Fortuna Silver Mines Inc. FSM registered a 13.9% decline in gold equivalent production, reaching 110,820 ounces in the third quarter of 2024 from the previous year. The substantial decrease encompassed 91,251 ounces of gold and 816,187 ounces of silver. While gold output showed a moderate drop of 3.8% year-over-year, silver production plummeted by 51.4%.
Performance of FSM’s Mines in Q3
Within its mining portfolio, FSM oversees operations in five active mines. In the third quarter of 2024, the Séguéla mine in Côte d´Ivoire contributed 34,998 ounces of gold, showing an uptick from its 2023 third-quarter output of 31,498 ounces. Forecasts for the mine predict an annual gold production ranging between 126,000 to 138,000 ounces in 2024.
The Yaramoko Mine based in Burkina Faso produced 28,006 ounces of gold, marking an 18% year-over-year decrease. FSM anticipates Yaramoko’s gold production for 2024 to land between 105,000 and 119,000 ounces.
Meanwhile, gold production at the Lindero mine in Argentina reached 24,345 ounces in the third quarter, reflecting a 16.3% increase compared to the previous year. The annual guidance for 2024 at the Lindero mine points towards 93,000-105,000 ounces of gold.
Over in Mexico, the San Jose mine yielded 510,741 ounces of silver alongside 3,771 ounces of gold. The mine faced significant declines in both silver (62.8% drop) and gold production (54% decrease) compared to the previous year. FSM projects gold production for 2024 to fall between 19,000 and 23,000 ounces, while silver production is expected to range from 3.1-3.6 million ounces.
The Caylloma mine in Peru contributed 305,446 ounces of silver in the third quarter, experiencing a marginal 0.9% decrease compared to the previous year. Gold production at the mine was 131 ounces, down from 149 ounces in the third quarter of 2023. The 2024 silver production target for Caylloma stands between 0.9 million and 1.1 million ounces.
Notably, zinc production stood at 12.8 million pounds, with lead production totaling 13 million pounds.
Fortuna Silver Reaffirms 2024 Guidance
Cumulatively, FSM reported gold and silver production of 273,645 ounces and 2.9 million ounces, respectively, in the first nine months of 2024, translating to 339,933 ounces of gold equivalent (including lead and zinc by-products).
The company has maintained its gold equivalent production guidance for 2024 between 457,000 and 497,000 ounces, indicating a potential increase of 1-10% year-over-year. Gold production for 2024 is estimated to range from 343,000 to 385,000 ounces, implying growth of 5-18% compared to the 2023 reported levels. In contrast, silver production guidance for 2024 is set at 4-4.7 million ounces, indicating a year-over-year decline of 21-32%.
Peer Performance Comparison in Q3
Endeavour Silver Corporation EXK faced a 14% decline in the production of silver equivalent ounces, amounting to 1.6 million, in the third quarter of 2024. This dip was primarily attributed to decreased silver production levels at its mines, offsetting any gains from higher gold output. Consolidated silver production witnessed a 24% decrease to 874,717 million ounces, mainly due to reduced operational capacity at Guanaceví after a trunnion breakdown in August.
Despite the challenging landscape, Endeavour Silver managed to experience a 2% increase in gold production, reaching 9,290 ounces year over year. This rise was fueled by enhanced gold grades mined at Guanaceví and Bolañitos, as well as amplified gold content processed in third-party feed at Guanaceví.
Fortuna Silver’s Share Price Performance
Investors noted a substantial 61% increase in Fortuna Silver’s share price over the past year, surpassing industry growth of 7.3%.
FSM’s Zacks Rank & Stocks Worth Considering
Presently, Fortuna Silver holds a Zacks Rank #3 (Hold).
Within the basic materials sector, highlighted stocks include Carpenter Technology Corporation CRS and Eldorado Gold Corporation EGO. Both CRS and EGO currently boast a Zacks Rank #1 (Strong Buy).
Carpenter Technology Corporation has a Zacks Consensus Estimate of $6.09 per share for fiscal 2025 earnings, reflecting a 7% upward shift in the past 60 days. The company has shown an average trailing four-quarter earnings surprise of 15.9%, and its shares have seen a remarkable 127.1% gain in the last year.
Eldorado Gold Corporation projects a Zacks Consensus Estimate of $1.32 per share for 2024 earnings, with a 16% positive adjustment in the past 60 days. The company has showcased an average trailing four-quarter earnings surprise of 430%, and its shares have progressed by 82.9% over the past year.