Fortuna Reports Cash Flow of US$15.72 Million and Net Income of US$3.85 Million in the Second Quarter of 2012

About this update from Fortuna Mining Corp.

[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, Aug. 8, 2012 /CNW/ - Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI) (Frankfurt:\n F4S.F) is pleased to announce that it has filed its financial statements and\n MD&A for the three and six months ended June 30, 2012. The full\n documents are available on SEDAR and have also been posted on the\n company's website at http://www.fortunasilver.com/s/financial_reports.asp.\n\n\nSecond Quarter 2012 Highlights:\n\n\nCash generated by operating activities before changes in working capital\n of US$15.72 million, up 76% over the prior year period (Q2 2011: US$8.91 million)\n\n\nNet income of US$3.85 million, down 38% over the prior year period (Q2 2012: US$6.20 million) after a one-time write-off of US$3.86 million for the Mario project\n\n\nAdjusted net income of US$6.89 million, up 37% over the prior year\n period (Q2 2011:US$5.02 million)\n\n\nRevenue of US$38.69 million, up 58% over the prior year period (Q2 2011: US$24.53 million)\n\n\nMine operating income of US$17.08 million, up 15% over the prior year\n period (Q2 2011: US$14.85 million)\n\n\nCash position (including short term investments) and working capital at\n June 30, 2012 were US$60.65 million and US$84.91 million respectively\n\n\nSilver and gold production of 996,194 ounces and 5,845 ounces\n respectively\n\n\nCash cost per silver ounce, net of by-product credits, was US$3.75\n\n\nJorge Ganoza, Fortuna President and CEO, commented, \"Our strong\n financial performance for the quarter is backed by solid operating and\n production results from our mines. At San Jose we are advancing our\n expansion to 1500 tonnes per day, scheduled for commissioning in mid\n 2013, which will further improve operating margins. At Caylloma, costs\n to mid-year are generally in line with budget.  We are assessing\n various initiatives-including rebalancing production mix from narrow\n veins to mitigate new cost-inflationary pressures.\"\n\n\nFinancial Results\n\n\nThe company generated adjusted net income (a non-GAAP financial measure)\n of US$6.89 million in Q2 2012, up 37% over the prior year period (Q2 2011: $5.02 million) after adjusting for mark-to-market on derivatives of US$0.41 million (Q2 2011: negative $1.18 million) and write-off of deferred exploration costs of US$2.62 million (Q2 2011: $nil).  The basic earnings per share for the s...

More updates from Fortuna Mining Corp.