September 2013
Regulatory Disclaimer
2
Certain statements in this presentation constitute forward‐looking statements and as such
are base...
Caylloma Mine, Peru
3
Vision
To be valued by our workers, the community and our shareholders as a leading 
silver mining c...
Core Assets
4
Proven mine builders and strong operators in the Americas 
Production
• Increasing Ag ‐ Au production profil...
‐40%
‐30%
‐20%
‐10%
0%
10%
20%
30%
40%
50%
60%
70%
 2.05
 2.45
 2.85
 3.25
 3.65
 4.05
 4.45
 4.85
 5.25
 5.65
29/06/2012
...
Key Milestones
6
Foundations of a leading silver mining company
• Fortuna Silver Mines Inc.  
established
• Commenced prod...
Trinidad North Discovery – San Jose Mine 
7
Bonanza‐style Ag‐Au grades and widths
• Initial NI 43‐101 
resource 
estimatio...
Trinidad North Discovery – San Jose Mine 
8
Northernmost drill holes – Section 1847400N
• Banded ore textures indicate epi...
Trinidad North Discovery – San Jose Mine
9
Longitudinal section Ag Eq isograde grid Bonanza Vein 745100E (Looking West)
Trinidad North Discovery – San Jose Mine
10
Drill hole SJO‐283
556.20 – 569.20 m:  13.00 m averaging 1,789 g/t Ag, 10.10 g...
Solid Reserve and Resource Base 
11
Consistent resource growth
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2005 2006 2007 2008 ...
3,300 2,200 2,700 2,600
7,000
20,700
23,600
31,600 32,200 33,200
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2007 20...
24
39
62
46
2010 2011 2012 2013E*
51
74
110
161
142
2009 2010 2011 2012 2013E*
Cash Flow from Operations
(US$ million)
Fin...
0.16
0.10
0.13
0.05
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
Q3 2012 Q4 2012 Q1 2013 Q2 2013
Cash Flow Per Share ...
0.4
1.9
2.4
3.4 3.3
3.7
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
4,600 
17,900 
20,900 
28,400  28,200 
30,200 
 4,000
...
2.0 2.0 2.0 2.0
2.1
2.0
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2011 2012 2013E 2014E 2015E 2016E
Caylloma Mine, Peru
16
Overview
...
Commitment to Sustainability
17
Forging strategic partnerships
• Programs are based on respect for ethno‐
cultural diversi...
Growth Strategy
18
Three‐pronged approach to create shareholder value
Capitalize on 
brownfields exploration 
opportunitie...
19
Proven mine developers and strong operators
• Increasing Ag – Au production profile
• Decreasing all‐in sustaining cash...
20
MANAGEMENT HEAD OFFICE
Carlos Baca
Investor Relations Manager
T: +51.1.616.6060, ext. 0
info@fortunasilver.com
Appendix
21
Senior Management
Jorge A. Ganoza
President, CEO and Director 
Co‐founder of Fortuna. Peruvian geological 
eng...
Directors
22
FORTUNA   |   DIRECTORS
APPENDIX
Simon Ridgway, Chairman of the Board
Co‐founder of Fortuna. Vancouver‐based ...
Appendix
23
Trinidad North discovery drilling highlights
Hole_Id
From To Interval Est. True Ag Au Ag Eq
(m) (m) (m)
Width
...
Classification
Tonnes 
(000)
Ag
(g/t)
Au
(g/t)
Contained Metal
Ag
(Moz)
Au
(koz)
Proven & Probable Reserves 3,335 190 1.58...
Appendix
25
Caylloma Mine NI 43 – 101 Reserves and Resources
Classification
Tonnes 
(000)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
...
Upcoming SlideShare
Loading in...5
×

Fortuna silver corporate presentation13

190

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
190
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Fortuna silver corporate presentation13

  1. 1. September 2013
  2. 2. Regulatory Disclaimer 2 Certain statements in this presentation constitute forward‐looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Fortuna’s future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Fortuna’s mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Fortuna is active, labor relations and other risk factors. Thomas I. Vehrs, Ph.D., Vice President of Exploration, is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43‐101. Dr. Vehrs is a Founding Registered Member of The Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsible for ensuring that the technical information contained in this presentation is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines Inc.
