Fortuna reports 2021 full year record production of 305,859 gold equivalent ounces and issues 2022 annual guidance
Fortuna reports 2021 full year record production of 305,859 gold
equivalent ounces and issues 2022 annual guidance
Vancouver, January 18, 20 22 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reports production
results for the fourth quarter and full year 2021 from its four operating mines in the Americas and West
Africa: the Lindero Mine in Argentina, the San Jose Mine in Mexico , the Caylloma Mine in Peru , and the
Yaramoko Mine in Burkina Faso. For the full year 2021, t he Company produced 207,192 ounces of gold
and 7,498,701 ounces of silver or 305,859 gold equivalent1 ounces.
2021 Consolidated Production Highlights
• Gold production of 207,192 ounces; 274 percent increase over 2020
• Silver production of 7,498,701 ounces; 5 percent increase over 2020
• Lead production of 32,989,973 pounds; 11 percent increase over 2020
• Zinc production of 47,549,301 pounds; 4 percent increase over 2020
2022 Consolidated Production Guidance Highlights
• Gold production of between 244 to 280 thousand ounces; a projected increase of between 16 to
35 percent over 2021
• Silver production of between 6.2 to 6.9 million ounces; a projected decrease of between 8 to
17 percent over 2021
• Gold equivalent production of between 326 to 371 thousand ounces; a projected increase of
between 7 to 21 percent over 2021
NYSE: FSM | TSX: FVI
www.fortunasilver.com NEWS RELEASE
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2021 Consolidated Operating Highlights
Fourth Quarter 2021 Full Year 2021
Lindero3,
Argentina
San Jose,
Mexico
Yaramoko4,
Burkina Faso
Caylloma,
Peru
Consolidated Lindero3,
Argentina
San Jose,
Mexico
Yaramoko4,
Burkina Faso
Caylloma,
Peru
Consolidated
OPERATIONAL FIGURES
Tonnes milled 262,802 132,188 137,838 1,041,154 258,866 539,779
Average tpd milled 2,920 1,437 1,549 2,964 1,407 1,525
Ore placed on pad (t) 1,457,733 6,453,647
SILVER2
Grade (g/t) 219 73 209 76
Recovery (%) 92.82 81.26 91.74 81.56
Production (oz) 1,717,533 262,710 1,980,243 6,425,029 1,073,672 7,498,701
GOLD
Grade (g/t) 1.04 1.27 6.99 0.44 0.96 1.29 7.13 0.49
Recovery (%) 92.18 97.75 69.76 91.28 97.79 71.18
Production (oz) 36,072 9,929 28,787 1,374 76,162 104,161 39,406 57,538 6,086 207,192
LEAD
Grade (%) 3.20 3.16
Recovery (%) 86.56 87.73
Production (lbs) 8,419,454 8,419,454 32,989,973 32,989,973
ZINC
Grade (%) 4.25 4.56
Recovery (%) 88.10 87.54
Production (lbs) 11,380,262 11,380,262 47,549,301 47,549,301
Notes:
1. Gold equivalent production does not include lead or zinc, and is calculated using gold to silver ratio of 1 to 76
2. Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
3. Lindero production includes gold in carbon columns and precipitate/sludge; Yaramoko production includes only doré
4. Production from the Yaramoko Mine is subsequent to the completion of the business combination with Roxgold Inc. on July 2, 2021
5. Totals may not add due to rounding
Lindero Mine, Argentina : Record quarterly gold production of 36,072 ounces of gold, 37% over the
previous quarter, and a total of 104,161 ounces for the year, in line with guidance
During the fourth quarter, the operation screened 60 positive cases of COVID -19 onsite , with no
disruptions to the operations. Travel restrictions to the country were lifted in November which led to an
improvement in lead times and onsite technical assistance from foreign vendors.
In the fourth quarter of 2021, a total of 1.46 million tonnes of ore were placed on the leach pad, averaging
1.04 g/t gold containing an estimated 48,900 ounces of gold. Total gold production for the fourth quarter
was 36,072 ounces.
