## Fortuna Silver Mines Reports Q3 2024 Production: Gold Output Down, Silver Production Takes a Hit
Fortuna Silver Mines Inc. (FSM) announced its production results for the third quarter of 2024, reporting a mixed performance. The company produced a total of 110,820 gold equivalent ounces, marking a 13.9% decline from the same period last year. This included 91,251 ounces of gold and 816,187 ounces of silver. While gold production saw a modest 3.8% year-over-year decrease, silver production took a significant hit, dropping by 51.4%.
The decline in overall production was primarily driven by the performance of Fortuna’s San Jose mine in Mexico. The mine produced 510,741 ounces of silver and 3,771 ounces of gold, reflecting a substantial 62.8% drop in silver production and a 54% decline in gold output compared to the same quarter in 2023.
A Closer Look at Fortuna’s Mine Performances in Q3
Fortuna currently operates five mines across its portfolio. Here’s a breakdown of their individual performances in the third quarter:
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Séguéla Mine (Côte d’Ivoire):
The mine produced 34,998 ounces of gold, marking a 11% increase from the previous year’s third quarter. Fortuna anticipates gold production from Séguéla to reach between 126,000 and 138,000 ounces in 2024.*
Yaramoko Mine (Burkina Faso):
The mine produced 28,006 ounces of gold, reflecting an 18% year-over-year decrease. Fortuna expects Yaramoko’s gold production to range between 105,000 and 119,000 ounces for 2024.*
Lindero Mine (Argentina):
The mine saw a positive performance, reporting 24,345 ounces of gold, a 16.3% increase from the previous year. Fortuna projects the mine’s gold production to reach between 93,000 and 105,000 ounces in 2024.*
Caylloma Mine (Peru):
The mine produced 305,446 ounces of silver, showing a slight 0.9% year-over-year decline. Gold production amounted to 131 ounces, compared to 149 ounces in the same quarter last year. The mine’s silver production is projected to be between 0.9 million and 1.1 million ounces in 2024.Fortuna Silver Maintains 2024 Production Guidance
Despite the challenges in Q3, Fortuna Silver remains confident about its overall performance for 2024 and has maintained its production guidance. The company expects to produce between 457,000 and 497,000 ounces of gold equivalent, representing a 1-10% year-over-year increase. This includes a gold production target of 343,000-385,000 ounces, suggesting a 5-18% growth from 2023 levels. However, the silver production guidance for 2024 has been lowered to 4-4.7 million ounces, reflecting a 21-32% year-over-year decline.
Peer Performance and Share Price Performance
Fortuna’s performance is being closely watched alongside other companies in the mining sector. Endeavour Silver Corporation (EXK), a peer competitor, reported a 14% decline in silver equivalent ounces produced in the third quarter, driven by reduced silver output at its mines. Despite this, Endeavour saw a 2% year-over-year increase in gold production.
Interestingly, despite the challenges, Fortuna Silver’s share price has outperformed the industry, surging 61% in the past year compared to the industry’s 7.3% growth.
Looking Ahead
While Fortuna Silver faces challenges in its silver production, its commitment to maintaining its 2024 production guidance reflects its confidence in its long-term strategy. It will be interesting to see how the company navigates these challenges and continues to deliver value to its shareholders in the coming quarters.