Fortuna Silver Mines Inc. (NYSE:FSM) Q3 2023 Earnings Conference Call November 9, 2023 12:00 PM ET David Whittle - Chief Operating Officer, West Africa Conference Call Participants Greetings, and welcome to the Fortuna Silver Mines Q3 2023 Financial and Operational Results Call. At this time, all participants are in a listen-only mode and the floor will be open for questions after the presentation. [Operator Instructions] Please note this conference is being recorded. Jorge Alberto Ganoza - President & Chie ...

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended September 30, 2023 and 2022 (UNAUDITED) Fortuna Silver Mines Inc. Condensed Interim Consolidated Income Statements (Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts) | | | | | Three months ended September 30, | | | | Nine months ended September 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Note | | 2023 | | 2022 | | 2023 | | 2022 | | Sales | ...

Fortuna Silver Mines Inc. (NYSE:FSM) Q2 2023 Earnings Conference Call August 10, 2023 ET Company Participants Carlos Baca - Vice President, Investor Relations Jorge Alberto Ganoza - President & Chief Executive Officer Julien Baudrand - Senior Vice President, Sustainability David Whittle - Chief Operating Officer, West Africa Cesar Velasco - Chief Operating Officer, Latin America Luis Dario Ganoza - Chief Financial Officer Conference Call Participants Eric Winmill - Bank of Nova Scotia Don DeMarco - National ...

18 2022 SUSTAINABILITY REPORT Key takeaways • Robust governance; 75% independent directors, 37.5% female directors • 35% of executive short-term incentive compensation linked to sustainability performance • Dedicated Board Sustainability Committee to oversee strategy, programs, and performance • Publication of Fortuna's Climate Change Position Statement • Adopted Global Industry Standard for Tailings Management • Half of our mines are certified ISO 45001 and ISO 14001 • Total Recordable Injury Frequency Rat ...

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2023 and 2022 (UNAUDITED) Condensed Interim Consolidated Income Statements (Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts) | | | | | Three months ended June 30, | | | | Six months ended June 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Note | | 2023 | | 2022 | | 2023 | | 2022 | | Sales | 18 | $ | 158,406 | $ | 167,871 | $ | 334,05 ...

Fortuna Silver Mines Inc. (NYSE:FSM) Q1 2023 Earnings Conference Call May 16, 2023 12:00 PM ET Company Participants Carlos Baca - Director, Investor Relations Jorge Alberto Ganoza - President and CEO Luis Dario Ganoza - Chief Financial Officer Cesar Velasco - Chief Operating Officer, Latin America David Whittle - Chief Operating Officer, West Africa Paul Weedon - Senior Vice President, Exploration Conference Call Participants Adrian Day - Adrian Day Asset Management Justin Stevens - PI Financial Operator Gr ...

Séguéla Mine | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------|-----------|--------------------------------------|--------------------------------| | | | IAMGold/AngloGold Ashanti Sadoila | | | • 872 km2 of tenements over the highly prospective Kedougou-Kinieba | | IAMGold/AngloGold Ashanti Sadoila | | | Inlier (KKI), a world class mining district | | | | | • Diamba Sud associated with fertile splays off the Senegal-Mali Shear Zone (SMS ...

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2023 and 2022 (UNAUDITED) Fortuna Silver Mines Inc. Condensed Interim Consolidated Income Statements | | | | | Three months ended March 31, | | | --- | --- | --- | --- | --- | --- | | | Note | | 2023 | | 2022 | | Net income for the period | | $ | 11,857 | $ | 26,976 | | Items that will remain permanently in other comprehensive income: | | | | | | | Changes in fair value of investments in equity securities, net of $nil t ...

Fortuna Silver Mines Inc. (NYSE:FSM) Q4 2022 Earnings Conference Call March 16, 2023 12:00 PM ET Company Participants Carlos Baca - Director of Investor Relations Jorge Ganoza - President and Chief Executive Officer Paul Weedon - Senior Vice President, Exploration Cesar Velasco - Chief Operating Officer, Latin America David Whittle - Chief Operating Officer, West Africa Luis Ganoza - Chief Financial Officer Conference Call Participants Adrian Day - Adrian Day Asset Management Operator Greetings, and welcom ...

