Fortuna Experiences Outcomes for Fourth Quarter and Full 12 months 2021

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(All quantities expressed in US {dollars}, tabular quantities in hundreds of thousands, except in any other case said)

VANCOUVER, British Columbia, March 23, 2022 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna” or the “Firm”) in the present day reported its consolidated monetary and working outcomes for the fourth quarter and full yr 2021.

Fourth Quarter 2021 Highlights

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Full 12 months 2021 Highlights

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Jorge A. Ganoza, President and CEO, commented, “Fortuna’s document gross sales and adjusted EBITDA within the fourth quarter of roughly $199 million and $90 million respectively, replicate sturdy working outcomes throughout our 4 mines in Latin America and West Africa. Lindero’s strong efficiency within the quarter is especially value highlighting because the mine delivered 36,072 ounces of gold, in step with expectations and 37% above its gold manufacturing for the third quarter.” Mr. Ganoza added, “With free money circulate technology from operations¹ of $33 million within the quarter and the growth of our company revolving credit score facility to $200 million, we closed 2021 with a powerful liquidity place of $187 million, $51 million over the third quarter contemplating $20 million in funding for the development of the Séguéla Mine.” Mr. Ganoza concluded, “All through 2022, we anticipate to spend $110 million in Séguéla and $20 million in Brownfields exploration, which incorporates $7.4 million at San Jose and $7.2 million at Séguéla.”

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Notes:

Fourth Quarter 2021 and Full 12 months 2021 Consolidated Outcomes

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Fourth Quarter 2021 Outcomes

Gross sales for the quarter have been $198.9 million, a 92% enhance from the $103.5 million reported in the identical interval in 2020. The rise was pushed by the contribution from the Lindero and Yaramoko mines. Lindero acknowledged adjusted gross sales of $65.6 million from the sale of 36,389 ounces of gold. Yaramoko acknowledged adjusted gross sales of $52.2 million from the sale of 29,077 ounces of gold. The San Jose Mine acknowledged adjusted gross sales of $56.7 million, a 6% lower from the $60.5 million reported in the identical interval in 2020. Decrease gross sales at San Jose have been pushed by a 6% lower within the quantity of gold ounces bought. The Caylloma Mine acknowledged adjusted gross sales of $24.4 million, a 7% enhance from the $22.7 million reported in the identical interval in 2020. The elevated gross sales at Caylloma have been pushed by greater lead and zinc costs, partially offset by decrease volumes of metallic bought.

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Working revenue for the quarter was $38.9 million, a $10.7 million enhance from the $28.2 million reported in the identical interval in 2020. The upper working revenue was pushed by the contribution of Lindero and Yaramoko, partially offset by decrease working revenue at San Jose and low-grade stock write-downs within the present quarter of $5.3 million (Yaramoko: $4.2 million; Lindero: $1.1 million).

Web revenue for the quarter was $16.6 million, a $2.0 million lower from the $18.6 million reported in the identical interval in 2020. The decrease web revenue was because of a $4.2 million loss on by-product contracts, greater curiosity expense of $2.7 million, and the next efficient tax fee (This autumn 2021: 45%; This autumn 2020: 34%).

Adjusted web revenue for the quarter was $29.1 million in comparison with $23.0 million reported in the identical interval in 2020.

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Adjusted EBITDA for the quarter was $89.6 million, a margin of 45% over gross sales, in comparison with $44.8 million reported in the identical interval in 2020, a margin of 43% over gross sales.

Full 12 months 2021 Outcomes

Consolidated gross sales for the yr ended December 31, 2021 elevated 115% to $599.9 million in comparison with $279.0 million for a similar interval in 2020. The rise was pushed by the contribution of Yaramoko and Lindero in addition to greater silver costs in 2021 in comparison with 2020. Lindero acknowledged $179.0 million in gold doré gross sales comprising 100,177 ounces of gold. Yaramoko acknowledged $101.3 million of gold doré gross sales comprising 56,571 ounces of gold. Gross sales at San Jose elevated 13% to $216.1 million as realized silver worth elevated 18% in comparison with 2020, together with a 3% enhance within the quantity of silver and gold ounces bought. Gross sales at Caylloma elevated 53% to $103.5 million due primarily to a rise within the quantity of metals bought and will increase within the realized costs of lead and zinc of 20% and 32%, respectively, in comparison with realized costs in 2020.