Gold production for 2021 totaled 104,161 ounces, comprised of 99,313 ounces in doré, 730 ounces of
gold contained in precipitate/sludge and 4,118 ounces of gold -in-carbon (GIC) inventory , in the upper
range of the production guidance (refer to Fortuna news release dated July 19, 2021).
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2021 Operating Highlights
Mine production for the quarter performed according to management’s expectations. A total of
2,601,678 tonnes of ore were mined in the fourth quarter, at a strip ratio of 0.77:1. Total mine production
for the year accounted for 8,493,508 tonnes of ore, at a strip ratio of 0.82:1, in line with plan.
All processing areas performed according to plan:
• A total of 1,444,260 tonnes of ore were crushed and placed on the leach pad via conveyor stacking
during the fourth quarter, a 17 percent increase over the previous quarter
• Conveyor stacking performance averaged 16,228 tonnes per day during the fourth quarter, an
increase of 21 percent over the previous quarter; including 31 days of conveyor stacking
throughput of over 18,750 tonnes per day
• SART plant reached full design capacity of 393 cubic meters per hour in December 2021, in line
with plan
• The expansion of carbon columns at the ADR plant was successfully commissioned in the fourth
quarter of 2021 and is performing according to plan
Reconciliation of tonnes, head grade and gold ounces mined as ore demonstrated a good correlation with
the reserve model throughout 2021, with differences for all parameters of less than 6 percent for the
year.
The metallurgical balance indicates that overall actual gold recovery from the heap is performing in line
with expected theoretical recoveries , supported by ongoing 2.5 -meter-tall column test work s and is
according to the granulometric composition and metallurgical types of ore placed on the leach pad to
date.
Fourth Quarter 2021 Third Quarter 2021 Second Quarter 2021 First Quarter 2021
Ore mined1 (kt) 2,602 2,466 1,817 1,610
Waste mined1 (kt) 2,010 2,114 1,638 1,220
Total mined1 (kt) 4,612 4,581 3,455 2,830
Strip ratio (waste to ore) 0.77 0.86 0.90 0.76
Ore placed on leach pad1 –
conveyors (kt) 1,444 1,236 675 404
Ore placed on pad1 – trucks (kt) 13 152 802 1,728
Ore placed grade1 (g/t) 1.04 1.10 0.95 0.82
Gold placed on pad1 (oz) 48,900 49,247 44,889 56,330
GIC inventory (oz) 4,118 4,483 2,565 1,770
Change in GIC inventory2 (oz) -365 1,918 794 1,770
Gold in precipitated/sludge (oz) 730
Doré poured (oz) 35,707 24,318 18,726 20,562
Gold produced (oz) 36,072 26,235 19,521 22,332
Notes:
1. Lindero tonnes and gold grade are estimated using grade control sampling of blast holes; tonnes are reported to the nearest
thousand
2. Quarter-on-quarter change in GIC inventory
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Quality Assurance & Quality Control
Grade control estimates at Lindero are based on blast hole chip samples submitted to Lindero’s on -site
laboratory for preparation and assaying for gold, using fire assay with an atomic absorption finish. The
QA-QC program includes the blind insertion of certified reference standards and assay blanks at a
frequency of approximately 1 per 20 normal samples as well as t he submission of duplicate samples for
verification of sampling and assay precision levels by an ISO 9001:2000 certified umpire laboratory. ALS
Global Laboratory in Mendoza, Argentina prepared the samples for assaying and then forwarded the
samples to ALS Global Laboratory in Lima, Peru for assay by standard fire assay methods.
San Jose Mine, Mexico: Solid production performance and stronger fourth quarter in line with full-year
production guidance
The San Jose Mine produced 1,717,533 ounces of silver and 9,929 ounces of gold in the fourth quarter of
2021, with average head grades for silver and gold of 219 g/t and 1.27 g/t, respectively.
