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Fortuna Reports Revenue Of $8.8 Million, Operating Cash Flow Of
$3.06 Million And Net Income Of $0.95 Million For 2Q 2007.
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August 15, 2007 -- Fortuna Silver Mines Inc. (TSX-V: FVI) reports it
has filed its financial statements for the six months ended June 30,
2007. The financial statements are available on SEDAR and have been
posted on the Company's website at www.fortunasilver.com.
Second quarter 2007 highlights:
.. Increase in revenue of 53% over the previous quarter to $8.8 million.
.. Quarterly operating cash flow of $3.06 million, before changes in
non-cash working capital.
.. Net income of $0.95 million, operating income of $2.44 million, and
mine operating income of $4.01 million.
.. Metal production; 119,110 oz of silver, 1,605 MT of zinc, and 952 MT
of lead. Up 25%, 36%, and 47% respectively over the previous quarter.
.. 25,000 meter drill program underway at San Jose delivering consistent
results as reported in our two news releases dated May 30th and July
16th, 2007.
During the second quarter of 2007 the Company recorded a Net Income of
$0.95 million on Revenue of $8.8 million from the sales of lead-silver
and zinc concentrate from the Caylloma Mine. Net Cash provided by
operating activities at the consolidated level totaled $3.06 million
before changes in non-cash working capital.
The Caylloma Mine continued to deliver strong operating performance
with significant increases in metal production of silver, zinc, and
lead compared to the previous quarter. Total ore milled during the
quarter increased 21% with respect to the previous period to 63,806
tonnes. Cash production cost per tonne of processed ore was US$46.65
against a Net Smelter Return value per tonne of processed ore of
US$123.65.
The mine and mill operations at Caylloma have continued to show steady
monthly increments in throughput, and improvements in efficiency and
have now reached design parameters. As at June 30, 2007, Fortuna held
$35.28 million in cash and cash equivalents, and had working capital of
$39.14 million. The Company has no long term debt.
Background
Fortuna is a growth-oriented silver and base metal producer focused on
mining opportunities in Latin America. The Company's primary assets are
the Caylloma Silver-Base Metals Mine in southern Peru and the San Jose
Silver-Gold Project in Mexico. The Company is aggressively pursuing
additional acquisition opportunities. For more information, please
visit our website at www.fortunasilver.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD,
Jorge Ganoza Durant, President
Fortuna Silver Mines Inc.
Investor Relations: Ralph Rushton
Tel: 604-484-4085
Symbol: TSX-V:FVI
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Copyright (c) 2007 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:info@fortunasilver.com
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