FSM - Earnings call transcript Q1 2021 | Fortuna Silver Mines Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Fortuna Silver Mines' First Quarter 2021 Financial and Operational Results. At this time all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Carlos Baca, Investor Relations Manager. Sir, the floor is yours.

Carlos Baca

Thank you, Kate. gentlemen. and ladies morning, Good I would and for Fortuna Mines you first to our financial welcome to call of to and quarter Silver XXXX. like operations the results today Executive Officer; Luis be call Hosting Fortuna Officer. Chief and behalf President Chief Ganoza, Dario will the and Jorge on Financial Alberto Ganoza, of our available fortunasilver.com. Today's be call the at after webcast presentation latest homepage on this will presentation box on

in to the statements today's made U.S. call and news during the subject reader stated. reminder are yesterday's presentation advisories unless a dollars figures As release call Financial call and earnings presentation. the in contained in included this otherwise are in presented in discussed

from turn and in a number indicate on information is in factors and would were I making based differ information. to Actual Before earnings beliefs. forecast a conclusion reflected to is company's subject information or materially the like could that expectations, a material current This Certain that Jorge, forward-looking conclusion, information. the to or forward-looking estimates I forecast projection call other over of call projection this results or in forward-looking contains drawing as uncertainties a risks, or forward-looking the applied factors. assumptions the

forward-looking over Alberto by to would except no obligation assumptions forecast like available turn I and information Additional which making forward-looking of the such publicly assumes were SEDAR. to projection or the or Ganoza, information as cause conclusion, the applied now is the on the in and The form annual conclusion factors company's forecast Fortuna. in update future, projection a law. company a the Jorge actual call as information in that the about differ the to reflected that factors Co-Founder information could MD&A, in material or material drawing results materially from contained or forward-looking required in to information are

Jorge Alberto Ganoza

business. quarter first the and X Carlos. our this highlights. excluding the soundness we're move of presentation, to In of We can of the Slide you, strategy our on year, Thank strength

growth countercyclical precious now, our investing XXXX restrained position renewed in over of the a depressed low as have to and last a our a interest And late several the equities in of interest because capital period show. a results investment, mining since metals. strong We market taking peers in the been harvest for during we've months. in approach XX where We're sector

balance or debt We production or leading million of delivering sheet share. We analyst have mine record in liquidity maintained EBITDA of a $X.XX income strong XX,XXX and with third peer of reported per of million X.X. with of share, $X.XX a ratio EBITDA margin XX%. adjusted $XX Lindero of full first EBITDA consensus net quarter low ahead its $XXX $XX.X ounces. per Adjusted reported million of gold to a

again, the We same We have parameters This our has get country. up. plant, positive I system get a by flowing limitations this flow been since out to performing a imposed And believe due and for foreign we're COVID quarter to system. of and operations parameters. operation the ramp setup for support achieving of stacking at a be of we quarter. QX operations been second performance operations need to to all also within generation free are quarter, efficiency equipment team and QX unit fit even cash as Lindero has conveyor technical during our conveyor XXXX design SART strong going the is cash purpose. the experienced their been The in Except at challenge and conveyor

have silver metals announced On will the XX, This to credit. create at low precious Roxgold intermediate spite his of we and business in John on-site April of believe successfully of we with balance assets challenges. job for and sizable combination that cost great we shareholders. the a with together significant value a acquire the are in production, global a Africa. delivering benefit a and sheet our lock is the agreement team strong risks robust team lower built definitive Our these Roxgold. diversified the the of producer business West better And platform positioned to

get Something precious Any I two the excited opportunity seeking metals space high the teams investors consideration am producers' in respective performance the about to of have intermediate invest particularly is will bring together in to to a gold development X.X with to ounces ounces equivalent the XXX,XXX projects. to gold of pipeline XX% the With of XX% million production of exploration and of our margins in pro forma to robust gold range company. EBITDA jurisdictions.