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Working revenue for the the yr ended December 31, 2021 was $136.9 million, a $79.7 million enhance from the $57.2 million reported in the identical interval in 2020. The upper working revenue was pushed primarily by the contribution of Lindero of $45.2 million and Yaramoko of $17.0 million, and better working revenue at Caylloma of $23.9 million. This was partially offset by the San Jose Progreso royalty settlement of $14.3 million, and low-grade stock write-downs amounting $7.0 million of which, Yaramoko and Lindero accounted for $4.2 million and $2.8 million, respectively.

Web revenue for the yr ended December 31, 2021 was $59.4 million, a $37.8 million enhance from the $21.6 million reported in 2020. The upper web revenue was offset by $14.1 million in transaction prices related to the Firm’s acquisition (the “Roxgold Acquisition”) of the entire issued and excellent frequent shares of Roxgold Inc., in addition to greater curiosity bills of $10.2 million. Curiosity expense was $8.7 million greater in 2021 in comparison with 2020 as $9.4 million was capitalized in 2020 associated to the development of the Lindero Mine.   

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Adjusted web revenue for the yr ended December 31, 2021 was $100.6 million in comparison with $31.8 million in 2020.

Adjusted EBITDA for the yr ended December 31, 2021 was $280.7 million in comparison with $112.6 million in 2020.

Liquidity

Free money circulate from ongoing operations for the three months ended December 31, 2021 was $30.9 million in comparison with $34.5 million in the identical interval in 2020. Free money circulate from ongoing operations for the yr ended December 31, 2021 was $97.0 million in comparison with $78.9 million in 2020.

Complete liquidity obtainable to the Firm as at December 31, 2021 was $187.1 million. The Firm’s $200.0 million revolving credit score facility was totally obtainable as on the finish of December 2021 and $80.0 million remained undrawn.

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Lindero Mine, Argentina

The desk beneath reveals the important thing metrics used to measure the working efficiency of the Lindero Mine for the fourth quarter of 2021 and for the yr ended December 31, 2021: throughput, head grade, restoration, and gold manufacturing. The Lindero Mine was below development throughout a portion of the fourth quarter of 2020, with first gold poured in October 2020.

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Through the fourth quarter of 2021, the onsite influence of COVID-19 continued to be minimal as the location reported 60 optimistic instances with no disruptions to operations. Journey restrictions in Argentina have been additionally lifted in November 2021 which led to an enchancment in lead occasions and onsite technical help from international distributors.

Within the fourth quarter of 2021, a complete of 1,459,513 tonnes of ore have been positioned on the heap leach pad averaging 1.04 g/t gold, containing an estimated 48,900 ounces of gold. Complete gold manufacturing was 36,072 ounces of gold. Gold manufacturing for 2021 totaled 104,161 ounces, comprised of 99,313 ounces in doré, 730 ounces of gold contained in precipitate/sludge and 4,118 ounces of gold-in-carbon (GIC) stock, within the higher vary of the up to date manufacturing and value steering issued in July 2021 (discuss with Fortuna information launch dated July 19, 2021, “Fortuna studies manufacturing of 55,953 gold equal ounces for the second quarter and points up to date steering for 2021”).

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All processing areas carried out in response to plan:

Money value per ounce of gold for the three and twelve months ended December 31, 2021 was $585 and $617 per ounce, respectively.

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All-in sustaining money prices per gold ounce bought was $994 throughout This autumn 2021 and $1,116 in 2021 in step with the Firm’s up to date value steering.

Complete sustaining capital expenditures of $7.2 million in the course of the quarter have been primarily associated to the completion of the ADR plant growth, $4.2 million, and capitalized stripping, $2.0 million.