Silver and gold production for 2021 totaled 6,425,029 ounces of silver and 39,406 ounces of gold ,
respectively. Average head grades for silver and gold for the year were 209 g/t and 1.29 g/t, respectively.
Yaramoko Mine, Burkina Faso: Second semester production slightly below guidance due to grade delay
in the fourth quarter
The Yaramoko Mine produced 28,787 ounces of gold in the fourth quarter of 2021 with an average gold
head grade of 6.99 g/t.
Gold production for the second semester of 2021 totaled 57,538 ounces of gold with an average gold head
grade of 7.13 g/t; 7 percent below guidance for the period. This production shortfall was due to lower
than planned mill feed grade in the fourth quarter of 2021 , caused by the delay in mining several high-
grade stopes and some localized grade variability at the 55 Zone. The unmined stopes will be resequenced
into the mine plan in the first quarter of 2022.
Caylloma Mine, Peru: Outperformer producing 6,086 ounces of by-product gold, a 22% increase over
upper production guidance range
Silver production in the fourth quarter of 2021 was 262,710 ounces with an average silver head grade of
73 g/t. Full 2021-year production totaled 1,073,672 ounces, an increase of 11 percent over 2020, with an
average head grade of 76 g/t.
Gold production was 1,374 ounces in the fourth quarter with average gold head grade of 0.44 g/t . Gold
production for 2021 totaled 6,086 ounces, an increase of 48 percent over 2020, with an average head
grade of 0.49 g/t.
Lead and zinc production for the fourth quarter of 2021 was 8,419,454 pounds and 11,380,262 pounds
with average head grades for lead and zinc of 3. 20% and 4.25%, respectively. Base metal production for
the full year of 2021 totaled 47,549,301 pounds of zinc , an increase of 4 percent over 2020, and
32,989,973 pounds of lead, an increase of 11 percent over 2020. Average head grades for lead and zinc
for the year were 3.16% and 4.56%, respectively.
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2022 Consolidated Production and Cost Guidance
The Company’s production and cost guidance set out below for 2022 assumes that operations will
continue during the year without any major interruptions related to COVID -19. Health protocols for
control, isolation and quarantine are in place at each of our mine sites, and these are revised and modified
based on the circumstances at each location.
Mine Silver
(Moz)
Gold
(koz)
Lead
(Mlbs)
Zinc
(Mlbs) Cash Cost1,2,3 AISC1,2,4,5
SILVER (US$/t) (US$/oz Ag Eq)
San Jose, Mexico 5.2 - 5.8 32 - 36 - - 67.5 - 74.6 13.7 - 16.1
Caylloma, Peru 1.0 - 1.1 1.8 - 2.0 29 - 32 41 - 45 86.6 - 95.7 17.8 - 21.1
GOLD (US$/oz Au) (US$/oz Au)
Lindero, Argentina - 115 - 127 - - 567 - 714 900 - 1,100
Yaramoko, Burkina Faso - 95 - 115 - - 760 - 1,006 1,300 - 1,650
CONSOLIDATED TOTAL 6.2 - 6.9 244 - 280 29 - 32 41 - 45
Notes:
1. Cash Cost and all -in sustaining cost (AISC) are non -GAAP financial measures which are not standardized financial measures
under the financial reporting framework used to prepare the financial statements of the Company and might not be
comparable to similar financial measures disclosed by other issuers. Refer to "Non-IFRS Financial Measures" in the Company’s
2021 management discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2021 dated
November 10, 2021 (“ Q3 MD&A 2021 ”), which is available under Fortuna's SEDAR profile , and the note under “Non -IFRS
Financial Measures” below.