  3. 3. Caylloma Mine, Peru 3 Vision To be valued by our workers, the community and our shareholders as a leading  silver mining company in Latin America
  4. 4. Core Assets 4 Proven mine builders and strong operators in the Americas  Production • Increasing Ag ‐ Au production profile • Low cost silver producer • Decreasing all‐in sustaining cash cost*: Exploration • Trinidad North high‐grade Ag‐Au discovery at  the San Jose Mine  • Over 95,000 ha of mining concessions  between Peru and Mexico 2013E 2014‐2016E US$12.93/oz Ag US$20.45/oz Ag (*) All‐in cash cost figures are net of by‐product credits and are based on the guidelines from the World Gold Council
  5. 5. ‐40% ‐30% ‐20% ‐10% 0% 10% 20% 30% 40% 50% 60% 70%  2.05  2.45  2.85  3.25  3.65  4.05  4.45  4.85  5.25  5.65 29/06/2012 29/07/2012 28/08/2012 27/09/2012 27/10/2012 26/11/2012 26/12/2012 25/01/2013 24/02/2013 26/03/2013 25/04/2013 25/05/2013 24/06/2013 24/07/2013 23/08/2013 FVI‐T SLV Capital structure and share performance 5 Solid balance sheet to support disciplined growth strategy Strong Balance Sheet • US$48 million in cash (end Q2 2013) • US$40 million untapped credit facility  • No long term debt • No hedging Share Structure (as of July 2013) Outstanding: 125.3 million Fully diluted: 132.5 million Relative Performance (%) of FVI.T and Spot Silver Price (through 9‐3‐13) Exchanges NYSE: FSM TSX: FVI BVL: FVI Frankfurt: F4S.F Share Price Performance % 3.48 4.43 +27%+27% ‐12%‐12%
  6. 6. Key Milestones 6 Foundations of a leading silver mining company • Fortuna Silver Mines Inc.   established • Commenced production at  the Caylloma Mine, Peru  on time and on budget  • Acquired 100 % interest in  the San Jose project, Mexico • Construction and commercial  production at the San Jose  Mine on time and on budget • Trinidad North high‐grade  Ag‐Au discovery at the  San Jose Mine • Commissioning of 1,800 tpd  mill expansion at the San  Jose Mine in Q3 2005‐2007  2009‐2011 2013
  7. 7. Trinidad North Discovery – San Jose Mine  7 Bonanza‐style Ag‐Au grades and widths • Initial NI 43‐101  resource  estimation  targeted for October 2013 • Initial production  from Trinidad  North area  projected for Q1  2015
  8. 8. Trinidad North Discovery – San Jose Mine  8 Northernmost drill holes – Section 1847400N • Banded ore textures indicate episodic mineralizing events • Consistently high‐grade over wide widths • Robust mineralized system with strong  potential for lateral and vertical extensions • Vertical extension of Trinidad system  exceeds 500 m ‐ open to depth • Potential for discovery of additional  mineralized shoots along strike to north
  9. 9. Trinidad North Discovery – San Jose Mine 9 Longitudinal section Ag Eq isograde grid Bonanza Vein 745100E (Looking West)
  10. 10. Trinidad North Discovery – San Jose Mine 10 Drill hole SJO‐283 556.20 – 569.20 m:  13.00 m averaging 1,789 g/t Ag, 10.10 g/t Au, 2,328 g/t Ag Eq
  11. 11. Solid Reserve and Resource Base  11 Consistent resource growth 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2005 2006 2007 2008 2009 2010 2011 2012 Contained Metal ‐Ag Eq(Moz) * Proven & Probable Reserves Measured & Indicated Resources Inferred Resources * Ag Eq for Resources calculated using Ag = US$25.14/oz and Au = US$1,391.63/oz Ag Eq for Reserves calculated using Ag = US$29.36/oz and Au = US$1,544.00/oz Mineral Resources are exclusive of Mineral Reserves
  12. 12. 3,300 2,200 2,700 2,600 7,000 20,700 23,600 31,600 32,200 33,200 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E oz 0.4 0.8 1.7 1.9 2.5 3.9 4.5 5.4 5.4 5.7 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E Moz Increasing Silver and Gold Production Low cost, organic growth in Peru and Mexico Ag Production Au Production 12
  13. 13. 24 39 62 46 2010 2011 2012 2013E* 51 74 110 161 142 2009 2010 2011 2012 2013E* Cash Flow from Operations (US$ million) Financial Snapshot 13 Revenue and cash flow performance Revenue (US$ million) (*) 2013 forecast:  Ag = US$20/oz,  Au = US$1,200/oz, Pb = US$2,100/t  and Zn = US$2,000/t
  14. 14. 0.16 0.10 0.13 0.05 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Cash Flow Per Share (US$) Financial Snapshot 14 Quarterly earnings and cash flow per share performance 0.06 0.07 0.05 0.00 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Adjusted Earnings Per Share US$
