[Management's Responsibility and Independent Auditor's Report](index=2&type=section&id=Management's%20Responsibility%20and%20Independent%20Auditor's%20Report) [Management's Responsibility for the Financial Statements](index=2&type=section&id=Management's%20Responsibility%20for%20the%20Financial%20Statements) Management confirms responsibility for IFRS financial statements and maintains internal controls for reliable financial reporting - Management is responsible for preparing financial statements in accordance with **IFRS** and for the accompanying **MD&A** content[2](index=2&type=chunk) - The Company maintains **Internal Control over Financial Reporting** and **Disclosure Controls** for asset safeguarding and reliable financial information[3](index=3&type=chunk) - Financial statements were audited by **KPMG LLP** in accordance with **PCAOB** standards[5](index=5&type=chunk) [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on financial statements and internal controls, identifying Lindero CGU impairment as a critical audit matter - **KPMG LLP** issued an **unqualified opinion** on the fair presentation of financial statements for 2023 and 2022 in accordance with **IFRS**[8](index=8&type=chunk) - An **unqualified opinion** was also issued on the effectiveness of **internal control over financial reporting** as of December 31, 2023[9](index=9&type=chunk)[17](index=17&type=chunk) - A **critical audit matter** involved the **Lindero CGU impairment assessment** due to increased costs, requiring significant judgment on assumptions, though no impairment was ultimately required[13](index=13&type=chunk)[14](index=14&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) Net loss improved to **$43.6 million** in 2023 from **$135.9 million** in 2022, primarily due to lower impairment charges and increased sales Consolidated Income (Loss) Statement Highlights (in thousands of US$) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $842,428 | $681,491 | | Mine operating income | $190,025 | $146,796 | | Impairment of mineral properties | $90,615 | $182,842 | | Operating loss | $(407) | $(113,552) | | Net loss for the year | $(43,630) | $(135,906) | | Basic and Diluted Loss per share | $(0.17) | $(0.44) | [Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive loss for 2023 was **$45.5 million**, a significant reduction from **$136.2 million** in 2022, including currency translation adjustments Consolidated Comprehensive Income (Loss) (in thousands of US$) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net loss for the year | $(43,630) | $(135,906) | | Total other comprehensive income (loss) | $(1,881) | $(271) | | **Comprehensive loss for the year** | **$(45,511)** | **$(136,177)** | [Consolidated Statements of Financial Position](index=9&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **$1.97 billion** in 2023, while total liabilities rose to **$679.7 million**, with total equity remaining stable at **$1.29 billion** Consolidated Financial Position Highlights (in thousands of US$) | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$333,325** | **$252,712** | | Cash and cash equivalents | $128,148 | $80,493 | | **Total Assets** | **$1,967,863** | **$1,876,224** | | **Total Current Liabilities** | **$243,770** | **$135,080** | | **Total Liabilities** | **$679,742** | **$587,528** | | **Total Equity** | **$1,288,121** | **$1,288,696** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$296.9 million** in 2023, leading to a **$47.7 million** increase in cash and equivalents, totaling **$128.1 million** Consolidated Cash Flow Highlights (in thousands of US$) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $296,909 | $194,249 | | Net cash used in investing activities | $(216,884) | $(255,333) | | Net cash (used in) provided by financing activities | $(32,716) | $38,466 | | **Increase (decrease) in cash and cash equivalents** | **$47,655** | **$(26,604)** | | **Cash and cash equivalents, end of year** | **$128,148** | **$80,493** | [Consolidated Statements of Changes in Equity](index=11&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity remained stable at **$1.288 billion** in 2023, with net loss offset by share issuances for the Chesser acquisition Changes in Equity (in thousands of US$) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Balance at January 1 | $1,288,696 | $1,429,570 | | Total comprehensive loss for the year | $(45,511) | $(136,177) | | Transactions with owners (net) | $44,936 | $(4,697) | | **Balance at December 31** | **$1,288,121** | **$1,288,696** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Nature of Operations](index=12&type=section&id=1.%20NATURE%20OF%20OPERATIONS) The company is a Canadian public company operating five precious and base metal mines across Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru - The Company operates **five mines** across Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru, focusing on **precious and base metals**[36](index=36&type=chunk) - The Company's common shares are listed on the **NYSE (FSM)** and **TSX (FVI)**[37](index=37&type=chunk) [8. Acquisition of Chesser Resources](index=29&type=section&id=8.