FSM - Fortuna Silver Mines: A Decent Start To FY2022

• Fortuna Silver released its preliminary Q1 results this week, reporting quarterly production of ~66,800 ounces of gold and ~1.67 million ounces of silver.
• This translated to a 93% increase in gold production year-over-year, and a 13% decline in silver production, with gold production helped by the Roxgold acquisition.
• While production will grow further next year, the growth outlook is much less impressive than I previously anticipated, and we could see costs come in slightly above guidance.
• At a share price of US$3.65, Fortuna is becoming more reasonably valued, but I continue to see several more attractive bets elsewhere in the sector.

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