |
|
8.5 |
|
|
|
(3.0 |
) |
|
|
(2.3 |
) |
|
|
(6.7 |
) |
|
Adjusted EBITDA |
|
120.3 |
|
|
|
55.8 |
|
|
|
335.1 |
|
|
|
245.5 |
|
Figures may not add due to rounding
Reconciliation of Free Cash Flow from
ongoing operations for the Three and Twelve Months ended December
31, 2023 and 2022
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
Consolidated (in millions of US dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating
activities |
|
105.1 |
|
|
|
49.6 |
|
|
|
296.9 |
|
|
|
194.2 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Séguéla, working capital |
|
- |
|
|
|
- |
|
|
|
4.4 |
|
|
|
- |
|
|
Additions to mineral properties, plant and equipment |
|
(46.3 |
) |
|
|
(39.6 |
) |
|
|
(143.6 |
) |
|
|
(113.4 |
) |
|
Gain on blue chip swap investments |
|
12.4 |
|
|
|
- |
|
|
|
12.4 |
|
|
|
- |
|
|
Mexican royalty payment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.0 |
|
|
Other adjustments |
|
(5.0 |
) |
|
|
(5.6 |
) |
|
|
(16.6 |
) |
|
|
(14.6 |
) |
| Free
cash flow from ongoing operations |
|
66.2 |
|
|
|
4.4 |
|
|
|
153.5 |
|
|
|
69.2 |
|
Figures may not add due to rounding
Reconciliation of Cash Cost per Gold
Equivalent Ounce Sold for the Three and Twelve Months ended
December 31, 2023 and 2022
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Q4
2023 |
|
Lindero |
|
|
Yaramoko |
|
|
Séguéla |
|
|
San Jose |
|
|
Caylloma |
|
|
GEO Cash Costs |
|
| Cost of sales |
|
57,913 |
|
|
49,598 |
|
|
46,239 |
|
|
41,108 |
|
|
18,599 |
|
|
213,457 |
|
| Inventory adjustment |
|
(7,884 |
) |
|
(3,033 |
) |
|
— |
|
|
(4,407 |
) |
|
(683 |
) |
|
(16,007 |
) |
| Depletion, depreciation, and
amortization |
|
(15,061 |
) |
|
(15,345 |
) |
|
(25,972 |
) |
|
(11,407 |
) |
|
(3,476 |
) |
|
(71,261 |
) |
| Royalties and taxes |
|
(3,916 |
) |
|
(4,437 |
) |
|
(6,364 |
) |
|
(815 |
) |
|
(227 |
) |
|
(15,759 |
) |
| By-product credits |
|
(4,183 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,183 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
219 |
|
|
365 |
|
|
584 |
|
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
344 |
|
|
(397 |
) |
|
(53 |
) |
| Production cash costs |
|
26,869 |
|
|
26,783 |
|
|
13,903 |
|
|
25,042 |
|
|
14,181 |
|
|
106,778 |
|
| Inventory adjustment |
|
— |
|
|
— |
|
|
— |
|
|
(147 |
) |
|
683 |
|
|
536 |
|
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
(219 |
) |
|
(365 |
) |
|
(584 |
) |
| Depletion and depreciation in
concentrate inventory |
|
— |
|
|
— |
|
|
— |
|
|
56 |
|
|
10 |
|
|
66 |
|
| Realized gain on diesel
hedge |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
1,505 |
|
|
4,241 |
|
|
5,746 |
|
| Cash cost applicable per gold
equivalent ounce sold |
|
26,869 |
|
|
26,783 |
|
|
13,903 |
|
|
26,237 |
|
|
18,750 |
|
|
112,542 |
|
| Ounces
of gold equivalent sold |
|
28,779 |
|
|
28,229 |
|
|
43,018 |
|
|
17,650 |
|
|
16,236 |
|
|
133,912 |
|
| Cash
cost per ounce of gold equivalent sold ($/oz) |
|
934 |
|
|
949 |
|
|
323 |
|
|
1,487 |
|
|
1,155 |
|
|
840 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,990/oz Au,
$23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn for Q4 2023. |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Q4
2022 |
|
Lindero |
|
|
Yaramoko |
|
|
Séguéla |
|
San Jose |
|
|
Caylloma |
|
|
GEO Cash Costs |
|
| Cost of sales |
|
43,057 |
|
|
42,084 |
|
|
— |
|
34,775 |
|
|
16,676 |
|
|
136,592 |
|
| Inventory adjustment |
|
(312 |
) |
|
— |
|
|
— |
|
27 |
|
|
216 |
|
|
(69 |
) |
| Depletion, depreciation, and
amortization |
|
(13,441 |
) |
|
(17,884 |
) |
|
— |
|
(10,557 |
) |
|
(2,960 |
) |
|
(44,842 |
) |
| Royalties and taxes |
|
(3,353 |
) |
|
(2,732 |
) |
|
— |
|
(1,260 |
) |
|
(181 |
) |
|
(7,526 |
) |
| By-product credits |
|
(982 |
) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(982 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
— |
|
|
— |
|
|
— |
|
(601 |
) |
|
(497 |
) |
|
(1,098 |
) |
| Production cash costs |
|
24,969 |
|
|
21,468 |
|
|
— |
|
22,384 |
|
|
13,254 |
|
|
82,075 |
