Business
Fortuna reports consolidated financial results for the second quarter of 2013
(All amounts expressed in US dollars, unless otherwise stated) VANCOUVER , Aug. 12, 2...
About this update from Fortuna Mining Corp.
[{"type":"text","content":"\n\n\n(All amounts expressed in US dollars, unless otherwise stated)\n\n\nVANCOUVER, Aug. 12, 2013 /CNW/ - Fortuna Silver Mines Inc. (NYSE: FSM | TSX: FVI | BVL: FVI | Frankfurt:\n F4S.F) today reported revenue of $30.1 million, cash generated from operations,\n before changes in working capital of $5.9 million and a net loss of\n $10.6 million in the second quarter of 2013 reflecting a non-cash\n pre-tax impairment charge of $15.0 million.  The non-cash impairment\n charge is related to the impact of declining silver prices on the\n carrying value of the Caylloma mine in Peru.\n\n\nSecond quarter 2013 highlights\n\n\n\nSales of $30.1 million\n\n\nCash flow from operations before changes in non-cash working capital of\n $5.9 million\n\n\nAdjusted net loss of $0.1 million\n\n\nCash position, including short term investments, of $48.4 million and an\n untapped credit facility of $40 million\n\n\nSilver and gold production of 1,074,007 ounces and 5,183 ounces,\n respectively\n\n\nCash cost per ounce of payable silver, net of by-product credits, was\n $7.58; unit cash costs per tonne was in line with guidance\n\n\n\nJorge A. Ganoza, President and CEO, commented, \"The company is taking\n the necessary measures to reduce corporate general and administrative\n expenses and capital and operating cost expenditures to be better\n positioned in the current price environment. The current year is a\n capital intensive year at both of our mines but we have been able to\n reduce our capital and exploration budgets for 2013 by $16.4 million\n down to $50.6 million by restricting our focus to critical path and\n sustainability projects.\" Mr. Ganoza continued, \"Our investments in\n exploration, mine development and infrastructure over the prior years\n has permitted us to tighten our capital allocation going forward and\n project a consolidated all-in cash cost of approximately $13 per ounce\n of silver net of by-products for the next three years. Additionally the\n high-grade silver-gold Trinidad North discovery at the San Jose Mine\n will provide the potential for sourcing of higher margin production\n starting in early 2015. Current plans call for initiating development\n of the Trinidad North zone in 2014.\"\n\n\nImpairment\n\n\nAs a result of declining silver prices in the second quarter of 2013,\n impairment indicators were identifi...