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Market: TSX
Sector: Platinum & Precious Metals
EPIC: FVI
Latest Price: 3.75  (-2.60% Descending)
52-week High: 7.30
52-week Low: 3.55
Market Cap: 469.76M
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Fortuna Silver
www.fortunasilver.com

Fortuna Silver is a silver and base metal producer focused on mining opportunities in Latin America. The company's two primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico.

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Fortuna Silver posts Q3 profit on increased production, price

10th Nov 2011, 3:27 pm by Joyanta Acharjee
Fortuna Silver posts Q3 profit on increased production, price

South America-focused Fortuna Silver (TSE:FVI)(NYSE:FSM) posted Thursday a third-quarter profit on increased silver production and higher prices.

For the quarter that ended September 30, the company posted net income of $10.31 million compared to a loss of $0.77 million a year earlier.

Revenue grew to $32.1 million from $17.9 million a year earlier.

Fortuna Silver president and CEO, Jorge A. Ganoza, said: "The company has delivered its best quarter yet in terms of net income, cash flow and metal production. The San Jose mine declared commercial operations in September and had its initial contribution to production and sales figures for the quarter.

"We look forward to reporting sustained low cost quarterly silver production growth over the upcoming 18 months as we expand San Jose from 1,000 tonnes per day to the design capacity of 1,500 tonnes per day.

"We continue to seek organic growth opportunities beyond existing reserves and resources. To this end, Fortuna currently has eight drill rigs turning on our 70,000 hectare properties in Peru and Mexico."

Fortuna's primary assets are the Caylloma silver mine in southern Peru and the San Jose silver-gold mine in Mexico.

Silver production during the quarter grew 39 percent to 660,749 ounces due to an increase of 18 percent in Caylloma's silver production and the contribution of 100,790 ounces from San Jose for its first month in commercial operations.

Gold production for the quarter was 1,525 ounces, an increase of 142 percent compared to the same period a year earlier as a result of the start of commercial production at San Jose.

The company said that cash cost per silver ounce was $1.45 and the realized silver price was $35.16, way up from $16.94 per ounce last year.

Shares were up 0.46 percent Thursday afternoon to $6.52.

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