|
| Inventory adjustment |
|
(1,379 |
) |
|
— |
|
|
— |
|
(27 |
) |
|
(216 |
) |
|
(1,622 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
| Depletion and depreciation in
concentrate inventory |
|
— |
|
|
— |
|
|
— |
|
47 |
|
|
(120 |
) |
|
(73 |
) |
| Realized gain on diesel
hedge |
|
(1,105 |
) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(1,105 |
) |
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
947 |
|
|
3,128 |
|
|
4,075 |
|
| Cash cost applicable per gold
equivalent ounce sold |
|
22,485 |
|
|
21,468 |
|
|
— |
|
23,351 |
|
|
16,046 |
|
|
83,350 |
|
| Ounces
of gold equivalent sold |
|
27,634 |
|
|
26,250 |
|
|
— |
|
25,747 |
|
|
15,795 |
|
|
95,426 |
|
| Cash
cost per ounce of gold equivalent sold ($/oz) |
|
814 |
|
|
818 |
|
|
— |
|
907 |
|
|
1,016 |
|
|
873 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,737/oz Au,
$21.4/oz Ag, $2,106/t Pb, and $2,986/t Zn for Q4 2022. |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Year
2023 |
|
Lindero |
|
|
Yaramoko |
|
|
Séguéla |
|
|
San Jose |
|
|
Caylloma |
|
|
GEO Cash Costs |
|
| Cost of sales |
|
176,696 |
|
|
186,757 |
|
|
79,472 |
|
|
140,068 |
|
|
69,408 |
|
|
652,401 |
|
| Inventory adjustment |
|
(10,693 |
) |
|
(3,859 |
) |
|
— |
|
|
(4,564 |
) |
|
(576 |
) |
|
(19,692 |
) |
| Depletion, depreciation, and
amortization |
|
(51,258 |
) |
|
(73,064 |
) |
|
(40,529 |
) |
|
(40,058 |
) |
|
(13,390 |
) |
|
(218,299 |
) |
| Royalties and taxes |
|
(14,958 |
) |
|
(14,678 |
) |
|
(10,932 |
) |
|
(4,390 |
) |
|
(1,078 |
) |
|
(46,036 |
) |
| By-product credits |
|
(7,921 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,921 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
758 |
|
|
1,933 |
|
|
2,691 |
|
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
253 |
|
|
(1,692 |
) |
|
(1,439 |
) |
| Production cash costs |
|
91,866 |
|
|
95,156 |
|
|
28,011 |
|
|
92,067 |
|
|
54,605 |
|
|
361,705 |
|
| Inventory adjustment |
|
2,823 |
|
|
— |
|
|
— |
|
|
10 |
|
|
576 |
|
|
3,409 |
|
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
(758 |
) |
|
(1,933 |
) |
|
(2,691 |
) |
| Depletion and depreciation in
concentrate inventory |
|
— |
|
|
— |
|
|
— |
|
|
30 |
|
|
76 |
|
|
106 |
|
| Realized gain on diesel
hedge |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Treatment and refining charges |
|
— |
|
|
— |
|
|
— |
|
|
4,352 |
|
|
19,974 |
|
|
24,326 |
|
| Cash cost applicable per gold
equivalent ounce sold |
|
94,689 |
|
|
95,156 |
|
|
28,011 |
|
|
95,701 |
|
|
73,298 |
|
|
386,855 |
|
| Ounces
of gold equivalent sold |
|
102,896 |
|
|
117,676 |
|
|
78,521 |
|
|
80,458 |
|
|
63,229 |
|
|
442,780 |
|
| Cash
cost per ounce of gold equivalent sold ($/oz) |
|
920 |
|
|
809 |
|
|
357 |
|
|
1,189 |
|
|
1,159 |
|
|
874 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,948/oz Au,
$23.4/oz Ag, $2,155/t Pb, and $2,706/t Zn for year 2023. |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost Per Gold Equivalent Ounce Sold - Year
2022 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
GEO Cash Costs |
| Cost of sales |
|
164,179 |
|
|
171,846 |
|
|
— |
|
129,088 |
|
|
67,491 |
|
|
532,604 |
|
| Inventory adjustment |
|
293 |
|
|
(6,397 |
) |
|
— |
|
156 |
|
|
48 |
|
|
(5,900 |
) |
| Depletion, depreciation, and
amortization |
|
(54,644 |
) |
|
(64,894 |
) |
|
— |
|
(37,773 |
) |
|
(14,108 |
) |
|
(171,419 |
) |
| Royalties and taxes |
|
(15,545 |
) |
|
(11,630 |
) |
|
— |
|
(5,262 |
) |
|
(867 |
) |
|
(33,304 |
) |
| By-product credits |
|
(1,214 |
) |
|
(25 |
) |
|
— |
|
— |
|
|
— |
|
|
(1,239 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
— |
|
|
(329 |
) |
|
— |
|
(2,477 |
) |
|
(1,789 |
) |
|
(4,595 |
) |
| Production cash costs |
|
93,069 |
|
|
88,571 |
|
|
— |
|
83,732 |
|
|
50,775 |
|
|
316,147 |
|
| Inventory adjustment |
|
(1,984 |
) |
|
1,320 |
|
|
— |
|
(156 |
) |
|
(48 |
) |
|
(868 |
) |
| Right of use |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
| Depletion and depreciation in