Financial Performance and Results - Sales increased to $681.5 million in 2022, up from $599.9 million in 2021, representing a 13.6% growth[33] - Net loss for the year was $135.9 million in 2022, compared to a net income of $59.4 million in 2021[33] - Cash and cash equivalents decreased to $80.5 million in 2022 from $107.1 million in 2021[38] - Total assets decreased to $1.88 billion in 2022 from $2.02 billion in 2021[38] - Operating cash flow increased to $194.2 million in 2022, up from $147.1 million in 2021[40] - Capital expenditures for mineral properties, plant, and equipment were $251.2 million in 2022, up from $152.3 million in 2021[40] - Impairment of mineral properties, plant, and equipment amounted to $182.8 million in 2022[33] - Total liabilities decreased to $587.5 million in 2022 from $592.4 million in 2021[38] - Retained earnings decreased to $138.5 million in 2022 from $266.6 million in 2021[38] - Comprehensive loss for the year was $136.2 million in 2022, compared to a comprehensive income of $56.1 million in 2021[35] - Total comprehensive loss for the year 2022 was $136.177 million, including a net loss of $135.906 million and other comprehensive loss of $271 thousand[41] Asset and Property Valuation - The carrying value of the Company's mineral properties, plant, and equipment was $1,567,622 thousand as of December 31, 2022[15] - The Company recorded a total impairment expense of $182,842 thousand for the Yaramoko, Lindero, and San Jose cash-generating units (CGUs)[15] - The recoverable amounts of the CGUs are based on discounted cash flows and represent fair value less cost of disposal, using CGU-specific assumptions[15] - Significant assumptions for recoverable amounts include mineral reserves, metal prices, production costs, capital expenditures, and discount rates[16] - The Company's life of mine plans for Caylloma and San Jose include inferred resources, which are based on geological characteristics and historical conversion rates[19] - Inferred resources included in 2022 life-of-mine plans: San Jose 31%, Caylloma 41%, Yaramoko 8%[74] - Conversion factors for inferred resources in 2022 life-of-mine plans: San Jose 90%, Caylloma 90%, Yaramoko 100%[73] - Property, plant, and equipment are recorded at cost, net of accumulated depreciation and impairments[77] - Pre-production stripping costs are capitalized and amortized over the production life of the mine[82] - Borrowing costs for qualifying assets are capitalized until the assets are capable of operating as intended[90] - Mineral properties and property, plant, and equipment increased to $2,438,696 thousand in 2022 from $2,211,020 thousand in 2021, with additions of $241,884 thousand[171] - Non-depletable mineral properties include $26.4 million of exploration and evaluation assets in 2022, up from $22.0 million in 2021[173] - Ore stockpiles increased to $43,439 thousand in 2022 from $20,398 thousand in 2021, contributing to total other non-current assets of $51,923 thousand[175] Internal Controls and Auditing - The Company's internal control over financial reporting was effective as of December 31, 2022, based on the Internal Control – Integrated Framework (2013)[25] - The consolidated financial statements were audited by KPMG LLP, which expressed an unqualified opinion on their fairness and conformity with IFRS[9] - The Audit Committee oversees financial reporting and internal controls, ensuring proper accountability and performance[4] - The Company maintains a system of internal controls to safeguard assets, ensure proper transaction recording, and produce reliable financial information[3] - KPMG LLP has served as the Company's auditor since 2017[22] Shareholder and Equity Information - The company repurchased 2,201,404 common shares for $5.929 million in 2022[41] - Share-based payments in 2022 amounted to $3.421 million[41] - The company's total equity decreased from $1.42957 billion in 2021 to $1.288696 billion in 2022[41] - In 2021, the company acquired Roxgold for $642.755 million, which included $582.523 million in share capital and $52.9 million in non-controlling interest[41] - The company recognized share-based payments of $10.2 million in 2022, compared to $3.8 million in 2021[196] - Outstanding Deferred Share Units (DSUs) increased from 805,055 in 2021 to 922,698 in 2022, with a fair value of $3,468 thousand[197] - Outstanding Restricted Share Units (RSUs) increased from 1,859,139 in 2021 to 1,948,709 in 2022, with a fair value of $3,840 thousand[197] - Outstanding Performance Share Units (PSUs) decreased from 515,008 in 2021 to 0 in 2022, with equity-settled PSUs increasing from 1,845,887 to 1,839,456[198] - Outstanding stock options decreased from 1,249,383 in 2021 to 636,818 in 2022, with a weighted average exercise price of $5.62[200] - The company has an unlimited number of common shares authorized for issue[201] Operations and Mining Activities - The company operates mines in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire, including the Lindero, Yaramoko, San Jose, and Caylloma mines[44] - The company is developing the Séguéla gold mine in Côte d'Ivoire[44] - The company's subsidiaries include Minera Bateas S.A.C. (100% ownership, Caylloma Mine), Compania Minera Cuzcatlan S.A. de C.V. (100% ownership, San Jose Mine), and Mansfield Minera S.A. (100% ownership, Lindero