Yaramoko Mine, Burkina Faso

The desk beneath reveals the important thing metrics used to measure the working efficiency of the Yaramoko Mine for the fourth quarter of 2021 and for the yr ended December 31, 2021: throughput, head grade, restoration, and gold manufacturing. The Firm acquired the Yaramoko Mine in reference to the Roxgold Acquisition, which closed on July 2, 2021. Accordingly, all manufacturing, working and monetary leads to respect of the Yaramoko Mine for the yr ended December 31, 2021 included on this information launch replicate solely these outcomes from July 2, 2021 to December 31, 2021, except indicated in any other case.

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The Yaramoko Mine produced 28,787 ounces of gold within the fourth quarter of 2021 with a median gold head grade of 6.99 g/t; beneath the plan for the quarter. Complete gold manufacturing for the second semester of 2021 totaled 57,538 ounces of gold which was beneath steering for the interval. The manufacturing shortfall was the results of decrease than deliberate mill feed grade within the fourth quarter of 2021, attributable to the delay in mining of a number of high-grade stopes and a few localized grade variability within the 55 Zone. The unmined stopes was resequenced into the mine plan within the first quarter of 2022.

Money value per gold ounce bought was $754, which was above plan, primarily because of decrease manufacturing throughout This autumn 2021 and $739 for the second semester of 2021.

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All-in sustaining money value per gold ounce bought was $1,436 and $1,317 for This autumn 2021 and for the second semester of 2021, respectively, which have been above the Firm’s steering. Larger all-in sustaining money prices have been the results of decrease ounces bought because of the mine sequencing problem described.

Sustaining capital expenditures of $21.5 million in the course of the second half of the yr have been associated primarily to underground mine growth prices and development of a air flow increase.

San Jose Mine, Mexico

The next desk reveals the important thing metrics used to measure the working efficiency of the San Jose Mine for the fourth quarter of 2021 and for the yr ended December 31, 2021: throughput, head grade, restoration, gold and silver manufacturing and unit prices:

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The San Jose Mine produced 1,717,533 ounces of silver and 9,929 ounces of gold in the course of the three months ended December 31, 2021, which represents an 4% enhance and a pair of% lower over the identical interval in 2020, respectively. The lower in gold manufacturing was because of decrease tonnes milled.

Annual manufacturing of silver and gold totaled 6,425,029 ounces and 39,406 ounces, a rise of 4% for each from 2020 annual manufacturing, respectively, which was in step with steering.

The money value per tonne for the three months ended December 31, 2021 was $79.66 per tonne in comparison with $71.48 per tonne in the identical interval in 2020 primarily because of greater oblique prices. Money value per tonne for the total yr 2021 elevated to $75.80 in comparison with $68.79 for 2020 because of greater mine preparation and assist and better oblique prices. 

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The all-in sustaining money value of payable silver equal for the total yr 2021 elevated 24% to $14.38 per ounce in comparison with $11.56 for a similar interval in 2020. The rise was primarily because of extra sustaining capital expenditures and Brownfields exploration which have been restricted in 2020 because of the impacts of enterprise restrictions regarding the COVID-19 pandemic. All-in sustaining money prices for the yr have been in step with steering.

Caylloma Mine, Peru

The next desk reveals the important thing metrics used to measure the working efficiency of the Caylloma Mine for the fourth quarter of 2021 and for the yr ended December 31, 2021: throughput, head grade, restoration, silver, lead and zinc manufacturing and unit prices:

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The Caylloma Mine produced 262,710 ounces of silver, 8.4 million kilos of lead and 11.4 million kilos of zinc in the course of the three months ended December 31, 2021, which was in step with the identical interval in 2020 aside from zinc which was decrease by 8% because of a decrease head grade. Gold manufacturing totaled 1,374 ounces with a median head grade of 0.44 g/t.