  15. 15. 0.4 1.9 2.4 3.4 3.3 3.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 4,600  17,900  20,900  28,400  28,200  30,200   4,000  8,000  12,000  16,000  20,000  24,000  28,000  32,000 San Jose Mine, Mexico 15 Overview Commodities Silver, gold Operation 1,800 tpd underground mine Reserve Life 5 Years Location Taviche Mining District  Oaxaca, Mexico Ownership 100 % Deposit Type High‐grade, low sulphidation  epithermal deposit 2013E All‐In Cash Cost/oz Ag,       net of by‐products Au US$18.98 2014‐2016E All‐In Cash Cost/oz Ag,  net of by‐product Au US$11.41 491  1,949  2,403  2,993  0 500 1000 1500 2000 2500 3000 3500 2011 2012 2013E 2014E Ag Production Au Production oz Moz
  16. 16. 2.0 2.0 2.0 2.0 2.1 2.0 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2011 2012 2013E 2014E 2015E 2016E Caylloma Mine, Peru 16 Overview 16 Commodities Silver, zinc, lead Operation 1,300 tpd underground mine Reserve Life 8 Years Location Arequipa, Peru Ownership 100 % Deposit Type Intermediate sulphidation  epithermal deposit 2013E All‐In Cash Cost/oz Ag,     net of by‐products Pb and Zn US$20.89 2014‐16E All‐In Cash Cost/oz Ag,  net of by‐products Pb and Zn US$10.68 Ag Production Moz
  17. 17. Commitment to Sustainability 17 Forging strategic partnerships • Programs are based on respect for ethno‐ cultural diversity, open communication and  effective interaction with all stakeholders • We work with communities towards self‐ development of economically sustainable  activities to improve their quality of life
  18. 18. Growth Strategy 18 Three‐pronged approach to create shareholder value Capitalize on  brownfields exploration  opportunities • Post discovery,  pre‐development  opportunities in the  Americas      • Below industry median  for cash cost  • Defining high‐grade Ag‐Au  Trinidad North  discovery at  the San Jose Mine • Commanding land packages in  Peru and Mexico • Commissioning of the San  Jose Mine mill expansion to  1,800 tpd in Q3 2013 • Focus on operational  efficiencies to reduce  cash costs  Pursue selective M&A opportunities  Maximize production, profitability and cash flow of current mines
  19. 19. 19 Proven mine developers and strong operators • Increasing Ag – Au production profile • Decreasing all‐in sustaining cash costs: • 2013E = US$20.45/oz Ag   • 2014 – 2016E = US$12.93/oz Ag Strong treasury • US$48 M in cash (end of Q2 2013) • US$40 M untapped credit facility In line to meet 2013 production guidance • 4.5 M oz Ag • 23,600 oz Au  Brownfields exploration success • Trinidad North high‐grade Ag‐Au discovery  at the San Jose Mine, Mexico 1 2 3 4 A leading silver mining company in the Americas Investment Highlights
  20. 20. 20 MANAGEMENT HEAD OFFICE Carlos Baca Investor Relations Manager T: +51.1.616.6060, ext. 0 info@fortunasilver.com
  21. 21. Appendix 21 Senior Management Jorge A. Ganoza President, CEO and Director  Co‐founder of Fortuna. Peruvian geological  engineer. Identified and negotiated purchase  of Caylloma, built the Fortuna team. Jorge  also serves as Chairman of the Board of Atico Mining Corporation.  Dr. Thomas I. Vehrs Vice President, Exploration Over 35 years experience managing  exploration programs in the Americas. Tom  also serves as an independent director for  AQM Copper Inc. Cesar Pera Vice President,  Human & Organizational Development Over 25 years experience in organizational  development and change in Latin American  companies. Luis Dario Ganoza Chief Financial Officer                              Over 15 years experience in the  operations and financial management  of public mining companies. Luis also  serves as a Director of Atico Mining  Corporation. Manuel Ruiz‐Conejo Vice President, Operations Over 25 years experience in the  execution of multi‐million dollar mining  projects and the implementation of  community relations programs. Robert Brown Vice President, Corporate Development 20 years experience in exploration,  project development and finance.  Former CEO of Calibre Mining Corp. and  senior manager at Barrick Gold in  exploration and business development.