Slide In KPIs. rolling we our please. performance slide share safety average XX-month Next X, for

and continued for have pleased continue XX. to health years our improvement be of severity. please. of quarter recordable still trending show the Three to to change process a in of for pleased direction. an and time the with improvement on metrics plenty lost ago, a work key all pre-released continue environment, right Slide accident-free to total X effort and April We see on we trend We cultural but embarked safety. areas in respect We for to I’m production achieve

of XXX% contribution. Our year notable Lindero All an result exception with gold as gold quarter equivalent of ounces. a was increase of production with the metals with were in in QX of basically last line XX,XXX a

the slide of contribution In I silver stressed Next in X. Slide and X, call, Slide was record-breaking the company, beginning XX, the has Slide sorry. at to revenue for of XX% In accounted as our financial precious been metals please. period revenue. for the performance XX%

gold of benefit from not by gold investment. the this significant amplified annual capture to prices, production able and We’re increase our the derived but is in higher silver only

QX. has performance record-breaking for the financial in The company please. been slide Next

to million. the And jumped $X.XX stressed at million the call. I record As $XX.X $XX.X EBITDA Adjusted was or beginning per net Sales share. jumped XXX% of XXX% adjusted to income $XXX a million.

$XX.XX. ton. sustaining on the was Moving well within to Getting all-in year, last to to $XX.XX basically With XX at XX% costs at the cost respect on analysis, of a guidance to range granular Slide largely aligned with are sustaining – compared The gold mine basis, at as per sustaining San well. used our last CapEx for silver more XX aligned reciting used now costs on XX. for increase of year all-in back to a $XX and to this guidance per last year. ton respect QX of ratios $XX.XX QX the all-in Jose, to driver is in of

sustaining up Caylloma stable we $XX. complete we the expect towards more Our mid-year. lower in operation a trend all-in guidance range year the costs four and sustaining as achieve to of align throughout Lindero, in And to came that's $XX Mine with phase the ramp all-in

have do all-in guidance in capital Lindero with sustaining provided QX, costs timing Slide of $X,XXX, lower compared $X,XXX the to For $X,XXX. – sustaining at XX. came below cost of investments. to guidance mid-year The

total Our capital in guidance QX. budget for is $XX XXXX million

$XX million. executed have We

capital throughout year. up expect to pick the We investments

XX, just brief please. the ramp Slide up slide Lindero. Next a on activity in update

operating XX%, operating we of As days all HPGR-agglomeration-stacking stacking in Today, design know quarter site here end to in the system more, XX%. of the works range at with of early system, which within of slide, and exception a the capacity. the around of May, zinc closer the are this parameters XX% SART was as systems of plan. The

on stacking plan the all resources ore plan a May path the direction. indices. was And Remember placed restarted. been our trucks production. to for in of on we're standby SART the to So, trending that And stacking gold in with right SART focus conveyor early critical continues supplement has

deviations reconciliating to kinetics we model to well expectations according as design to model Something according is expectations leaching perform middle see terms our in continued our tonnages highlight parameters. with reconciliate reserve sorry, than kinetics, ounces, And that and same leaching to X% important and continue to respect production. with of less to with – the to gold grade, XX our

please. slide, Next

and I We Luis, turning of nine March is can Our drilling our Jose of comprising on exploration reported the set have is projects. release including Santa approximately he XX. Sonora, prospect the silver-gold to highlights across where meters capital that, San XX,XXX of it financial. budgets turn in rigs The to for allocation you initial our the so million XXXX drilling we through run have our mine, largest mines at drill Mexico. state of the $XX can currently With Fe

Luis Dario Ganoza

in without, IAS Proceeds of relation increased million, Thank favorable period all Jose and metal our XX to across activities Slide provided as is mentioned, San prices. of cash comparative has not before per only back The the had and are commencement Use. The with XX%. earnings cash contribution affect sales driven note strong This of details provided the Intended financial performance is activities statement restatement had by Jorge very on we metrics. Lindero’s is the first and statements of operating our deals three Jorge. record provided Sure. of Lindero. a financial in XXX% of Caylloma share XX, you, and this upon have increased by Net full as sales would financial restated $XX.X to have restricted performance operating sales net we on sales operating flow cash strong On the by record EBITDA, record adoption overall quarter but also our

by operations not of Free is from EBITDA of trade timing working in the million order shown increased slide. receivables here, increase the by line rate was capital for So and although $XX.X with shown of million. provided flow which of impacted reference changes a activities cash before ongoing XXX%, in in on operating $XX cash