concentrate inventory |
|
— |
|
|
— |
|
|
— |
|
(2 |
) |
|
76 |
|
|
74 |
|
| Realized gain on diesel
hedge |
|
(4,620 |
) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(4,620 |
) |
|
Treatment and refining charges |
|
— |
|
|
329 |
|
|
— |
|
3,508 |
|
|
15,476 |
|
|
19,313 |
|
| Cash cost applicable per gold
equivalent ounce sold |
|
86,465 |
|
|
90,220 |
|
|
— |
|
87,082 |
|
|
66,279 |
|
|
330,046 |
|
| Ounces
of gold equivalent sold |
|
116,950 |
|
|
107,433 |
|
|
— |
|
99,439 |
|
|
64,952 |
|
|
388,774 |
|
| Cash
cost per ounce of gold equivalent sold ($/oz) |
|
739 |
|
|
840 |
|
|
— |
|
876 |
|
|
1,020 |
|
|
849 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,802/oz Au,
$21.8/oz Ag, $2,161/t Pb, and $3,468/t Zn for year 2022. |
| |
Reconciliation of All-in Sustaining Cash Cost per Ounce
of Gold Equivalent Sold for the Three and Twelve Months ended
December 31, 2023 and 2023
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Gold Equivalent Ounce Sold - Q4 2023 |
|
Lindero |
|
Yaramoko |
|
|
Séguéla |
|
San Jose |
|
|
Caylloma |
|
Corporate |
|
GEO AISC |
|
| Cash cost applicable per gold
equivalent ounce sold |
|
26,869 |
|
26,783 |
|
|
13,903 |
|
26,237 |
|
|
18,750 |
|
— |
|
112,542 |
|
| Inventory net realizable value
adjustment |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
| Royalties and taxes |
|
3,916 |
|
4,437 |
|
|
6,364 |
|
815 |
|
|
227 |
|
— |
|
15,759 |
|
| Worker's participation |
|
— |
|
— |
|
|
— |
|
(430 |
) |
|
399 |
|
— |
|
(31 |
) |
| General and
administration |
|
2,833 |
|
(336 |
) |
|
1,398 |
|
1,789 |
|
|
1,344 |
|
12,603 |
|
19,631 |
|
|
Stand-by |
|
— |
|
2,700 |
|
|
— |
|
— |
|
|
— |
|
— |
|
2,700 |
|
| Total cash costs |
|
33,618 |
|
33,584 |
|
|
21,665 |
|
28,411 |
|
|
20,720 |
|
12,603 |
|
150,601 |
|
|
Sustaining capital1 |
|
11,205 |
|
14,958 |
|
|
10,050 |
|
4,693 |
|
|
10,513 |
|
— |
|
51,419 |
|
| All-in sustaining costs |
|
44,823 |
|
48,542 |
|
|
31,715 |
|
33,104 |
|
|
31,233 |
|
12,603 |
|
202,020 |
|
| Gold
equivalent ounces sold |
|
28,779 |
|
28,229 |
|
|
43,018 |
|
17,650 |
|
|
16,236 |
|
— |
|
133,912 |
|
| All-in
sustaining costs per ounce |
|
1,557 |
|
1,720 |
|
|
737 |
|
1,876 |
|
|
1,924 |
|
— |
|
1,509 |
|
| Gold equivalent
was calculated using the realized prices for gold of $1,990/oz Au,
$23.3/oz Ag, $2,137/t Pb, and $2,499/t Zn for Q4 2023. |
| 1 Presented on a
cash basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Gold Equivalent Ounce Sold - Q4 2022 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
| Cash cost applicable per gold
equivalent ounce sold |
|
22,485 |
|
21,468 |
|
— |
|
23,351 |
|
16,046 |
|
— |
|
83,350 |
| Inventory net realizable value
adjustment |
|
1,052 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,052 |
| Royalties and taxes |
|
3,353 |
|
2,732 |
|
— |
|
1,260 |
|
181 |
|
— |
|
7,526 |
| Worker's participation |
|
— |
|
— |
|
— |
|
751 |
|
480 |
|
— |
|
1,231 |
| General and
administration |
|
2,081 |
|
531 |
|
— |
|
2,319 |
|
928 |
|
10,329 |
|
16,188 |
|
Stand-by |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| Total cash costs |
|
28,971 |
|
24,731 |
|
— |
|
27,681 |
|
17,635 |
|
10,329 |
|
109,347 |
|
Sustaining capital3 |
|
4,724 |
|
23,268 |
|
— |
|
4,825 |
|
8,506 |
|
— |
|
41,323 |
| All-in sustaining costs |
|
33,695 |
|
47,999 |
|
— |
|
32,506 |
|
26,141 |
|
10,329 |
|
150,670 |
| Gold
equivalent ounces sold |
|
27,634 |
|
26,250 |
|
— |
|
25,747 |
|
15,795 |
|
— |
|
95,426 |
| All-in
sustaining costs per ounce |
|
1,219 |
|
1,829 |
|
— |
|
1,263 |
|
1,655 |
|
— |
|
1,579 |
| Gold equivalent
was calculated using the realized prices for gold of $1,737/oz Au,
$21.4/oz Ag, $2,106/t Pb, and $2,986/t Zn for Q4 2022. |
| 1 Presented on a
cash basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Gold Equivalent Ounce Sold - Year
2023 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
| Cash cost applicable per gold
equivalent ounce sold |
|
94,689 |
|
95,156 |
|
28,011 |
|
