Fortuna Reports Results for the Fourth Quarter and Full Year 2022
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
Fortuna | 1
Fortuna Reports Results for the Fourth Quarter and Full Year 2022
(All amounts expressed in US dollars, tabular amounts in millions, unless otherwise stated)
Vancouver, March 15, 202 3: 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 2022.
Fourth Quarter and Full Year 2022 highlights
Financial
• Adjusted net income1 of $7.2 million or $0.02 per share in Q4 2022, totaling $42.6 million, or $0.15 per share for
the full year 2022
• Net loss for the quarter of $160.4 million or $0.52 per share after non -cash impairment charges net of tax of
$164.5 million in Q4 2022, totaling a net loss of $135.9 million for the full year 2022
• Adjusted EBITDA1 of $55.8 million in Q4 2022; totaling $245.5 million for the full year 2022
• Free cash flow from ongoing operations1 of $4.4 million in Q4 2022; totaling $69.2 million for the full year 2022
• Share buybacks of $5.9 million completed during 2022
• Liquidity as at December 31, 2022 was $150.5 million
Operational
• Silver and gold production of 1,746,746 ounces and 64,112 ounces respectively in Q4 2022; 6,907,275 ounces and
259,427 ounces for the full year 2022; gold equivalent3 production of 401,878 ounces for the full year 2022.
• Q4 2022 cash costs1 per ounce of gold of $815 for the Lindero Mine and $818 for the Yaramoko Mine. Cash costs1,2
per silver equivale nt ounce of payable silver sold of $11.16 for the San Jose Mine and $12.46 for the Caylloma
mine.
• Q4 2022 AISC1 per ounce of gold sold of $1,221 for the Lindero Mine and $1,829 for the Yaramoko Mine. AISC1,2
per silver equivalent ounce of payable silver sold of $15.53 and $20.30 for the San Jose Mine and Caylloma Mine,
respectively
• Full year 2022 AISC 1 per ounce of gold sold of $1,142 for the Lindero Mine and $1,529 for the Yaramoko Mine.
AISC1,2 per silver equivalent ounce of payable silver sold of $15.11 and $17.97 for the San Jose Mine and Caylloma
Mine, respectively
• Lost Time Injury Frequency Rate (LTIFR) of 0.39 and Total Recordable Injury Frequency Rate (TRIFR) of 2.32 at the
end of the year, with one fatal accident (refer to Fortuna’s news release January 28, 2022) and five lost time injury
incidents recorded during the year.
Growth and Development
• Séguéla Project construction 93% complete as of the end of February 2023. On-time and on-budget for first gold
pour in mid 2023
• In 2022, exploration success at the Sunbird discovery at Séguéla has resulted in a new mineral deposit including
an Indicated Mineral Resource of 3.2 million tonnes at an average grade of 2. 66 g/t gold containing 279,000
ounces and an Inferred Mineral Resource of 4.2 million tonnes at an avera ge grade of 3.7 3 g/t gold containing
506,000 ounces (refer to Fortuna news release dated December 5, 2022).
NEWS RELEASE
Fortuna | 2
Jorge A. Ganoza, President and CEO, commented, “Fortuna finished the year in line with production guidance, with only a
slight miss in cost guidance at the Lindero Mine in spite of strong inflationary pressures. Our business continued to
generate healthy free cash flow from ongoing operations of $69.2 million and adjusted results of $245.5 million in Adjusted
EBITDA, and adjusted net income of $42.6 million or $0.15 per share.” Mr. Ganoza added, “As we look forward to 2023
we expect to increase production and improve costs in the second half of the year as our new Séguéla flagship asset comes
into production."
