Business
Fortuna Reports Record Net Income of US$ 5.30 Million on Revenue of US$ 17.53 million in Q1 of 2010
Fortuna Reports Record Net Income of US$ 5.30 Million on Revenue of US$ 17.53 million in Q1 of 2010
About this update from Fortuna Mining Corp.
[{"type":"text","content":"\n\n\n\n Apr. 29, 2010 (Canada NewsWire Group) -- Fortuna Silver Mines Inc. (TSX: FVI / Lima Stock Exchange: FVI) - is pleased to announce that it has filed its financial statements and MD&A for the three months ended March 31, 2010. The full documents are available on SEDAR and have also been posted on the Company's website at www.fortunasilver.com.\n\n\n >\n\n\nJorge Ganoza, President, CEO and Director, commented, "Caylloma's financial performance keeps adding to our Company's strong cash position. With construction activities commencing at San Jose, Fortuna is on a clear path to materially increase its silver production and become a low cost leading silver miner. Looking further ahead, exploration activities for high grade silver mineralization have been reinitiated at our highly prospective land packages around San Jose and Caylloma, which will set the stage for a next phase of expansion."\nA conference call has been scheduled for Tuesday, May 4, 2010 at 12:00 p.m. (Eastern Time), 11:00 a.m. (Lima Time) and 9:00 a.m. (Pacific Time) to discuss the financial results of the first quarter of 2010 and the pre-feasibility study. Call details are available at the end of this news release.\n\n\n >\n\n\nDuring the first quarter of 2010, the Company generated record net income of US$ 5.30 million compared to a net loss of US$ 1.06 million in Q1 2009. This increase is attributable to a higher price environment, increased silver output and the addition of copper production as reflected by the strong operating income of $7.89 million in Q1 2010 compared to US$ 0.08 million in the same period of 2009.\nThe Company's price protection program generated a gain on commodity contracts of US$ 1.75 million during the first quarter of 2010. Adjusting for the mark-to-market effect on the gain on commodity contracts, a non-GAAP measure, the first quarter of 2010 resulted in adjusted net income of US$ 4.38 million compared to a net loss of US$ 0.79 million in Q1 2009.\n\n\n >\n\n\nDuring the first quarter ended March 31, 2010, the Company achieved record silver production of 479,821 ounces, compared to 367,986 ounces in Q1 2009, with a negative cash cost per ounce of payable silver of US$ 11.41, net of by-product credits. In the first quarter of 2010, 101,503 tonnes of ore were treated, compared to 91,449 tonnes in the same period of 2009,...