Fortuna Reports Revenue Of $9.2 Million, Operating Cash Flow Of
$3.84 Million, And Net Loss Of $3.39 Million For 3Q 2007
November 16, 2007 - Fortuna Silver Mines Inc. (TSX-V: FVI) reports it
has filed its financial statements for the nine months ended September
30, 2007. The financial statements are available on SEDAR and have been
posted on the Company's website at www.fortunasilver.com.
Third quarter 2007 highlights:
- Quarterly operating cash flow of $3.84 million, and accumulated
operating cash flow for 9 months of $7.38 million.
- Increase in revenue of 4.55% over the previous quarter to $9.2
- Net loss of $3.39 million and operating loss of $1.44 million after
recording a non-cash compensation charge of $4.12 million.
-Metal production: 132,450 oz of silver, 1,049 MT of lead and 1,712 MT
of zinc. Up 11.2%, 10.2%, and 6.7% respectively over the previous
-25,000 meter drill program underway at San Jose delivering consistent
results as reported in our news releases dated May 30, July 16, August
21, and September 6, 2007.
For the third quarter of 2007 the Company had a net loss of $3.39
million after recording a non-cash compensation charge of $4.12
million. Quarterly revenue from the sales of lead-silver and zinc
concentrate at the Caylloma Mine hit a record high for the year of $9.2
million. Net cash provided by operating activities at the consolidated
level totaled $3.84 million.
The Caylloma mine continues to show improvements with further increases
in milled ore and head grades as well as plant recoveries which have
resulted in increments in metal production with respect to the previous
quarter. Total ore milled during the quarter increased 3.1% with
respect to the previous period to 65,806 tonnes. Cash production cost
per tonne of processed ore was US$49.15 against a net smelter return
value per tonne of processed ore of US$139.80.
During the quarter the Company realized net proceeds of $10.58 million
from the exercise of warrants. As at September 30, 2007, Fortuna held
working capital of $46.98 million. The Company has no long term debt.
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:email@example.com