Thursday, August 12, 2010

Fortuna Silver ( reports its quarter

How earnings have progressed at FVI, 2007 to date

Fortuna Silver ( filed its 2q10 financials and its 2q10 MD&A (click on those links to download your copies) a few minutes ago. A solid quarter (as expected) including:
  • 5c EPS
  • 55% operating margin at Caylloma
  • Cash cost at Caylloma of negative $5.23/oz silver
  • A strong working cap position of U$71.7m, more than enough to pay for the San José capex (even if you forget the earnings to come in the next quarters at Caylloma)

This stock is dirt cheap. Toldya enough times and repeated the message in IKN65, two Sundays ago, using these words:
Fortuna Silver ( The holding pattern continues. I’m just going to take a couple of lines here to say out loud that I still believe this current period is an outstanding window of opportunity to accumulate FVI shares and that this stock is as good as they come in the junior mining world. When push comes to shove, you can keep your hotpot juniors with their discovery holes and overhyped potential, because I’ll take exceptional underlying value as my point of departure every single time. Top pick, end of story. Rah-rah.

Those words were written with FVI at $2.08. It's now $2.40. Just sayin'. More analysis in IKN67 this Sunday. DYODD.