Yahoo Finance Fortuna Silver (FSM) Q1 Earnings Beat, Revenues Dip Y/Y
Fortuna Silver Mines Inc. FSM reported first-quarter 2023 adjusted earnings per share of 5 cents, beating the Zacks Consensus Estimate of 1 cent. The bottom line, however, marked a 55% slump from the year-ago quarter. Results were impacted by lower sales and operating margins at Yaramoko and Lindero due to lower head grades. Higher operating expenses also drove the downside.
Including one-time items, Fortuna Silver reported earnings of 4 cents per share in the quarter under review compared with 9 cents in the year-ago quarter.
Fortuna Silver’s revenues declined 4% year over year to $176 million in the quarter under review. The decline was attributed to lower silver prices.
Consolidated All-In Sustaining Cost (AISC) per ounce of gold equivalent sold was $1,514. FSM reported a mine-operating profit of $40 million in the quarter under review, reflecting a year-over-year decline of 36%. The operating income was $23.9 million compared with $40.7 million in the prior-year quarter.
Adjusted EBITDA fell 19% year over year to $65.3 million in the first quarter of 2023 due to lower sales and elevated operating costs. The adjusted EBITDA margin was 37.2% compared with 44% in the prior-year quarter.
Fortuna Silver Mines Inc. Price, Consensus and EPS Surprise
Fortuna Silver Mines Inc. price-consensus-eps-surprise-chart | Fortuna Silver Mines Inc. Quote
Financial Position
Fortuna Silver ended first-quarter 2023 with $84.7 million of cash and cash equivalents compared with $80.5 million held at the end of 2022. Total liquidity as of Mar 31, 2023, was $129.7 million. Net cash flow from operating activities was $42 million in the quarter under review compared with $33 million in the prior-year quarter.
Production Details
In the first quarter of 2023, silver and gold production were 1,586,378 ounces and 60,092 ounces, respectively. Gold equivalent production in the quarter was 94,110 ounces.
Price Performance
Shares of Fortuna Silver have gained 13.7% in a year against the industry’s fall of 8.9%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Fortuna Silver currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Gold Fields Limited GFI, Steel Dynamics STLD, and Alamos Gold Inc. AGI. GFI currently flaunts a Zacks Rank #1 (Strong Buy), and STLD and AGI carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. GFI has a trailing four-quarter earnings surprise of 7.7%, on average. Its shares have gained 46.2% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.99 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 10.7%, on average. The company has gained 26.6% in a year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 91.4% in a year.
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