Fortuna Silver earns $26.4-million (U.S.) in Q1 FORTUNA REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS
Fortuna Silver Mines Inc. had record first quarter 2021 net income of $26.4-million, adjusted net income of $27.5-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $60.8-million. All amounts are expressed in U.S. dollars unless otherwise stated.
Jorge A. Ganoza, president and chief executive officer, commented, "Our record financial performance in the first quarter reflects the combination of strong operating performance at San Jose and Caylloma, Lindero's first full quarter of contribution to sales, and favourable metal prices." Mr. Ganoza added: "As Lindero continues to ramp up we are pleased with the progress made in Q1 considering the challenges we continue to face in the context of COVID-19-related restrictions. We remain on track to meet our consolidated guidance of 178,000 to 202,000 ounces of gold and 6.8 million to 7.6 million ounces of silver."
First quarter 2021 highlights:
Record sales of $117.8-million, an increase of 148 per cent from the $47.5-million reported in the same period in 2020, due to higher realized prices and sales volumes for all metals at all mines, notably sales from the Lindero mine of $36.9-million;
Record net income of $26.4-million or 14 cents per share, an increase of $30.9-million and 17 cents per share, from the $4.5-million net loss or three-cent loss per share reported in Q1 2020;
Record adjusted net income of $27.5-million compared with $2.2-million net loss in Q1 2020;
Record adjusted EBITDA of $60.8-million compared with $15.9-million reported in Q1 2020;
Free cash flow from continuing operations of $17.4-million compared with $14.2-million reported in Q1 2020; the current quarter was impacted by a $16.2-million increase in trade receivables due to timing of collections;
As of March 31, 2021, the company had cash and cash equivalents of $145.7-million, an increase of $13.8-million from Dec. 31, 2020;
Silver and gold production of 1,913,755 ounces and 34,355 ounces, respectively;
AISC (all-in sustaining cost) per silver equivalent ounce of payable silver sold of $13.52 and $18.50 for the San Jose mine and Caylloma mine, respectively, and AISC per ounce of gold sold of $1,055 for the Lindero mine;
Announced a business combination transaction with Roxgold Inc. on April 26, 2021: creates a low-cost intermediate global precious metals producer with extensive brownfields and greenfields organic growth potential and led by highly experienced management.
FINANCIAL HIGHLIGHTS
(in millions, except where indicated)
Three months ended March 31
2021 2020
Sales $117.8 $47.5
Mine operating income 51.3 7.5
Operating income 40.4 1.8
Net income (loss) 26.4 (4.5)
Earnings (loss) per share -- basic 0.14 (0.03)
Adjusted net income (loss) 27.5 (2.2)
Adjusted EBITDA 60.8 15.9
Net cash provided by operating activity 21.1 3.7
Free cash flow from ongoing operations 17.4 14.2
Capex
Sustaining 7.9 3.5
Non-sustaining 0.3 0.1
Lindero 2.6 21.4
Brownfields 2.5 1.6