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Fortuna Silver (FSM) Q2 Gold Equivalent Production Up 25% Y/Y
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Fortuna Silver Mines Inc. (FSM - Free Report) produced 116,570 gold equivalent ounces in the second quarter of 2024, which marked a 25% increase from the year-ago quarter. This includes a gold production of 92,716 ounces and a silver production of 990,574 ounces. Gold output marked a 44% year-over-year increase while silver production was down 22%.
Mine Performances in Q2
FSM currently has five operating mines in its portfolio. The Séguéla mine, located in Côte d´Ivoire, contributed 32,983 ounces of gold in the second quarter of 2024. The mine had poured its first gold on May 24, 2023, and its total production for the second quarter of 2023 was 4,023 ounces. The mine is expected to produce gold in the range of 126,000-138,000 ounces in 2024.
The Yaramoko Mine in Burkina Faso produced 31,447 ounces of gold, up 8% year over year. FSM expects Yaramoko's gold production to be between 105,000 ounces and 119,000 ounces for 2024.
The second-quarter gold production at the Lindero mine in Argentina was 22,874 ounces, down 10% year over year. The guidance for the mine is in the range of 93,000-105,000 ounces of gold for 2024.
The San Jose mine in Mexico produced 684,176 ounces of silver and 5,269 ounces of gold. Silver production was down 26% year over year, whereas gold production declined 9%. The company expects gold production for 2024 to be between 19,000 ounces and 23,000 ounces while silver production is forecasted at 3.1-3.6 million ounces.
The Caylloma mine in Peru produced 306,938 ounces of silver, up 0.4% year over year. Gold output was 143 ounces compared with 89 ounces in the second quarter of 2023. The mine’s silver production is targeted between 0.9 million ounces and 1.1 million ounces in 2024.
Zinc production was around 13 million pounds and lead production was 10.5 million pounds. Compared with the year-ago quarter, zinc and lead production declined 7% and 3%, respectively.
2024 Guidance Maintained
Fortuna Silver reported gold and silver production of 182,394 ounces and 2.1 million ounces, respectively, in the first half of 2024, translating to 229,113 ounces of gold equivalent (including lead and zinc by-products).
Gold equivalent production guidance for 2024 is maintained between 457,000 ounces and 497,000 ounces. The range indicates a year-over-year increase in the band of 1-10%.
The gold production guidance is pegged at 343,000-385,000 ounces, which indicates growth of 5-18% from the 2023 reported level. The silver production guidance is 4-4.7 million ounces, which indicates a decline of 21-32% year over year.
Peer Performances
Hecla Mining (HL - Free Report) reported producing 4.5 million ounces of silver in the second quarter of 2024. This marked a 16% improvement year over year, reflecting solid performance at Keno Hill. HL’s gold production was up 6% at 37,324 ounces from the year-ago quarter as improved results at Casa Berardi offset lower output at Greens Creek.
Hecla Mining has produced 7.9 million ounces of silver in the first half of 2024 and believes it is on track to produce 17 million ounces of silver in 2024.
Endeavour Silver Corporation (EXK - Free Report) produced 2.2 million silver equivalent ounces in the second quarter. This reflected a 5% decrease from the year-ago quarter, primarily due to reduced silver production at both of its mines, which offset higher gold output.
Consolidated silver production was down 12% year over year to 1.31 million ounces. Meanwhile, gold production rose 7% to 10,549 ounces, attributed to higher gold grades mined at both Guanaceví and Bolañitos, as well as higher gold content in third-party feed processed at the Guanaceví mine.
Endeavor Silver believes it is on track to attain its production target of 8.1-8.8 million silver equivalent ounces in 2024.
FSM’s Price Performance
Shares of Fortuna Silver have gained 52.2% in the past year against the industry’s 5.7% decline.
The Zacks Consensus Estimate for Ero Copper’s 2024 earnings is pegged at $1.66 per share. The consensus estimate for earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 9.7% in a year.