Mine)[50] - The company's functional currency is US dollars, except for subsidiaries like Roxgold Inc. (CAD) and Fortuna Silver Mines Australia Pty Ltd. (AUD)[56] - The business operations comprise the mining and processing of gold, silver-lead, zinc, and silver-gold, and the sale of these products[136] Accounting Policies and Standards - Inventories are valued at the lower of average production cost and estimated net realizable value, with stockpiled ore not expected to be processed within 12 months classified as non-current[59] - Exploration and evaluation assets are capitalized until properties are developed, abandoned, sold, or impaired[63] - If no mineable ore body is discovered, previously capitalized costs are expensed[64] - Proceeds from the sale of exploration and evaluation assets are credited to the carrying value of mineral properties[65] - Capitalized costs of producing properties are amortized on a unit-of-production basis over proven and probable reserves[67] - Closure and reclamation provisions are adjusted for changes in expected cash flows and timing[98] - The initial recognition of assets or liabilities, not arising in a business combination, does not affect accounting or taxable income[100] - The ultimate cost of future site closure and reclamation could differ from the amounts provided due to uncertainties in environmental remediation[102] - Environmental disturbance restoration provisions (EDRP) costs are accrued and charged to earnings in the period the event occurs, with subsequent adjustments also charged to earnings[103] - Provisions are recognized when a present legal or constructive obligation exists, and an outflow of resources is probable and reliably estimable[104] - Share-based payment expenses for cash-settled awards are accrued and expensed over the vesting period based on the quoted market value of the company's common shares[107] - The company's stock option plan applies the fair value method, with compensation expense recognized based on the fair value of options at the grant date[109] - Deferred share units (DSU) compensation liability is accounted for based on the number of DSUs outstanding and the quoted market value of the company's common shares[110] - Revenue from concentrate sales is recorded based on the forward market price of the expected final sales price date[134] - Adoption of new accounting standards effective from January 1, 2023, including amendments to IAS 1 and IFRS Practice Statement 2, requiring more specific disclosures about accounting policies and judgments[137] - Deferred tax related to assets and liabilities arising from single transactions clarified by amendments to IAS 12, effective from January 1, 2023[139] Inventory and Cost Management - Inventory valuation includes work-in-process and heap leach ore, with assumptions on gold recovery and price realization[151] - Recognized a charge of $8.9 million to reduce low-grade stockpiles at Lindero and Yaramoko to net realizable value, including $3.4 million related to depletion and depreciation[169] - Total inventories as of December 31, 2022, amounted to $135,472 thousand, with $481.5 million expensed to cost of sales during the year[168] Debt and Financing - Total debt increased to $219,175 thousand in 2022 from $157,489 thousand in 2021, with credit facility drawdowns of $80,000 thousand[182] - The credit facility was increased from $200.0 million to $250.0 million, with an uncommitted $50.0 million accordion option introduced[184] - The company paid $2.1 million in interest on the Debentures for the year ended December 31, 2022[190] - The Debentures are convertible into common shares at a conversion price of $5.00 per share, representing a conversion rate of 200 Common Shares per $1 thousand principal amount[191] Environmental and Closure Provisions - Closure and reclamation provisions decreased from $56,112 thousand in 2021 to $53,305 thousand in 2022, with a non-current portion of $51,128 thousand[195] - Reclamation and closure provisions estimated based on mine closure plans, subject to changes in laws and regulations[152] Revenue and Receivables - Revenue from metal in concentrate subject to provisional pricing adjustments based on market prices at the end of the quotational period[154] - Trade receivables from doré and concentrate sales totaled $23,977 thousand as of December 31, 2022[165] Contingencies and Liabilities - Contingencies assessed with significant judgment, recognizing liabilities when outcomes are probable and estimable[157] - Total other non-current liabilities decreased from $3,310 thousand in 2021 to $2,596 thousand in 2022[194] Management Compensation - Amounts paid to key management personnel increased to $19,577 thousand in 2022 from $10,940 thousand in 2021, with share-based payments rising to $7,042 thousand from $2,565 thousand[180] Other Financial Information - Other current assets increased to $12,021 thousand in 2022 from $11,679 thousand in 2021, with derivatives decreasing significantly to $19 thousand from $1,490 thousand[170] - Trade and other payables decreased to $111,896 thousand in 2022 from $133,805 thousand in 2021, with trade accounts payable dropping to $72,571 thousand from $82,533 thousand[176] - Capitalized $3.3 million of interest related to the construction of the Séguéla Mine in 2022[172]