Fortuna Silver Mines (FVI) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 2.00
• Revenue Growth: 28.18%
• EPS Growth: N/A
• Country: CA
• Employees: 1,232
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Silver
• EPS (TTM): 0.57
• Shares Outstanding: 306,528,200
• 10 Day Avg. Volume: 1,120,505
• 30 Day Avg. Volume: 1,098,550
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.71
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.60
• Price Target Upside: -4.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Fortuna Silver Mines demonstrates strong financial performance with significant revenue and profitability improvement, complemented by robust cash flow and low leverage. Technical indicators show upward momentum, although caution is warranted due to potential overbought conditions. Valuation remains reasonable, and recent corporate events and earnings call data suggest a positive outlook. Key risks include managing high costs in certain operations and addressing safety concerns.

Positive Factors

Exploration and Reserves

Inferred resources grew by over 500koz through the company's successful drill program, with the addition of four new deposits.

Operational Performance

Higher than forecasted throughput at Séguéla and Yaramoko offset a slightly weaker quarter at Lindero.

Share Buybacks

FVI continued to repurchase shares with $4.16M in buybacks during the quarter.

Negative Factors

Cost Guidance

2025 AISC guidance of $1,550-$1,680/oz AuEq is above the $1,437/oz estimate on higher sustaining capex.

Production Estimates

Q4 production of 116.4koz AuEq was slightly below the 121.1koz estimate, and increased from 110.8koz in Q3.

Fortuna Silver Mines Business Overview & Revenue Model

Company Description

Fortuna Silver Mines Inc. engages in the acquisition, exploration, and mining of precious and base metal deposits in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It holds interest in the Caylloma silver, lead, and zinc mine located in southern Peru; the San Jose silver and gold mine situated in southern Mexico; the Lindero gold project located in Argentina; Yaramoko gold mine situated in south western Burkina Faso; and Séguéla gold mine located in south western Côte d'Ivoire. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

How the Company Makes Money

Fortuna Silver Mines generates revenue primarily through the sale of precious metals, specifically silver and gold, extracted from its mines. The company sells these metals to various buyers, including smelters and refiners, under long-term contracts or on the spot market. Additionally, Fortuna produces and sells zinc and lead as by-products from its mining operations. The company's earnings are influenced by global commodity prices, production volumes, and operational efficiencies. Key partnerships with local communities and governments also play a significant role in facilitating smooth operations and ensuring access to mining sites.

Fortuna Silver Mines Financial Statement Overview

Summary

Fortuna Silver Mines demonstrates solid growth in revenue and improvement in operational efficiency over the TTM period. The balance sheet is strong with low leverage and a high equity ratio, though profitability as measured by ROE could be enhanced. Cash flow metrics are particularly strong, reflecting effective cash generation and management. Overall, the company is on a positive financial trajectory with opportunities for further profitability improvements.

Income Statement

The company's revenue has shown a strong upward trajectory, with a notable revenue growth rate from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin stands at 28.16%, reflecting efficient production processes. However, the net profit margin is low at 2.45%, indicating high operational costs or other expenses impacting profitability. The turnaround from a negative EBIT in 2023 to a positive EBIT margin of 9.54% in TTM is a positive sign of improving operational efficiency.

Balance Sheet

The company maintains a stable financial position with an equity ratio of 68.17%, indicating strong equity funding relative to total assets. The debt-to-equity ratio of 0.13 reflects low leverage, which is favorable in a capital-intensive industry like mining. Return on equity is modest at 1.76%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

