Fortuna Silver Mines Inc. (FSM) stock prices were up 4.29% as of the market close on August 13th, 2021. This brought the price per share up to USD$4.38 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 3.88%, bringing it up to USD$4.55.
FSM Stock’s Sales Report
The second quarter of fiscal 2021 saw FSM stock report USD$120.5 million in sales. This was a 171% increase from the USD$44.5 million reported in the second quarter of fiscal 2020. The higher sales were largely a result of a 58% increase in the volume of silver and a 52% increase in the volume of gold ounces sold. Further contributing to the year-over-year increase were higher realized metal prices, particularly of zinc and silver.
Operating and Net Income
Operating income for the 2021 quarter came out to USD$35.9 million, up from the operating loss of USD$1.3 million compared to the 2020 quarter. The year-over-year difference was largely attributable to the higher prices of gold and silver. Further consolidating the yearly difference was Lindero’s contribution to mine operating income in the amount of USD$7.2 million. Net income for the quarter ended June 30th, 2021 came out to USD$16.2 million. This is comparable to the USD$5.7 million net loss reported in Q2 2021.
FSM Stock’s EBITDA Report
Adjusted EBITDA for the second quarter of 2021 was reported at USD$54.9 million. FSM stock reported a massive improvement on the USD$9.4 million reported in the prior-year quarter. The year-over-year difference was largely driven by Lindero’s contribution to adjusted EBITDA in the amount of USD$16.2 million. Higher EBITDA contributions from the San Jose and Caylloma facilities further consolidated the year-over-year difference.
Solid Liquidity Position
FSM stock reported a solid liquidity position in the amount of USD$121.8 million in cash and cash equivalents. This is a decrease from the USD$131.9 million reported as of December 31st, 2020. This year-over-year difference was largely attributable to a USD$35.3 million promissory note that was provided to Roxgold. The promissory note served to cover a portion of the expected acquisition closing costs.
Future Outlook for FSM Stock
FSM stock reported a strong quarter with several promising developments. The company is keen to leverage the expanded resources at its disposal to facilitate consistent returns in shareholder value. Investors are confident in management’s ability to usher in a continued trajectory of growth.
