The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Fortuna Raises Production Guidance for 2010
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WAYNE HEWGILL, Regulus Resources Inc.
(01/18/2010)
"Fortuna Silver Mines (T-FVI) reported excellent operating results for its 2009 production performance figures. Fortuna’s Caylloma mine in Peru produced 1,685,026 ounces of silver, a YOY% increase of 96% from the 861,176 ounces produced in 2008. . . .We believe that having neared the current capacity of the mill, production will level off or increase marginally at Caylloma. Management has proven themselves as excellent operators through the successful development of Caylloma. With Caylloma now operating near full capacity, and significant development in-front of them, the focus is now on San Jose – the key area of organic growth for the company. With the two mines operating at capacity, we see potential for upwards of $30M in annual cash flow by 2010. We are maintaining our BUY recommendation, and our 12-month target price of $3.45, with a SPECULATIVE risk rating. We value the shares of Fortuna Silver using a NAV basis, applying a 6% discount for Peruvian asset (Caylloma Mine) and an 8% discount for the Mexican asset (San Jose Project). We apply a 1.0x NAV multiple in arriving at our target price." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
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