Annual manufacturing of silver, lead and zinc totaled 1,073,672 ounces of silver, 33.0 million kilos of lead, and 47.5 million kilos of zinc, which characterize an 11% enhance in silver, 11% enhance in lead, and a 4% enhance in zinc manufacturing in comparison with 2020. Gold manufacturing for the total yr 2021 totaled 6,086 ounces, which was a rise of 48% over 2020, with a median head grade of 0.49 g/t. Manufacturing for the yr was in step with steering.

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The money value per tonne of processed ore for the three months ended December 31, 2021 elevated 20% to $97.87 in comparison with $81.65 in the identical interval in 2020. The rise was the results of greater mining prices associated to shotcrete and transportation and better power prices on the plant. Money value per tonne for the total yr 2021 elevated to $88.41 in comparison with $76.59 for 2020 because of greater mine preparation and assist and better oblique prices associated to administration and power. 

The all-in sustaining money value for the three months ended December 31, 2021 elevated 11% to $20.71 per ounce in comparison with $18.69 per ounce for a similar interval in 2020. The rise was pushed by greater sustaining capital expenditures and Brownfields exploration .

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The all-in sustaining money value for the total yr 2021 elevated 9% to $18.94 per ounce in comparison with $17.37 per ounce in 2020 because of greater sustaining capital expenditures and Brownfields exploration. The rise was primarily because of the considerably decreased capital expenditures in 2020 because of the impacts of enterprise restrictions regarding COVID-19 pandemic. The Caylloma Mine completed 2021 barely beneath value steering because of greater silver equal metallic gross sales.

Certified Individual

Eric N. Chapman, Senior Vice President of Technical Providers of Fortuna, is a Skilled Geoscientist of the Affiliation of Skilled Engineers and Geoscientists of the Province of British Columbia (Registration Quantity 36328), and is the Firm’s Certified Individual (as outlined by Nationwide Instrument 43-101). Mr. Chapman has reviewed and accepted the scientific and technical info contained on this information launch and has verified the underlying information.

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Non-IFRS Monetary Measures

The Firm has disclosed sure monetary measures and ratios on this information launch which aren’t outlined below the Worldwide Monetary Reporting Requirements (“IFRS”), as issued by the Worldwide Accounting Requirements Board, and are usually not disclosed within the Firm’s monetary statements, together with however not restricted to: money value per ounce of gold bought; all-in sustaining money value per ounce of gold bought; all-in money value per ounce of gold bought; complete manufacturing money value per tonne; money value per payable ounce of silver equal bought; all-in sustaining money value per payable ounce of silver equal bought; all-in money value per payable ounce of silver equal bought; free money circulate from ongoing operations; adjusted web revenue; and adjusted EBITDA.

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These non-IFRS monetary measures and non-IFRS ratios are broadly reported within the mining trade as benchmarks for efficiency and are utilized by administration to watch and consider the Firm’s working efficiency and skill to generate money. The Firm believes that, along with monetary measures and ratios ready in accordance with IFRS, sure traders use these non-IFRS monetary measures and ratios to guage the Firm’s efficiency. Nonetheless, the measures wouldn’t have a standardized which means below IFRS and is probably not similar to related monetary measures disclosed by different firms. Accordingly, non-IFRS monetary measures and non-IFRS ratios shouldn’t be thought of in isolation or as an alternative choice to measures and ratios of the Firm’s efficiency ready in accordance with IFRS. The Firm has calculated these measures constantly for all intervals introduced.

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To facilitate a greater understanding of those measures and ratios as calculated by the Firm, descriptions are supplied beneath. As well as, see “Non-IFRS Monetary Measures” within the Firm’s administration’s dialogue and evaluation for the fiscal yr ended December 31, 2021 (“2021 MD&A”), which part is integrated by reference on this information launch, for added info concerning every non-IFRS monetary measure and non-IFRS ratio disclosed on this information launch, together with a proof of their composition; a proof of how such measures and ratios present helpful info to an investor and the extra functions, if any, for which administration of Fortuna makes use of such measures and ratio. The 2021 MD&A could also be accessed on SEDAR at www.sedar.com below the Firm’s profile, Fortuna Silver Mines Inc.