Lindero our XXXX, XX. at within mines million our largest We higher sales cash of On slide shown silver this driven sold with this the impact EBITDA by XX, $XX higher on excluding Jose $XX.X San Caylloma. increased in to prior across as Sales in strong shown the The and our the $XX.X quarter, with next QX an cost metal sales slide, as performance contribution of slide, excluding or operations million, Lindero’s The the guidance. recorded impact both San quarter over in Jose in the of material for next million increased prices slide. and cost financial the Caylloma. in highlights and and operating sales Slide single all Slide was Even XXX% both increases XX% slide. price by

the we per guided we level, ounce gold underlying our the mainly cash the based costs mentioned, production cost ton do prior expect San and on gold-silver trend on X% silver recorded still quarter, around cost annual sustaining for guidance. is in year equivalent which related changes all-in compared of above $XXX, year. the expected the at higher to to ratio At the impact Jorge cash towards of Jose, the range Lindero, per is cost our for on Jose within has mid-XXs cash As the for San the our this XX%,

the on to continues figures, ore budgeted full less our up, we the leach mine we compared and our plan. see processed the pad have through circuit tracking As crushing ramp to XX% placed ore our KPIs main higher

As up Jorge us on target are production restrictions of ramp changes our maintain the has to we as explained, accommodate gold allowing the these for year. impact COVID-XX the

In the terms netted effects, mostly each cost these changes have quarter. other out in of

first cost second the of projects, the mentioned due investment year. we slower by Our expect speed for our below pad leach quarter. execution pick up a of half range is and to systems of in to all-in the expansion of the mainly sustaining the guided Jorge, Also pace ADR before the

the Next and our generation compared cash ramp started since Lindero down of liquidity XXXX our coming increasing the beginning QX slide, to see free Slide debt of up. flow We already to XX. contributing as total net

Frank continue pass and million back you, trend to Exchange $XXX repatriating expect started XXXX, flow from like have a Carlos. the we respect you. provide In early to quarters. without Argentina year. to any to it allows We cash our us controls at to with million $XXX to in around that, in funding in Lindero. structure repatriation adverse I'd I'll intensify the funds repatriate comment coming since Thank this intercompany With and effects

Carlos Baca

questions Luis. to We the would that you, may over Thank like to you call turn now any have.

Operator

and open question coming at questions. today CIBC. Cosmos Instructions] Our Thank for you. first [Operator is gentlemen, from the now is floor Ladies Chiu

Your line live. is

Cosmos Chiu

guess I here. my Hi. are around Thanks, Lindero Jorge, questions Carlos. and Luis

can tertiary you and gold about the of a to about As isn't ratio full about ounces. XX,XXX crushing ounces your out you XX,XXX know talked kind “recovery capacity at in circuit below in And us long But how yet remind are and at expecting? QX, level” you lead on curve this whatnot. the in is stacked what what of you point time? stacked of MD&A, XX%. That produced works I based you

Jorge Alberto Ganoza

Yes.

different are have, types We Cosmos – we of materials. stacking

a For the system that stack the the material we HPGR. through via stacking material that's advanced

gold XX-day via XX Then and a X So comes we right? we’re XX is talking the for now we're a extractions which XX%, of material recoveries expected about conveyor XX%. right? with XX%, stacking, a about that material, extraction millimeter in the that trucks, range right crush millimeter millimeter though those of coarser have placing crushed expected in rates between period, crush is stacked And in range

Cosmos Chiu

Okay.

