Business
Fortuna Reports Net Income of US$6.20 Million on Revenue of US$24.27 Million in the Second Quarter of 2011
VANCOUVER, Aug. 11, 2011 /CNW/ - Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: ...
About this update from Fortuna Mining Corp.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, Aug. 11, 2011 /CNW/ - Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI)- is pleased to announce that it has filed its financial statements and\n MDA for the three months ended June 30, 2011. The full documents are\n available on SEDAR and have also been posted on the Company's website\n at www.fortunasilver.com.\n\n\nSecond quarter 2011 highlights:\n\n\nNet income of US$6.20 million, compared to US$6.72 million in Q2 2010\n\n\nRevenue of US$24.27 million, compared to US$14.42 million in Q2 2010\n\n\nCash flow from operations before changes in working capital, income\n taxes, and interest of US$12.22 million, compared to US$6.97 million in\n Q2 2010\n\n\nOperating income of US$10.67 million, compared to US$ 9.63 million in Q2\n 2010\n\n\nCash position (including short term investments) and working capital as\n at June 30, 2011 were US$74.54 million and US$76.56 million\n respectively\n\n\nSilver production of 474,979 ounces, up 1% over Q2 2010\n\n\nSilver accounted for 63% of revenue\n\n\nCash cost per silver ounce, net of by-product credits, was negative\n US$4.42\n\n\nJorge Ganoza, President and CEO, commented, \"The Company continues to\n benefit from high metal prices as shown by our strong cash flow\n generation for the period. Now, Fortuna looks with anticipation to the\n start of commercial production at our new San Jose Mine in Mexico. The\n San Jose mine will contribute materially to our silver and gold\n production with the first full impact on our financial statements\n expected in the fourth quarter of 2011.\"\n\n\nFinancial Results\n\n\nDuring the second quarter ended June 30, 2011 the Company generated net\n income of US$6.20 million (2010: US$6.72 million) on operating income\n of US$10.67 million (2010: US$9.63 million). The decrease in net income\n compared to the previous year, in spite of higher sales of US$24.27\n million (2010: US$14.42 million), is mainly explained by selling,\n general and administrative expenses of US$5.33 million (2010: US$ nil),\n cost of sales of US$9.42 million (2010: US$7.51 million), a gain on\n commodity contracts of US$1.44 million (2010: gain US$2.90 million) and\n income taxes of US$4.56 million (2010: US$2.95 million).\n\n\nThe increase in selling, general and administrative expenses is\n primarily attributable to share-based payments of US$1...