Yahoo Finance Fortuna Silver (FSM) Reports First Gold Pour at Seguela Mine
Fortuna Silver Mines Inc. FSM announced that its Séguéla Mine has moved from commissioning to ramp-up, with the first gold pour successfully done on May 24. This feat takes Fortuna’s tally of operating mines to five.
The commissioning phase was completed on schedule and within the company's budget. The company now expects the mine to achieve a nominal rate of production during the third quarter of 2023.
Fortuna Silver expects Séguéla Mine to produce 60,000 to 75,000 ounces of gold in 2023 at an all-in-sustaining cost of between $880 and $1,080 per ounce of gold.
For 2023, the company expects consolidated gold production to be in the band of 282 to 320 thousand ounces and silver production to be in the range of 6.3 to 6.9 million ounces. Consolidated Gold equivalent production is projected to be between 412 and 463 thousand ounces. In 2022, FSM had produced 259,427 ounces of gold and silver production was at 6,907,275 ounces, leading to a record 401,878 gold equivalent ounces.
In the first quarter of 2023, FSM’s silver and gold production were 1,586,378 ounces and 60,092 ounces, respectively. Gold equivalent production in the quarter was 94,110 ounces.
FSM reported first-quarter 2023 adjusted earnings per share of 5 cents, beating the Zacks Consensus Estimate of 1 cent. The bottom line, however, marked a 55% slump from the year-ago quarter. Results were impacted by lower sales and operating margins at Yaramoko and Lindero due to lower head grades. Higher operating expenses also drove the downside.
Fortuna Silver’s revenues declined 4% year over year to $176 million in the quarter under review. The decline was attributed to lower silver prices.
Price Performance
Shares of Fortuna Silver have lost 6.1% in a year compared with the industry’s fall of 18.3%.
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Zacks Rank & Other Stocks to Consider
Fortuna Silver currently carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the basic materials space are AngloGold Ashanti AU, Gold Fields Limited GFI, and Alamos Gold Inc. AGI. AU and GFI currently flaunt a Zacks Rank #1 (Strong Buy) and AGI carries the same rank as FSM. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AngloGold Ashanti’s earnings per share is pegged at $1.94 for 2023. Earnings estimates have been revised 22% upward in the past 60 days. The company has gained 32.6% in a year.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. Its shares have gained 24.4% in the past year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 62.8% in a year.
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Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report