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June 2018
NYSE: FSM | TSX: FVI | fortunasilver.com
NYSE: FSM | TSX: FVI 2
Cautionary Statement on Forward Looking Statements / Non-GAAP Financial Measures This corporate presentation contains forward looking statements which constitute “forward looking information” within the meaning of applicable Canadian securities legislation and “forward looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward looking Statements”). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this corporate presentation may include, without limitation, statements about the company’s plans for its mines and mineral properties; the company’s business strategy, plans and outlook; the merit of the company’s mines and mineral properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the company; expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use of words such as “estimate”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “calculated”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “expected”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “conduct”, “increasing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations. Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; changes in prices for silver and other metals; technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; the timing and availability of financing; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual Information Form which is available on the Company´s website and is filed under the Company´s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to estimates of future production levels; expectations regarding mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the company’s current mineral resource and reserve estimates; that the company’s activities will be in accordance with the company’s public statements and stated goals; that there will be no material adverse change affecting the company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward-looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward-looking Statements. This corporate presentation also refers to non-GAAP financial measures, such as cash cost per tonne of processed ore; cash cost per payable ounce of silver; total production cost per tonne; all-in sustaining cash cost; all-in cash cost; adjusted net (loss) income; operating cash flow per share before changes in working capital, income taxes, and interest income; and adjusted EBITDA. These measures do not have a standardized meaning or method of calculation, even though the descriptions of such measures may be similar. These performance measures have no meaning under International Financial Reporting Standards (IFRS) and therefore, amounts presented may not be comparable to similar data presented by other mining companies. The Company prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to Mineral Resources in this presentation are defined in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Unites States Securities and Exchange Commission (the “SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company may use certain terms, such as “Measured Mineral Resources”, “Indicated Mineral Resources”, “Inferred Mineral Resources” and “Probable Mineral Reserves” that the SEC does not recognize (these terms may be used in this presentation and are included in the public filings of the Company, which have been filed with the SEC and the securities commissions or similar authorities in Canada). Mr. Eric N. Chapman, M.Sc., Vice President of Technical Services, is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Chapman is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328) and is responsible for ensuring that the information contained in this presentation is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines Inc., and has approved this disclosure.
Dollar amounts expressed in US dollars, unless otherwise indicated.
NYSE: FSM | TSX: FVI 3
Our Vision, Mission and Values
Caylloma Mine, Peru
Our Vision To be valued by our workers, the community and our shareholders as a world leading precious metals mining company.
Our Mission To create value through the growth of reserves, metal production and the efficient operation of our assets with a commitment to safety, social and environmental responsibility.
Our Values We value the health and safety of our workers We do not tolerate unsafe acts or conditions
We value the environment We subscribe to the highest environmental standards
We value our neighbours and other stakeholders We respect cultural diversity and work as a strategic partner towards the sustainable development of neighbouring communities
We value the commitment to excellence We achieve high standards and best practices
We value integrity We act according to our philosophy
Our Vision, Mission and Values Employing over 2,000 people in Canada, Mexico, Peru, and Argentina
NYSE: FSM | TSX: FVI 4
Our Company Fourteen years generating sustainable shareholder value
NYSE: FSM | TSX: FVI
Foundations of a world leading precious metals mining company Historic Highlights
• Fortuna Silver Mines established
• Caylloma Mine: Re-started production
• San Jose Project: 100% interest acquired
• San Jose Mine: Construction and commissioning completed on-time and on-budget; commercial production declared at 1,000 tpd in September 2011
• San Jose Mine: Trinidad North high-grade silver-gold discovery
• San Jose Mine: Expansion from 2,000 tpd to 3,000 tpd commisioned in July 2016; on-time and under budget
Caylloma Mine in Arequipa, Peru San Jose Mine in Oaxaca, Mexico San Jose Mine Trinidad North Discovery
2005 - 2007 2009 - 2011 2013 - 2016
5
Lindero Project in Salta, Argentina
2016 - 2017 • Positive construction decision
made in September 2017
• In July 2016, the open pit Lindero gold Project was acquired from Goldrock Mines Corp.
