- Fortuna Silver released its FY2020 mineral reserve update on Friday, and it was quite underwhelming.
- Despite higher mineral reserve price assumptions than most of its peers, Fortuna's reserves are down to less than five years at San Jose, and less than six years at Caylloma.
- Fortunately, the company's Lindero mine has a 10-year mine life, but adding reserves at its Mexican silver mines is imperative to maintain the current production profile.
- Based on Fortuna's higher reserve price assumptions and relatively short reserve life at San Jose, I believe there are much better ways to play the sector.
For further details see:
Fortuna Silver: A Disappointing Reserve Update