Fortuna Mining Corp. - FSM STOCK NEWS

Fortuna Silver Mines (NYSE: FSM) announced promising results from step-out and infill drilling at the San Jose Mine, confirming high-grade mineralization continuity within the Trinidad Footwall structures. Conducted from mid-2020 to March 2021, the program included 4,670 meters across 22 drill holes, revealing significant intercepts such as 1,931 g/t Ag and 6.76 g/t Au. The 2021 exploration budget is set at US$10.9 million for 33,800 meters of diamond drilling, targeting extensions of the Trinidad vein system and new surface targets.

Fortuna Silver Mines (NYSE: FSM) provides an update on ongoing legal proceedings concerning a disputed 3% royalty at the San Jose Mine in Oaxaca, Mexico. The company contends that the royalty, not disclosed during the acquisition of the concession in 2017, is invalid. Despite an unfavorable ruling from the Federal Administrative Court (FAC) on March 26, 2021, Fortuna plans to appeal the decision while maintaining a permanent stay of execution from March 2, 2020, preventing any royalty payments during the legal process. A decision in the appeal is anticipated in mid-2021.

Fortuna Silver Mines has updated its Mineral Reserve and Resource estimates as of December 31, 2020, for its three mines in Latin America. The Caylloma and San Jose mines reported a 23% decrease in Proven and Probable Mineral Reserves, with silver and gold content falling to 28.8 Moz and 170 koz, respectively. The Lindero Mine saw a 4% decline in gold reserves, now at 1.6 Moz. Despite these reductions, Inferred Resources at Lindero surged by 289%. The company plans to invest US$16 million in 2021 towards exploration drilling to enhance resource expansion.

Fortuna Silver Mines Inc. (NYSE: FSM) reported a 2020 net income of $21.6 million and an adjusted net income of $31.8 million. The adjusted EBITDA reached $112.6 million, reflecting strong performance despite operational challenges. In Q4 2020, the company achieved sales of $103.5 million, up from $69.0 million in Q4 2019. Production included over 1.9 million ounces of silver and 25,357 ounces of gold. The newly operational Lindero Mine is expected to contribute significantly, projecting production of up to 160,000 ounces of gold in 2021. Free cash flow from operations was $78.9 million, an increase from 2019.

Fortuna Silver Mines Inc. (NYSE: FSM) will release its financial statements and MD&A for Q4 and full year 2020 on March 10, 2021, after market close. A conference call to discuss these results is scheduled for March 12, 2021, at 9:00 a.m. Pacific time. Jorge A. Ganoza, President and CEO, along with CFO Luis D. Ganoza, will host the call. Participants can join via a webcast or by phone. Replay options will be available until March 26, 2021, for the call and until March 12, 2022, for the webcast.

Fortuna Silver Mines Inc. (NYSE: FSM) announces the resignation of Simon Ridgway as Chair of the Board, focusing on his exploration companies. Ridgway, a founder of the company, is succeeded by David Laing, who brings extensive mining experience and has been a board member since 2016. Jorge A. Ganoza, President and CEO, expressed gratitude for Ridgway's contributions and confidence in Laing's leadership. Fortuna operates in Peru, Mexico, and Argentina, focusing on sustainable silver and gold production while generating long-term value for shareholders.

Fortuna Silver Mines Inc. (NYSE: FSM) reported its 2020 production results, producing 7.1 million ounces of silver and 55,349 ounces of gold. This reflects a 19% decrease in silver production but a 10% increase in gold output compared to 2019. Operations were affected by COVID-19 restrictions, leading to a temporary shutdown. For 2021, the company anticipates gold production between 178,000 to 202,000 ounces, a projected increase of 322% to 365% over 2020. Silver production guidance indicates a potential decrease of 5% to 7%.

Fortuna Silver Mines Inc. (NYSE: FSM) has provided an update regarding its legal status concerning a disputed 3% royalty at the San Jose Mine in Oaxaca, Mexico. The Company asserts that the royalty, which was not disclosed during the acquisition of the concession, is invalid. Legal efforts have been initiated to contest the royalty's legitimacy, with ongoing administrative and Amparo proceedings. A District Court ruling dismissed the initial proceedings but did not affect the stay on the concession's cancellation. Fortuna plans to appeal by December 14, 2020, with a potential decision expected in mid-2021.

Fortuna Silver Mines reported a net income of $13.1 million for Q3 2020, a significant turnaround from a $7.7 million loss in Q3 2019. The company's sales reached $83.4 million, up from $61.3 million year-over-year, and adjusted EBITDA rose to $42.2 million, compared to $19.2 million in the previous year. Free cash flow from ongoing operations was $30.1 million, highlighting robust performance in the current metals price environment. The ramp-up at Lindero is ongoing, with the first gold pour achieved in October, and commercial production expected in Q1 2021.