• Proven and Probable Mineral Reserves1 of 88.3 Mt averaging 0.62 g/t Au (1.75 Moz contained Au)
Note: 1. Please refer to slide 37 for Mineral Reserve and Mineral Resource details
NYSE: FSM | TSX: FVI
Strong financial position to support growth strategy Capital Structure and Share Performance
6
Robust Financial Position • $217.3 million in cash1 (end Q1 2018) • Debt outstanding: $40 million term loan
- Debt to EBITDA2: < 0.5x • No hedging of precious metals
Share Structure (as of 11OCT17)
Outstanding: 159.6 million Fully diluted: 161.5 million
Exchanges NYSE: FSM TSX: FVI
Relative Performance of FVI (6JUN17 – 7JUN18)
Notes: 1. Cash position is an unaudited Management´s estimate as of March 31, 2018 2. Twelve months ended December 31, 2017 adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) | Please refer to slide 32
11%
-3%
2%
-25%-20%-15%-10%
-5%0%5%
10%15%20%
09-Ju
n-17
24-Ju
n-17
09-Ju
l-17
24-Ju
l-17
08-A
ug-1
7
23-A
ug-1
7
07-S
ep-1
7
22-S
ep-1
7
07-O
ct-1
7
22-O
ct-1
7
06-N
ov-1
7
21-N
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7
06-D
ec-1
7
21-D
ec-1
7
05-Ja
n-18
20-Ja
n-18
04-F
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8
19-F
eb-1
8
06-M
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21-M
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05-A
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8
20-A
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8
05-M
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8
20-M
ay-1
8
04-Ju
n-18
FVI COMEX Ag XAU
NYSE: FSM | TSX: FVI
Positive construction decision for the Lindero Project located in Argentina Core Assets
7
San Jose and Caylloma Mines´ Production • 2018E precious metals and base metals production:
o 8.3 Moz Ag + 48.3 koz Au o 25.8 Mlbs Pb + 44.8 Mlbs Zn
• Bottom quartile 2018E AISC
o Consolidated AISC1/oz Ag = $6.8, net of by-products o AISC/oz Ag Eq2 = $11.9, includes gold, lead and zinc
production
Lindero Project Construction • Lindero Project located in Salta, Argentina
o Proposed 18,750 tpd open pit, heap leach gold mine o $239 M initial capital; fully funded o Lindero Mine commissioning expected in Q2 2019 o Year 1 expected gold production3 of 137 koz @ AISC = $528/oz Au
New Exploration Projects • Funding Strategic Alliances with select juniors with the right to select
projects for joint venture
MEXICO
SAN JOSE MINE Silver, Gold
PERU
CAYLLOMA MINE Silver, Lead, Zinc
ARGENTINA
LINDERO PROJECT Gold
Notes: 1. AISC = All-in sustaining cost | Please refer to slide 17 | Please refer to cautionary statements for non-GAAP financial measures 2. Calculated using $17.0/oz Ag, $1,250/oz Au, $2,400/t Pb and $2,900/t Zn | Please refer to Notes on slide 15 3. Please refer to slides 37 and 38
NYSE: FSM | TSX: FVI
Snapshot Lindero Project, Argentina
COMMODITY Gold
OPERATION 18,750 tpd open pit, heap leach
RESERVE LIFE 13 years
LOCATION Salta Province, Argentina
OWNERSHIP 100 %
DEPOSIT TYPE Porphyry Gold
LOM AISC $802/oz Au
Lindero Project
8
Life of Mine Gold Production1
(koz/yr)
Note: 1. Gold recovered to doré | Please refer to slide 37 for Mineral Reserves and Mineral Resources | Please refer to slide
38 for life of mine annual production plan details
137 138
104 115
88 80
90 85 80 83 84 88 81
33 17
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
NYSE: FSM | TSX: FVI
Low cost gold production over 15 years of operation
Lindero Project, Argentina
9
Key Financial Metrics2 @ $1,250/oz Au • After-tax NPV3 @ 5%: $130 million • After-tax IRR4: 18% • Payback period5: 3.6 years
o 80% payback in first 2 years • LOM AISC: $802/oz Au
o Average first 4 years < $700/oz Au
