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Fortuna Silver Mines (FSM - Free Report) announced that its Yaramoko Mine in Burkina Faso reached the milestone of producing 1 million ounces of gold on May 19, 2024.
The mine has been in production since May 16, 2016. Yaramoko was added to Fortuna Silver’s portfolio following its acquisition of Roxgold on Jul 2, 2021.
The Yaramoko Mine consists of two underground gold mines: the 55 Zone and Bagassi South. The deposits are greenstone-hosted high-grade orogenic gold deposits.
Yaramoko produced 117,711 ounces of gold in 2023 and 27,177 ounces of gold in the first quarter of 2024. Per the data provided by the company, as of Dec 31, 2023, Yaramoko had proven and probable mineral reserves of 0.9 Mt at a grade of 7.90 g/t of gold, along with 219,000 ounces of gold. It has measured and indicated mineral resources (exclusive of mineral reserves) of 0.5 Mt at a grade of 2.87 g/t of gold, which contain 43,000 ounces of gold. Inferred mineral resources, exclusive of mineral reserves, were 0.16 Mt at a grade of 3.52 g/t of gold and contained 18,000 ounces of gold.
The company has set an exploration budget for the mine at $6.1 million for 2024. This includes 41,450 meters of drilling. Based on reserves reported as of Dec 31, 2023, the operation has a remaining mine life of two years.
Yaramoko boasts a top-tier health and safety record, with no Lost Time Injury Incidents over the past 3.5 years and 9 million working hours.
FSM currently has five operating mines: Caylloma Mine in Arequipa, Peru, Lindero Mine in Salta, Argentina, San Jose Mine in Oaxaca, Mexico, Yaramoko and Séguéla Gold Mine in Côte d'Ivoire. The Séguéla mine, the most recent addition, poured its first gold in May 2023.
Fortuna Silver produced 89,678 ounces of gold in the first quarter, up 49% from the year-ago quarter while silver production plunged 32% to 1.07 million ounces. Gold equivalent production increased 19.6% year over year to 112,543 ounces. The improvement was mainly attributed to the contribution of Séguéla.
FSM expects to produce gold in the range of 343-385 thousand ounces in 2024. Yaramoko’s contribution is projected at 105-119 thousand ounces of gold. Silver production is expected to be between 4.0 million and 4.7 million ounces. Gold equivalent ounces are expected in the range of 457,000-497,000.
Fortuna Silver reported adjusted earnings per share of 9 cents in the first quarter, which marked an 80% improvement year over year. Revenues were up 28% year over year to $225 million, attributed to an increase in gold sales volumes and higher realized gold and silver prices.
Price Performance
Shares of Fortuna Silver have gained 67% in the past year compared with the industry’s 43% growth.
Other top-ranked stocks in the basic materials space are ATI Inc. (ATI - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) .
ATI sports a Zacks Rank of 1 at present. ATI beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 8.3%. The company’s shares have soared 60.3% in the past year.
Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 129.4% in the past year.
ECL, which currently carries a Zacks Rank of 2, beat the consensus estimate in each of the last four quarters, the average earnings surprise being 1.3%. The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The company’s shares have rallied roughly 39.5% in the past year.
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Fortuna Silver's (FSM) Yaramoko Hits 1M Ounce Gold Milestone
Fortuna Silver Mines (FSM - Free Report) announced that its Yaramoko Mine in Burkina Faso reached the milestone of producing 1 million ounces of gold on May 19, 2024.
The mine has been in production since May 16, 2016. Yaramoko was added to Fortuna Silver’s portfolio following its acquisition of Roxgold on Jul 2, 2021.
The Yaramoko Mine consists of two underground gold mines: the 55 Zone and Bagassi South. The deposits are greenstone-hosted high-grade orogenic gold deposits.
Yaramoko produced 117,711 ounces of gold in 2023 and 27,177 ounces of gold in the first quarter of 2024. Per the data provided by the company, as of Dec 31, 2023, Yaramoko had proven and probable mineral reserves of 0.9 Mt at a grade of 7.90 g/t of gold, along with 219,000 ounces of gold. It has measured and indicated mineral resources (exclusive of mineral reserves) of 0.5 Mt at a grade of 2.87 g/t of gold, which contain 43,000 ounces of gold. Inferred mineral resources, exclusive of mineral reserves, were 0.16 Mt at a grade of 3.52 g/t of gold and contained 18,000 ounces of gold.
The company has set an exploration budget for the mine at $6.1 million for 2024. This includes 41,450 meters of drilling. Based on reserves reported as of Dec 31, 2023, the operation has a remaining mine life of two years.
Yaramoko boasts a top-tier health and safety record, with no Lost Time Injury Incidents over the past 3.5 years and 9 million working hours.
FSM currently has five operating mines: Caylloma Mine in Arequipa, Peru, Lindero Mine in Salta, Argentina, San Jose Mine in Oaxaca, Mexico, Yaramoko and Séguéla Gold Mine in Côte d'Ivoire. The Séguéla mine, the most recent addition, poured its first gold in May 2023.
Fortuna Silver produced 89,678 ounces of gold in the first quarter, up 49% from the year-ago quarter while silver production plunged 32% to 1.07 million ounces. Gold equivalent production increased 19.6% year over year to 112,543 ounces. The improvement was mainly attributed to the contribution of Séguéla.
FSM expects to produce gold in the range of 343-385 thousand ounces in 2024. Yaramoko’s contribution is projected at 105-119 thousand ounces of gold. Silver production is expected to be between 4.0 million and 4.7 million ounces. Gold equivalent ounces are expected in the range of 457,000-497,000.
Fortuna Silver reported adjusted earnings per share of 9 cents in the first quarter, which marked an 80% improvement year over year. Revenues were up 28% year over year to $225 million, attributed to an increase in gold sales volumes and higher realized gold and silver prices.
Price Performance
Shares of Fortuna Silver have gained 67% in the past year compared with the industry’s 43% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
FSM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the basic materials space are ATI Inc. (ATI - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) .
ATI sports a Zacks Rank of 1 at present. ATI beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 8.3%. The company’s shares have soared 60.3% in the past year.
Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 129.4% in the past year.
ECL, which currently carries a Zacks Rank of 2, beat the consensus estimate in each of the last four quarters, the average earnings surprise being 1.3%. The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The company’s shares have rallied roughly 39.5% in the past year.