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Fortuna Silver (FSM) Q2 Gold Equivalent Production Up 25% Y/Y
Fortuna Silver Mines Inc. (FSM - Free Report) produced 116,570 gold equivalent ounces in the second quarter of 2024, which marked a 25% increase from the year-ago quarter. This includes a gold production of 92,716 ounces and a silver production of 990,574 ounces. Gold output marked a 44% year-over-year increase while silver production was down 22%.
Mine Performances in Q2
FSM currently has five operating mines in its portfolio. The Séguéla mine, located in Côte d´Ivoire, contributed 32,983 ounces of gold in the second quarter of 2024. The mine had poured its first gold on May 24, 2023, and its total production for the second quarter of 2023 was 4,023 ounces. The mine is expected to produce gold in the range of 126,000-138,000 ounces in 2024.
The Yaramoko Mine in Burkina Faso produced 31,447 ounces of gold, up 8% year over year. FSM expects Yaramoko's gold production to be between 105,000 ounces and 119,000 ounces for 2024.
The second-quarter gold production at the Lindero mine in Argentina was 22,874 ounces, down 10% year over year. The guidance for the mine is in the range of 93,000-105,000 ounces of gold for 2024.
The San Jose mine in Mexico produced 684,176 ounces of silver and 5,269 ounces of gold. Silver production was down 26% year over year, whereas gold production declined 9%. The company expects gold production for 2024 to be between 19,000 ounces and 23,000 ounces while silver production is forecasted at 3.1-3.6 million ounces.
The Caylloma mine in Peru produced 306,938 ounces of silver, up 0.4% year over year. Gold output was 143 ounces compared with 89 ounces in the second quarter of 2023. The mine’s silver production is targeted between 0.9 million ounces and 1.1 million ounces in 2024.
Zinc production was around 13 million pounds and lead production was 10.5 million pounds. Compared with the year-ago quarter, zinc and lead production declined 7% and 3%, respectively.
2024 Guidance Maintained
Fortuna Silver reported gold and silver production of 182,394 ounces and 2.1 million ounces, respectively, in the first half of 2024, translating to 229,113 ounces of gold equivalent (including lead and zinc by-products).
Gold equivalent production guidance for 2024 is maintained between 457,000 ounces and 497,000 ounces. The range indicates a year-over-year increase in the band of 1-10%.
The gold production guidance is pegged at 343,000-385,000 ounces, which indicates growth of 5-18% from the 2023 reported level. The silver production guidance is 4-4.7 million ounces, which indicates a decline of 21-32% year over year.
Peer Performances
Hecla Mining (HL - Free Report) reported producing 4.5 million ounces of silver in the second quarter of 2024. This marked a 16% improvement year over year, reflecting solid performance at Keno Hill. HL’s gold production was up 6% at 37,324 ounces from the year-ago quarter as improved results at Casa Berardi offset lower output at Greens Creek.
Hecla Mining has produced 7.9 million ounces of silver in the first half of 2024 and believes it is on track to produce 17 million ounces of silver in 2024.
Endeavour Silver Corporation (EXK - Free Report) produced 2.2 million silver equivalent ounces in the second quarter. This reflected a 5% decrease from the year-ago quarter, primarily due to reduced silver production at both of its mines, which offset higher gold output.
Consolidated silver production was down 12% year over year to 1.31 million ounces. Meanwhile, gold production rose 7% to 10,549 ounces, attributed to higher gold grades mined at both Guanaceví and Bolañitos, as well as higher gold content in third-party feed processed at the Guanaceví mine.
Endeavor Silver believes it is on track to attain its production target of 8.1-8.8 million silver equivalent ounces in 2024.
FSM’s Price Performance
Shares of Fortuna Silver have gained 52.2% in the past year against the industry’s 5.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Another Stock to Consider
FSM currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock from the basic materials space is Ero Copper Corp. (ERO - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ero Copper’s 2024 earnings is pegged at $1.66 per share. The consensus estimate for earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 9.7% in a year.