Fortuna reports production of 1.9 million ounces of silver and 11,436 ounces of gold for the third quarter of 2019
Fortuna reports production of 1.9 million ounces of silver and 11,436 ounces of gold
for the third quarter of 2019
Vancouver, October 15, 2019-- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to report
production results for the third quarter of 2019 from its two operating mines in Latin America, the San
Jose Mine in Mexico and the Caylloma Mine in Peru. The Company produced 1.9 million ounces of silver
and 11,436 ounces of gold plus base metal by -products. Silver and gold production for the first nine
months of 2019 totaled 6.6 million ounces and 38,247 ounces respectively; being 1 percent above and 4
percent below the Company’s nine month projection respectively. Fortuna is on schedule to produce
between 8.2 to 9.0 million ounces of silver and between 49 to 54 thousand ounces of gold or between
11.7 to 12.9 million Ag Eq1 ounces in 2019 in accordance with our annual production guidance (refer to
Fortuna news release dated January 17, 2019).
Third Quarter Production Highlights
Silver production of 1,937,293 ounces; 13 percent decrease over Q3 2018
Gold production of 11,436 ounces; 9 percent decrease over Q3 2018
Lead production of 7,157,229 pounds; 6 percent decrease over Q3 2018
Zinc production of 11,517,861 pounds; 0.3 percent increase over Q3 2018
Cash cost 2 for San Jose is US $70.8/t, slightly above 2019 annual cost guidance of
between $63.5 to $70.1/t
Cash cost2 for Caylloma is US $93.0/t, is 5 percent above 2019 annual cost guidance of
between $80.0 to $88.4/t
Consolidated Operating Highlights
Third Quarter 2019 Third Quarter 2018
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Processed Ore
Tonnes milled 134,338 267,998 135,996 262,710
Average tpd milled 1,493 3,045 1,511 2,985
Silver3
Grade (g/t) 64 219 65 258
Recovery (%) 82.42 90.72 84.69 91.47
Production (oz) 228,168 1,709,125 1,937,293 239,253 1,991,211 2,230,465
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Third Quarter 2019 Third Quarter 2018
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Caylloma,
Peru
San Jose,
Mexico
Consolidated
Gold
Grade (g/t) 0.25 1.40 0.17 1.61
Recovery (%) 46.61 90.56 21.37 91.24
Production (oz) 494 10,942 11,436 155 12,387 12,542
Lead
Grade (%) 2.68 2.74
Recovery (%) 90.16 92.23
Production (lbs) 7,157,229 7,157,229 7,575,541 7,575,541
Zinc
Grade (%) 4.35 4.24
Recovery (%) 89.38 90.36
Production (lbs) 11,517,861 11,517,861 11,482,583 11,482,583
Notes to the first page and table above, as applicable:
1. Silver equivalent production does not include lead or zinc and is calculated using a silver to gold ratio of 72 to 1
2. Preliminary estimates of cash operating costs per tonne are subject to modification on final cost consolidation
3. Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate
4. Totals may not add due to rounding
San Jose Mine, Mexico
The San Jose Mine produced 1,709,125 ounces of silver and 10,942 ounces of gold in the third quarter of
2019, 8 percent and 13 percent below budget respectively. Average head gr ades for silver and gold
were 219 g/t and 1.4 g/t, 8 percent and 14 percent below budget respectively. The decrease in silver
and gold production during the third quarter is mainly due to scheduled mine production activities at
lower grade stopes which is in line with the mine ’s production program for the quarter. Silver and gold
production for the first nine months of 2019 totaled 5.9 million ounces and 36,887 ounces respectively;
being 1 percent above and 7 percent below the mine’s nine month projection. Annual production of
gold and silver at the San Jose Mine is expected to be within the 2019 annual production guidance of
between 7.3 to 8.1 million ounces of silver and between 49 to 54 thousand ounces of gold (refer to
Fortuna news release dated January 17, 2019).
The San Jose Mine cash cost per tonne for the third quarter of 2019 is US$70.8; slightly above the
annual guidance range due to higher ground support costs and increased mine contractor tariffs. Cash
cost per tonne for the year is expected to be within the high end of the annual guidance range (refer to
Fortuna news release dated January 17, 2019).
Caylloma Mine, Peru
The Caylloma Mine produced 228,168 ounces of silver in the third quarter of 201 9, 1 percent above
budget. The average silver head grade of 64 g/t was 3 percent above budget. Silver production for the
first nine months of 2019 totaled 692,005 ounces; 1 percent above the mine’s nine month projection.
