Research Desk Line-up: Pan American Silver Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 5, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Fortuna Silver Mines Inc. (NYSE: FSM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FSM, following the Company's release of its Fortuna Silver Mines Inc. (NYSE: FSM). The Company released its second quarter fiscal 2017 (Q2 FY17) earnings on August 14, 2017. The Vancouver, Canada-based Company's sales grew 44% y-o-y; beating Wall Street's estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Silver industry. Pro-TD has currently selected Pan American Silver Corp. (NASDAQ: PAAS) for due-diligence and potential coverage as the Company reported on August 09, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Pan American Silver when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FSM; also brushing on PAAS. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=FSM
http://protraderdaily.com/optin/?symbol=PAAS
Earnings Reviewed
During the Q2 FY17, Fortuna Silver reported sales of $63.91 million, up from $44.49 million in Q2 FY16. Sales numbers topped market expectations of $58.00 million for Q2 FY17. In the reported quarter, silver and gold metal sales volume grew 38% and 56% y-o-y, respectively. The realized metal prices increased 3% for silver, while realized gold prices were flat during the reported quarter.
The precious metal mining Company reported net income of $8.90 million, or $0.06 per diluted share in Q2 FY17, versus net loss of $1.39 million, or $0.01 per diluted share, in the prior year's comparable quarter. The Company attributed the rise in net income to higher silver and gold production volume during the quarter. Furthermore, the Company reported adjusted net income of $9.2 million in Q2 FY17 compared to adjusted net loss of $1.5 million in the year ago corresponding quarter.
Operating Metrics
In Q2 FY17, Fortuna Silver's cost of sales increased to $41.70 million from $28.57 million in the year ago same quarter. The Company's mine operating income also increased to $22.21 million from $15.92 million in the year ago comparable period. The Company's operating income stood at $14.21 million in Q2 FY17 versus $3.64 million in Q2 FY16.
All-in sustaining cash cost (AISC) per ounce of payable silver was $8.22 in Q2 FY17 compared to $9.81 per ounce of payable silver in Q2 FY16. Furthermore, the Company reported adjusted EBITDA of $23.10 million in Q2 FY17 compared to $15.54 million in Q2 FY16.
Metal Metrics
The Company's silver production was 2.12 million oz. during Q2 FY17 compared to 1.55 million oz. in Q2 FY16. Silver sales were 2.10 million oz. during the quarter compared to 1.53 million oz. in the prior year's same quarter. Furthermore, silver realized price increased to $17.30 per oz. in Q2 FY17 from $16.81 per oz. in Q2 FY16.
Fortuna Silver mined 14.29 oz. of gold in Q2 FY17, up from 9.37 oz. in Q2 FY16. Gold volume sales increased to 14.28 oz. in Q2 FY17 from 9.17 oz. in Q2 FY16. Additionally, the Company realized $1,257 per oz. on gold sale compared to $1,263 per oz. in Q2 FY16.
Lead production volume was 7.17 million lbs. during Q2 FY17 compared to 8.83 million lbs. in Q2 FY16. The Company's lead sales volume was 7.13 million lbs. for Q2 FY17 compared to 8.75 million lbs. in the last year's same quarter.
During Q2 FY17, zinc production volume was 10.61 million lbs. versus 11.20 million lbs. in the prior year's comparable quarter. Furthermore, zinc sales volume came in at 10.94 million lbs. for the reported quarter compared to 11.38 million lbs. in Q2 FY16.
Cash Flow and Balance Sheet
In the three months ended June 30, 2017, net cash generated by operating activities was $12.01 million versus net cash used in operating activities of $1.35 million the prior year's same quarter. As on June 30, 2017, cash and cash equivalents balance stood at $34.09 million compared to $82.48 million as on December 31, 2016. Additionally, Bank loan balance as on June 30, 2017, was $39.82 million compared to $39.77 million as on December 31, 2016.
Earnings Outlook
In its guidance for full year FY17, Fortuna Silver expects silver production outlook to be 8.1 million oz.
Gold production during the year is expected to be 52.4 koz.
The Company projects lead and zinc production volumes to be 30.0 million lbs. and 41.0 million lbs., respectively, during FY17. Furthermore, AISC for full year FY17 is forecasted to be $9.8 per ounce of payable silver.
Stock Performance
On Friday, September 01, 2017, the stock closed the trading session at $4.89, climbing 1.24% from its previous closing price of $4.83. A total volume of 1.19 million shares have exchanged hands. Fortuna Silver Mines' stock price advanced 9.64% in the last one month and 0.82% in the past three months. The stock is trading at a PE ratio of 25.47 and currently, has a market cap of $778.61 million.
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