FSM - Fortuna's San Jose silver mine faces uncertain future on expired permit

Fortuna Silver Mines (NYSE:FSM) plunged nearly 6% in today's trading following disappointing Q3 results and worries over the future of the San Jose mine in Mexico. Fortuna's Q3 adjusted EBITDA jumped 78% Y/Y to $75.3M and revenues rose 95% to $162.6M, but results missed analyst consensus estimates of $83.5M and $171.3M, respectively. The San Jose mine has been operating since 2011, but its main environmental authorization expired on October 23, despite Fortuna's efforts since May to petition Mexico's environment ministry to approve a 10-year extension. A recent court order allows the mine to keep running, but only on a temporary basis. The environment ministry today said it would work to organize the consultation of nearby indigenous Zapotec communities as part of the mine's environmental authorization. Canaccord analyst Dalton Baretto cut his rating on the stock to Sell from Hold with a C$5.50 price target. Fortuna tallied record production of 87,950

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Fortuna's San Jose silver mine faces uncertain future on expired permit