Fortuna Silver reports adjusted EBITDA of $75.3 million in third quarter, ramps up construction at Seguela

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(Kitco News) - Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) reported Friday that its sales for the three months ended September 30, 2021 were $162.6 million, an increase of 95% from the $83.4 million reported in Q3 2020.

Operating income for the three months ended September 30, 2021 was $21.8 million, a decrease of $6.7 million compared to Q3 2020, primarily due to lower sales at the San Jose mine and the $9.6 million settlement of the disputed royalty claim with the SGM plus value added tax paid to the SGM, the company said.

Net income for the three months ended September 30, 2021 was $0.2 million, a $12.9 million decrease from the $13.1 million net income reported in Q3 2020, primarily due to lower operating income and $10.5 million in transaction costs related to the acquisition of Roxgold, the company added.

Fortuna also reported adjusted net income of $22.5 million compared to $16.1 million reported in Q3 2020, whereas its adjusted EBITDA for the three months ended September 30, 2021 was $75.3 million, an increase of $33.1 million compared to $42.2 million reported in Q3 2020.

"The increase reflects Lindero and Yaramoko ?s contribution to adjusted EBITDA of $21.8 milion and $25.8 million, as well as higher EBITDA at Caylloma," the company noted in a statement.

"Our strong adjusted EBITDA of $75.3 million with margins of 46% and free cash flow from operations of $33.8 million in the third quarter attest to the strength of our business. Our record financial results reflect the sustained upward production trend at the Lindero mine in Argentina and the first quarterly contribution of the Yaramoko mine in Burkina Faso," stated president and CEO Jorge A. Ganoza. "We expect our robust cash flow generation to continue to be our main source of funding as we ramp up construction activities at the Seguela project in C??te d ?Ivoire."

Fortuna Silver Mines is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and an advanced development project in C??te d'Ivoire.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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