Fortuna Silver Mines Inc. reported net loss of $5.7 million, adjusted EBITDA of $9.4 million, and free cash flow from ongoing operations of $0.2 million for the second quarter of 2020.
Jorge A. Ganoza, President and CEO, commented, “Although the unprecedented volatility and government mandated shutdowns during the second quarter have resulted in a $5.7 million net loss, our cost and investment reduction plans have allowed us to maintain a neutral free cash flow position from ongoing operations.” Mr. Ganoza continued, “We continue to face challenges under the current environment, but remain optimistic as we adapt and refine our plans to cope with COVID-19 related constraints. ” Mr. Ganoza added, “At Lindero we look forward to the start of heap irrigation as we advance towards a first gold pour at the end of the third quarter.”
Second quarter 2020 highlights
-Sales of $44.5 million, compared to $67.9 million in Q2 2019
-Net loss of $5.7 million, compared to net income of $10.3 million in Q2 2019
-Adjusted net loss1 of $5.1 million, compared to adjusted net income1 of $7.2 million in Q2 2019
-Adjusted EBITDA1 of $9.4 million, compared to $27.2 million in Q2 2019
-Free cash flow from ongoing operations1 of $0.2 million, compared to $15.4 million in Q2 2019
-Silver and gold production of 1,273,922 ounces and 7,099 ounces, respectively
-AISC/oz Ag Eq2 for the San Jose Mine and the Caylloma Mine was $11.18 and $15.81, respectively
Construction at the Lindero gold Project is approximately 97% complete as at June 30, 2020.
The following table summarizes spending on construction and preproduction related costs for the six months ended June 30, 2020:
Lindero Construction capital expenditures and total spending
As of June 30, 2020, the Company estimates the remaining funding required to complete the project, inclusive of pre-production expenditures, working capital and value added tax payments to be in the range of $55.0 to $60.0 million up to the start of gold sales during the commissioning of the mine in the fourth quarter of 2020. Commercial production is expected to be in the first quarter of 2021.