Jorge Alberto Ganoza

is I path. that don't but balance the my it the extraction, of the yields the inventory considering the have extraction, recoveries So recovery balance right now, those on expected in planned head and

Cosmos Chiu

Thanks. sure. then that helpful. kind and leads trying my Okay, to question different into That's of reconcile all these really Jorge, And here, numbers. I'm second just

I if in tonnes, to – day. QX or out ounce works million your stacked take per So about X.XX million that XX,XXX XX,XXX tonnes X.XX tonnes

crusher, day. stacking tonnes primary-secondary per the is perfectly about agglomerator capacity be day. numbers is secondary but then which X,XXX think not your about the per tertiary I XX,XXX about talked right system quoting you HPGR – here, As might is I And your now, it's tonnes

much like me those material versus you the And if mine right stacked come So the any from be second reconcile in circuit you throughout it’d tertiary numbers? of a Are run kind as how material expecting the up, run help different the you the versus to XXXX, crushing there's leach could parts? HPGR half of now? you are secondary Either of of pad onto putting ramp mine? the

Jorge Alberto Ganoza

guidance. out is we this meet better the ounces stacking extractable That's how for figures, understand. what place – a we So that's to working, meeting our we to Let’s ounces those extractable how and right? leach short So on pad, is figure – those annual right? balanced on trying pad solution is to short-term many need leach the you're plan when to

tonnes capacities. is capacity currently So per system of our XX,XXX day. exceeding The operating, day. a we're primary design achieving noted, and crushing crushing you secondary Unless primary-secondary tonnes is design XX,XXX

running we from about can the as that top right. X,XXX are on So stockpile from agglomeration conveyor heap, sorry, And part and tonnes placed leach of the stacking. the HPGR the material that, is through well, pad. materials secondary directly to truck And stockpiles day place per from balance of the

can can is three right. So extractable granular we is the at were leach this, one being then times and materials we have a on sources this different placed on have session very getting allowances, different pad on we the of meet even to

more the but at come more instances crushing right. ounces XX-day review for placing a be lower the you happy calls the the stockpile. have ounces extraction comes those coarser and on leach some original a and the to efficient than with period, pad ore and we’ll So because the the secondary That’s why coarser design we’re give are in from a material placing breakdown, we trucks ounces on from

for we is use XXX,XXX to meet XXX,XXX right. XXXX, So what the guidance ounce and to that

Cosmos Chiu

if of stocking possible. would that’s And the that’s situation circuit to your the current That’s sure and you now, perfect. be yes. XXXX, towards the majority end of crushing tertiary Yes, for the but right from expect

Jorge Alberto Ganoza

And material no. the the during we stocking quarter, expect to be through placing the second XXX% of

Cosmos Chiu

Okay.

Jorge Alberto Ganoza

the we’re there without stacking. challenge is issue stacked COVID COVID achieved like personnel we commissioning No, the right use seeing benefit already vendor in able XX,XXX movement the tonnes technicians ramping actual of for the been a in stress pandemic yet, has the the equipment stocking. to now stacking. fact the been have tremendous the foreign via a with ramping and up that pandemic good conveyor because want increase. team, a the efficiency and – certain during but up conveyor We’re of achieve days the trained being working We operation for is not of of to conveyor I us

go learning a we using Zoom we of as – of because virtual this technological have a way and hours lot and tools, are goggles remote reality tools that. We in like

could have We to right. our bring having will sites of will you train other from operators. the CSUN help that in to the Argentina, abroad we not benefit from They don’t have operators that come

nothing but to to beginning a and we’re right. has getting did the be months the getting alone it at now there. system no this team we mean have believe to the issues really of and at significance of issues car setting yet, going big, And why time at stocking any addressed. couple Those conveyor stop we automation We we’re race, on issues right. nor where be moving need the enough be It’s need the regarding have with some that that’s so of mechanical overcome. or ago And better issues, mechanical the I pit been not like automation. a experienced a in system I but some we’re delay,

Cosmos Chiu

statements one maybe financial Of And then course. question last the Thanks. on here.

