FSM - Fortuna Silver Mines: Another Solid Quarter From Lindero
- Fortuna Silver released its preliminary Q3 results earlier this month, reporting production of ~64,500 ounces of gold and ~1.71 million ounces of silver.
- This translated to 411% growth in gold production (186% organic growth) on a year-over-year basis, though silver production dipped by 20% due to lower grades at San Jose.
- With significant growth in the pipeline as construction begins at Seguela, Fortuna is one of the better growth stories sector-wide, and trades a very reasonable valuation of ~0.85x P/NAV.
- Given the upside to Fortuna's NPV (5%) due to exploration success at Seguela combined with a likely mill expansion, I would view any pullbacks below US$4.25 as low-risk buying opportunities.
For further details see:
Fortuna Silver Mines: Another Solid Quarter From Lindero