The operating cash flow to net income ratio is robust at 12.78, indicating strong cash conversion from earnings. The free cash flow has grown significantly, with a free cash flow growth rate of 59.17% from 2023 to TTM. The free cash flow to net income ratio is high at 5.05, showcasing effective cash management despite capital expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.03B	842.43M	681.49M	599.85M	278.97M	257.19M
	Gross Profit
288.62M	190.03M	146.80M	205.48M	110.22M	84.58M
	EBIT
97.83M	-407.00K	85.69M	136.88M	57.24M	53.28M
	EBITDA
358.64M	230.79M	59.05M	277.76M	106.62M	91.77M
	Net Income Common Stockholders
25.07M	-50.84M	-135.91M	57.88M	21.55M	23.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.26M	128.15M	80.57M	107.51M	132.96M	83.40M
	Total Assets
177.22M	1.97B	1.88B	2.02B	1.06B	936.07M
	Total Debt
2.23M	264.25M	240.52M	186.89M	178.11M	170.41M
	Net Debt
-65.98M	136.10M	160.03M	79.80M	46.22M	87.01M
	Total Liabilities
25.17M	679.74M	587.53M	592.35M	329.57M	300.64M
	Stockholders Equity
152.06M	1.24B	1.24B	1.38B	725.77M	635.43M
Cash Flow		Free Cash Flow
126.72M	79.59M	-56.99M	-5.15M	-20.94M	-161.13M
	Operating Cash Flow
320.44M	296.91M	194.25M	147.14M	93.39M	63.01M
	Investing Cash Flow
-185.15M	-216.88M	-255.33M	-118.50M	-113.65M	-145.21M
	Financing Cash Flow
-72.94M	-32.72M	38.47M	-51.42M	68.91M	75.13M

Fortuna Silver Mines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FVI, the sentiment is Positive. The current price of 9.01 is above the 20-day moving average (MA) of 8.47, above the 50-day MA of 7.61, and above the 200-day MA of 6.83, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FVI.

Fortuna Silver Mines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVI	79 Outperform	$2.66B	15.83	9.74%	―	28.18%	―
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%

Fortuna Silver Mines Corporate Events

Fortuna Mining Corp. Sells Yaramoko Mine to Exit Burkina Faso

Fortuna Mining Corp. has announced the sale of its interest in the Yaramoko Mine and associated subsidiaries in Burkina Faso to Soleil Resources International Limited. This strategic move allows Fortuna to exit a challenging market, optimize value, and avoid future liabilities, while providing liquidity to pursue other opportunities aligned with its strategic goals.

Spark’s Take on TSE:FVI Stock

According to Spark, TipRanks’ AI Analyst, TSE:FVI is a Outperform.

Fortuna Silver Mines presents a strong financial performance with significant revenue and profitability improvement, complemented by robust cash flow and low leverage. The technical indicators show strong upward momentum, although caution is advised due to nearing overbought conditions. Valuation remains reasonable, and the company’s earnings call suggests a positive, albeit cautious, outlook. The main risks include managing high costs in certain operations and addressing safety concerns.

To see Spark’s full report on TSE:FVI stock, click here.

Fortuna Silver Mines Achieves Strong Q1 2025 Production and Expands Capacity

Fortuna Silver Mines reported a solid production of 103,459 gold equivalent ounces for the first quarter of 2025, with gold production at 91,893 ounces. The company completed the Lindero leach pad expansion project on time and within budget, providing an additional 10 years of production capacity. Despite a slight decrease in gold equivalent production compared to previous quarters, Fortuna reiterated its annual production guidance, indicating confidence in meeting its targets. The company also repurchased 916,900 common shares, reflecting a strategic move to enhance shareholder value.

Spark’s Take on TSE:FVI Stock

According to Spark, TipRanks’ AI Analyst, TSE:FVI is a Outperform.

Fortuna Silver Mines presents a strong financial performance with significant revenue and profitability improvement, complemented by robust cash flow and low leverage. The technical indicators show strong upward momentum, although caution is advised due to nearing overbought conditions. Valuation remains reasonable, and the company’s earnings call and recent corporate events suggest a positive, albeit cautious, outlook. The main risks include managing high costs in certain operations and addressing safety concerns.

To see Spark’s full report on TSE:FVI stock, click here.