On the now facilities that fully January on mentioned $XXX million credit drawn the expires XXXX. you MD&A, right XX,

for in right to credit on point that, vis-à-vis question credit this but more QX remind on looks pending us you’re you terms facility? of can with financing are renewal? However, how potential you the that be the top would trying renewed say with some a the of And that at outlook how us Can merger what now you more Maybe Roxgold, of credit it interest in construction of has then time? favorable this sure of Luis, facility you’re get rate Seguela. changed terms kind for in expecting XXXX. repayment market your give paying potentially on And this you

Luis Dario Ganoza

Yes.

to So is transaction terms. be of expect the similar the really of cost I that to to that’s the view renewal. company, and reference drawn first top our I mean somewhat mean maintain is do we’re we performer of fully of to On push in and the X.X%. And the all, XX rate, back able context reason

what most So more visibility as sense. on to the makes gain

that entity, a think performer to believe more the of able that QX to renewal how we in sheet, terms context today. we right. that capacity forma the repay think early, capacity additional that credit expect make in we an in expanded I what view we’re we entity. I in mean, to conclude does sense medium-term, achieve. right. a that with So based the we to a we – reconsider we of That’s nature of would manage our of that facility believe plans it terms right see And pro the of on structural any as to be considering the reflects is and It that that balance –

Cosmos Chiu

Great. and have. the all Thanks. Thanks those Jorge questions again. I Luis, and

Operator

Thank you.

from Turnbull Scotiabank. at is question Our next Trevor today coming

Your line live. is

Trevor Turnbull

get I color Lindero and Thank you. Jorge, that. circuit the just wanted to to related more little a crushing on tertiary and

I think your when production put in out you original figures, QX back April.

you And of get I the wondered that needs this mentioned had back the very part of you’d experiencing to were just call up what XX% on that had of terms it on do crushing I availability to in some those where at to referenced that you I think to tertiary And you want I of to it to that early say, levels XX% system. of capacity. were XX% April, strong weeks as think You system. kind closer

Jorge Alberto Ganoza

agglomeration – stacking you in work the see and the In HPGR sync.

So stacking the bottleneck been in the the system faced at mainly has system.

automation experience the of hours a days today, I were could of that days And steady the So lot issues process that had, in I been right? like, resolved all with battled matter I All day conveyors, But more to or that XX,XXX vendor and be get the early in of getting of XX,XXX or relating year right. we but And the being in in sense of peak there having are able beginning end the a automation setup, think, issues mechanical X,XXX the achieving because the we that had the speaking the in instead to or COVID before, movement race have those superior entire we never of the tons each other. tons, days, And sometimes we and start the seasoned with the need are XX,XXX hours of the significant effective of to mentioned, even tons the per believe at and stack. And of train overcome. the weeks, sustain get and taking and in these As is been the on of the I with the how those stack. throughput, team around was conveyors we’ve from setup, be to of pandemic, site, right resolved the issues system more as overcome. days explained the problems just the up have representatives luxury behind planning right. for all

think the I sequencing of past mechanical month, been immersed more for rather in has this of and of equipment before automation more I stacking movement explained for team and movements system. the than issues, seasoned getting and the solving ahead the planning the conveyor

here. It’s And just minor ask setup operational expertise is performing whether some according is right. the permit. that to we’re are for the HPGR It’s purpose the So we but the mean, we I think automation the rocket fit for of mechanical get all fit now right. equipment. equipment bottleneck getting but I just into issues, and is think, really the I team don’t these behind the had mechanical about talking right biggest, purpose. team all more equipment science getting also, and stacking, now, issues in The to more agglomeration performance is the And

Trevor Turnbull

go that then about tended money have Luis and and from repatriated on you bit, follow-up And the you Lindero. I then conversion I mentioned when think to just change you Yes. to had if Okay. misunderstood maybe gears to exports something through to to kind Perhaps that did the wanted go sales I wanted a structured that that that, getting to that mandatory of peso, the country, it curious, don’t to rates would was obviously out just how it – is And or distribute conversions currency. through want But that why it into exchange I reconvert you don’t apply? of back you sounds money another those it like such process. of have you’ve

Jorge Alberto Ganoza

Yes. Trevor.

it effect… description restrictions within in the or speaking, to is is has it accurate, possible but XX So is in it generally accurate, structures you do,

Luis Dario Ganoza

Regulatory framework.