Key Production Metrics for LOM1
• Gold head grade: 0.62 g/t • Recovery: 75 % • Gold recovered to doré: 1.3 million ounces • Strip ratio (waste to ore): 1.2
Notes: 1. LOM = Life of Mine | Please refer to slide 38 2. Please refer to news release dated September 21, 2017 , “Fortuna announces positive
construction decision for its Lindero gold Project in Salta, Argentina” 3. NPV = Net Present Value; considers initial capital in one single annual period; excludes High
Pressure Grinding Roll (HPGR) acquired upon the acquisition of Goldrock Mines Corp. 4. IRR = Internal Rate of Return; considers initial capital in one single annual period; excludes High
Pressure Grinding Roll (HPGR) acquired upon the acquisition of Goldrock Mines Corp. 5. Payback based on undiscounted cash flow
NYSE: FSM | TSX: FVI
Updated project construction milestones
10
2019
APRIL Start mass earthworks
APRIL First concrete for
permanent installations
NOVEMBER Construction of roads
and platforms in preparation for initiation
of mining activities
JANUARY Commissioning of power plant
MAY First doré poured
2018
AUGUST Start of equipment
installation, including HPGR1 tertiary crusher
APRIL Placing of first ore on the leach pad
Notes: 1. High Pressure Grinding Roll 2. Illustrative representation of Management´s target schedule for production
J F M A M J J A S O N D J F M A M J J A S
Q2 2019 Commissioning
Original Schedule Date
Q3 2019 Commercial production
Lindero Project, Argentina
NYSE: FSM | TSX: FVI 11
• Construction of an 18,500 tpd open pit heap leach gold mine launched in September 2017
• Tolar Grande municipal construction permit granted in February 2018
• 12.3% overall project progress as of the end of April 2018
• 50% of $239 million project capital committed as of the end of April 2018
• Major earthworks underway
Lindero Project, Argentina Project update
NYSE: FSM | TSX: FVI
Brownfields priorities upon commencement of production at Lindero Lindero Project, Argentina
12
Lindero Gold Mineralization Open at Depth • Porphyry gold system remains open at depth below the pit shell constrained reported reserves
and resources • Area of high grade gold mineralization worthy of additional exploration at depth
Arizaro Gold-Copper Porphyry System • Located within the Lindero mining concession, 3.2 kilometers SE of the Lindero Project • Historic work has included regional and local mapping, trenching, surface rock-chip sampling
and 8,854 meters of diamond drilling completed over four campaigns carried out in 2002 and 2010 - 2013
Other Prospects • Alteration zones and silica structures located within our concession, 2.5 kilometers due south of
the Lindero Project remain open for evaluation
NYSE: FSM | TSX: FVI
Major earthworks underway; Commercial production expected in Q3 2019 Lindero Project, Argentina
13
NYSE: FSM | TSX: FVI
Strong growth in Mineral Reserves Growing Reserve and Resource Base
14
Reserve and Resource Base
0
20
40
60
80
100
120
140
160
180
200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cont
aine
d M
etal
- Ag
Eq1 (
Moz
)
Proven & Probable Reserves Measured & Indicated Resources Inferred Resources
2
Notes: 1. Ag Eq calculated using Au = $1,250/oz and Ag = $19/oz (Au:Ag ratio = 65:1) | Ag Eq does not include base metals 2. Please refer to slides 35, 36 and 37 for individual breakdown of Mineral Reserves and Mineral Resources
NYSE: FSM | TSX: FVI
2018E consolidated production rate of ~16.6 Moz Ag Eq at an AISC of $11.9/oz Ag Eq Consolidated Ag Eq Production and AISC
15
