Fortuna pays down $40 million of debt from increased cash flow

Fortuna Silver Mines Inc., a Canadian precious metals mining company, has announced that it has made a significant payment of $40 million towards its revolving credit facility. This payment was made using cash on hand, demonstrating the company’s commitment to reducing its debt. As of June 30, 2023, Fortuna reported a leverage ratio of 0.9 times total net debt to adjusted EBITDA, indicating a strong financial position.

Following the payment, the company’s total outstanding debt balance is expected to be approximately $206 million on its credit facility, excluding letters of credit, and approximately $46 million of convertible notes. This will result in an estimated total net debt, after cash and cash equivalents, of $133 million as of the end of the third quarter of 2023. This reduction of approximately $65 million in total net debt is a result of increased cash flows from the successful production of the Séguéla Mine in its first full quarter.

With the completion of a two-year intensive capital investment phase at Séguéla, Fortuna’s operational and financial results are expected to improve in the second half of 2023. As a result, the company plans to prioritize debt repayment, advance its high-value exploration opportunities, and explore initiatives to enhance shareholder value.

Fortuna Silver Mines Inc. operates five mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. The company is committed to sustainability and aims to generate shared value for its stakeholders through efficient production, environmental protection, and social responsibility.

The estimated total net debt and liquidity for Fortuna as of the end of the third quarter of 2023 are preliminary financial information and are subject to final review by the company’s audit committee and approval by the board of directors. The company plans to release its financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2023, on November 8, 2023.

Fortuna Silver Mines Inc. continues to demonstrate its dedication to financial stability and responsible mining practices. With its ongoing efforts to reduce debt and focus on exploration opportunities, the company is well-positioned for future success in the precious metals industry.