2. The following table provides the cash costs and AISC for the four operating mines for the nine months ended September 30,
2021 as follows:
Mine Cash Cost(a) AISC(a),(b),(c)
SILVER (US$/t) (US$/oz Ag Eq)
San Jose, Mexico 74.22 14.13
Caylloma, Peru 85.17 18.17
GOLD (US$/oz Au) (US$/oz Au)
Lindero, Argentina 635 1,182
Yaramoko, Burkina Faso 720 1,188
(a) Cash Cost and AISC are non-GAAP financial measures. Refer to Non-IFRS Financial Measures
(b) Presented on a cash basis
(c) Silver equivalent was calculated using the realized prices for gold (US$1,783 per ounce), silver (US$25.80 per ounce),
lead US$0.98 per pound) and zinc (US$1.31 per pound) for the nine months ended September 30, 2021
(d) Further details on the cash costs and AISC for the nine months ended September 30, 2021 are disclosed on pages 21,
23 and 24 (with respect to cash costs) and pages 22, 24 and 25 (with respect to AISC) of the Q3 MD&A 2021 which is
available under Fortuna's SEDAR profile at www.sedar.com and is incorporated by reference into this news release,
and the note under “Non-GAAP Financial Measures” below
(e) The estimated increase in all in sustaining costs at Yaramoko for 2022 are due to decreased estimated gold ounce
production coupled with increased operating and capital costs as mining moves to the deeper regions of the
underground mine
3. The most comparable financial measure to cash costs is cost of sales. Please see the condensed interim consolidated financial
statements of the Company for the three and nine months ended September 30, 2021 and pages 21 , 23 and 24 of the Q3
MD&A 2021 for a reconciliation.
4. AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s
participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated
at metal prices of US$1,700/oz Au, US$22/oz Ag, US$2,100/t Pb, and US$2,700/t Zn. AISC excludes government mining royalty
recognized as income tax within the scope of IAS-12.
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5. The most comparable financial measure to AISC is cost of sales. Please see the condensed interim consolidated financial
statements of the Company for the three and nine months ended September 30, 2021 and pages 22, 24 and 25 of the Q3
MD&A 2021 for a reconciliation.
6. Totals may not add due to rounding.
2022 Guidance Outlook
Lindero Mine, Argentina
The Lindero Mine is expected to place 6.2 million tonnes of ore on the leach pad averaging 0.80 g/t Au,
containing an estimated 160,000 ounces of gold. Capital investments are estimated at US$ 26.3 million,
including US$17.7 million for sustaining capital, US$7.3 million of capitalized stripping and US$1.3 million
for Brownfields exploration programs.
Major sustaining capital investment projects include:
• Engineering and procurement for the leach pad expansion (phase 2) US$4.4 million
• Mine fleet maintenance and acquisition US$6.4 million
• Maintenance of crushing, SART and ADR plants US$1.8 million
San Jose Mine, Mexico
At the San Jose Mine, the operation plans to process 1.06 million tonnes of ore averaging 176 g/t Ag and
1.09 g/t Au. Silver production and costs reflect the declining grade profile of Mineral Reserves. Capital
investment is estimated at US$20.8 million, including US$13.4 million for sustaining capital expenditures
and US$7.4 million for Brownfields exploration programs.
Major sustaining capital investment projects include:
• Underground fleet equipment acquisition US$3.7 million
• Underground mine development US$5.7 million
• Infill drilling US$1.3 million
Yaramoko Mine, Burkina Faso
At the Yaramoko Mine, the operation plans to process 516,000 tonnes of ore averaging 6.52 g/t Au. Capital
investments are estimated at US$48. 4 million, including US$45. 9 million for sustaining capital
expenditures and US$2.5 million for Brownfields exploration programs.
Major sustaining capital investment projects include:
• Mine development extending depth at the 55 Zone US$32.6 million
• Ventilation and refrigeration plant upgrade US$3.8 million
• Underground pumping station US$0.9 million
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Caylloma Mine, Peru
At the Caylloma Mine, the operation plans to process 532,000 tonnes of ore averaging 73 g/t Ag, 2.95%
Pb, and 4.23% Zn. Capital investments are estimated at US$ 17.7 million, including US$ 16.3 million for
sustaining capital expenditures and US$1.4 million for Brownfields exploration programs.
