FVI—Luck Has Nothing to Do with It

ANTHONA CURIC, Versant Partners (12/07/2009)
"We are initiating coverage of Fortuna Silver Mines Inc. (Fortuna Silver), a junior silver producer with a strong growth profile, healthy balance sheet, and a management team focused on creating shareholder wealth by growing production in a profitable manner.

We recommend Fortuna Silver as a BUY with a one year target price of C$3.25 per share. . .

FOCUS POINTS
  • Fortuna Silver is an unhedged silver producer that will grow its current production profile of 1.6M ounces of AgEq to over 5.5M ounces AgEq by 2011.
  • The company's strong balance sheet and internal cash flow generation is sufficient to support the estimated capital expenditures for their producing mine as well as their new development, San Jose.
  • Management continues to focus on opportunities that will add low-cost/high margin silver ounces to their production profile rather than just adding silver ounces in the ground to their resource base."

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