Re: News Release - Monday, May 28, 2007
Fortuna Silver files First Quarter 2007 Financial Results
May 28, 2007 -- Fortuna Silver Mines Inc. (TSX-V: FVI) reports it has
filed its financial statements for the three months ended March 31,
2007. The financial statements are available on SEDAR and have been
posted on the Company's website at www.fortunasilver.com.
During the first quarter of 2007 the Company delivered strong operating
performance recording revenue of $5.74 million from the sales of
lead-silver and zinc concentrate from the Caylloma Mine. Net cash
provided by operating activities at the consolidated level totaled
Mine Operating Income for the period was $1.71 million. After selling,
general and administrative expenses of $1.2 million and a stock based
compensation charge of $2.31 million, the Company recorded an Operating
Loss of $1.8 million. Net loss for the period was $1.76 million or
$0.03 per share.
Cash production cost per tonne of processed ore at Caylloma was
US$42.95 against a Net Smelter Return value per tonne of processed ore
of US$90.25. Total ore milled for the quarter was 52,687 tonnes.
The mine and mill operations at Caylloma continue to show steady
monthly increments in throughput, metal production, and improvements in
efficiency. Average throughput rate for the first three months of 2007
was 585 tpd, and 692 tpd for the month of April.
As at March 31, 2007, Fortuna held $30.51 million in cash and cash
equivalents, $40.31 million in current assets and had $5.57 million of
Fortuna is a growth-oriented silver and base metal producer focused on
mining opportunities in Latin America. The Company's primary assets
are the Caylloma Silver-Base Metals Mine in southern Peru and the San
Jose Silver-Gold Project in Mexico. The Company is aggressively
pursuing additional acquisition opportunities. For more information,
please visit our website at www.fortunasilver.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD,
Jorge Ganoza Durant,
Fortuna Silver Mines Inc.
Symbol: TSX-V: FVI
Copyright (c) 2007 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:firstname.lastname@example.org