95,701 |
|
|
73,298 |
|
— |
|
386,855 |
| Inventory net realizable value
adjustment |
|
— |
|
334 |
|
— |
|
— |
|
|
— |
|
— |
|
334 |
| Royalties and taxes |
|
14,958 |
|
14,678 |
|
10,932 |
|
4,390 |
|
|
1,078 |
|
— |
|
46,036 |
| Worker's participation |
|
— |
|
— |
|
— |
|
(316 |
) |
|
1,927 |
|
— |
|
1,611 |
| General and
administration |
|
9,624 |
|
919 |
|
4,510 |
|
7,040 |
|
|
4,810 |
|
35,903 |
|
62,806 |
|
Stand-by |
|
— |
|
5,699 |
|
— |
|
4,084 |
|
|
— |
|
— |
|
9,783 |
| Total cash costs |
|
119,271 |
|
116,786 |
|
43,453 |
|
110,899 |
|
|
81,113 |
|
35,903 |
|
507,425 |
|
Sustaining capital3 |
|
41,751 |
|
59,613 |
|
16,241 |
|
19,111 |
|
|
23,743 |
|
— |
|
160,459 |
| All-in sustaining costs |
|
161,022 |
|
176,399 |
|
59,694 |
|
130,010 |
|
|
104,856 |
|
35,903 |
|
667,884 |
| Gold
equivalent ounces sold |
|
102,896 |
|
117,676 |
|
78,521 |
|
80,458 |
|
|
63,229 |
|
— |
|
442,780 |
| All-in
sustaining costs per ounce |
|
1,565 |
|
1,499 |
|
760 |
|
1,616 |
|
|
1,658 |
|
— |
|
1,508 |
| Gold equivalent
was calculated using the realized prices for gold of $1,948/oz Au,
$23.4/oz Ag, $2,155/t Pb, and $2,706/t Zn for year 2023. |
| 1 Presented on a
cash basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AISC Per Gold Equivalent Ounce Sold - Year
2022 |
|
Lindero |
|
Yaramoko |
|
Séguéla |
|
San Jose |
|
Caylloma |
|
Corporate |
|
GEO AISC |
| Cash cost applicable per gold
equivalent ounce sold |
|
86,465 |
|
90,220 |
|
— |
|
87,082 |
|
66,279 |
|
— |
|
330,046 |
| Inventory net realizable value
adjustment |
|
1,052 |
|
3,125 |
|
— |
|
— |
|
— |
|
— |
|
4,177 |
| Royalties and taxes |
|
15,545 |
|
11,630 |
|
— |
|
5,262 |
|
867 |
|
— |
|
33,304 |
| Worker's participation |
|
— |
|
— |
|
— |
|
3,096 |
|
2,087 |
|
— |
|
5,183 |
| General and
administration |
|
8,578 |
|
2,101 |
|
— |
|
7,164 |
|
4,063 |
|
37,661 |
|
59,567 |
|
Stand-by |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| Total cash costs |
|
111,640 |
|
107,076 |
|
— |
|
102,604 |
|
73,296 |
|
37,661 |
|
432,277 |
|
Sustaining capital3 |
|
21,721 |
|
57,230 |
|
— |
|
21,995 |
|
23,246 |
|
— |
|
124,192 |
| All-in sustaining costs |
|
133,361 |
|
164,306 |
|
— |
|
124,599 |
|
96,542 |
|
37,661 |
|
556,469 |
| Gold
equivalent ounces sold |
|
116,950 |
|
107,433 |
|
— |
|
99,439 |
|
64,952 |
|
— |
|
388,774 |
| All-in
sustaining costs per ounce |
|
1,140 |
|
1,529 |
|
— |
|
1,253 |
|
1,486 |
|
— |
|
1,431 |
| Gold equivalent
was calculated using the realized prices for gold of $1,802/oz Au,
$21.8/oz Ag, $2,161/t Pb, and $3,468/t Zn for year 2022. |
| 1 Presented on a
cash basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Cash Cost per Tonne and
Cash Cost per Payable Silver Equivalent Ounce Sold for the Three
and Twelve Months ended December 31, 2023 and 2022
| |
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Q4
2023 |
|
San Jose |
|
|
Caylloma |
|
|
SEO Cash Costs |
|
| Cost of sales |
|
41,108 |
|
|
18,599 |
|
|
59,707 |
|
| Inventory adjustment |
|
(4,407 |
) |
|
(683 |
) |
|
(5,090 |
) |
| Depletion, depreciation, and
amortization |
|
(11,407 |
) |
|
(3,476 |
) |
|
(14,883 |
) |
| Royalties and taxes |
|
(815 |
) |
|
(227 |
) |
|
(1,042 |
) |
| By-product credits |
|
— |
|
|
— |
|
|
— |
|
| Right of use |
|
219 |
|
|
365 |
|
|
584 |
|
|
Other |
|
344 |
|
|
(397 |
) |
|
(53 |
) |
| Production cash costs |
|
25,042 |
|
|
14,181 |
|
|
39,223 |
|
| Total
tonnes |
|
241,035 |
|
|
140,800 |
|
|
381,835 |
|
| Production cash cost per
tonne |
|
104 |
|
|
101 |
|
|
103 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Cash Costs |
|
25,042 |
|
|
14,181 |
|
|
39,223 |
|
| Inventory adjustment |
|
(147 |
) |
|
683 |
|
|
536 |
|
| Depletion and depreciation in
concentrate inventory |
|
56 |
|
|
10 |
|
|
66 |
|
|
Treatment and refining charges |
|
1,505 |
|
|
4,241 |
|
|
5,746 |
|
| Cash cost applicable per
silver equivalent sold |
|
26,456 |
|
|
19,115 |
|
|
45,571 |
|
| Ounces
of silver equivalent sold1 |
|
1,505,763 |
|
|
