TORONTO (miningweekly.com) – Latin America-focused miner Fortuna Silver Mines on Wednesday said first-quarter production from its two operating mines was in line with expectations and placed the company on track to achieve its 2013 production guidance.
The company said year-on-year silver production increased by 4% to 992 218 oz and gold production declined by 13% to 4 492 oz.
Lead production increased by 4% to 4.61-million pounds when compared with the same quarter in 2012, and zinc production rose by 12% to 5.93-million, compared with the same period a year earlier.
Fortuna said cash cost for the San Jose mine, which is located in Mexico, increased to $78/t, 2% above guidance of $76/t. Cash cost for the Caylloma mine, in Peru had decreased to $94.2/t, a 2% decrease over guidance of $96/t.
CEO Jorge A Ganoza said the company expected to see quarterly silver and gold production growth starting from the third quarter, when the company had commissioned the expansion of the San Jose mine from 1 000 t/d to 1 500 t/d. The project was reported as being on time and on budget.
Fortuna said it was on track to produce 4.4-million ounces of silver and 23 300 oz of gold, or 5.7-million silver-equivalent ounces this year.
The TSX-listed shares of Fortune on Wednesday declined by 7.96% to trade at C$2.89 apiece.