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Lead and zinc production in the third quarter of 201 9 was 7,157,229 pounds and 11,517,861 pounds
respectively, 9 percent and 9 percent above budget respectively. The average head grades for lead and
zinc were 2.68 % and 4.35 %, 9 percent and 11 percent above budget respectively. Base metals
production for the first nine months of 2019 totaled 21,304,857 pounds of lead and 33,986,132 pounds
of zinc; being 2 percent and 8 percent above the mine’s nine month projection.
The Caylloma Mine cash cost per tonne for the third quarter of 2019 is US$ 93.0; 5 percent above the
annual guidance range due to timing of indirect costs related to processing plant maintenance. Cash cost
per tonne for the year is expected to be within the high end of the annual guidance range (refer to
Fortuna news release dated January 17, 2019).
Qualified Person
Amri Sinuhaji, Technical Services Director – Mine Planning, is the Qualified Person for Fortuna Silver
Mines Inc. as defined by National Instrument 43 -101. Mr. Sinuhaji is a Professional Engineer registered
with the Association of Professional Engineers and Geoscientists of the Province of British Columbia
(#48305) and has reviewed and approved the scientific and technical information contained in this news
release.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented, precious metals producer focused on mining opportunities in Latin
America. Our primary assets are the Caylloma silver Mine in southern Peru, the San Jose silver- gold
Mine in Mexico and the Lindero gold Project, currently under constructio n, in Argentina. The Company
is selectively pursuing acquisition opportunities throughout the Americas and in select other areas. For
more information, please visit our website at www.fortunasilver.com.
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos Baca
T (Peru): +51.1.616.6060, ext. 0
Forward looking Statements
This news release contains forward looking statements which constitute "forward looking information" within the
meaning of applicable Canadian securities legislation and "forward looking statements" within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (collectively, "Forward looking
Statements"). All statements included herein, other than statements of historical fact, are Forward looking
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Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking
Statements in this news release include, without limitation, statements about the Company's plans for its mines
and mineral properties; the Company's business strategy, plans and outlook; the merit of the Company's mines and
mineral properties; the future financial or operating performance of the Company; 2019 production and cost
guidance; and proposed expenditures. Often, but not always, these Forward looking Statements can be identified
by the use of words such as "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed",
"has been", "gain", "planned", "reflecting", "will ", "containing", "remaining", "to be", or statements that events,
"could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially different from any results,
performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and
factors include, among o thers, changes in general economic conditions and financial markets; changes in prices for
silver and other metals; technological and operational hazards in Fortuna's mining and mine development
activities; risks inherent in mineral exploration; uncertaint ies inherent in the estimation of mineral reserves, mineral
resources, and metal recoveries; governmental and other approvals; political unrest or instability in countries where
Fortuna is active; labor relations issues; as well as those factors discussed under "Risk Factors" in the Company's
Annual Information Form. Although the Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in Forward looking Statements, ther e may
be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of
management, including bu t not limited to expectations regarding the Company's plans for its mines and mineral
properties; mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of
the Company's current mineral resource and reserve estim ates; that the Company's activities will be in accordance
with the Company's public statements and stated goals; that there will be no material adverse change affecting the
Company or its properties; that all required approvals will be obtained; that there will be no significant disruptions
affecting operations and such other assumptions as set out herein. Forward looking Statements are made as of the
date hereof and the Company disclaims any obligation to update any Forward looking Statements, whether as a
result of new information, future events or results or otherwise, except as required by law. There can be no
assurance that Forward looking Statements will prove to be accurate, as actual results and future events could
differ materially from those antici pated in such statements. Accordingly, investors should not place undue reliance
on Forward looking Statements.
This news release also refers to non- GAAP financial measures, such as cash cost per tonne of processed ore; cash
cost per payable ounce of sil ver; total production cost per tonne; all -in sustaining cash cost; all -in cash cost;
adjusted net (loss) income; operating cash flow per share before changes in working capital, income taxes, and
interest income; and adjusted EBITDA. These measures do not have a standardized meaning or method of
calculation, even though the descriptions of such measures may be similar. These performance measures have no
meaning under International Financial Reporting Standards (IFRS) and therefore, amounts presented may not be
comparable to similar data presented by other mining companies.