Wednesday, August 31, 2011

Fortuna Silver's (FVI.to) record production month at Caylloma

While all the market watchers look to the brand spanking new San José mine in Mexico for their Fortuna Silver (FVI.to) kicks and most get warm and fuzzy about the new NYSE listing, your humble scribe's attention is drawn to the production numbers out of the established mine at Caylloma Peru, because the July numbers have just been published and THEY RAWK.

  • Context: In 2q11 FVI reported production of 474,979 oz Ag. If you split that down into months by a simple 3 division, you get 158,326oz Ag/month.

  • In the July figures just released, the Caylloma mine reports production of 6063kg, which is 194,951oz Ag in old money. That's an all-time record for the mine.

  • As silver's average selling price for the month of July was around U$37.91/oz (according to the London Fix average at least), we're looking at about $1.4m of extra income compared to the average month of 2q11. Just the silver, just one month of three, just the extra on top. Cool beans, no?


"And how do you know the July 2011 production numbers for Caylloma, Otto?", I hear you ask. Easy, I know my way around this website (and my kung fu is strong). DYODD.