Jorge Ganoza, Fortuna Silver Mines: Company Has "a Lot of Tolerance" for Low Prices

TL;DR

Jorge Ginoza, CEO of Fortuna Silver Mines, discusses the current mood in the gold space, the company's focus on operational excellence, and the upcoming Lindero project.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is Jorge Ginoza president CEO and director at Fortuna silver mines thanks so much for joining me right now good afternoon Charlotte and great to be here with you we're here right now at the Denver Gold forum how's the mood feeling to you what's your sense of how people are ... Read More

Key Insights

• 😘 The gold space is currently facing low metal prices and consolidation, impacting the mood in the industry.
• 🎮 Fortuna Silver Mines focuses on controlling costs, acquiring valuable assets, and operational excellence regardless of price fluctuations.
• 🤩 The Lindero project is the key catalyst for Fortuna's value growth, with the potential to double their EBITDA and unlock significant valuation.
• 👻 Fortuna has a strong consolidated EBITDA margin, allowing them to thrive in a difficult price environment.
• 🤘 The company is focused on meeting production guidance and expects to exceed it on precious metals by 10-15% for the year.
• ↩️ Fortuna is not actively seeking corporate transactions or M&A but rather prioritizing organic growth and maximizing returns for shareholders.
• 💝 The Denver Gold Forum is a platform where industry professionals gather to discuss the latest trends and developments in the gold sector.

Questions & Answers

Q: How are people feeling about the gold space at the Denver Gold Forum?

The mood is a bit down due to low metal prices and consolidation in the industry, which brings some energy but also uncertainty.

Q: What are Fortuna's thoughts on Silver's price performance this year?

Fortuna focuses on controlling costs and acquiring valuable assets rather than being price-dependent. They hope for higher prices but prioritize operational excellence and prudent deployment of capital.

Q: How do fluctuations in silver and gold prices affect Fortuna as a business?

Fortuna has a strong consolidated EBITDA margin of around 40-45%, allowing them to not just survive but thrive in a difficult price environment. While fluctuations impact them, they have healthy margins and tolerance for depressed prices.

Q: What is the upcoming catalyst for Fortuna's value growth?

The Lindero project, a $250 million investment and the company's third mine, is scheduled to come into production in late third quarter next year. Fortuna expects it to double their EBITDA, unlocking significant potential in their valuation.

Summary & Key Takeaways

• The current mood in the gold space is down due to low metal prices and consolidation in the industry.

• Fortuna Silver Mines focuses on controlling costs and acquiring valuable assets rather than worrying about price fluctuations.

• Fluctuations in silver and gold prices have minimal impact on Fortuna Silver Mines due to their healthy margins and tolerance for depressed prices.