(All amounts are expressed in US dollars, tabular amounts in millions, unless otherwise stated) VANCOUVER, British Columbia, May 07, 2024 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) ("Fortuna" or the "Company") today reported its financial and operating results for the first quarter of 2024. First Quarter 2024 highlights Financial Attributable net income of $26.3 million or $0.09 per share, compared to a $92.3 million attributable net loss or $0.30 per share in Q4 2023 Adjusted attributable net income1 of $26.7 million or $0.09 per share, compared to $20.6 million or $0.07 per share in Q4 2023 Generated $84.3 million of cash flow from operations before working capital changes, and free cash flow from ongoing operations1 of $12.1 million, compared to $105.4 million and $66.2 million, respectively, in Q4 2023 The Company paid down $40.0 million of its revolving credit facility. At the close of the quarter total net debt was $83.0 million and the total net debt to adjusted EBITDA ratio1 was 0.2:1 Liquidity as of March 31, 2024 was $212.7 million2, compared to $213.1 million at the end of Q4 2023 Return to Shareholders Returned $3.5 million of capital to shareholders during the quarter through the Company's normal course issuer bid ("NCIB") program On April 30, 2024 Fortuna announced that the TSX had approved the renewal of the Company's NCIB program to purchase 5% of its outstanding common shares. Operational Gold equivalent3 production of 112,543 ounces, compared to 136,154 ounces in Q4 2023 Gold production of 89,678 ounces, compared to 107,376 ounces in Q4 2023 Silver production of 1,074,571 ounces, compared to 1,354,003 ounces in Q4 2023 Consolidated cash costs1 per ounce of gold equivalent sold of $879, compared to $840 in Q4 2023; adjusting for San Jose, which is mining its last year of Mineral Reserves, consolidated cash costs was $744 Consolidated all-in sustaining cash costs (AISC)1 per ounce of gold equivalent sold of $1,495, compared to $1,509 in Q4 2023; adjusting for San Jose, consolidated AISC was $1,412 Year to date Lost Time Injury Frequency Rate (LTIFR) of 1.13 and Total Recordable Injury Frequency Rate (TRIFR) of 3.10 Growth and Development At Séguéla, mill throughput for the quarter averaged 195 tonnes per hour (t/hr), versus name plate design capacity of 154 t/hr. Mill constraints continued to be tested with throughputs of up to 220 t/hr being recorded over a seven-day period. The Kingfisher prospect was identified at Séguéla which continues the identification of new prospects at the site. Refer to the News Release "Fortuna discovers new Kingfisher prospect at Séguéla Mine and provides exploration update at the Diamba Sud Gold Project" dated March 11, 2024. Exploration continued at the Yessi Vein at San Jose including an intercept of 1kg silver equivalent over an estimated true width of 8.1 meters highlighting the potential for high-grade shoots. Refer to the News Release "Fortuna intersects 1kg Ag Eq over an estimated true width of 8.1m at the Yessi vein, San Jose Mine, Mexico" dated April 15, 2024. "Our operations performed in line with expectations for the first quarter with 112,543 of gold equivalent production, $84.3 million in cash from operations before working capital changes and earnings per share of $0.09." said Jorge Ganoza, Fortuna's President and CEO. Mr. Ganoza continued "Coming off a record fourth quarter, lower production was in line with plan as Séguéla prepared the Ancien pit for mining, a maintenance shutdown was completed at Yaramoko and San Jose focused on underground preparation with site production weighted to the second half of the year." Mr. Ganoza concluded, "We also executed on our capital priorities by paying down an additional $40 million in debt and advancing exciting exploration opportunities at Séguéla and Diamba Sud while also returning capital to shareholders through our share buyback program." First Quarter 2024 Consolidated Results                         Three months ended March 31, (Expressed in millions)     2024       2023   % Change Sales     224.9       175.7     28 % Mine operating income     69.9       40.4     73 % Operating income     47.1       23.9     97 % Attributable net income     26.3       10.9     141 % Attributable income per share - basic     0.09       0.04     132 % Adjusted attributable net income1     26.7       12.2     119 % Adjusted EBITDA1     95.2       65.3     46 % Net cash provided by operating activities     48.9       41.8     17 % Free cash flow from ongoing operations1     12.1       8.5     42 % Cash cost ($/oz Au Eq)1     879       916     (4 %) All-in sustaining cash cost ($/oz Au Eq)1     1,495       1,514     (1 %) Capital expenditures2                   Sustaining     25.8       27.9     (8 %) Non-sustaining3     8.8       1.2     633 % Séguéla construction     -       25.7     (100 %) Brownfields     6.7       4.9     37 % As at     March 31, 2024       December 31, 2023   % Change Cash and cash equivalents     87.7       128.1     (32 %) Net liquidity position (excluding letters of credit)     212.7       213.1     (0 %) Shareholder's equity attributable to Fortuna shareholders     1,260.8       1,238.4     2 % 1 Refer to Non-IFRS Financial Measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures. 2 Capital expenditures are presented on a cash basis   3 Non-sustaining expenditures include greenfields exploration   Figures may not add due to rounding       