Notes: 1. 2018E AISC/oz Ag Eq (including by-products) estimated at metal prices of $1,250/oz Au, $17.00/oz Ag, $2,400/t Pb and $2,900 /t Zn 2. 2012-2018E Ag Eq production is calculated using ratios of Ag:Au = 65:1; Ag:Pb (lbs) = 1:15.6; Ag:Zn (lbs) = 1:12.9 3. AISC, please refer to cautionary statements for non-GAAP financial measures 4. Totals may not add due to rounding
5.1 5.3 5.5 6.1
6.7 6.3 5.9
3.1 3.7
6.6
7.4
9.1
11.2 10.6
8.1 9.1
12.0 13.5
15.8 17.5
16.6 25.5
21.1
16.3 15.0
12.7 11.4 11.9
-
5.0
10.0
15.0
20.0
25.0
30.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
2012 2013 2014 2015 2016 2017 2018E
AISC
($/o
z Ag
Eq)
Ag E
q (M
oz)
Caylloma Mine, Peru San Jose Mine, Mexico AISC ($/oz Ag Eq)
NYSE: FSM | TSX: FVI
3.3 3.2 2.7 2.6 2.4 2.8 2.2 1.8 1.2 0.5 0.5 4.6
17.9 19.0
33.5 38.5 46.0
56.0 48.3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E
Caylloma Mine, Peru San Jose Mine, Mexico
0.4 0.8 1.7 1.9 2.0 2.0 2.1 2.2 1.7 1.3 0.9 0.8
0.5 1.9 2.5
4.4 4.9 6.1 7.5 7.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E
Caylloma Mine, Peru San Jose Mine, Mexico
Consolidated Silver Production (Moz)
Combination of low cost organic growth Increasing Silver and Gold Production
16
Note: 1. CAGR = Compound Annual Growth Rate; please refer to cautionary statements for non-GAAP financial measures 2. Totals may not add due to rounding
Consolidated Gold Production (koz)
2.5
3.9 4.6
6.6 6.6 7.4
8.5
21.2
39.7 46.5
56.4
35.3
7.0
20.7
8.3
48.3
NYSE: FSM | TSX: FVI
4.7 3.6 0.3
-2.9 -2.7
4.8 6.8
2.8 3.4 3.1
1.1 0.6
1.1 1.2 1.3
2.8 2.5
2.2 2.3 2.5
1.1 1.0
1.9 2.3 2.6
14.5 14.5
8.4 6.4 6.8
2014 2015 2016 2017 2018E¹
Worker's participation, royalties & mining taxG&ABrownfields explorationSustaining CAPEXCash cost per oz
174.0 154.7
210.3
268.1 258.2
2014 2015 2016 2017 2018E¹
59.8
30.6
62.3
87.9 77.7
2014 2015 2016 2017 2018E¹
64.1 49.6
83.1
122.0 114.8
2014 2015 2016 2017 2018E¹
Maximizing margins through management of cost and capital 2018 Financial Snapshot
17
Notes: 1. 2018E estimated using Au = $1,250 /oz, Ag = $17.0 oz, Pb = $2,400/t and Zn = $2,900/t 2. Before changes in working capital 3. Non-GAAP financial measure; please refer to slide 32
Cash Flow from Operations2 ($ M) Sales ($ M)
Adjusted EBITDA3 ($ M) AISC ($/oz Ag)
NYSE: FSM | TSX: FVI
22.4 25.2 27.3
35.8
43.2 44.3 44.8
2012 2013 2014 2015 2016 2017 2018E
17.9 17.8 16.2
23.8
32.7 29.9
25.8
2012 2013 2014 2015 2016 2017 2018E
2.0 2.1 2.2
1.7
1.3
0.9 0.8
2012 2013 2014 2015 2016 2017 2018E
Snapshot Caylloma Mine, Peru
18
COMMODITIES Silver, zinc, lead
OPERATION 1,430 tpd underground mine
RESERVE LIFE 3 years
LOCATION Arequipa, Peru
OWNERSHIP 100 %
DEPOSIT TYPE Intermediate sulphidation epithermal deposit
2018E AISC, net of byproducts Au, Pb, and Zn $(5.2)/oz Ag
Silver Production (Moz)
Caylloma Mine
Lead Production (Mlbs) Zinc Production (Mlbs)
Notes: 1. Please refer to slide 35 for Mineral Reserves and Mineral Resources 2. AISC, please refer to slide 17 and to cautionary statements for non-GAAP financial measures
NYSE: FSM | TSX: FVI
Animas NE vein step-out drilling1 Caylloma Mine, Peru
19
• High grade Ag, Pb and Zn mineralization below current production areas
• Open at depth and along strike to the NE
• Prospective for extending mineralization
Note: 1. Please refer to slide 34 for assay results
of principal mineralized intervals
NYSE: FSM | TSX: FVI
1.9 2.5
4.4 4.9
6.1
7.5 7.5
2012 2013 2014 2015 2016 2017 2018E
17.9 19.0
33.5 38.5
46.0
56.0
48.3
2012 2013 2014 2015 2016 2017 2018E
Snapshot San Jose Mine, Mexico
Silver Production (Moz)
COMMODITIES Silver, gold
OPERATION 3,000 tpd underground mine
RESERVE LIFE 5 years
LOCATION Oaxaca, Mexico
OWNERSHIP 100 %
DEPOSIT TYPE High-grade, low sulphidation epithermal deposit