Besides as in any other case described within the 2021 MD&A, the Firm has calculated these measures constantly for all intervals introduced.

Reconciliation to Adjusted Web Revenue for the three and twelve months ended December 31, 2021 and 2020

Reconciliation to Adjusted EBITDA for the three and twelve months ended December 31, 2021 and 2020

Reconciliation of free money circulate from ongoing operations for 3 and twelve months ended December 31, 2021 and 2020

Reconciliation of money value per ounce of gold bought for the three and twelve months ended December 31, 2021 and 2020

Reconciliation of all-in sustaining money value per ounce of gold bought for the three and twelve months ended December 31, 2021 and 2020

Reconciliation of manufacturing money value per tonne and money value per payable ounce of silver equal bought for the three and twelve months ended December 31, 2021 and 2020

Reconciliation of All-in Sustaining Money Price and All-in Money Price per Payable Ounce of Silver Equal Offered for 3 and twelve months ended December 31, 2021 and 2020

Extra info concerning the Firm’s monetary outcomes and actions underway can be found within the Firm’s audited consolidated monetary statements for the yr ended December 31, 2021 and accompanying 2021 MD&A, which can be found for obtain on the Firm’s web site, on SEDAR and on EDGAR.

Convention Name and Webcast

A convention name to debate the monetary and operational outcomes shall be held on Thursday, March 24, 2022 at 9:00 a.m. Pacific time | 12:00 p.m. Jap time. Internet hosting the decision shall be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief Monetary Officer, Cesar Velasco, Chief Working Officer – Latin America, and Paul Criddle, Chief Working Officer – West Africa.

Shareholders, analysts, media and traders are invited to hearken to the stay convention name by logging onto the webcast or over the cellphone by dialing in simply previous to the beginning time.

Convention name particulars:

Date: Thursday, March 24, 2022
Time: 9:00 a.m. Pacific time | 12:00 p.m. Jap time

Dial in quantity (Toll Free): +1.888.506.0062
Dial in quantity (Worldwide): +1.973.528.0011
Entry code: 382909

Replay quantity (Toll Free): +1.877.481.4010
Replay quantity (Worldwide): +1.919.882.2331
Replay Passcode: 44738

Playback of the earnings name shall be obtainable till Thursday, April 7, 2022. Playback of the webcast shall be obtainable till Saturday, March 25, 2023. As well as, a transcript of the decision shall be archived on the Firm’s web site.

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian valuable metals mining firm with 4 working mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine below development in Côte d’Ivoire. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared worth over the long-term for our stakeholders by environment friendly manufacturing, environmental safety, and social accountability. For extra info, please go to our web site.

ON BEHALF OF THE BOARD

Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.

Investor Relations:
Carlos Baca | information@fortunasilver.com

Ahead-looking Statements

This information launch accommodates forward-looking statements which represent “forward-looking info” inside the which means of relevant Canadian securities laws and “forward-looking statements” inside the which means of the “secure harbor” provisions of america Non-public Securities Litigation Reform Act of 1995 (collectively, “Ahead-looking Statements”). All statements included herein, apart from statements of historic reality, are Ahead-looking Statements and are topic to quite a lot of identified and unknown dangers and uncertainties which might trigger precise occasions or outcomes to vary materially from these mirrored within the Ahead-looking Statements. The Ahead-looking Statements on this information launch embrace, with out limitation, statements concerning the Firm’s plans for its mines and mineral properties; the Firm’s anticipated efficiency in 2022; estimated capital expenditures in 2022 and exploration spending in 2022, together with quantities for exploration actions on the Séguéla and San Jose properties; the Firm’s plans for the development of an open pit mine on the Séguéla challenge in Cote d’Ivoire; the economics for the development of the mine on the Séguéla challenge as set out within the feasibility examine, the estimated development capital expenditures for the challenge, the timelines and schedules for the development and manufacturing of gold on the Séguéla challenge; statements concerning the Firm’s liquidity; the Firm’s enterprise technique, plans and outlook; the benefit of the Firm’s mines and mineral properties; mineral useful resource and reserve estimates; manufacturing prices; timelines; the long run monetary or working efficiency of the Firm; anticipated approvals and different issues. Usually, however not all the time, these Ahead-looking Statements could be recognized by means of phrases comparable to “estimated”, “anticipated”, “anticipated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “acquire”, “deliberate”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that occasions, “might” or “ought to” happen or be achieved and related expressions, together with unfavorable variations.

