Business
Fortuna Reports Record Net Income of US$10.31 Million on Revenue of US$32.08 Million in the Third Quarter of 2011
VANCOUVER, Nov. 10, 2011 /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, Nov. 10, 2011 /CNW/ - Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI) is pleased to announce that it has filed its financial statements and\n MD&A for the three months ended September 30, 2011. The documents are\n available on SEDAR and have also been posted on the Company's website\n at www.fortunasilver.com.\n\n\nThird quarter 2011 financial highlights:\n\n\nRecord net income of US$10.31 million, compared to a loss of US$0.77\n million in Q3 2010\n\n\nRevenue of US$32.08 million, compared to US$17.88 million in Q3 2010\n\n\nCash flow from operations before changes in non-cash working capital of\n US$18.21 million, compared to US$7.73 million in Q3 2010\n\n\nOperating income of US$14.89 million, compared to US$1.03 million in Q3\n 2010\n\n\nCash position (including short term investments) and working capital as\n at September 30, 2011 were US$62.73 million and US$70.22 million\n respectively\n\n\nSilver production of 660,749 ounces up from 474,489 ounces in 2010;\n silver accounted for 70% of revenue\n\n\nCash cost per silver ounce, net of by product credits, of US$1.45\n\n\nJorge A. Ganoza, President and CEO commented, \"The Company has delivered\n its best quarter yet in terms of net income, cash flow and metal\n production. The San Jose mine declared commercial operations in\n September and had its initial contribution to production and sales\n figures for the quarter.  We look forward to reporting sustained low\n cost quarterly silver production growth over the upcoming 18 months as\n we expand San Jose from 1,000tpd to the design capacity of 1,500tpd. We\n continue to seek organic growth opportunities beyond existing reserves\n and resources. To this end, Fortuna currently has eight drill rigs\n turning on our 70,000 hectare properties in Peru and Mexico.\"\n\n\nFinancial Results\n\n\nDuring the third quarter ended September 30, 2011 the Company generated\n net income of US$10.31 million (2010: loss US$0.77 million) on\n operating income of US$14.89 million (2010: US$1.03 million).  The\n increase in net income is mainly attributable to higher mine operating\n income of US$19.81 million (2010: US$8.74 million) and a gain on\n commodity contracts of US$0.50 million (2010: loss US$3.18 million)\n offset by income taxes of US$4.64 million (2010: US$1.55 million).  The...