Jorge Alberto Ganoza

practical intercompany to allows way all up pay of parent which the to purposes who proceeds the expert of bet finance, set use directly for three sales to Yes, by company.

So those that the the are into into in by been we’ve the and proceeds is that a pesos yes. is right, are right. back Once There government means exhausted, mentioning, for will monthly Virginia this, which coming range analyzed limited pool not being that that pool Argentina. to restrictions rolled on the monthly Where we basis right. almost shift month describing, a basis, by is

Trevor Turnbull

sense is And maybe which it kind that you of lose constraints, Is to conversion if cost Can the kind is process? if what or target, be? through would percent this sounds you might X% like, moving of something X% but a through a by it you the can what give a you were that that sense operating what exercise, or going expect of under give those a erodes all us XX%? amounts you us of

Jorge Alberto Ganoza

Yes.

have mean, So, options. that all I I Argentina any themselves in situation, explorers two finding in

liquidity the on sit expect, Right. is those. pesos the is – to and locally. a six foreign would forward in in amount to goes exchange out protect of That markets typically I one There course, forward seek certain to Of eight months. the

So vary the alternative is FX gives can a for achieve. type The, parallel the framework protection GAAP you widely. tap of of that will market, sort into And their the right. to you

significantly downwards. we does what that’s in sorry. And it’s days next GAAP months would expect that higher a that – Right. would mean, these I a mean, I close trending think to converted to see. respect It is typically than has sort few that Right. expect I’m it today. what answer. you I –with to respect the broad been of much

Luis Dario Ganoza

with – see have look Right. is to a start FX going XXXX one. to yes, that moment. in difficult what’s to And that’s happen and seek to a we forward It the

Trevor Turnbull

I Okay. No, appreciate Thank the both. you, color.

Operator

you. Thank

Our DeMarco from next Financial. National Bank Don question at today is coming

Your line is live.

Don DeMarco

and operator and, you hi, thank Well, Jorge team.

of a ounces – you over March reserves per few million couple guidance shifting Jose? are at updated year. X the in look elaborate were XX a Jose good your per encouraging. late I ounces, ton, that San are I Jose, announced results reserves that and million exploration to on intercepts questions Just see a San can yes, But both on exploration XXXX that’s see kilogram yet program the in around silver San

many What’s So, And just running? changed year? your versus how most have you where are in rigs last curious, do optimistic? you program

Jorge Alberto Ganoza

or start last year? respect X,XXX at Right? five truly Jose with in your What working XX,XXX drilling currently changed Yes. meterage to First Today truly Jose so right? has excess meterage, are for Last last we three one. is San I’ll rigs with drilling San meters. were year on the two meters. and So, around We underground drill surface. was have currently are more. turning, significantly of

in So, resource One different targets. immediate the is the we underground resource type have we have around multiple of block shell, the targets vicinity and model.

for drilling So, March the resource that initiatives near-mine underground those targets. we reported in come from of one

the and we shell. those of with around those have expectation several my or in resource targets range of six five respect So, the to

opportunities, right. outlined the is opportunities, have not ones will we like I several incremental, March, in We which would expect,

we want to within intricate have do system identified stop those it's work what have also come a I all where to not on ongoing. those And four is the or we material that structures, what And will anastomosing their of right. reserve simple three development. all but contribute in to incremental ring, own, And noted you’ve life, probably Our structures. and we they again, is several repeat, main of San resource aggregate, replace terms on we of a to tonnage, not extensions, structures as have just very across Jose an

So, tonnage it’s And and it, It’s up with structural close been us we're grade intricate, model, know it’s us. meaningful that's only in you that have detail, – What within coming in of of these surface, we the expansions, more at dealing models room close surface. a we one during some Because was XD with right. once it's and of get areas, for some to to the front they to in decided to March lot now front create in are right. years annual the spectacular pursue right we to of opportunities exploration hopefully right. reported that I the for context depletion, ensuring look potential area, it's detail of in in area, the this

multiple mining So a where XXX have due of meters system we those. we East is Victoria we the Then system. second, parallel have are from called vein

in parallel Victoria resources new structure. the and recurrent we have a vein, discovered have We

this While that yet. vein, drilling is named not second Victoria across came we structure

and and the hanging drilling the Victoria we're structure. of On wall currently parallel Victoria

and see four we we from currently export on from For be extensions multiple rig that the one kilometers structure those infrastructure. or five veins, surface, have and wall Apart the current our parallel further that, have of to away Victoria, I'm can opportunities drill trying hanging located pursuing Victoria. where