First Quarter 2024 Results Attributable Net Income and Adjusted Attributable Net IncomeNet income attributable to Fortuna for the quarter was $26.3 million compared to $10.9 million in Q1 2023. After adjusting for non-cash and non-recurring items, adjusted attributable net income for the quarter was $26.7 million compared to $12.2 million in Q1 2023. The increase in net income and adjusted net income is explained mainly by increased gold sales volume and higher realized gold and silver prices. Higher gold sales volume was primarily due to contributions from Séguéla which was under construction in the comparable period. This was partially offset by lower silver production at San Jose as the mine exhausts its Mineral Reserves. The realized gold and silver prices were $2,087 and $23.43 per ounce respectively compared to $1,893 and $22.52 per ounce, respectively, for the comparable period in the prior year. Other items impacting the adjusted net income for the quarter compared to Q1 2023 were higher G&A of $2.8 million, related to the addition of Séguéla G&A and timing of execution on certain corporate G&A items; higher foreign exchange loss of $2.5 million related mainly to our West African operations; and higher interest expense of $3.6 million, explained by $2.8 million of capitalized interest expense in the comparative period vs nil in Q1 2024 and higher accretion of right of use lease liabilities. Depreciation and DepletionDepreciation and depletion for the first quarter of 2024 was $50.3 million compared to $44.1 million in the comparable period. The increase in depreciation and depletion was primarily the result of higher sales volume and the inclusion of $15.8 million in depletion of the purchase price related to the acquisition of Roxgold Inc. This was partially offset by lower depreciation and depletion at San Jose as a result of an impairment charge in the fourth quarter of 2023. Adjusted EBITDA and Cash FlowAdjusted EBITDA for the quarter was $95.2 million, a margin of 42% over sales, compared to $65.3 million and margin over sales of 37%, reported in the same period in 2023. The main driver for the increase in EBITDA was the contribution from Séguéla with EBITDA margin of 62% in Q1 2024, partially offset by nil EBITDA at San Jose. Net cash generated by operations for the quarter was $48.9 million compared to $41.8 million in Q1 2023. The increase of $7.1 million reflects higher adjusted EBITDA of $29.9 million and lower taxes paid of $7.0 million as Séguéla is expected to start remittances to the government in the second quarter. This was offset by negative changes in working capital in Q1 2024 of $35.3 million compared to negative $10.8 million in Q1 2023. The negative change in working capital of $35.3 million consisted of the following: An increase in receivables of $7.3 million driven by an increase in VAT receivables of $3.5 million at Séguéla and $5.8 million at Yaramoko An increase of inventories of $9.8 million due to a $3.2 million increase in materials and supplies and a $4.9 million increase in metals inventory A $17.3 million decrease in accounts payable primarily at Lindero due to $3.8 million to settle a deferred contract liability from the fourth quarter of 2023 due to timing of production, $1.8 million to settle export loans with local banks and $4.0 million related to timing of payments. Other payables movements were related to timing. In the first quarter of 2024 capital expenditures on a cash basis were $41.4 million consisting primarily of $25.8 million in sustaining capital, including $6.7 million of brownfields exploration, and $8.8 million of non-sustaining exploration including engineering and environmental studies at Diamba Sud. Free cash flow from ongoing operations for the quarter was $12.1 million, compared to $8.5 million in Q1 2023. The increase in free cash flow from operations was primarily the result of contributions from Séguéla which was under construction in Q1 2023 and was offset by negative working capital changes as described above. Cash Costs and AISCCash cost per equivalent gold ounce was $879, compared to $915 in Q1 2023. The lower cash cost of sales per gold equivalent ounce was mainly due to the contribution of low-cost production from Séguéla and lower cost of sales per ounce of gold at Yaramoko related to higher grades. This was partially offset by higher cash costs per gold equivalent ounce at San Jose as previously capitalized costs are now expensed as the mine is in its last year of operations and higher cash cost per gold ounce at Lindero related mainly to lower planned head grades in 2024. Adjusting for San Jose, cash costs per gold equivalent ounces was $744 for the quarter. All-in sustaining costs per gold equivalent ounce was $1,495 for the first quarter of 2024 compared to $1,514 for the first quarter of 2023. The decrease was primarily the result of lower cash costs being offset by higher sustaining capital expenditures primarily at Lindero due to the construction of the heap leach pad expansion, increased brownfields exploration at Séguéla to advance identified prospects and higher royalties in the period due to higher production, metal prices and a change of the royalty regime in Burkina Faso. Adjusting for San Jose, all-in sustaining costs per gold equivalent ounces was $1,412 for the current quarter. General and Administrative ExpensesGeneral and administrative expenses for the quarter of $18.2 million were higher than the same period in 2023 as Séguéla transitioned to operations and costs are no longer being capitalized, and due to timing of corporate expenses. G&A is comprised of the following items:                         Three months ended March 31, (Expressed in millions)   2024   2023   % Change Mine G&A     7.5       6.0     25 % Corporate G&A     8.4       6.7     25 % Share-based payments     2.2       2.1     5 % Workers' participation     0.1       0.1     0 % Total     18.2       14.9     22 % Liquidity The Company's total liquidity available as of March 31, 2024 was $212.7 million comprised of $87.7 million in cash and cash equivalents, and $125.0 million undrawn on the $250.0 million revolving credit facility (excluding letters of credit). Lindero Mine, Argentina                         Three months ended March 31,       2024       2023   Mine Production                 Tonnes placed on the leach pad     1,547,323       1,478,148                     Gold                 Grade (g/t)     0.60       0.71   Production (oz)     23,262       25,258   Metal sold (oz)     21,719       26,812   Realized price ($/oz)     2,072       1,885                     Unit Costs                 Cash cost ($/oz Au)1     1,008       891   All-in sustaining cash cost ($/oz Au)1     1,634       1,424                     Capital Expenditures ($000's) 2                 Sustaining     9,807       7,745   Sustaining leases     598       598   Non-sustaining     154       187   1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures. 2 Capital expenditures are presented on a cash basis. Quarterly Operating and Financial Highlights During the first quarter of 2024 total mined ore was 2.0 million tonnes at a stripping ratio of 0.54:1. A total of 1,547,323 tonnes of ore was placed on the heap leach pad at an average gold grade of 0.60 g/t, containing an estimated 29,670 ounces of gold. Gold production for Q1 2024 totaled 23,262 ounces, an 8% decrease in total ounces from the first quarter of 2023, primarily due to lower head grades. Lower mined grades are aligned with the mining sequence and the Mineral Reserves estimates. The cash cost per ounce of gold for the quarter ending March 31, 2024, was $1,008 compared to $891, in the same period of 2023. The increase in cash cost per ounce of gold was primarily related to higher ounces sold in the comparable period due to higher production, timing of sales as 1,700 ounces of gold were still in inventory at the end of the period and additional rental equipment. The all-in sustaining cash cost per gold ounce sold during Q1 2024 was $1,634, up from $1,424 in the first quarter of 2023. The increase in the quarter was primarily due to increased cash costs, higher capital expenditures related to the heap leach expansion and higher general and administrative costs. As of March 31, 2024, the $51.8 million leach pad expansion project ($41.7 million capital investment in 2024) was approximately 35% complete. The construction package of the project commenced in January 2024, and is 18% complete, with contractors on site undertaking earthworks and construction of the impulsion line. The procurement and construction management ("PCM") service was awarded to Knight Piésold consultants, with the PCM project offices installed and personnel onsite as of the third quarter of 2023. Procurement is 92% complete, with critical path items onsite. The final shipments of geomembrane and geosynthetic clay liner are currently in transit, and the pump manufacturing for the new impulsion line are all on schedule. In addition to the current works, liner installation and major mechanical works are expected to commence in the second quarter of 2024. The project is scheduled to be substantially complete in the fourth quarter of 2024, with operations beginning ore placement by the end of 2024 according to the stacking plan for the year. Yaramoko Mine, Burkina Faso                         Three months ended March 31,       2024       2023   Mine Production                 Tonnes milled     107,719       139,650                     Gold                 Grade (g/t)     8.79       5.94   Recovery (%)     98       97   Production (oz)     27,177       26,437   Metal sold (oz)     27,171       29,472   Realized price ($/oz)     2,095       1,899                     Unit Costs                 Cash cost ($/oz Au)1     752       819   All-in sustaining cash cost ($/oz Au)1     1,373       1,509                     Capital Expenditures ($000's) 2                 Sustaining     9,573       13,549   Sustaining leases     1,050       1,359   Brownfields     1,410       1,191   1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures; refer to non-IFRS financial measures section at the end of this news release and to the MD&A accompanying the Company's financial statements filed on SEDAR+ at www.sedarplus.ca for a description of the calculation of these measures.2 Capital expenditures are presented on a cash basis. In the first quarter of 2024, Yaramoko mined 123,877 tonnes of ore at an average grade of 8.30 g/t Au containing an estimated 33,053 ounces of gold. Mill production was 27,177 ounces of gold with an average gold head grade of 8.79 g/t. This represents a 3% and 48% increase when compared to the same period in 2023. A planned mill maintenance shutdown reduced mill throughput in the first quarter of 2024. The cash cost per ounce of gold sold for the