2018E AISC, net of by-product Au $6.6/oz Ag
San Jose Mine
20
Gold Production (koz)
Notes: 1. Please refer to slide 36 for Mineral Reserves and Mineral Resources 2. Please refer to slide 17 and to cautionary statements for non-GAAP measures
NYSE: FSM | TSX: FVI
Miocene epithermal belt – Southern Mexico and CA San Jose Mine, Mexico
21
• San Jose deposit centrally located in prolific Miocene Epithermal Belt
• World class neighbors: Pachuca, Marlin and Escobal
NYSE: FSM | TSX: FVI
Mineral concessions: 71,052 hectares San Jose Mine, Mexico
22
NYSE: FSM | TSX: FVI
Mineral Reserves and Resources as of December 31, 2017 San Jose Mine, Mexico
23
Note: 1. Please refer to slide 36 for
Mineral Reserves and Mineral Resources
NYSE: FSM | TSX: FVI
• Silicified outcrop may represent the top part of the Au-Ag epithermal mineralizing system
• Drill program will test potential of a well-mineralized zone at various vertical levels below the outcrop at the projected intersection of the Trinidad and Victoria veins
Brownfields Exploration: Trinidad North Extension target San Jose Mine, Mexico
24
Note: 1. Ag Eq calculated using Au = $1,250/oz and Ag = $19/oz (Au:Ag ratio = 65:1)
NYSE: FSM | TSX: FVI
• Sub-parallel vein located 350 meters to the east of current mine workings; blind discovery made in 2015
• Drill hole SJOM-676: 356 g/t Ag and 3.53 g/t Au over an estimated true width of 4.5 meters
• Hole SJOM-684: 1,106 g/t Ag and 6.34 g/t Au over an estimated true width of 3.7 meters
• Drilling is ongoing with crosscut development from Trinidad vein planned for 2018
Brownfields Exploration: Victoria vein San Jose Mine, Mexico
25
Note: 1. Ag Eq calculated using Au = $1,250/oz and Ag = $19/oz (Au:Ag ratio = 65:1)
NYSE: FSM | TSX: FVI
Focused on organic growth, disciplined M&A Growth Strategy
26
Brownfields and Greenfields exploration initiatives
• Positive construction decision at the Lindero gold Project, Argentina made in September 2017; commissioning expected in Q2 2019
• Bottom-quartile operating and all-in sustaining costs
• 46% EBITDA1 margin in 2017
Maximize production, profitability and sustainable free cash flow generation
• Exploration potential for new discoveries in and around land positions in Peru, Mexico and Argentina
• Funding strategic alliances:
o Medgold Resources Corp.(TSX.v: MED) | Serbia: C$3.0 M equity investments; 23.97% ownership
o Prospero Silver Corp. (TSX.v: PSL) | Mexico: C$2.3 M equity investment; 22.74% ownership
• Evaluation of third-party properties in northern Argentina
Note: 1. Please refer to slide 33 and to cautionary statements for non-GAAP financial measures
NYSE: FSM | TSX: FVI
Low cost production profile and a strong financial position Investment Highlights
27
PROVEN MINE DEVELOPERS AND STRONG OPERATORS
$217.3 M in cash (end Q1 2018)
ROBUST FINANCIAL POSITION
$40.0 M term loan
<0.5x debt to EBITDA2
8.3 2018 PRODUCTION GUIDANCE3
48.3 25.8 44.8 Moz Ag
koz Au
Mlbs Zn
Mlbs Pb
Bottom quartile operating costs and AISC Low cost gold production
Lindero Project, Argentina over 13 years of reserve life1
Notes: 1. Refer to slides 37 and 38 2. Refer to slide 32 3. Refer to news release dated January 17, 2018, “Fortuna reports 2017 production of 11.9 million silver equivalent ounces and issues guidance for 2018”
NYSE: FSM | TSX: FVI
Carlos Baca Investor Relations Manager T: +51.1.616.6060, ext. 2 info@fortunasilver.com www.fortunasilver.com
Contact Information
NYSE: FSM | TSX: FVI
Appendix
29
NYSE: FSM | TSX: FVI 30
APPENDIX
Senior Management
Jorge A. Ganoza President, CEO and Director Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Director of Ferreycorp S.A.A..
