Fortuna reports cash flow of US$16.3 million
Wednesday, May 8, 2013 at 11:22PM
Silver Prices

Last September Fortuna Silver Incorporated traded at almost $6.00 and yesterday it closed at $2.86, another clear demonstration of just how hard this tiny sector of the market has been hit. Its interesting to note how far the P/E ratios have contracted, Fortuna is down to 11 which is lower than most in this sector.

Their latest results are not too bad either which we have highlighted below for your perusal: 

Vancouver, May 07, 2013-- Fortuna Silver Mines Inc. (NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt: F4S.F) today announced revenue of $40.7 million, cash generated from operations, before changes in working capital of $16.3 million, and net income of $6.7 million for the first quarter of 2013. Silver and gold production was 992,218 ounces and 4,492 ounces at a consolidated cash cost per ounce, net of by-product credits, of $6.60. 

Jorge A. Ganoza, President and CEO, commented: "We have had solid first quarter results with cash cost performance in line with our guidance. We continue on track with the mill expansion at San Jose which is not only key to meet our production guidance for the year but which will also bring about lower unit costs towards the end of 2013. With $68 million in cash, a $40 million untapped credit facility, and our growing low cost silver and gold production, Fortuna is in a solid position to carry out our strategic objectives in this lower price environment. Management is monitoring closely the financial sensitivity of our mines and capital projects and will act accordingly to safeguard the integrity of our business." 

First Quarter 2013 Financial Highlights:

To read this news release in full please click here.

Their latest results are not too bad either which we have highlighted below for your perusal. 

With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.

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