So an trucking drill in called surface one distance. and diversification. within turning we are [indiscernible] vein structures where currently area we have have rig We

We more a desk. to have volcanic team we seen where super perspective pile. you're not after And seen It's in from exploration or We the quite the had dome dome. have focus ideas. never something volcanic more like that the type was to intrigued before. discovered We're features a logically that

So, a we multiple of have those.

broad in years property Minaurum, on Jose. over area Blanco and previous high-grade drill the Higo working drill within we Blanco the of have silver width. which results some developing of San We distance Higo mineralization targets of for previous San currently exceptional And within with an Jose at we're there. optioned have is property, Blanco it's also option Higo from optioned the trucking explorers general

I've of drilling commitment to right. meterage as shortage year just at point, And no is stating big Jose, need is there XXXX a exploration areas front. on the the been San get we So,

need run of to along. X.X% programs sales roughly some allocated hopefully see have come to exploration. and we results We And the let

Don DeMarco

for that. Thanks Okay.

might release like that the I think of exploration been a drilling a appropriate Do San for plans smaller the to had program out San update year. once So past, you year, might've regular coming Jose and you in do you have updates Jose? more last

Jorge Alberto Ganoza

But South a Yes. that everybody. Fe Jose, that we example, program important State only Yes, Santa drilling project not And in is Jose of project. absolutely. is the San for all new called and San Sonora understand view although is some for the kilometers of for we're [indiscernible] exciting

there. drilling we're So

we and areas. on active rig quite one have are different We

Santa drill We be more we're have project Baborigame gold, going another gold also more with project to silver and this silver some targets That’s project. is developing is Baborigame called Fe year. where

on several we active are So fronts.

Don DeMarco

a That's Thanks for Okay. all lot. me.

Operator

coming at [Operator today you. PI question Justin next from Financial. Our Stevens Thank is Instructions]

live. is line Your

Justin Stevens

any Should spend you'll chance of guys. follow that a then here? questions end up expansion But Most you before my a was Don spent budget perhaps the at your at ramping to already Jose, about there answered. I only year San in there. you QX. been expect through guys $XX budget? be that the Hi exploration further think of is bit And have quick just Brownfield exploration we noticed, that and Jose million quite asked evaluate of million $XX San million and the of $X.X from on asking

Jorge Alberto Ganoza

Budget will the of Yes. through Yes. done be underground. drilling given – been ramping a lot up has the

coming and the along. will then see with chambers advanced drilling we and the meterage whatnot, some spend So development prepare underground drill the to

that So up. will budget ramp

turning as I We have on site stated. drills on

for So Yes. of I usually year. these a to speed the of issues programs, there. no bit some tends It lagging right. with be It’s see start

Justin Stevens

And particular either from Sure. no impacts the you're seeing things? on that of COVID side exploration

Jorge Alberto Ganoza

in slow mine, activities COVID are all Particularly impact, our does just down. of a

I and that think – the remains protocols dealing production at bringing Caylloma, sometimes because San which right. keeping impact we at so operations can and have we place things, toll seeing Lindero, with COVID think at of the speed stringent the place take does we COVID and but much protocols and in on the that the at the are a side teams do Jose not initiative in

Justin Stevens

Yes.

Jorge Alberto Ganoza

COVID, I remember three remain due yes. mean, severe these right, yes, to that restrictions countries under So

Justin Stevens

have exploration just of Lindero, I is of auto on, the know terms [indiscernible] at second small program on that a you the guys And be and first on here. to half half year Sure. expected in

Jorge Alberto Ganoza

We’re drilling we as speak. there

Justin Stevens

Okay.

at we I’m so right. couple can probably the in expect And results point next some of probably weeks. some

Jorge Alberto Ganoza

Absolutely right, where we’re drilling at Arizaro.

