Business
Fortuna Reports Net Income of US$11.11 Million on Revenue of US$40.60 Million in the First Quarter of 2012
VANCOUVER, May 9, 2012 /CNW/ - Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI...
About this update from Fortuna Mining Corp.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, May 9, 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 months ended March 31, 2012. The full documents are\n available on SEDAR and have also been posted on the company's website\n at http://www.fortunasilver.com/s/FinancialStatements.asp.\n\n\nFirst quarter 2012 highlights:\n\n\nNet income of US$11.11 million, up 132% over the prior year period (Q1\n 2011: US$4.78 million)\n\n\nCash generated by operating activities before changes in working capital\n of US$14.69 million, up 144% over the prior year period (Q1 2011:\n US$6.03 million)\n\n\nRevenue of US$40.60 million, up 86% over the prior year period (Q1 2011:\n US$21.89 million)\n\n\nOperating income of US$16.53 million, up 105% over the prior year period\n (Q1 2011: US$8.08 million)\n\n\nCash position (including short term investments) and working capital as\n at March 31, 2012 were US$53.85 million and US$77.06 million\n respectively\n\n\nRecord silver and gold production of 953,091 ounces and 5,137 ounces\n respectively\n\n\nCash cost per silver ounce, net of by-product credits, was US$3.18\n\n\nJorge Ganoza, President and CEO, commented, \"Fortuna has delivered a\n record profitable quarter with strong cash flow generation reflecting\n the positive impact of the San Jose operation in our performance.  Our\n current focus is on sustaining our status as a low cost producer\n through the implementation of various initiatives incorporated in our\n capital projects and execution of San Jose's production expansion to\n three million ounces of silver and twenty-five thousand ounces of gold\n annual production rate by next year. Our exploration efforts continue\n throughout our extensive land holdings around our mines and with the\n evaluation of new opportunities throughout the Americas.\"\n\n\nFinancial Results\n\n\nDuring the first quarter ended March 31, 2012, the company generated net\n income of US$11.11 million (Q1 2011: US$4.78 million) on operating\n income of US$16.53 million (Q1 2011: US$8.08 million).  The increase in\n net income of 132% compared to the same period in 2011 is mainly\n attributable to higher mine operating income of US$21.08 million (Q1\n 2011: US$13.05 million) and lower net los...