Business
Fortuna reports cash flow of US$16.3 million and net income of US$6.7 million in the first quarter of 2013
(All amounts expressed in US dollars, unless otherwise stated) VANCOUVER, May 7, 2013 /...
About this update from Fortuna Mining Corp.
[{"type":"text","content":"\n\n\n\n\n\n(All amounts expressed in US dollars, unless otherwise stated)\n\n\nVANCOUVER, May 7, 2013 /CNW/ - Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI) (Frankfurt:\n F4S.F) today announced revenue of $40.7 million, cash generated from\n operations, before changes in working capital of $16.3 million, and net\n income of $6.7 million for the first quarter of 2013.  Silver and gold\n production was 992,218 ounces and 4,492 ounces at a consolidated cash\n cost per ounce, net of by-product credits, of $6.60.  \n\n\nJorge A. Ganoza, President and CEO, commented: \"We have had solid first\n quarter results with cash cost performance in line with our guidance. \n We continue on track with the mill expansion at San Jose which is not\n only key to meet our production guidance for the year but which will\n also bring about lower unit costs towards the end of 2013. With $68\n million in cash, a $40 million untapped credit facility, and our\n growing low cost silver and gold production, Fortuna is in a solid\n position to carry out our strategic objectives in this lower price\n environment. Management is monitoring closely the financial sensitivity\n of our mines and capital projects and will act accordingly to safeguard\n the integrity of our business.\"\n\n\nFirst Quarter 2013 Financial Highlights:\n\n\n\nSales of $40.7 million\n\n\nNet income of $6.7 million\n\n\nEarnings per share, basic of $0.05\n\n\nOperating cash flow per share before changes in working capital of $0.13\n\n\nCash generated from operating activities, before changes in working\n capital of $16.3 million\n\n\nCash position, including short term investments and working capital, as\n at quarter end was $67.9 million and $83.7 million, respectively\n\n\nSilver and gold production of 992,218 ounces and 4,492 ounces,\n respectively\n\n\nCash cost per ounce of payable silver, net of by-product credits, was\n $6.60\n\n\n\nFinancial Results\n\n\nDuring Q1 2013, the Company generated net income of $6.7 million,\n compared to $11.1 million a year ago while cash flow from operations,\n before changes in working capital, increased by 11% to $16.3 million\n (Q1 2012: $14.7 million). The decrease in net income was mainly driven\n by differences in final sales adjustments at both San Jose and Caylloma\n of $2.8 million, and lower operating margins at S...