1,398,062 |
|
|
2,903,825 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
17.57 |
|
|
13.67 |
|
|
15.69 |
|
|
1 Silver equivalent sold for Q4 2023 for San Jose is calculated
using a silver to gold ratio of 84.9:1. Silver equivalent sold for
Q4 2023 for Caylloma is calculated using a silver to gold ratio of
0.0:1, silver to lead ratio of 1:23.8 pounds, and silver to zinc
ratio of 1:20.3 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Q4
2022 |
|
San Jose |
|
|
Caylloma |
|
|
SEO Cash Costs |
|
| Cost of sales |
|
34,775 |
|
|
16,676 |
|
|
51,451 |
|
| Inventory adjustment |
|
27 |
|
|
216 |
|
|
243 |
|
| Depletion, depreciation, and
amortization |
|
(10,557 |
) |
|
(2,960 |
) |
|
(13,517 |
) |
| Royalties and taxes |
|
(1,260 |
) |
|
(181 |
) |
|
(1,441 |
) |
| By-product credits |
|
— |
|
|
— |
|
|
— |
|
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
(601 |
) |
|
(497 |
) |
|
(1,098 |
) |
| Production cash costs |
|
22,384 |
|
|
13,254 |
|
|
35,638 |
|
| Total
tonnes |
|
259,500 |
|
|
138,491 |
|
|
397,991 |
|
| Production cash cost per
tonne |
|
86 |
|
|
96 |
|
|
90 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Cash Costs |
|
22,384 |
|
|
13,254 |
|
|
35,638 |
|
| Inventory adjustment |
|
(27 |
) |
|
(216 |
) |
|
(243 |
) |
| Depletion and depreciation in
concentrate inventory |
|
47 |
|
|
(120 |
) |
|
(73 |
) |
|
Treatment and refining charges |
|
947 |
|
|
3,128 |
|
|
4,075 |
|
| Cash cost applicable per
silver equivalent sold |
|
23,351 |
|
|
16,046 |
|
|
39,397 |
|
| Ounces
of silver equivalent sold1 |
|
2,092,500 |
|
|
1,287,998 |
|
|
3,380,498 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
11.16 |
|
|
12.46 |
|
|
11.65 |
|
|
1 Silver equivalent sold for San Jose for Q4 2022 is 81.2:1.Silver
equivalent sold for Caylloma for Q4 2022 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3
pounds, and silver to zinc ratio 1:15.7. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Year
2023 |
|
San Jose |
|
|
Caylloma |
|
|
SEO Cash Costs |
|
| Cost of sales |
|
140,068 |
|
|
69,408 |
|
|
209,476 |
|
| Inventory adjustment |
|
(4,564 |
) |
|
(576 |
) |
|
(5,140 |
) |
| Depletion, depreciation, and
amortization |
|
(40,058 |
) |
|
(13,390 |
) |
|
(53,448 |
) |
| Royalties and taxes |
|
(4,390 |
) |
|
(1,078 |
) |
|
(5,468 |
) |
| By-product credits |
|
— |
|
|
— |
|
|
— |
|
| Right of use |
|
758 |
|
|
1,933 |
|
|
2,691 |
|
|
Other |
|
253 |
|
|
(1,692 |
) |
|
(1,439 |
) |
| Production cash costs |
|
92,067 |
|
|
54,605 |
|
|
146,672 |
|
| Total
tonnes |
|
930,200 |
|
|
543,877 |
|
|
1,474,077 |
|
| Production cash cost per
tonne |
|
99 |
|
|
100 |
|
|
100 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Cash Costs |
|
92,067 |
|
|
54,605 |
|
|
146,672 |
|
| Inventory adjustment |
|
10 |
|
|
576 |
|
|
586 |
|
| Depletion and depreciation in
concentrate inventory |
|
30 |
|
|
76 |
|
|
106 |
|
|
Treatment and refining charges |
|
4,352 |
|
|
19,974 |
|
|
24,326 |
|
| Cash cost applicable per
silver equivalent sold |
|
96,459 |
|
|
75,231 |
|
|
171,690 |
|
| Ounces
of silver equivalent sold1 |
|
6,700,419 |
|
|
5,269,540 |
|
|
11,969,959 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
14.40 |
|
|
14.28 |
|
|
14.34 |
|
|
1 Silver equivalent sold for year 2023 for San Jose is calculated
using a silver to gold ratio of 83.1:1. Silver equivalent sold for
year 2023 for Caylloma is calculated using a silver to gold ratio
of 81.4:1, silver to lead ratio of 1:23.9 pounds, and silver to
zinc ratio of 1:19.0 pounds. |
|
2 Silver equivalent is calculated using the realized prices for
gold, silver, lead, and zinc. Refer to Financial Results - Sales
and Realized Prices |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Cash Cost Per Silver Equivalent Ounce Sold - Year
2022 |
|
San Jose |
|
|
Caylloma |
|
|
SEO Cash Costs |
|
| Cost of sales |
|
129,088 |
|
|
67,491 |
|
|
196,579 |
|
| Inventory adjustment |
|
156 |
|
|
48 |
|
|
204 |
|
| Depletion, depreciation, and
amortization |