  22. 22. Directors 22 FORTUNA   |   DIRECTORS APPENDIX Simon Ridgway, Chairman of the Board Co‐founder of Fortuna. Vancouver‐based  mining financier. Also founded Focus  Ventures, Radius Gold, Mar West Resources  and Northland Resources. Jorge A. Ganoza, President and CEO  Co‐founder of Fortuna. Peruvian geological  engineer. Identified and negotiated purchase  of Caylloma, built the Fortuna team. Jorge  also serves as Chairman of the Board of Atico Mining Corporation. Robert R. Gilmore 30 years of experience working with  resource companies and currently serves as  Chairman of the Board for Eldorado Gold  Corporation and as a Director for Layne  Christensen Company. David Farrell President of Davisa Consulting, a private  consulting firm working with global mining  companies. Successfully closed over US$25  billion in M&A transactions. Director of  Northern Vertex Mining Corp.  Tomas Guerrero Geological engineer with over 30 years  experience.  Served as Director of  Explorations for the Hochschild Group. Michael Iverson Chief Executive Officer of Fortuna from  1998 to January 2005. President and  Director of Niogold Mining Corp. since  1998. Thomas Kelly 36 years of experience in mine  production, minerals industry consulting  and corporate management in various  Latin American countries. Currently serves  as COO of Atico Mining Corporation. Mario Szotlender Co‐founder of Fortuna. Financier,  businessman and Director of Radius Gold,  Endeavour Silver, Magellan, Focus  Ventures and Iron Creek.
  23. 23. Appendix 23 Trinidad North discovery drilling highlights Hole_Id From To Interval Est. True Ag Au Ag Eq (m) (m) (m) Width (m) (g/t) (g/t) (g/t) SJO-261 510.45 528.65 18.20 10.7 241 1.57 325 549.55 553.70 4.15 2.4 1,370 7.89 1,791 SJO-266 469.80 489.00 19.20 12.3 427 2.77 575 494.00 497.80 3.80 2.4 532 3.44 716 513.50 516.30 2.80 1.8 867 4.36 1,100 SJO-268 531.20 545.00 13.80 7.2 320 1.45 397 SJO-275 515.70 537.75 22.05 13.7 510 3.32 687 SJO-276 448.95 465.35 16.40 12.3 520 3.69 717 SJO-279 501.70 513.75 12.05 7.4 406 1.75 499 SJO-283 556.20 569.20 13.00 7.3 1,789 10.10 2,328 SJO-288 551.85 591.10 39.25 19.3 736 4.76 990 596.70 602.80 6.10 3.0 529 4.69 779 SJO-295 515.00 523.80 8.80 5.9 1,240 6.94 1,610 533.20 544.00 10.80 7.2 731 3.84 936 • Average grade and widths in  excess of those found in the San  Jose Mine reserves and  resources • Estimated true widths of up to  19 meters • Ag Eq values range to 2.3 kg/t • Close proximity to existing  operation • Mineralization open at depth  and to the north Ag Eq values calculated at Au:Ag ratio of 53.37 based on Au price of US$1572.19 and  Ag price of US$29.46 and metallurgical recoveries of 89 % for both Au and Ag
  24. 24. Classification Tonnes  (000) Ag (g/t) Au (g/t) Contained Metal Ag (Moz) Au (koz) Proven & Probable Reserves 3,335 190 1.58 20.4 169.5 Inferred Resources 4,257 185 1.57 25.3 214.9 Appendix 24 San Jose Mine NI 43 – 101 Reserves and Resources  Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43 ‐ 101:  • Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on Mineral Resources  and Mineral Reserves • Mineral Resources are exclusive of Mineral Reserves • Measured and Indicated Resources exclusive of Mineral Reserves are not material and are not included in table • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability • San Jose Mineral Resources & Mineral Reserves are reported as of December 31, 2012 • Refer to www.fortunasilver.com for full disclosure
  25. 25. Appendix 25 Caylloma Mine NI 43 – 101 Reserves and Resources Classification Tonnes  (000) Ag (g/t) Au (g/t) Pb (%) Zn (%) Contained Metal Ag (Moz) Au (koz) Proven & Probable Reserves 4,308 130 0.37 1.52 2.15 17.9 51.1 Measured & Indicated Resources 1,601 79 0.33 0.79 1.43 4.1 17.0 Inferred Resources 6,633 101 0.27 1.84 2.58 21.5 58.5 Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43 ‐ 101:  • Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on Mineral Resources and Mineral Reserves • Mineral Resources are exclusive of Mineral Reserves • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability • Caylloma Mineral Resources and Mineral Reserves are reported as of December 31, 2012 • Refer to www.fortunasilver.com for full disclosure
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×