Ahead-looking Statements contain identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially completely different from any outcomes, efficiency or achievements expressed or implied by the Ahead-looking Statements. Such uncertainties and elements embrace, amongst others, modifications basically financial situations and monetary markets; the influence of the COVID-19 pandemic on the Firm’s mining operations and development actions; the dangers regarding a world pandemic, together with the COVID-19 pandemic, in addition to dangers related to conflict or different geo-political hostilities, such because the Ukrainian – Russian battle, any of which might proceed to trigger a disruption in international financial exercise; the dangers related to the completion of the Roxgold Acquisition, together with the power of the Firm to efficiently consolidate features, combine operations, procedures and personnel; adversarial modifications in costs for gold, silver and different metals; the power of the Firm to acquire an extension of the San Jose environmental influence authorization (“EIA”), together with the Firm’s success in difficult an alleged typographical error within the San Jose EIA obtained by the Firm in December 2021 and in acquiring a everlasting injunction or equal courtroom safety to permit the continued operation of the San Jose mine pending the approval of an extension to the San Jose EIA; fluctuation in currencies and international change charges; inflation; the imposition of capital controls in international locations during which the Firm operates; any extension of the foreign money controls in Argentina; modifications within the costs of key provides; technological and operational hazards in Fortuna’s mining and mine growth actions; dangers inherent in mineral exploration; uncertainties inherent within the estimation of mineral reserves, mineral assets, and metallic recoveries; modifications to present estimates of mineral reserves and assets; modifications to manufacturing and value estimates; modifications within the place of regulatory authorities with respect to the granting of approvals or permits; governmental and different approvals; modifications in authorities, political unrest or instability in international locations the place Fortuna is energetic; labor relations points; in addition to these elements mentioned below “Danger Components” within the Firm’s Annual Info Kind. Though the Firm has tried to determine essential elements that might trigger precise actions, occasions or outcomes to vary materially from these described in Ahead-looking Statements, there could also be different elements that trigger actions, occasions or outcomes to vary from these anticipated, estimated or supposed.

Ahead-looking Statements contained herein are based mostly on the assumptions, beliefs, expectations and opinions of administration, together with however not restricted to the accuracy of the Firm’s present mineral useful resource and reserve estimates; that the Firm’s actions shall be performed in accordance with the Firm’s public statements and said targets; that there shall be no materials adversarial change affecting the Firm, its properties or modifications to manufacturing estimates (which assume accuracy of projected ore grade, mining charges, restoration timing, and restoration fee estimates and could also be impacted by unscheduled upkeep, labour and contractor availability and different working or technical difficulties); the length and impacts of COVID-19 and different geo-political uncertainties on the Firm’s manufacturing, workforce, enterprise, operations and monetary situation; the anticipated traits in mineral costs and foreign money change charges; that the Firm will receive achieve difficult the alleged typographical error within the December 2021 extension to the San Jose EIA; that each one required approvals and permits shall be obtained for the Firm’s enterprise and operations on acceptable phrases; that there shall be no important disruptions affecting the Firm’s operations and such different assumptions as set out herein. Ahead-looking Statements are made as of the date hereof and the Firm disclaims any obligation to replace any Ahead-looking Statements, whether or not because of new info, future occasions or outcomes or in any other case, besides as required by regulation. There could be no assurance that these Ahead-looking Statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, traders mustn’t place undue reliance on Ahead-looking Statements.