quarter ended March 31, 2024, was $752, compared to $819 in the same period in 2023. The decrease for the quarter is mainly attributed to higher head grades, which demand lower direct costs per ounce. This was partially offset by higher royalties due to higher metal prices and a change in the royalty regime in Burkina Faso which increased the royalty rate from 5% to 7% when the gold price is over $2,000 per ounce. The all-in sustaining cash cost per gold ounce sold was $1,373 for the quarter ended March 31, 2024, compared to $1,509 in the same period of 2023. The change in the quarter was primarily due to the decreased cash cost described above, and reduced capital expenditures. Drilling focused on infill grade control and exploring for extensions beyond the mineralized resource envelope in the deeper eastern and western portions of the 55 Zone. Stoping operations at the QVP orebody accelerated with batch mill tests confirming grade expectations. In early April, the Government of Ghana issued a directive which stopped the export of electricity to its neighbouring countries, including Burkina Faso. As a consequence, Yaramoko has supplemented electricity used in its operations from the national grid with self-generated backup power. Production at Yaramoko has not been affected; however, Management is currently monitoring the increase in costs of the alternative energy supplies. Séguéla Mine, Côte d'Ivoire                         Three months ended March 31,       2024       2023   Mine Production                 Tonnes milled     394,837       -   Average tonnes crushed per day     4,339       -                     Gold                 Grade (g/t)     2.79       -   Recovery (%)     94       -   Production (oz)     34,556       -   Metal sold (oz)     34,450       -   Realized price ($/oz)     2,095       -                     Unit Costs                 Cash cost ($/oz Au)1     459       -   All-in sustaining cash cost ($/oz Au)1     948       -                     Capital Expenditures ($000's) 2                 Sustaining     3,027       -   Sustaining leases     2,265       -   Non-sustaining     1,035       -   Brownfields     4,896       -   1 Cash cost and All-in sustaining cash cost are non-IFRS financial measures. Refer to Non-IFRS Financial Measures. 2 Capital expenditures are presented on a cash basis   In the first quarter of 2024, mined material totaled 420,538 tonnes of ore, averaging 2.23 g/t Au, and containing an estimated 30,192 ounces of gold from the Antenna and Ancien pits. Movement of waste during the quarter totaled 2,538,067 tonnes, for a strip ratio of 6:1. Production was mainly focused on the Antenna pit which produced 401,109 tonnes of ore, the remainder being mined at the Ancien pit. A total of 700,229 tonnes of waste was also mined at Ancien. Waste mining commenced at Koula during the quarter with 18,063 tonnes of waste being mined. Séguéla processed 394,837 tonnes in the quarter, producing 34,556 ounces of gold, at an average head grade of 2.79 g/t Au. Throughput for the quarter averaged 195 tonnes per hour (t/hr), versus name plate design capacity of 154 t/hr. Mill constraints continued to be tested with throughputs of up to 220 t/hr being recorded over a seven-day period. This was achieved with a 60/20/20 blend of fresh, transitional and oxide ore respectively. The Life of Mine (LOM) blend consists of 85% fresh rock. A relining of the mill is planned in April, and further tests will then be conducted with a blend more representative of the LOM blend. Mine design and scheduling continue with the focus being on the requirements to sustainably meet the expected higher throughput rates. Cash cost per gold ounce sold was $459, and all-in sustaining cash cost per gold ounce sold was $948 for Q1 2024. Both were within plan and guidance. Côte d'Ivoire has been experiencing a shortage of electricity to the national grid since mid-April, due to failures at two private power generation plants, which supply approximately 25% of the electricity to the national grid. This has led to power cuts in neighborhoods, load shedding during peak hours, and electricity rationing to industries. Power output from one of the plants (CIPREL)has now been restored; however, restoration of supply from the second plant (AZITO) is not expected until July. The Séguéla mine continues to receive energy on a daily basis from the grid with interruptions. The operation has emergency backup power generation capacity to sustain critical processes only. Management is implementing various short-and medium-term mitigating measures which include operating the mill at 25% higher throughput, adjusting mine plans to prioritize higher grade Mineral Reserves, and sourcing a power backup solution for the entire operation, expected to be available on-site in July. Production in April has been only marginally affected. Management has not modified annual guidance for the Séguéla mine at this time but continues to monitor the situation closely. San Jose Mine, Mexico                         Three months ended March 31,       2024       2023   Mine Production                 Tonnes milled     181,103       246,736   Average tonnes milled per day     2,182       2,869                     Silver                 Grade (g/t)     147       181   Recovery (%)     89       91   Production (oz)     759,111       1,303,312   Metal sold (oz)     746,607       1,328,333   Realized price ($/oz)     23.47