Fortuna Silver (FSM) Q2 Earnings Miss, Revenues Dip Y/Y
Fortuna Silver Mines Inc. FSM reported second-quarter 2023 adjusted earnings per share of 1 cent, which missed the Zacks Consensus Estimate of 5 cents. The bottom line was flat year over year. Results were affected by the lower volume of metal sold at San Jose and the lower volume at Lindero. This was partially offset by the lower cost of sales per ounce of gold at Yaramoko.
Including one-time items, Fortuna Silver reported earnings of 1 cent per share in the quarter, unchanged from the year-ago quarter.
Fortuna Silver’s revenues declined 6% year over year to $158 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $163 million.
All-In Sustaining Cost (AISC) per ounce of gold sold was $1,693 for the Lindero mine and $1,626 for the Yaramoko mine. AISC per silver equivalent ounce of payable silver sold came in at $24.07 and $19.18 for the San Jose mine and Caylloma mine , respectively.
FSM reported a mine-operating profit of $31.9 million in the quarter under review, reflecting a year-over-year decline of 2%. Operating profit was $7.7 million, down 41% from $13.1 million in the prior-year quarter.
Adjusted EBITDA fell 23% year over year to $44 million in the second quarter of 2023. The adjusted EBITDA margin was 28% compared with 34.5% in the prior-year quarter.
Fortuna Silver Mines Inc. Price, Consensus and EPS Surprise
Fortuna Silver Mines Inc. price-consensus-eps-surprise-chart | Fortuna Silver Mines Inc. Quote
Financial Position
Fortuna Silver ended the second quarter of 2023 with around $93 million of cash and cash equivalents compared with $81 million held at the end of 2022. Total liquidity as of Jun 30, 2023, was $98 million. Net cash flow from operating activities was $44 million in the quarter compared with $47 million in the prior-year quarter.
Production Details
In the quarter under review, silver and gold production was 1,262,561 ounces and 64,348 ounces, respectively. Gold-equivalent production for the quarter was 93,454 ounces.
Construction at the Séguéla mine was complete and the first gold pour took place on May 24, 2023.
Price Performance
Shares of Fortuna Silver have gained 12.4% in a year against the industry’s decline of 9.3%.
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Zacks Rank & Stocks to Consider
Fortuna Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, PPG Industries, Inc. PPG and Bunge Limited BG. CRS and PPG sport a Zacks Rank #1 (Strong Buy) at present, and BG has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.23 per share. The consensus estimate for 2023 earnings has moved 12% north in the past 60 days. Its shares gained 71% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 9.5% in the past year.
Bunge has an average trailing four-quarter earnings surprise of 20.4%. The Zacks Consensus Estimate for BG’s 2023 earnings is pegged at $12.13 per share. The consensus estimate for 2023 earnings has moved 4% north over the past 60 days. BG’s shares gained 17.1% in the last year.
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