Jose Pacora Vice President, Project Development Over 30 years’ experience in the mining industry working for both engineering firms and mining companies developing strong capabilities in engineering, construction and project management.
Eric Chapman Vice President, Technical Services A resource geologist with 15 years´ experience in the mining industry who has provided technical guidance to Fortuna since 2011. Previously Eric was a Senior Consultant to Snowden Mining Industry Consultants working on a variety of mine and exploration projects in Africa and the Americas.
Luis Dario Ganoza Chief Financial Officer / Chief Compliance Officer Over 16 years’ experience in the operations and financial management of public mining companies. Luis also serves as Chairman of the Board of Atico Mining Corporation.
Manuel Ruiz-Conejo Vice President, Operations Over 25 years’ experience in the execution of multi-million dollar mining projects and the implementation of community relations programs.
David Volkert Vice President, Exploration A mine finder with a long, successful career in the mining industry; instrumental in the discovery of Barrick’s Laguna Norte gold deposit and the acquisition of the Pierina gold deposit in Peru; spearheaded the discovery of Bear Creek’s Corani and Santa Ana silver-lead-zinc deposits in Peru.
Gordon Jang Vice President, Finance and Accounting Over 20 years of senior financial management experience in the mining industry; wealth of experience in the areas of tax planning and compliance, financial reporting, Sarbanes Oxley /internal controls, implementation of ERP systems and mergers and acquisitions.
NYSE: FSM | TSX: FVI 31
Board of Directors
Simon Ridgway, Chairman of the Board Co-founder of Fortuna. Vancouver-based mining financier. Also founded Focus Ventures, Radius Gold, Mar West Resources and Northland Resources.
Jorge A. Ganoza, President and CEO Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Director of Ferreycorp S.A.A..
Robert R. Gilmore 30 years of experience working with resource companies and currently serves as Chairman of the Board for Eldorado Gold Corporation and as a Director for Layne Christensen Company.
David Farrell, Lead Director President of Davisa Consulting, a private consulting firm working with junior to mid-tier global mining companies. Successfully negotiated, structured and closed more than $25 billion worth of M&A.
David Laing Mining engineer with over 35 years of experience in the industry. David was the COO of True Gold Mining which developed a gold heap leaching operation in Burkina Faso, and COO and EVP of Quintana Resources Capital, a base metals streaming company. He is currently COO of Luna Gold Corp.
Mario Szotlender Co-founder of Fortuna. Financier, businessman and Director of Atico Mining Corporation, Endeavour Silver Corp. and Radius Gold Inc..
Alfredo Sillau Managing Partner, CEO and Director of Faro Capital, an investment management firm that manages private equity and real estate funds. Mr. Sillau is also a Director of Cosapi S.A. and PECSA.
Kylie Dickson Executive with over 14 years of experience in the mining industry. Kylie has worked with companies at various stages of the mining lifecycle including playing a key role in multiple financings and M&A transactions. Kylie is currently VP of Business Development at Trek Mining.
