3rd QuarterSales were $83.4 million, an increase of 36% from the $61.3 million reported in the same quarter in 2019 (“Q3 2019”).
Mine operating income was $42.1 million, an increase of 152% from the $16.7 million reported in Q3 2019.
Operating income was $28.5 million compared to a $1.5 million operating loss reported in Q3 2019.
Net income was $13.1 million or $0.07 per share compared to a net loss of $7.7 million or $0.05 per share reported in Q3 2019.
Adjusted net income (refer to Non-GAAP Financial Measures) was $16.1 million compared to $1.9 million in Q3 2019. Adjusted EBITDA (refer to Non-GAAP Financial Measures) was $42.2 million compared to $19.2 million reported in Q3 2019.
Free cash flow from ongoing operations (refer to Non-GAAP Financial Measures) was $30.1 million compared to $10.6 million reported in Q3 2019.
Management has updated the production forecast for Lindero in 2020 and estimates between 13,000 to 15,000 ounces of gold dor will be produced (refer to Fortuna news release dated May 8, 2020). The new forecast considers the following operational issues which were encountered during commissioning and ramp-up activities:
• Despite placing 93% of planned gold ounces on the leach-pad as at the end of October, the adoption of an advance stacking sequence limited the Company’s ability to implement an early irrigation strategy as per the original plan. This issue will be resolved in mid-November when the conveyor stacking system is commissioned, and a retreat stacking sequence is implemented which will accelerate the irrigation process.
• Additional time has been allocated to the commissioning and ramp-up schedule of the HPGR-AgglomerationStacking system during November and December due to the challenges and limitations of completing these activities under COVID-19 related restrictions. This will result in a reduction of contained gold ounces placed on the leach-pad for the two months from 38,000 ounces to 24,000 ounces.
• The shortfall of gold ounces placed on the leach pad in November and December along with the placement of a greater quantity of coarser crushed material due to the extended commissioning of the HPGR has a compound effect on reducing gold dor production.