Fortuna Mining Corp. Files Fiscal 2024 Annual Report

Fortuna Mining Corp. has filed its fiscal 2024 annual report on Form 40-F with the U.S. Securities and Exchange Commission, which includes audited financial statements and management’s discussion and analysis. This filing is a significant step in maintaining transparency with shareholders and stakeholders, reflecting the company’s commitment to regulatory compliance and providing insights into its financial health and operational performance.

Fortuna Mining Corp. to Present at Mining Forum Europe 2025

Fortuna Mining Corp. announced its participation in the Mining Forum Europe 2025 in Zürich, Switzerland, where CEO Jorge A. Ganoza will present. This event is significant for Fortuna as it provides a platform to showcase its operations and sustainability efforts to investors, potentially enhancing its market position and stakeholder engagement.

Fortuna Silver Mines Reports Positive Exploration Results at Séguéla Mine

Fortuna Silver Mines has reported promising exploration results at its Séguéla Mine in Côte d’Ivoire, with significant gold intersections at the Kingfisher and Sunbird deposits. These results, including a notable 7.2 g/t gold over 31.5 meters at Kingfisher, are expected to enhance the resource confidence and potentially transition these resources into mineral reserves by 2025, indicating a positive impact on the company’s operational growth and industry positioning.

Fortuna Silver Mines Reports Updated Mineral Reserves and Resources

Fortuna Silver Mines has released its updated Mineral Reserve and Resource estimates for its various projects as of December 31, 2024. The report highlights a 29% increase in consolidated inferred mineral resources and a 36% increase in measured and indicated resources, driven by infill drilling and new discoveries. However, there is an 11% decrease in proven and probable mineral reserves due to production-related depletion, partially offset by resource upgrades.

Fortuna Silver Mines Achieves Record Cash Flow and Production in 2024

Fortuna Silver Mines reported strong financial results for the fourth quarter and full year of 2024, highlighting a record free cash flow of $95.6 million in Q4 and $202.9 million for the year. The company achieved a positive net cash position and returned $30.6 million to shareholders through share repurchases. Operationally, Fortuna produced a record 455,958 gold equivalent ounces in 2024, meeting the low end of its annual guidance, while maintaining strong safety performance with industry-standard safety metrics.

Fatal Accident at Fortuna’s Séguéla Mine Prompts Safety Investigation

Fortuna Mining Corp. reported a fatal accident at its Séguéla Mine in Côte d’Ivoire, where an employee of a service provider died following an explosion while refilling fire extinguishers. The company is conducting an investigation into the incident and has expressed condolences and a commitment to safety and prevention of future incidents.

Fortuna Silver Mines to Announce 2024 Financial Results

Fortuna Silver Mines announced it will release its fourth quarter and full year 2024 financial results on March 5, 2025, with a subsequent conference call scheduled for March 6, 2025. The announcement provides stakeholders an opportunity to review the company’s financial performance and hear directly from key executives about operational insights and future outlooks.

Fortuna Reports Record 2024 Production, 2025 Outlook Reveals Potential Decline

Fortuna Mining Corp. announced a record production of 455,958 gold equivalent ounces for 2024, driven by substantial gold and silver yields, although silver output fell below guidance. The company forecasts a decline in gold equivalent production for 2025, reflecting potential challenges in maintaining its current production levels, which could influence its market positioning and shareholder value.

Fortuna Mining Corp. Sells San Jose Mine to Focus on Core Assets

Fortuna Mining Corp. has announced the sale of its non-core asset, the San Jose Mine in Mexico, to Minas del Balsas S.A. de C.V., a private Mexican company. This transaction, valued at up to $17 million, allows Fortuna to concentrate on higher value opportunities within its portfolio, while retaining a 1% net smelter royalty on San Jose Mine’s production for five years. The completion of the sale is expected in the first quarter of 2025, and it is seen as a strategic move to optimize Fortuna’s asset base and benefit local stakeholders.