Fourth Quarter 2022 and Full Year 2022 Consolidated Results
Three months ended December 31, Years ended December 31,
(Expressed in millions) 2022 2021 % Change 2022 2021 % Change
Sales 164.7 198.9 (17%) 681.5 599.9 14%
Mine operating income 26.0 58.3 (55%) 146.8 205.5 (29%)
Operating (loss) income (173.1) 38.9 (545%) (113.6) 136.9 (183%)
Net (loss) income (160.4) 16.6 (1,066%) (135.9) 59.4 (329%)
(Loss) earnings per share - basic (0.52) 0.05 (1,148%) (0.44) 0.24 (283%)
Adjusted net income1 7.2 29.1 (75%) 42.6 100.6 (58%)
Adjusted EBITDA1 55.8 89.6 (38%) 245.5 280.7 (13%)
Net cash provided by operating activities 49.6 57.1 (13%) 194.2 147.1 32%
Free cash flow from ongoing operations1 4.4 28.2 (84%) 69.2 86.0 (20%)
Capital expenditures2
Sustaining 33.9 31.6 7% 98.1 77.2 27%
Non-sustaining3 (2.3) 2.6 (188%) 8.2 9.5 (14%)
Lindero construction - - 0% - 12.8 (100%)
Séguéla construction 23.5 19.8 19% 107.7 34.2 215%
Brownfields 6.5 8.2 (21%) 23.3 18.9 23%
As at December 31, 2022 December 31, 2021 % Change
Cash and cash equivalents 80.5 107.1 (25%)
Net liquidity position 150.5 187.1 (20%)
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.sedar.com 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 2022 Results
Net loss for the period was $160.4 million compared to net income of $16.6 million in Q4 2021. The loss in the quarter is
explained by impairment charges of $164.5 million ($182.8 million before tax) related to the following assets:
• A net impairment of $85.4 million at Yaramoko ($103.5 million before tax) resulting from the impact of inflation
on operating and capital costs, a reassessment of exploration potential , and an updated estimate of mineral
reserves at the 55 Zone crown pillar recovery that resulted in a reduction of 166,000 ounces of gold.
• A net impairment of $70.2 million at Lindero resulting from the impact of inflation on operating and capital costs
and an increase in discount rates compared to 2021
• A net impairment of $8.9 million ($9.2 million before tax) at San Jose resulting from the impact of inflation on
operating costs and exploration investments not achieving full replacement of production depletion
After adjusting for impairment charges and other non-recurring items, adjusted net income was $7.2 million or $0.02 per
share compared to $29.1 million or $0.10 per share in Q4 2021. The decrease was mainly due to lower sales volume and
lower average silv er price of $21.4/oz compared to $23.4/oz in Q4 2021, and higher cash costs across our operations
explained mostly by persistent inflationary trends throughout 2022.
Sales for the quarter were $164.7 million, a $34.2 million decrease from the $198.9 million reported in the same period in
2021. The decrease was explained mostly by lower sales volume at Lindero, San Jose, and Yaramoko, lower silver prices
of 9% and slightly lower gold prices.
Fortuna | 3
Adjusted EBITDA for the quarter was $55.8 million, a margin of 34% over sales, compared to $89.6 million reported in the
same period in 2021, representing a margin of 45% over sales. The main driver for the decrease in EBITDA was the
reduction in sales combined with higher operating costs as described above.
Net cash generated by operations for the quarter was $49.6 million or $0.19 per share compared to $57.1 million or $0.38
per share in Q4 2021. The decrease reflects lower EBITDA of $33 .8 million partially offset by neutral change in working
capital in the current quarter compared to a negative change of $17.7 million in Q4 2021, and lower income taxes paid of
$11.7 million. Additionally, the comparative quarter included a $9. 6 million payment related to the settlement to the
disputed Mexican royalty claim by the Mexican Geological Survey Agency.
Free cash flow from ongoing operations for the quarter was $4.4 million compared to $28.2 million in Q4 2021. The
decrease reflects lower net cash generated by operations and higher capex of $26.1 million.
Full Year 2022 Results
Net loss for the year was $135.9 million, compared to a net gain of $59.4 million in 2021. The loss in 2022 is explained by
impairment charges of $164.5 million ($182.8 million before tax) related to the Lindero, San Jose and Yaramoko Mines as
explained above.
After adjusting for impairment charges and other non- recurring items, adjusted net income was $42.6 million compared
to $100.6 million in 2021. The decrease was mainly due to a higher cost per ounce across our operations related, to a
large extent, to persistent inflationary trends throughout 2022, and lower average si lver price of $21.8/oz compared to
$25.2/oz in 2021
Sales for the year were $681.5 million, an $81.6 million increase from the $599.9 million reported in 2021. The increase
was explained mostly by the full contribution of Yaramoko in 2022 compared to six months in 2021 partially offset by a
lower average silver price of 13.5%.
Adjusted EBITDA for the year was $245.5 million, a margin of 36% over sales, compared to $280.7 million reported in 2021,
representing a margin of 47% over sales. The main driver for the decrease in EBITDA was a higher operating cost base
combined with lower silver prices. From a segment perspective Yaramoko´s added EBITDA contribution year over year of
$34.9 million was offset by lower EBITDA at San Jose of $42.4 million as a re sult mostly of lower production and lower
metal prices. At Lindero a volume driven increase in sales compared to the prior year was offset by a higher cost base.
