Wall Street Transcript Interview with Jorge A. Ganoza, the President, CEO and Director of Fortuna Silver Mines Inc. (FSM)

Wall Street Transcript

67 WALL STREET, New York - December 27, 2012 - The Wall Street Transcript has just published its Gold and Precious Metals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investment and Central Bank Demand - Gold Producers vs. Gold ETF - Midcap and Small-Cap Consolidation Activity - The Rise of Gold ETFs - Central Banks as Net Buyers of Gold

Companies include: Fortuna Silver Mines (FSM),

In the following excerpt from the Gold and Precious Metals Report, Jorge A. Ganoza, the President, CEO and Director of Fortuna Silver Mines discusses the outlook for his company for investors:

TWST: What is Fortuna Silver Mines Inc.?

Mr. Ganoza: Fortuna is a young, rapidly growing silver producer. We operate two 100%-owned underground mines: the Caylloma silver/gold/lead/zinc mine in Peru, operating since late 2006; and the San Jose silver-gold mine in Oaxaca, Mexico, which went into commercial production in September 2011. Fortuna is a rapidly growing emerging producer - one of the fastest-growing silver producers today. We've taken this company over the last seven years from three people focused on an idea to a leading silver mining company with over 1,500 people in three countries: Canada, Peru and Mexico, so it's been an interesting ride for all of us involved in Fortuna.

The company is expecting sales of roughly $180 million to $200 million next year from silver and gold and other byproducts, and we have strong cash flow generation. We are driving several growth initiatives to sustain the growth that we've been exhibiting over the last seven years.

TWST: Give us some idea of what the Latin American mining industry looks like today. What is the infrastructure that you have in the area in which you're active, and what do you see as some of the cost structures or production hurdles that should be considered as your company moves forward?

Mr. Ganoza: It's not by coincidence that we are operating in both Peru and Mexico; it is by design. Early on, we knew that if we wanted to be a force in the silver mining space we would need to have well-established operations. Peru and Mexico are not only two well-established mining jurisdictions, but also the two largest silver-producing countries in the world, so we are in the business of developing midsized, high-margin mines. We are not a large-scale miner. We are, in a way, a niche player where we focus on low-cost, high-margin underground operations.

It is important to us to be based in countries with well-established services to the mining industry as well as infrastructure, legislation and laws in place that support continued development for Fortuna. Peru and Mexico are two premier mining destinations in the world, and in our view it's strategic to be here. We are actively pursuing additional business opportunities...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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