APPENDIX
NYSE: FSM | TSX: FVI
APPENDIX Adjusted EBITDA Non-GAAP financial measures
32
Expressed in $ ’000s
NET INCOME
Add Back:
Net finance items
Depreciation, depletion and amortization
Income taxes
Share of loss of equity-accounted investee
Impairment of mineral properties
Other operating expenses
Adjusted EBITDA
Year ended December 31,
2017 2016
$66.3 $17.9
0.4 2.5
42.5 33.0
38.6 29.3
0.2 –
(31.1) –
5.1 0.4
$122.0 $83.1
APPENDIX
NYSE: FSM | TSX: FVI
APPENDIX Consolidated EBITDA Margin Non-GAAP financial measures
33
($ M) Q4 2017 Q4 2016 % Change
Operating Income 57.7 17.6 228%
Adjusted EBITDA 34.9 29.4 19%
EBITDA margin over sales 46% 51% –
Consolidated
2017 2016 % Change
110.3 48.5 127%
122.0 83.1 47%
46% 40% –
• Operating Income for both Q4 2017 and 2017 includes $31.1 million write-up at the Caylloma Mine
• Excluding the Caylloma Mine write-up, Operating Income for Q4 2017 would have been $26.5 million, 51% over Q4 2016, and for the year $79.2 million, 63% over 2016
APPENDIX
NYSE: FSM | TSX: FVI 34
Animas NE vein Step-out Drilling Assay results for principal mineralized intervals
Drill Hole From (m)
To (m)
Interval (m)
ETW¹ (m)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
ANIS047517 374.7 380.2 5.5 5.1 46 0.04 3.68 7.68
ANIS047617A 386.1 392.5 6.4 5.5 75 0.04 5.01 4.24
ANIS047917 397.7 408.3 10.6 8.8 41 0.04 2.24 3.99
ANIS048117 468.4 479.9 11.5 10.3 72 0.04 4.80 4.90
ANIS048317A 352.6 358.2 5.6 4.9 36 0.06 2.06 6.29
ANIS048417 505.5 514.0 8.5 7.6 38 0.04 2.35 4.76
ANIS048917 594.3 600.4 6.1 5.7 160 0.11 4.98 7.19
ANIS049317 483.3 486.8 3.5 3.3 83 0.05 3.74 4.69
ANIS049817 403.8 408.6 4.8 3.8 75 0.02 2.70 1.83
ANIS050217 606.8 614.1 7.3 6.6 235 0.09 6.51 6.50
Notes: 1. Estimated True Width 2. For full results please refer to news release dated October 11, 2017, “Fortuna provides Brownfields and Greenfields exploration update”
APPENDIX
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NI 43 – 101 Reserves and Resources Caylloma Mine, Peru
35
Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43 - 101: 1. Mineral Reserves and Mineral Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves 2. Mineral Resources are exclusive of Mineral Reserves 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 4. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources or Mineral Reserves at
Caylloma 5. Mineral Resources and Mineral Reserves are estimated as of September 30, 2017 and are reported as of December 31, 2017 taking into account production-related
depletion for the period through December 31, 2017 6. Mineral Reserves for Caylloma are estimated using break-even cut-off grades based on estimated NSR values using assumed metal prices of $19/oz Ag, $1,250/oz Au,
$2,200/t Pb and $2,500/t Zn; metallurgical recovery rates of 84% for Ag, 17% for Au, 93% for Pb and 90% for Zn with the exception of high zinc oxide areas that use metallurgical recovery rates of 57% for Ag, 17% for Au, 57% for Pb and 35% for Zn; and actual operating costs. Caylloma Mineral Resources are reported based on estimated NSR values using the same metal prices and metallurgical recovery rates as detailed for Mineral Reserves; and an NSR cut-off grade of $50/t for veins classified as wide (Animas, Animas NE, Nancy, San Cristobal) and $135/t for veins classified as narrow (all other veins)
7. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Edwin Gutierrez (SME Registered Member #4119110RM) is the Qualified Person for reserves, both being current or former employees of Fortuna Silver Mines Inc.
8. Totals may not add due to rounding procedures
Classification Tonnes (000)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Contained Metal
Ag (Moz)
Au (koz)
Proven & Probable Reserves 1,603 91 0.23 2.25 3.58 4.7 12.0
Measured & Indicated Resources 1,896 87 0.32 1.32 2.24 5.3 19.6
Inferred Resources 5,751 105 0.35 2.82 4.07 19.5 65.6
APPENDIX
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NI 43 – 101 Reserves and Resources San Jose Mine, Mexico
36
Classification Tonnes (000)
Ag (g/t)
Au (g/t)
Contained Metal
Ag (Moz)
Au (koz)
Proven & Probable Reserves 5,037 247 1.61 40.1 261
Measured & Indicated Resources 321 64 0.48 0.7 5
Inferred Resources 2,596 241 1.53 20.1 128
Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43 - 101: 1. Mineral Reserves and Mineral Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves 2. Mineral Resources are exclusive of Mineral Reserves 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 4. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources or Mineral Reserves at
San Jose 5. Mineral Resources and Mineral Reserves are estimated as of June 30, 2017 and are reported as of December 31, 2017 taking into account production-related depletion for
the period through December 31, 2017 6. Mineral Reserves for San Jose are estimated using a break-even cut-off grade of 177 Ag Eq g/t based on assumed metal prices of $19/oz Ag and $1,250/oz Au; estimated
metallurgical recovery rates of 92% for Ag and 91% for Au and actual operating costs. Mineral Resources are estimated at a 100 g/t Ag Eq cut-off grade with Ag Eq in g/t = Ag (g/t) + Au (g/t) * (($1,250/$19) * (91/92)). Proven + Probable Reserves include 2.74 Mt containing 25.6 Moz of silver and 153.0 koz of gold reported at a 120 g/t Ag Eq cut-off grade and Inferred Resources totaling 1.36 Mt containing 11.3 Moz of silver and 62.0 koz of gold reported at a 100 g/t Ag Eq cut-off grade located in the Taviche Oeste concession and subject to a 2.5% royalty
7. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Edwin Gutierrez (SME Registered Member #4119110RM) is the Qualified Person for reserves, both being current or former employees of Fortuna Silver Mines Inc.
