My newest Risky Pick today is Fortuna Silver Mines - FVI. I've been in and out of this one several times over the past two years and have decided to jump back in today. It has recently announced a $30 million bought deal financing at a price set @ $2.30 per share. The funds from this bought deal will allow them partially fund their 100-percent-owned San Jose project in the state of Oaxaca, Mexico. It currently operates its Caylloma Silver Mine in southern Peru. Here is an excerpt from their 4Q news release:
2009 production performance figures for the Caylloma mine in Peru confirm the 3rd successive year of silver production growth for the Company. Production of all key metals increased substantially over 2008 as mine output, mill throughput and silver grades increased, and recoveries improved. A full table of metal production by quarter is attached at the end of this release. Full year production highlights include:
- In 2009 Caylloma produced 1,685,026 ounces of silver, a year-on-year increase of 96% over 2008 production (861,176 oz Ag).
- Production of zinc at 28.4M lbs and lead at 25.1M lbs increased 22% and 52% respectively over 2008.
- Unaudited financial results indicate gross revenues in excess of US$50m for the full year 2009, an increase of at least 90% on 2008's revenue of $26.3m.
Mr. Jorge Ganoza, CEO of the Company, commented: "The Caylloma Mine is a success story for Fortuna. It has delivered three consecutive years of silver production expansion and unit cost reduction. We expect to maintain production of all commodities at close to current levels during 2010 with the exception of copper, which should ramp up to 1M pounds. Future growth will come from the development of our San Jose Project in Mexico. We have all the required permits in place for San Jose and a strong treasury, which will enable us to launch the construction of Fortuna's second mine in the first quarter of 2010."
As always do your own DD and make sure FVI is right for you. Have a great weekend.