%20ACQUISITION%20OF%20CHESSER%20RESOURCES) The company acquired **Chesser Resources** for **$59.3 million** in September 2023, gaining exploration projects in Senegal, accounted for as an asset acquisition - The company acquired Chesser Resources on September 20, 2023, for its exploration projects in Senegal, treated as an **asset acquisition**[155](index=155&type=chunk)[156](index=156&type=chunk) Acquisition Cost and Asset Allocation (in thousands of US$) | Item | Amount | | :--- | :--- | | **Consideration Transferred** | | | Shares issued | $45,548 | | Acquisition costs & other fees | $13,765 | | **Total Cost of Acquisition** | **$59,313** | | **Assets Acquired (Net)** | | | Exploration and evaluation assets | $58,862 | | Cash and other net assets | $451 | | **Total Assets Acquired** | **$59,313** | [9. Mineral Properties and Property, Plant and Equipment](index=30&type=section&id=9.%20MINERAL%20PROPERTIES%20AND%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) Net book value of mineral properties and PPE was **$1.57 billion** in 2023, with the Séguéla mine achieving commercial production and a **$90.6 million** impairment charge recorded - The **Séguéla mine** achieved commercial production in mid-2023, initiating depreciation and ceasing interest capitalization for related assets[160](index=160&type=chunk) Mineral Properties and PPE Movement (in thousands of US$) | Description | Dec 31, 2022 | Additions/Acquisitions | Impairment | Depletion/Depreciation | Other | Dec 31, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Book Value** | **$1,567,622** | **$334,965** | **$(90,615)** | **$(241,071)** | **$3,211** | **$1,574,212** | [14. Debt](index=32&type=section&id=14.%20DEBT) Total debt decreased to **$206.8 million** in 2023, comprising a **$162.9 million** credit facility and **$43.9 million** in convertible debentures maturing in October 2024 Debt Summary (in thousands of US$) | Debt Type | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Credit facility | $162,946 | $177,020 | | Convertible debentures | $43,901 | $42,155 | | **Total Debt** | **$206,847** | **$219,175** | | Current portion | $43,901 | - | | Non-current portion | $162,946 | $219,175 | - The **$250 million Amended Credit Facility** matures in November 2025, secured by pledges from the Company and its operating subsidiaries[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - The **$46.0 million convertible debentures** mature on October 31, 2024, convertible at **C$5.00 per share**[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) [20. Sales](index=39&type=section&id=20.%20SALES) Total sales increased by **23.6%** to **$842.4 million** in 2023, driven by the new Séguéla mine and significant customer concentration Sales by Geography (in thousands of US$) | Location | 2023 | 2022 | | :--- | :--- | :--- | | Argentina (Lindero) | $207,509 | $212,092 | | Burkina Faso (Yaramoko) | $228,846 | $193,541 | | Côte d'Ivoire (Séguéla) | $154,165 | - | | Mexico (San Jose) | $149,706 | $173,527 | | Peru (Caylloma) | $102,202 | $102,331 | | **Total Sales** | **$842,428** | **$681,491** | - The company exhibits **significant customer concentration**, with the top customer accounting for **27%** of sales and the top three for **70%** in 2023[193](index=193&type=chunk) [23. Other (Income) Expenses](index=40&type=section&id=23.%20OTHER%20(INCOME)%20EXPENSES) Other expenses sharply increased to **$18.9 million** in 2023, primarily due to one-time costs including severance provisions and work stoppage-related expenses - Other expenses for 2023 included several **significant one-off items**[197](index=197&type=chunk) - $6.4 million in severance provisions for the anticipated San Jose mine closure at the end of 2024 - $2.8 million for a new union agreement at San Jose - $1.5 million for standby costs during a work stoppage at San Jose - $3.7 million in administrative penalties at Yaramoko - $2.0 million for standby costs during a work stoppage at Yaramoko [25. Income Tax](index=41&type=section&id=25.%20INCOME%20TAX) Total income tax expense was **$32.6 million** in 2023 on a pre-tax loss, with the effective tax rate significantly impacted by foreign exchange and inflation adjustments Income Tax Expense (in thousands of US$) | Description | 2023 | 2022 | | :--- | :--- | :--- | | Current income tax expense | $42,636 | $35,783 | | Deferred tax expense (recovery) | $(10,057) | $(24,986) | | **Total income tax expense** | **$32,579** | **$10,797** | - As of December 31, 2023, the company had **$347.8 million** in unrecognized deductible temporary differences and unused tax losses, with no deferred tax asset recognized[201](index=201&type=chunk) [26. Segmented Information](index=43&type=section&id=26.