Justin Stevens

so for Thanks it me. That’s Perfect. much.

Jorge Alberto Ganoza

you. Thank

Operator

you. Thank

Our next [indiscernible]. question coming today is from

live. is line Your

Unidentified Analyst

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Jorge Alberto Ganoza

say Right? Animas or at have to gold of question. the the that we for for occurrences have neglected years you understanding I Vein. Thank

Unidentified Analyst

Right.

Jorge Alberto Ganoza

and encountering say So today. start meaningful this the a has component. is grade it have we this entered higher it’s believe that we as gold we we area, have grades as sustained only we the, employed resources cannot that understand higher We these, research how to understand gold further main the now into

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up now Animas this vein. this curve gold in higher learning to on, right our get of kilometers. of over portion is trying the for in occurrence we’re here, what the stretches grade controlling four the knowledge So Animas is vein

several meters We one have at small area. for this is it package. that bigger tested need We hundred and depth drilled

mean, speaks we the this and occurrence here. So I gold to is I well, need as complex think about it understand right? better potential

Unidentified Analyst

Okay.

some you folks I your before blindsided had that of company. Now your $X.XX stock, And It's And on, share I you company? friends you that us. in didn’t, Africa. have in made you'll I do $X that bought bucks. down I stock my going went with to coming held lot now that stock my friends, West think because up, that was they dumped don’t back announcement out the well. have I but I from to but be a buy of their Roxgold in long-term

to hopefully just that Roxgold company. you something the that the contributing think start capacity earning I are people that that And many are there to I want of So will with know thing, you there were when you – feel like you're Africa. doing there's but that of none a felt wrong the Roxgold West the that thing you acquired did them in right

Jorge Alberto Ganoza

you we because and together shareholders operations cycle, higher believe success in for deploy exploration quality unlocked required of to for the putting together comments. Fortuna the this for team of be putting that expertise respected each performers for price is assets, really behind perform value throughout a tremendous as No, assets precious your thank and side, the principle the shareholders, driving is And there together shares jurisdictions. can basket a we on that Roxgold metals

is oriented, have This participants at if as the you I and be foundation to want company… the forma this short-term of sometimes really the consideration be I serious for the So will beginning call, the pro to invest a said medium, tend to in for you precious long-term. give market metals, to markets company believe

Unidentified Analyst

announced silver I ounce. will that – will agree, up last gold question. to end believe of year be an one your Don't this believe company you $XX.XX and $XX don’t eventually be

Jorge Alberto Ganoza

be I personally that higher. believe could

Unidentified Analyst

Right, a market wherein on silver. the full

Jorge Alberto Ganoza

to costs. we focus a which the on environment, environment. well high operate and control, need in a things try low the we assets I is to involved we we the on as – price as do with get the I price benign

day constructive to We're on mining every with we silver, with some things to where imaging control So or we or was right. more try ago, as and it be lead. that are one can XX hopefully let silver the months focus $XX prices $XX day to investors going respect

So…

Unidentified Analyst

tell Yes, $XX let yesterday an on she is me going you. silver $XX up. hit The and ounce,

Luis Dario Ganoza

Yes.

Unidentified Analyst

buy stock appropriate. is So counting you, think we're shareholder a think to want what name want to other to and in think company, on to as your get – I because we friends want for the I you're doing, I invest

Luis Dario Ganoza

sir. Thank you,

Unidentified Analyst

name Fortuna, I For Thank it. the love you.

Jorge Alberto Ganoza

for you your Thank support.

Operator

you. Thank [Operator Instructions]

Jorge Alberto Ganoza

and good to to no are there we quarter. you thank further listening like for day. to call earnings a I'd next If everyone forward questions, us look Have today's joining

Operator

and events. this Thank gentlemen, does you. conclude Ladies today's

at You a may and have you participation. wonderful disconnect day. your this time Thank for

Fortuna Silver Mines (FSM) 12 May 212021 Q1 Earnings call transcript