Fortuna Silver Mines Inc (NYSE:FSM) seems to have begun the year on good footing. The Canada-based mining company says it is pleased with the first quarter 2017 production results of its two operating mines in Latin America. The San Jose Mine in Mexico had 1,792,967 ounces and 13,116 ounces of silver and gold production respectively while the Caylloma Mine in Peru recorded 240,224 ounces of silver production.
The company has been on a trail of success
Fortuna has had increasing purchase of its stakes as well as shares of its stock. A number of large investors are either buying new stakes or modifying what they already have with FSM. Among the companies that have acquired new stakes are OLD Mission Capital and Pacad Investment Ltd worth of $191,000 and $204,000 respectively.
The company’s President and CEO, Jorge A. Ganoza says that the new development is in line with their control of production and cost figures. “2017 is our first full year at the new expanded rates of production at both our mines, which shows favorably when comparing quarter over quarter,” he said.
The continued focus of mine development, exploration and resource definition
Fortuna will not just settle for the solid result of silver and gold production. It has a larger goal, which involves optimization of work continued advancement of its Lindero gold project in Argentina. Its third quarter of the year aims at supporting a construction decision.
The company is holding onto the Caylloma silver Mine in southern Peru, the Lindero gold Project in Argentina and San Jose silver-gold Mine in Mexico as the primary assets of its business. Apart from looking out for mining opportunities in Latin America, it is also eyeing pursuing acquisition opportunities in selective areas within America.
THe firm seems to be attracting strategic investments despite downgrades. Several brokerages have cut its shares from a “buy” rating to a “hold” rating while others have raised the shares from an “outperform” rating to a “strong-buy” rating.
In the meantime, Fortuna’s stock closed at $5.15.