%20SEGMENTED%20INFORMATION) In 2023, the **Sango (Séguéla)** segment reported the highest pre-tax income, while **Cuzcatlan (San Jose)** incurred the largest loss due to an impairment charge Segment Income (Loss) Before Taxes for 2023 (in thousands of US$) | Segment (Mine) | Revenues | Segment Income (Loss) Before Taxes | | :--- | :--- | :--- | | Sango (Séguéla) | $154,165 | $65,588 | | Sanu (Yaramoko) | $228,846 | $35,127 | | Bateas (Caylloma) | $102,202 | $28,039 | | Mansfield (Lindero) | $207,509 | $20,200 | | Cuzcatlan (San Jose) | $149,706 | $(106,416) | | Corporate | - | $(53,589) | | **Total** | **$842,428** | **$(11,051)** | [28. Management of Financial Risk](index=48&type=section&id=28.%20MANAGEMENT%20OF%20FINANCIAL%20RISK) The company faces credit, liquidity, currency, metal price, and interest rate risks, with a significant liquidity risk tied to the San Jose mine legal proceedings - The company had **$213.1 million** in liquidity as of December 31, 2023, from cash and undrawn credit facilities[214](index=214&type=chunk) - A **significant liquidity risk** stems from legal proceedings regarding the **San Jose mine's EIA**, potentially triggering a **credit facility default** if unresolved by December 31, 2024[215](index=215&type=chunk)[217](index=217&type=chunk) - The company is exposed to **significant currency risk**, particularly with the West African CFA Franc, Canadian Dollar, Mexican Peso, and Peruvian Sol[219](index=219&type=chunk) - **Capital controls in Argentina** require conversion of gold doré export proceeds into Argentine Pesos, impacting capital management[225](index=225&type=chunk) [31. Contingencies and Capital Commitments](index=54&type=section&id=31.%20CONTINGENCIES%20AND%20CAPITAL%20COMMITMENTS) The company faces various contingencies, including mine closure guarantees, a potential **$16.7 million** service contract termination payment, and ongoing tax disputes in Peru and Argentina - The company provided a **$12.9 million bank letter of guarantee** to the Peruvian government for the **Caylloma mine closure plan**[234](index=234&type=chunk) - A service agreement at the **Séguéla mine** has a potential **$16.7 million early termination payment** if terminated as of December 31, 2023[237](index=237&type=chunk) - The company is appealing **$1.9 million** in Peruvian tax assessments related to disallowed deductions for 2010 and 2011[239](index=239&type=chunk)[241](index=241&type=chunk) - In Argentina, the company challenged a **'windfall income tax prepayment'** and secured a **preliminary injunction** during litigation over its constitutionality[246](index=246&type=chunk)[247](index=247&type=chunk) [32. Impairment](index=57&type=section&id=32.%20IMPAIRMENT) A **$90.6 million impairment charge** was recorded for the **San Jose mine** due to a shortened mine life and rising costs, while the Lindero CGU required no impairment - An **impairment charge of $90.6 million** was recorded for the **San Jose mine**, reducing its carrying value to a recoverable amount of **$10.0 million**[252](index=252&type=chunk) - The **San Jose impairment** resulted from a shortened mine life to end-2024, driven by significant cost increases from **Mexican Peso appreciation**, higher labor costs, and inflation[251](index=251&type=chunk)[255](index=255&type=chunk) - The **Lindero mine** showed impairment indicators from increased costs, but no impairment charge was required as of December 31, 2023, after testing[253](index=253&type=chunk) Key Assumptions for Impairment Testing | Assumption | Lindero | San Jose | | :--- | :--- | :--- | | Discount Rate (after-tax) | 7.7% | 6.6% | | Long-Term Gold Price | $1,800/oz | $1,800/oz | | Long-Term Silver Price | $23.00/oz | $23.00/oz | [33. Subsequent Events](index=58&type=section&id=33.%20SUBSEQUENT%20EVENTS) The reinstatement of the **San Jose mine's environmental permit** was appealed in January 2024, with a final decision expected within 6-12 months, critical for avoiding credit facility default - A favorable court ruling reinstating the **San Jose mine's 12-year environmental permit** has been appealed, with the mine operating under a **permanent injunction**[260](index=260&type=chunk) - A final Appeals Court decision is expected within **6-12 months**; failure to secure a positive, unappealable ruling by December 31, 2024, will trigger a **credit facility default**[260](index=260&type=chunk)

VANCOUVER, British Columbia, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) announces that it will release its financial statements and MD&A for the fourth quarter and full year 2023 on Wednesday, March 6, 2024, after the market closes. A conference call to discuss the financial and operational results will be held on Thursday, March 7, 2024, at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chi ...

VANCOUVER, British Columbia, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) announces that it will release its financial statements and MD&A for the fourth quarter and full year 2023 on Wednesday, March 6, 2024, after the market closes. A conference call to discuss the financial and operational results will be held on Thursday, March 7, 2024, at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, C ...

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 ...

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 ...