|
(37,773 |
) |
|
(14,108 |
) |
|
(51,881 |
) |
| Royalties and taxes |
|
(5,262 |
) |
|
(867 |
) |
|
(6,129 |
) |
| By-product credits |
|
— |
|
|
— |
|
|
— |
|
| Right of use |
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
(2,477 |
) |
|
(1,789 |
) |
|
(4,266 |
) |
| Production cash costs |
|
83,732 |
|
|
50,775 |
|
|
134,507 |
|
| Total
tonnes |
|
1,029,590 |
|
|
546,186 |
|
|
1,575,776 |
|
| Production cash cost per
tonne |
|
81 |
|
|
93 |
|
|
85 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Cash Costs |
|
83,732 |
|
|
50,775 |
|
|
134,507 |
|
| Inventory adjustment |
|
(156 |
) |
|
(48 |
) |
|
(204 |
) |
| Depletion and depreciation in
concentrate inventory |
|
(2 |
) |
|
76 |
|
|
74 |
|
|
Treatment and refining charges |
|
3,508 |
|
|
15,476 |
|
|
18,984 |
|
| Cash cost applicable per
silver equivalent sold |
|
87,082 |
|
|
66,279 |
|
|
153,361 |
|
| Ounces
of silver equivalent sold1 |
|
8,243,436 |
|
|
5,372,277 |
|
|
13,615,713 |
|
| Cash
cost per ounce of silver equivalent sold ($/oz) |
|
10.56 |
|
|
12.34 |
|
|
11.26 |
|
|
1 Silver equivalent sold for year 2022 for San Jose is calculated
using a silver to gold ratio of 82.9:1. Silver equivalent sold for
year 2022 for Caylloma is calculated using a silver to gold ratio
of 85.5:1, silver to lead ratio of 1:22.9 pounds, and silver to
zinc ratio of 1:13.9 pounds. |
|
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 Silver Equivalent Ounce Sold
for the Three and Twelve Months ended December 31, 2023 and
2022
| |
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Q4
2023 |
|
San Jose |
|
|
Caylloma |
|
SEO AISC |
|
| Cash cost applicable per
silver equivalent ounce sold |
|
26,237 |
|
|
18,750 |
|
44,987 |
|
| Royalties and taxes |
|
815 |
|
|
227 |
|
1,042 |
|
| Worker's participation |
|
(430 |
) |
|
399 |
|
(31 |
) |
| General and
administration |
|
1,789 |
|
|
1,344 |
|
3,133 |
|
|
Stand-by |
|
— |
|
|
— |
|
— |
|
| Total cash costs |
|
28,411 |
|
|
20,720 |
|
49,131 |
|
|
Sustaining capital3 |
|
4,693 |
|
|
10,513 |
|
15,206 |
|
| All-in sustaining costs |
|
33,104 |
|
|
31,233 |
|
64,337 |
|
| Silver
equivalent ounces sold1 |
|
1,505,763 |
|
|
1,398,062 |
|
2,903,825 |
|
| All-in
sustaining costs per ounce2 |
|
21.98 |
|
|
22.34 |
|
22.16 |
|
|
1 Silver equivalent sold for Q4 2023 for San Jose is calculated
using a silver to gold ratio of 84.9:1. Silver equivalent sold for
Q4 2023 for Caylloma is calculated using a silver to gold ratio of
0.0:1, silver to lead ratio of 1:23.8 pounds, and silver to zinc
ratio of 1:20.3 pounds. |
|
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 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Q4
2022 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
| Cash cost applicable per
silver equivalent ounce sold |
|
23,351 |
|
16,046 |
|
39,397 |
| Royalties and taxes |
|
1,260 |
|
181 |
|
1,441 |
| Worker's participation |
|
751 |
|
480 |
|
1,231 |
| General and
administration |
|
2,319 |
|
928 |
|
3,247 |
|
Stand-by |
|
— |
|
— |
|
— |
| Total cash costs |
|
27,681 |
|
17,635 |
|
45,316 |
|
Sustaining capital3 |
|
4,825 |
|
8,506 |
|
13,331 |
| All-in sustaining costs |
|
32,506 |
|
26,141 |
|
58,647 |
| Silver
equivalent ounces sold1 |
|
2,092,500 |
|
1,287,998 |
|
3,380,498 |
| All-in
sustaining costs per ounce2 |
|
15.53 |
|
20.30 |
|
17.35 |
|
1 Silver equivalent sold for San Jose for Q4 2022 is 81.2:1.Silver
equivalent sold for Caylloma for Q4 2022 is calculated using a
silver to gold ratio of 0.0:1, silver to lead ratio of 1:22.3
pounds, and silver to zinc ratio 1:15.7. |
|
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 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Year
2023 |
|
San Jose |
|
|
Caylloma |
|
SEO AISC |
| Cash cost applicable per
silver equivalent ounce sold |
|
95,701 |
|
|
73,298 |
|
168,999 |
| Royalties and taxes |
|
4,390 |
|
|
1,078 |
|
5,468 |
| Worker's participation |
|
(316 |
) |
|
1,927 |
|
1,611 |
| General and
administration |
|