Other items contributing to lower EBITDA were higher corporate G&A of $6.4 million, higher share-based payment charges
of $6.1 million and higher foreign exchange charges of $2.8 million.
Net cash generated by operations for 2022 was $194.2 million or $0.67 per share compared to $147.1 million or $0.61
per share in 2021. The increase, in spite of lower EBITDA of $34.3 million was due to non-recurrent charges in 2021 of
$38.9 million related to the disputed Mexican royalty claim by the Mexican Geological Survey Agency ($11.0 million) and
Roxgold acquisition transaction expenses ($27.9 million), as well as lower negative changes in working capital of $21.6
million in 2022, and lower income tax paid of $20.5 million.
Free cash flow from ongoing operations for 2022 was $69.2 million compared to $86.0 million in 2021. The decrease,
after adjusting net cash generated by operations for the $38.9 million of non-recurrent payments in 2021 described above,
reflects higher capex of $90.5 million related mostly to the full year of production at Yaramoko, and lower taxes.
Fortuna | 4
Liquidity
Total liquidity available to the Company as at December 31, 2022 was $150.5 million, comprised of $80.5 million of cash
and cash equivalents and $70.0 million undrawn on the Company’s revolving $250.0 million credit facility.
Séguéla Construction
As of December 31, 2022, the Séguéla Project had approximately $38.2 million in payments remaining of the project’s
$173.5 million construction budget, and the project remains on time and on budget. The Company’s cash and cash
equivalents balance, free cash flow from ongoing operations and undrawn amounts of the credit facility are expected to
be sufficient to fund the construction of the Séguéla Project.
Lindero Mine, Argentina
Three months ended December 31, Years ended December 31,
2022 2021 2022 2021
Mine Production
Tonnes placed on the leach pad 1,334,509 1,457,733 5,498,064 6,453,647
Gold
Grade (g/t) 0.80 1.04 0.81 0.96
Production (oz) 29,301 36,072 118,418 104,161
Metal sold (oz) 27,847 36,389 117,076 100,177
Realized price ($/oz) 1,732 1,802 1,803 1,785
Unit Costs
Cash cost ($/oz Au)1 815 585 740 617
All-in sustaining cash cost ($/oz Au)1 1,221 994 1,142 1,116
Capital expenditures ($000's) 2
Sustaining 3,973 7,214 18,035 27,522
Non-sustaining – 233 169 323
Brownfields 184 389 1,288 875
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.sedar.com for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis.
Quarterly Operating and Financial Highlights
In the fourth quarter of 2022, a total of 1,334,509 tonnes o f ore were placed on the heap leach pad, averaging 0.80 g/t
gold, containing an estimated 34,350 ounces of gold. Gold production for Q4 2022 totaled 29,301 ounces, representing a
19% decrease over Q4 2021. Lower gold production is attributed to an 8% decrease in tonnes and a 23% decrease in gold
grade for ore placed on the pad, compared to the fourth quarter of 2021. This was partially offset by improved gold
recovery. Gold grade for the quarter was in line with the mining plan and Mineral Reserve estimate. Mine production for
the quarter was according to management’s expectations, with a total of 1.9 million tonnes of ore mined in the fourth
quarter, at a strip ratio of 0.54:1.
Cash cost per ounce of gold for the three months ended December 31, 2022 was $8 15 compared to $585 in the fourth
quarter of 2021. Cash cost per ounce of gold for the year ended December 31, 2022 was $740 compared to $617 in the
2021. Cash cost per ounce of gold was higher due higher operations costs primarily due to inflation, lower stripping
capitalization and lower gold production.
All-in sustaining cash cost per gold ounce sold was $1,221 during Q4 2022 and $1,142 in 2022 compared with $994 in the
fourth quarter of 2021 and $1,116 in 2021. All-in sustaining cash cost for the fourth quarter of 2022 was impacted by the
issues described above, partially offset by lower export taxes and a positive by-product effect.
Fortuna | 5
Sustaining capital for the quarter primarily consisted of spending on the leach pad, mine maintenance and other mi nor
projects. Construction work on Phase -2 is planned to commence in 2023. Brownfields capital primarily relates to
exploration at the Arizaro project.
