- Fortuna Silver released its preliminary Q1 results last week and reported a sharp increase in gold production with the new Lindero finally online, and higher grades from Caylloma.
- This massive boost in metals production is expected to lead to more than ~400% growth in annual earnings per share in FY2021, translating to an earnings breakout year for Fortuna.
- However, given Fortuna's less attractive jurisdictions and sub-par reserve life relative to peers, I see the stock as fairly valued.
- Therefore, I see no reason to chase the stock above $7.90, and I would view any rallies above $9.25 as an opportunity to book profits.
For further details see:
Fortuna Silver: Lindero Guidance Maintained Despite Tough Q1