Fortuna Silver Reports 2014 Adjusted Net Income of $15.7 Million

Fortuna Silver Mines Inc. (TSX:FVI,NYSE:FSM) announced its consolidated financial results for 2014, noting that its adjusted net income clocked in at $15.7 million, up 67 percent over 2013. Meanwhile, it achieved sales of $174 million, a rise of 27 percent from the previous year.

Other 2014 highlights include:

• Cash flow from operations before changes in non-cash working capital of $59.8 million; 46% increase over 2013
• Earnings per share of $0.12; 180% increase over 2013
• Cash position, including short term investments as at December 31, 2014 was $77.3 million; 57% increase over 2013
• Silver and gold production of 6,599,300 ounces and 35,316 ounces, respectively; 42% and 66% increase over 2013 respectively
• Cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $4.69; 33% decrease over 2013
• All-in sustaining cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $14.48; 29% decrease over 2013

Q4 2014 highlights include:

• Sales of $37.8 million; 4% increase over the fourth quarter of 2013
• Adjusted net income of $0.2 million, compared to $3.0 million in the fourth quarter of 2013
• Cash flow from operations before changes in non-cash working capital of $10.0 million, 11% decrease over the fourth quarter of 2013
• Silver and gold production of 1,628,191 ounces and 8,896 ounces, respectively
• Cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $5.32
• All-in sustaining cash cost per ounce of payable silver, net of by-product credits for gold, lead and zinc, was $12.51

Jorge A. Ganoza, president and CEO of Fortuna, commented:

2014 has been another remarkable year for the company in spite of a 20 percent reduction in realized silver price year over year. We exceeded our production guidance and improved operating margins through higher productivity and cost reductions. Our AISCC decreased to $14.48 per ounce of silver from $20.45 in 2013. The company has a strong financial position with $77 million in cash and an untapped credit facility of $40 million.

As we embark on a 50 percent expansion of the San Jose Mine this year, we expect our AISCC to continue to decrease upon commissioning in mid-2016; further consolidating Fortuna’s position as a low cost silver producer.

Click here to read the full Fortuna Silver Mines Inc. (TSX:FVI,NYSE:FSM) press release.