Yaramoko Mine Complex, Burkina Faso
Three months ended December 31, Years ended December 31,
2022 2021 2022 2021
Mine Production
Tonnes milled 142,694 132,188 546,651 258,866
Gold
Grade (g/t) 6.45 6.99 6.37 7.13
Recovery (%) 98 98 98 98
Production (oz) 26,190 28,787 106,108 57,538
Metal sold (oz) 26,250 29,077 107,433 56,571
Realized price ($/oz) 1,742 1,796 1,802 1,789
Unit Costs
Cash cost ($/oz Au)1 818 754 840 739
All-in sustaining cash cost ($/oz Au)1 1,829 1,436 1,529 1,317
Capital expenditures ($000's) 3
Sustaining 18,994 13,520 45,665 21,387
Brownfields 2,855 47 5,873 138
1 The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021
onward.
2 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.sedar.com for a description of the calculation of these measures.
3 Capital expenditures are presented on a cash basis.
The Yaramoko Mine produced 26,190 ounces of gold in the fourth quarter of 2022 with an average gold head grade of
6.45g/t, which is in line with the mining sequence and Mineral Reserve estimate and an 8% decrease over Q4 2021. The
decrease in production was due t o lower head grades. However, grades for the full year were in line with planned
estimates.
Cash cost per gold ounce sold was $818, compared to $754 in the fourth quarter of 2021 , and $840 for the year 2022
compared to $739 in 2021, primarily due to higher mining service costs related to inflation and variation in orebody
sequence. This was partially offset by favorable foreign exchange rates.
All-in sustaining cash cost per gold ounce sold was $1,829 for Q4 2022 and $1,529 for 2022, compared to $1,4 36 and
$1,317 for the same period in 2021, as a result of decreased production, increased cash cost, and an increase in capital
expenditures.
Sustaining capital expenditure related mainly to mine development, including the QV Prime project in Bagassi So uth.
Brownfields expenditure was higher due to greater amounts of diamond drilling as well as further development of the 109
Zone.
Fortuna | 6
San Jose Mine, Mexico
Three months ended December 31, Years ended December 31,
2022 2021 2022 2021
Mine Production
Tonnes milled 259,500 262,802 1,029,590 1,041,154
Average tonnes milled per day 2,883 2,920 2,925 2,964
Silver
Grade (g/t) 194 219 191 209
Recovery (%) 91 93 91 92
Production (oz) 1,473,627 1,717,533 5,762,562 6,425,029
Metal sold (oz) 1,482,452 1,729,152 5,755,330 6,433,808
Realized price ($/oz) 21.37 23.39 21.73 25.15
Gold
Grade (g/t) 1.13 1.27 1.14 1.29
Recovery (%) 90 92 90 91
Production (oz) 8,499 9,929 34,124 39,406
Metal sold (oz) 8,621 9,983 34,201 39,404
Realized price ($/oz) 1,734 1,797 1,802 1,798
Unit Costs
Production cash cost ($/t)2 86.26 79.66 81.33 75.80
Production cash cost ($/oz Ag Eq)1,2 11.16 9.35 10.56 9.30
All-in sustaining cash cost ($/oz Ag Eq)1,2 15.53 14.92 15.11 14.38
Capital expenditures ($000's) 3
Sustaining 3,695 5,137 15,731 14,492
Non-sustaining – 518 869 2,294
Brownfields 961 2,176 5,606 8,784
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.sedar.com for
a description of the calculation of these measures.
3 Capital expenditures are presented on a cash basis.
In the fourth quarter of 2022, the San Jose Mine produced 1,473,627 ounces of silver and 8,499 ounces of gold, 14% and
14% lower, respectively, when compared to the equivalent period in 2021. The decrease is mainly due to lower head
grades, albeit in line with management´s expectations based on the mining sequence and Mineral Reserve estimate.
Material mined using sublevel stopping (SLS) methods was increased in 2022, representing 35 percent of ore sent to the
plant. The operation plans for the SLS contribution to reach 60 percent of total ore production in 2023. In the second
quarter of 2022, a new underground shotcrete plant was commissioned which reduced mining cycles and partially offset
some of the cost increases due to higher haulage distances as the mine deepens.
The cash cost per tonne for the three months ended December 31, 2022 was $86.26 compared to $79.66 in the same
period in 2021 primarily due to cost increases related to inflation and higher support costs. Cash cost per tonne for the
full year 2022 increased to $81.3 3 per tonne compared to $75.80 per tonne for 2021 due to higher mine preparati on,
support and indirect costs.
All-in sustaining cash costs of payable silver equivalent for the three months ended December 31, 2022 and full year 2022
increased 4% and 5% to $15.53 per ounce and 15.11 per ounce, compared to the same periods in 2021. The increases are
due to higher cash costs and lower silver equivalent ounces, partially offset by lower capital expenditure.
