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Fortuna Silver shares rise on Q3 output

The San Jose silver-gold mine, 47 km south of Oaxaca in southern Mexico. Credit: Fortuna Silver Mines

Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) saw an increase in precious metals output for the third quarter of 2020 from its two operating mines in Latin America, the San Jose mine in Mexico and the Caylloma mine in Peru.

Over that three-month period, the company produced 2.1 million ounces of silver and 12,791 ounces of gold, plus base metal by-products. The silver output was a 10% improvement over the same quarter last year, while gold production was up 12% from Q3 2019.

The San Jose mine contributed to a majority of that production with approximately 1.9 million ounces of silver and 11,425 ounces of gold. Despite a minor decrease in mined tonnage, the mine’s output increased in the quarter due to better grades encountered in the peripheral low-grade areas. Average head grades for silver and gold were 254 g/t and 1.52 g/t, respectively.

At the Caylloma mine, silver production rose to 210,206 ounces with an average head grade of 74 g/t. It also churned out 6.7 million pounds of lead and 10.3 million pounds of zinc, with average head grades for lead and zinc of 3.15% and 4.93%, respectively.

In total, silver and gold production for the first nine months of 2020 reached 5.2 million ounces and 29,992 ounces, respectively.

At the beginning of Q2 2020, Fortuna withdrew its production and cost guidance for the year until further notice due to the uncertainties related to the impact caused by covid-19.

Shares of Fortuna Silver Mines jumped 4% on the TSX by noon EDT Wednesday. The Vancouver-based miner has a market capitalization of C$1.7 billion.