7,040 |
|
|
4,810 |
|
11,850 |
|
Stand-by |
|
4,084 |
|
|
— |
|
4,084 |
| Total cash costs |
|
110,899 |
|
|
81,113 |
|
192,012 |
|
Sustaining capital3 |
|
19,111 |
|
|
23,743 |
|
42,854 |
| All-in sustaining costs |
|
130,010 |
|
|
104,856 |
|
234,866 |
| Silver
equivalent ounces sold1 |
|
6,700,419 |
|
|
5,269,540 |
|
11,969,959 |
| All-in
sustaining costs per ounce2 |
|
19.40 |
|
|
19.90 |
|
19.62 |
|
1 Silver equivalent sold for year 2023 for San Jose is calculated
using a silver to gold ratio of 83.1:1. Silver equivalent sold for
year 2023 for Caylloma is calculated using a silver to gold ratio
of 81.4:1, silver to lead ratio of 1:23.9 pounds, and silver to
zinc ratio of 1:19.0 pounds. |
|
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 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
AISC Per Silver Equivalent Ounce Sold - Year
2022 |
|
San Jose |
|
Caylloma |
|
SEO AISC |
| Cash cost applicable per
silver equivalent ounce sold |
|
87,082 |
|
66,279 |
|
153,361 |
| Royalties and taxes |
|
5,262 |
|
867 |
|
6,129 |
| Worker's participation |
|
3,096 |
|
2,087 |
|
5,183 |
| General and
administration |
|
7,164 |
|
4,063 |
|
11,227 |
|
Stand-by |
|
— |
|
— |
|
— |
| Total cash costs |
|
102,604 |
|
73,296 |
|
175,900 |
|
Sustaining capital3 |
|
21,995 |
|
23,246 |
|
45,241 |
| All-in sustaining costs |
|
124,599 |
|
96,542 |
|
221,141 |
| Silver
equivalent ounces sold1 |
|
8,243,436 |
|
5,372,277 |
|
13,615,713 |
| All-in
sustaining costs per ounce2 |
|
15.11 |
|
17.97 |
|
16.24 |
|
1 Silver equivalent sold for year 2022 for San Jose is calculated
using a silver to gold ratio of 82.9:1. Silver equivalent sold for
year 2022 for Caylloma is calculated using a silver to gold ratio
of 85.5:1, silver to lead ratio of 1:22.9 pounds, and silver to
zinc ratio of 1:13.9 pounds. |
|
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 audited consolidated financial statements for the year
ended December 31, 2023 and accompanying 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.
Conference Call and Webcast
A conference call to discuss the financial and
operational results will be held on Thursday, March 7, 2024 at 9:00
a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will
be Jorge A. Ganoza, President and CEO; Luis D. Ganoza, Chief
Financial Officer; Cesar Velasco, Chief Operating Officer - Latin
America; and David Whittle, Chief Operating Officer - West
Africa.
Shareholders, analysts, media and interested
investors are invited to listen to the live conference call by
logging onto the webcast at
https://www.webcaster4.com/Webcast/Page/1696/49929 or over the
phone by dialing in just prior to the starting time.
Conference call details:
Date: Thursday, March 7, 2024Time: 9:00 a.m.
Pacific time | 12:00 p.m. Eastern time
Dial in number (Toll Free): +1. 888.506.0062Dial
in number (International): +1.973.528.0011Entry code: 866537
Replay number (Toll Free): +1.877.481.4010Replay
number (International): +1.919.882.2331Replay Passcode: 49929
Playback of the earnings call will be available
until Thursday, March 21, 2024. Playback of the webcast will be
available until Thursday, March 6, 2025. In addition, a transcript
of the call will be archived on the Company’s website.
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. For more information, please
visit our website.
ON BEHALF OF THE BOARD
Jorge A. GanozaPresident, CEO,
and DirectorFortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | info@fortunasilver.com |
www.fortunasilver.com | Twitter |
LinkedIn | YouTube
Forward-looking Statements
This news release contains forward-looking
statements which constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995 (collectively, "Forward-looking
Statements"). All statements included herein, other than
statements of historical fact, are Forward-looking Statements and
are subject to a variety of known and unknown risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the Forward-looking Statements.