Sustaining capital expenditures for Q4 2022 and for the year were lower than 2021, as 2021 required additional capital
for equipment. Brownfields capital expenditure w ere lower due to reduced drilling, as the site focused on less capital -
intensive exploration.
Fortuna | 7
Caylloma Mine, Peru
Three months ended December 31, Years ended December 31,
2022 2021 2022 2021
Mine Production
Tonnes milled 138,491 137,838 546,186 539,779
Average tonnes milled per day 1,556 1,549 1,539 1,525
Silver
Grade (g/t) 75 73 80 76
Recovery (%) 81 81 81 82
Production (oz) 273,119 262,710 1,144,713 1,073,672
Metal sold (oz) 289,870 243,869 1,156,381 1,074,364
Realized price ($/oz) 21.28 23.39 21.81 25.25
Gold
Grade (g/t) 0.12 0.44 0.14 0.49
Recovery (%) 22 70 32 71
Production (oz) 122 1,374 777 6,086
Metal sold (oz) — 1,297 603 6,140
Realized price ($/oz) — 1,798 1,864 1,792
Lead
Grade (%) 3.22 3.20 3.27 3.16
Recovery (%) 89 87 88 88
Production (000's lbs) 8,735 8,419 34,588 32,990
Metal sold (000's lbs) 9,118 7,945 34,869 33,299
Realized price ($/lb) 0.96 1.06 0.98 1.00
Zinc
Grade (%) 4.63 4.25 4.32 4.56
Recovery (%) 89 87 89 88
Production (000's lbs) 12,575 11,380 46,176 47,549
Metal sold (000's lbs) 11,027 11,053 44,770 47,828
Realized price ($/lb) 1.35 1.51 1.57 1.36
Unit Costs
Production cash cost ($/t)2 95.70 97.87 92.96 88.41
Production cash cost ($/oz Ag Eq)1,2 12.46 13.83 12.34 13.46
All-in sustaining cash cost ($/oz Ag Eq)1,2 20.30 20.71 17.97 18.94
Capital expenditures ($000's) 3
Sustaining 7,188 5,755 18,694 13,758
Brownfields 473 1,027 1,202 3,731
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.sedar.com for
a description of the calculation of these measures.
3 Capital expenditures are presented on a cash basis.
The Caylloma Mine produced 273,119 ounces of silver, 8.7 million pounds of lead, and 12.6 million pounds of zinc during
the three months ended December 31, 2022. Measured against the comparable quarter of the previous year, silver was
4% higher, primarily due to higher grades mined during the period. Lead production was 4% higher than the comparable
period, attributable to higher plant recovery. Zinc production was 11% higher than the comparable period, mainly
impacted by higher head grades and improved plant recovery. Gold production totaled 122 ounces with an average head
grade of 0.12 g/t.
The cash cost per tonne of processed ore for the three months ended December 31, 2022 increased 2% to $95. 70
compared to $97.87 in the same period in 2021. This movement was mainly the result of higher support costs partially
offset by increased production. Cash cost per tonne for the full year 2022 increased to $92.9 6 per tonne compared to
$88.41 per tonne for 2021, mainly due to higher mining costs caused by inflation.
Fortuna | 8
The all-in sustaining cash cost of payable silver equivalent for the three month ended December 31, 2022 decreased 2%
to $20.30 per ounce compared to $20.71 per ounce for the same period in 2021 , as a result of higher sustaining capital
expenditures in the quarter. The all-in sustaining cash cost of payable silver equivalent for the full year 2022 decreased
5% to $17.97 per ounce compared to $18.94 per ounce in 2021 was primarily due to an increase in silver equivalent ounces
due to a decrease in realized silver prices, partially offset by higher capital costs.
Sustaining capital expenditures for the quarter increased primarily due to greater investments in sustaining equipment
and infrastructure. Expenditure s on the developments located in level 16 and level 18 were offset by decreased
expenditures on other levels. The decrease in Brownfields capital expenditures was due to significantly lower spending on
drilling and development.
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.
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 sold; all -in
sustaining cash cost per ounce of gold sold; all -in cash cost per ounce of gold 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; adjusted EBITDA 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 meani ng 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, 2022 (“2022 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
2022 MD&A may be accessed on SEDAR at www.sedar.com under the Company’s profile, Fortuna Silver Mines Inc.
Except as otherwise described in the Q4 2022 MD&A, the Company has calcul ated these measures consistently for all
periods presented.