8. Totals may not add due to rounding procedures
APPENDIX
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Classification Tonnes (000)
Au (g/t)
Cu (%)
Contained Metal
Au (koz)
Proven & Probable Reserves 88,272 0.62 0.11 1,749
Measured & Indicated Resources 12,507 0.24 0.07 97
Inferred Resources 5,700 0.36 0.10 65
NI 43 – 101 Reserves and Resources Lindero Project, Argentina
37
Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43 - 101: 1. Mineral Reserves and Mineral Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves 2. Mineral Resources are exclusive of Mineral Reserves 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 4. There are no known legal, political, environmental, or other risks that could materially affect potential development of the Mineral Resources or Mineral Reserves at
Lindero 5. Mineral Resources and Mineral Reserves for Lindero are reported as of September 9, 2017 6. Mineral Reserves for Lindero are reported based on open pit mining within designed pit shells based on variable gold internal cut-off grades and gold recoveries by
metallurgical type. Met type 1 cut-off 0.27 g/t Au, recovery 75.4%; Met type 2 cut-off 0.26 g/t Au, recovery 78.2%; Met type 3 cut-off 0.26 g/t Au, recovery 78.5%; and Met type 4 cut-off 0.30 g/t Au, recovery 68.5%. The cut-off grades and pit designs are considered appropriate for long term gold prices of $1,250/oz. Assumptions used in the pit design are the same as those for the resources
7. Lindero Mineral Resources are reported within a conceptual pit shell above a 0.2 g/t Au cut-off grade using a long-term gold price of $1,250/oz, mining costs at $1.67 per tonne of material, with total processing and process G&A costs of $7.84 per tonne of mineralized material and an average process recovery of 75%. The refinery costs net of pay factor were estimated to be $6.90 per ounce of gold. Slope angles are based on 3 sectors (39°, 42°, and 47°) consistent with geotechnical consultant recommendations
8. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Edwin Gutierrez (SME Registered Member #4119110RM) is the Qualified Person for reserves, both being current or former employees of Fortuna Silver Mines Inc.
9. Totals may not add due to rounding procedures
APPENDIX
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Lindero LOM Annual Production Plan
38
1.3 million ounces of gold recovered to doré at an average AISC of $802/oz Ag
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 LOM
Ore placed in heap (Mt) 6.7 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.6 6.6 - - 87.5Waste (Mt) 6.8 7.3 8.2 10.3 10.2 10.4 8.8 8.5 10.7 9.9 7.2 8.6 2.8 - - 109.8Strip ratio (W:O) 0.8 0.8 1.1 1.7 1.7 2.4 1.3 1.2 2.0 1.3 1.2 1.3 0.4 - - 1.2Gold head grade (g/t) 0.94 0.86 0.66 0.63 0.56 0.49 0.58 0.54 0.50 0.59 0.52 0.56 0.60 - - 0.62Gold recovered to doré (koz) 137 138 104 115 88 80 90 85 80 83 84 88 81 33 17 1,302AISC ($) 528 537 1,041 691 854 975 839 896 943 934 874 842 860 502 1,168 802
YEAR
Note: 1. Life of mine production plan based on Mineral Reserves reported in slide 37
APPENDIX
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