DESCRIPTION: Fortuna, one of N. America's fastest‐growing silver producers, is a growth-oriented, silver and base metal producer focused on Latin American mining opportunities. In the past three years, FVI increased annual production >250%. Production at its Caylloma Mine in Peru is forecast at >1.7 Moz. Ag in 2010, while its S. Mexico San Jose Project is scheduled to begin in 2011 and boost annual silver eq. to >7 Moz. in addition to Caylloma's base metal credits. Committed to profitability, sustainable growth, high standards, best practices and the wellbeing of workers, neighboring communities and the environment, FVI is aggressively pursuing further acquisition opportunities throughout the Americas.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"I believe silver is about to stage a pretty large advance based loosely on the Elliott Wave pattern I see unfolding after a none-odd month consolidation. Many silver stocks are moving up strongly of late, signaling an imminent breakout of this precious and industrial metal. A few silver stocks worth looking at include SLW (Silver Wheaton, which purchases future silver mine production in advance at a discount). . .and Fortuna Silver—a growing producer and explorer favored by some of the brightest minds in the business. I do not own shares in either, so I have no inherent bias to mention them other than they are worth your time to review sooner than later."
Canaccord Capital, Morning Coffee
(08/31/10)
"Fortuna Silver was buoyed by a stronger silver price and new drill results from the Don Luis II vein, located in the undeveloped western portion of the Caylloma Mine. . .in Southern Peru where no prior development or mining has taken place. A Bay Street analyst deemed these results a 'slight positive' as the development should bump up average silver grades and boost annual production over time. The vein outcrops over a strike length of ~400m and ranges from approximately 1m–3m in width at the surface. Twelve diamond drill holes totaling 2,283m have been completed to test the vein from near surface to approximately 200m depth. Highlight holes include: DLUS000110, which intersected 816 g/t Ag and 0.27 g/t Au over 3.05m from 148.75m; DLUS000410, which intersected 864 g/t Ag and 0.07 g/t Au over 0.50m from 93.30m; DLUS000910, which intersected 639 g/t Ag and 0.18 g/t Au over 3.40m from 232.90m. . .Fortuna Silver is one of Canaccord Genuity Mining Analyst Nicholas Campbell's top picks based on: 1) Organic growth profile; 2) Solid balance sheet and consistent cash flows; and 3) Attractive valuation. He expects this company to gain broader investor attention, which should lead to a revaluation in line with other junior precious metal producers."
Sean Rakhimov, Silver Strategies (08/31/10)
"Fortuna is another junior silver producer that is coming into its own as it gears up to start production from its San Jose mine in Mexico later this year. Already sporting a very attractive P/E, Fortuna is living up to its name and looks poised to make a fortune for its shareholders in the near future. It should record another significant bump up next year when San Jose starts contributing to the bottom line. We reckon the reason why both FR and FVI are overlooked by investors is their relatively small market cap, short profitability track record and absence of listing on a major U.S. exchange. But that is changing before your eyes so don't expect these two companies to be valued as they are presently beyond this year."
Matthew O'Keefe, Cormark Securities Inc.
(08/31/10)
"Yesterday, FVI announced that it has discovered high-grade silver mineralization at the Don Luis II vein. Don Luis II is located in the western portion of the Caylloma district where no prior development or mining has taken place. The vein outcrops over a strike length of ~400m and ranges from approximately 1m–3m in width at surface. The exploration program totalled 2,283m of drilling and tested the vein along strike and a vertical distance of ~200 m. Highlighting the positive results, the company intersected 816 g/t Ag over 3.05m and 639 g/t Ag over 3.49m above the current reserve grade at Caylloma of 156 g/t Ag. . .we are maintaining our Buy recommendation and target price of C$3.50 per share."
Andrew Kaip, BMO Capital Markets
(08/30/10)
"Fortuna Silver Mines announced results from initial drilling in the Don Luis II vein at the Caylloma Mine, located ~225 km. NW of Arequipa in Southern Peru. FVI has drilled 12 wide-spaced holes over a strike length of 2.3 km. and to a depth of 200m in the Don Luis II vein. Significant results include 816 g/t silver over true width of 2m, 639 g/t silver over true width of 3.4m and 621 g/t silver over true width of 1m. Mineralization remains open laterally and at depth. The Caylloma district contains more than 30 known veins over 10,200 ha. Historically, six veins have been exploited with current mining operations focused on the Animas, Bateas and Soledad veins. Contingent upon further infill drilling, results from the Don Luis II vein highlight the potential to identify new high-grade production areas over time. Based on current reserves and resources, BMO models a ~10-year mine life. During H110, the Caylloma mine produced ~950 Koz. silver. FVI trades at 1.0x the 10% nominal NPV at spot metal prices vs. junior producer peers within the BMO Research silver universe that trade at 1.1x."
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