Major sustaining capital investment projects include:
• Mine underground developments US$5.7 million
• Mine backfill system US$4.3 million
• Maintenance and energy projects US$3.5 million
Séguéla Gold Project, Côte d’Ivoire
At the end of 2021, the Séguéla Project is 29 percent complete with critical path items on-track, targeting
first gold pour in mid-2023 with ramp up to nameplate capacity in the third quarter of 2023. Critical path
activities of “SAG Mill Procurement and Processing Plant EPC” contracts are 30 percent complete and are
advancing in line with cost and schedule. Connection to the national electrical grid is on -track for
completion in the fourth quarter of 2022, ahead of commissioning activities. Likewise, the tailings storage
facility and water storage da m are expected to be completed before plant commissioning and the
upcoming wet season, respectively.
In 2022, the key scopes for advancement to protect the project schedule are the processing plant EPC
contract and the Mining Contract. The EPC contractor, Lycopodium, will mobilise to site in the first quarter
of 2022. Similarly, in the second quarter of 2022, the Mining Contract is scheduled to be awarded and
mobilisation is anticipated to commence ahead of mining operations schedule to start in the first quarter
of 2023.
Management is working on the optimization of the mine design, strip ratio and scheduling and has
identified potential gains that could lead to further improvements in the project cash flows. Continued
reported drilli ng success at Koula depth and Sunbird satellite deposits represent further upside
opportunities to the project.
2022 Exploration Outlook
Fortuna continues to advance its robust pipeline of Brownfield and Greenfield exploration projects in
West Africa and the Americas, building on the success of the exploration programs carried out in 2021.
Brownfields Exploration
Fortuna´s consolidated Brownfields exploration budget for 2022 for its four mines totals US$ 20 million,
which includes 113,000 meters of exploration drilling across all types (reverse circulation, diamond core
and air core), and 1,120 meters of underground development.
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San Jose Mine, Mexico
The Brownfields exploration program budget for 2022 at the San Jose Mine is US$7.4 million, which
includes 26,200 meters of diamond drilling and 1,120 meters of underground development for drilling
access, platforms, and services.
Séguéla Project, Côte d’Ivoire
The Brownfields exploration program b udget for 2022 at the Séguéla Project is US$7.2 million, which
includes 48,000 meters of exploration drilling to grow the emerging Sunbird prospect (refer to Fortuna
news release dated December 9, 2021), test for further depth extensions at Koula, Ancien and Antenna,
and continued generation and testing of near-mine targets.
Yaramoko Mine, Burkina Faso
The Brownfields exploration program budget for 2022 at the Yaramoko Mine is US$ 2.7 million, which
includes 34,000 meters of exploration drilling, testing several surface geochemistry anomalies generated
in 2021, in addition to expanding the 109 Zone and testing strike and depth projections of the 55 Zone.
Caylloma Mine, Peru
The Brownfields exploration program budget for 2022 at the Caylloma Mine is US$1.4 million, with the
exploration focus turning to further understanding the region -wide controls on vein development and
geometry, and the relationship to the formation of high-grade shoots at Animas, San Cristobal and other
mineralized zones.
Lindero Mine, Argentina
The Brownfields exploration program budget for 2022 at the Lindero Mine is US$1. 3 million, which
includes 4,650 meters of drilling on the Arizaro target located 3.5 kilometers to the southeast of the mine
where encouraging results were intersected in the 2021 programs (refer to Fortuna news release dated
December 9, 2021).
Greenfields Exploration
Reconnaissance exploration and evaluation of potential new projects will continue to be actively pursued
during 2022 across select jurisdictions including Mexico, West Africa, Argentina and select other
jurisdictions with a budget of US$8.8 million.
Qualified Person
Amri Sinuhaji is the Technical Services Director – Mine Planning for the Company and is a Professional
Engineer registered with the Association of Professional Engineers and Geoscientists of the Province of