The Forward-looking Statements in this news release include,
without limitation, statements about the Company's plans for its
mines and mineral properties; the Company’s anticipated financial
and operational performance in 2024; estimated production and costs
of production for 2024, including grade and volume of metal
produced and sales, revenues and cashflows, and capital costs
(sustaining and non-sustaining), and operating costs, including
projected production cash costs and all-in sustaining costs; the
ability of the Company to mitigate the inflationary pressures on
supplies used in its operations; estimated capital expenditures and
estimated exploration spending in 2024, including amounts for
exploration activities at its properties; statements regarding the
Company's liquidity, access to capital; the impact of high
inflation on the costs of production and the supply chain; the
Company’s expectation that the leach pad expansion project at
Lindero will be completed during the second half of 2024;
statements that a Preliminary Economic Assessment in respect of the
Diamba Sud project will be prepared by the end of 2024, subject to
the results of the results of the Company’s drill program;
statements relating to the anticipated closure of the San Jose Mine
and the possibility of extending production beyond 2024; statements
that the Diamba Sud project and the Séguéla Mine are priorities for
exploration programs in 2024; statements that management has
identified opportunities in 2024 to further optimize and
debottleneck the processing facility at the Séguéla Mine; the
Company's business strategy, plans and outlook, including
statements that the Company has guided further growth in 2024 and
anticipates further debt reduction; the merit of the Company's
mines and mineral properties; mineral resource and reserve
estimates, metal recovery rates, concentrate grade and quality;
changes in tax rates and tax laws, requirements for permits,
anticipated approvals and other matters. Often, but not always,
these Forward-looking Statements can be identified by the use of
words such as "estimated", “expected”, “anticipated”, "potential",
"open", "future", "assumed", "projected", "used", "detailed", "has
been", "gain", "planned", "reflecting", "will", "containing",
"remaining", "to be", or statements that events, "could" or
"should" occur or be achieved and similar expressions, including
negative variations.
Forward-looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward-looking Statements. Such
uncertainties and factors include, among others, changes in general
economic conditions and financial markets; uncertainty relating to
new mining operations such as the Séguéla Mine; risks associated
with war or other geo-political hostilities, such as the Ukrainian
– Russian conflict, any of which could continue to cause a
disruption in global economic activity; fluctuation in currencies
and foreign exchange rates; increases in the rate of inflation; the
imposition or any extension of capital controls in countries in
which the Company operates; any changes in tax laws in Argentina
and the other countries in which we operate; changes in the prices
of key supplies; technological and operational hazards in Fortuna’s
mining and mine development activities; risks inherent in mineral
exploration; uncertainties inherent in the estimation of mineral
reserves, mineral resources, and metal recoveries; changes to
current estimates of mineral reserves and resources; changes to
production and cost estimates; that the appeal filed in the Mexican
Collegiate Court challenging the reinstatement of the environmental
impact authorization at the San Jose Mine (the
“EIA”) will be successful; changes in the position
of regulatory authorities with respect to the granting of approvals
or permits; governmental and other approvals; changes in
government, political unrest or instability in countries where
Fortuna is active; labor relations issues; as well as those factors
discussed under “Risk Factors” in the Company's Annual Information
Form.
Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
Forward-looking Statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. Forward-looking Statements contained herein
are based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to the accuracy of the
Company’s current mineral resource and reserve estimates; that the
Company’s activities will be conducted in accordance with the
Company’s public statements and stated goals; that there will be no
material adverse change affecting the Company, its properties or
changes to production estimates (which assume accuracy of projected
ore grade, mining rates, recovery timing, and recovery rate
estimates and may be impacted by unscheduled maintenance, labor and
contractor availability and other operating or technical
difficulties); geopolitical uncertainties that may affect the
Company’s production, workforce, business, operations and financial
condition; the expected trends in mineral prices and currency
exchange rates; that the Company will be successful in mitigating
the impact of inflation on its business and operations; that the
appeal in respect of the ruling in favor of Minera Cuzcatlan
reinstating the EIA will not be successful; that all required
approvals and permits will be obtained for the Company’s business
and operations on acceptable terms; that there will be no
significant disruptions affecting the Company's operations, the
ability to meet current and future obligations and such other
assumptions as set out herein. Forward-looking Statements are made
as of the date hereof and the Company disclaims any obligation to
update any Forward-looking Statements, whether as a result of new
information, future events or results or otherwise, except as
required by law. There can be no assurance that these
Forward-looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not
place undue reliance on Forward-looking Statements.
Cautionary Note to United States Investors
Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this
news release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
a Canadian company of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
mineral reserve and mineral resource estimates contained in the
technical disclosure have been prepared in accordance with NI
43-101 and the Canadian Institute of Mining, Metallurgy and
Petroleum Definition Standards on Mineral Resources and Reserves.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the Securities and Exchange Commission, and
mineral reserve and resource information included in this news
release may not be comparable to similar information disclosed by
U.S. companies.
Fortuna Silver Mines (TSX:FVI)
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De Mar 2024 à Avr 2024
Fortuna Silver Mines (TSX:FVI)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
