Fortuna Silver released its Q2 results this week, reporting quarterly production of 1.65 million ounces of silver and 62,200 ounces of gold, translating to a meaningful increase in revenue. However, with the impacts of provisional pricing adjustments, an inventory write-down, inflationary pressures, and weaker silver prices, earnings were down sharply in the period.
While FSM has guided for the upper end of cost guidance following the report, I believe the Q2 earnings miss on weaker silver prices and one-time items is mostly priced in. So, with Seguela in the wings and on schedule\/budget and easier year-over-year comps ahead now that FSM has lapped tough comps, I would view pullbacks below US$2.30 as buying opportunities.
The softer silver price was likely to produce a much uglier quarter for its silver business (which is why it made zero sense to chase the stock above US$3.50 in May). This was especially true given the difficult year-over-year comps Fortuna was up against, enjoying an average realized silver price of $26.65 per ounce.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fortuna Silver released its Q2 results this week, reporting quarterly production of 1.65 million ounces of silver and 62,200 ounces of gold, translating to a meaningful increase in revenue. However, with the impacts of provisional pricing adjustments, an inventory write-down, inflationary pressures, and weaker silver prices, earnings were down sharply in the period.While FSM has …<\/p>\n","protected":false},"author":13,"featured_media":70083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,39,36],"tags":[7113,9913,9541],"class_list":["post-70079","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-global-stock-markets","category-market-updates","tag-earnings","tag-fortuna-silver","tag-revenues"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=70079"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70079\/revisions"}],"predecessor-version":[{"id":70084,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/70079\/revisions\/70084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/70083"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=70079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=70079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=70079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}