Fortuna reports 2022 full year record production of 401,878 gold equivalent ounces and issues 2023 annual guidance

VANCOUVER, British Columbia, Jan. 17, 2023 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reports production results for the fourth quarter and full year 2022 from its four operating mines in the Americas and West Africa. For the full year 2022, the Company produced 259,427 ounces of gold and 6,907,275 ounces of silver or 401,878 gold equivalent¹ ounces. All references to dollar amounts in this news release are expressed in US dollars.

2022 Consolidated Production Highlights

• Gold production of 259,427 ounces; 25 percent increase over 2021

• Silver production of 6,907,275 ounces; 8 percent decrease over 2021

• Lead production of 34,588,324 pounds; 5 percent increase over 2021

• Zinc production of 46,175,821 pounds; 3 percent decrease over 2021

All production results are in line with the mining sequence and Mineral Reserves estimates.

2023 Consolidated Production Guidance Highlights

• Gold production of between 282 to 320 thousand ounces; a projected increase of between 9 to 23 percent over 2022

• Silver production of between 6.3 to 6.9 million ounces; a projected decrease of up to 9 percent over 2022

• Gold equivalent production² of between 412 to 463 thousand ounces; a projected increase of between 3 to 15 percent over 2022

Notes:

1. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,802/oz Au, $21.75/oz Ag, $2,161/t Pb and $3,468/t Zn or Au:Ag = 1:82.89, Au:Pb = 1:0.83, Au:Zn = 1:0.52

2. Au Eq includes gold, silver, lead and zinc and is calculated using the following metal prices: $1,700/oz Au, $21/oz Ag, $2,000/t Pb and $3,200/t Zn or Au:Ag = 1:81.00, Au:Pb = 1:0.85, Au:Zn = 1:0.53

2022 Consolidated Operating Highlights

Notes:

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1. Metallurgical recovery for silver at the Caylloma Mine is calculated based on silver content in lead concentrate

2. Lindero production includes doré and gold in carbon columns; Yaramoko production includes doré only

3. Totals may not add due to rounding

Latin America: Consistent performance results in solid production for all metals, meeting annual guidance

The fourth quarter of 2022 was Latin America’s fifth consecutive quarter of over 35,000 ounces of gold production. On a full year basis, the region achieved record gold production of 153,319 ounces. Consolidated silver production was 6.9 million ounces, achieving the higher end of annual guidance. All three mines delivered production results in line with their mining plans and Mineral Reserves estimates.

Highlights

• Lindero continues capturing productivity gains and demonstrating a stable production performance delivering a 14 percent increase in gold production when compared to 2021

• Caylloma delivered higher annual silver and lead production due to higher throughput and head grades

• San Jose delivered total silver production of 5.8 million ounces, hitting the upper range of annual guidance

Lindero Mine, Argentina: Record annual gold production

Gold production for the fourth quarter of 2022 totaled 29,301 ounces, a 19 percent decrease year-over-year. Lower gold production is attributed to an 8 percent decrease in tonnes and a 23 percent decrease in gold grade for ore placed on the pad, compared to the fourth quarter of 2021. Gold grade for the quarter was in line with the mining plan and Mineral Reserve estimate.

Mine production for the quarter was according to management’s expectations, with a total of 1.9 million tonnes of ore mined in the fourth quarter, at a strip ratio of 0.54:1.

For the full year, mine production totaled 8.6 million tonnes of ore, at a strip ratio of 0.73:1, with 5.5 million tonnes of ore placed on the pad averaging 0.81 g/t Au containing an estimated 143,203 ounces of gold, in line with the management’s mining and production plan. Throughout 2022, management implemented various high impact optimization initiatives to capture efficiencies, allowing the operation to offset some of the cost increases in primary consumables. Initiatives included improving the efficiency of the SART plant, subsequently decreasing consumption of fresh make-up cyanide and sulfuric acid; and the optimization of the mine fleet´s trucking distance, reducing diesel consumption and improving productivity. In the fourth quarter of 2022, the operation commenced a project to improve the recirculation circuit of the HPGR with the aim of reducing granulometry and improving gold recovery from ore placed on the leach pad.

Gold production for the year totaled a record 118,418 ounces, comprised of 116,191 ounces in doré and 2,227 ounces of gold-in-carbon (GIC), meeting annual guidance (refer to Fortuna news release dated January 18, 2022). In 2022, Lindero had a good reconciliation for ore sent to the leach pad with gold grades at the plant being 2 percent higher compared to the Mineral Reserve model estimate.

San Jose Mine, Mexico: Silver production achieves upper end of annual guidance

In the fourth quarter of 2022, San Jose produced 1.5 million ounces of silver and 8,499 ounces of gold, a 14 percent decrease for both metals compared to the equivalent period in 2021. The decrease is mainly due to lower head grades, albeit in line with management´s expectations based on the mining sequence and Mineral Reserve estimate.

Material mined using sublevel stopping (SLS) methods was increased in 2022, representing 35 percent of ore sent to the plant. The operation plans for the SLS contribution to reach 60 percent of total ore production in 2023. In the second quarter of 2022, a new underground shotcrete plant was commissioned which reduced mining cycles and partially offset some of the cost increases due to higher haulage distances as the mine deepens.

Silver and gold production for 2022 totaled 5.8 million ounces, the upper end of annual guidance, and 34,124 ounces, the mid-point of annual guidance, respectively. Average head grades for silver and gold for the year were 191 g/t Ag and 1.14 g/t Au, respectively.

Caylloma Mine, Peru: Strong silver, lead and zinc production exceeds upper range of annual guidance

In the fourth quarter of 2022, Caylloma produced 273,119 ounces of silver, a 4 percent increase year-over-year primarily due to higher grades mined during the period.

Silver production in 2022 totaled 1.14 million ounces, exceeding the upper end of annual guidance range.

In the fourth quarter of 2022, zinc production was 12.6 million pounds, a 10 percent increase over the comparable period in 2021. Production was mainly impacted by higher head grades and improved plant recovery. Lead production in the fourth quarter of 2022 was 8.7 million pounds, a 4 percent increase year-over-year, also attributable to higher plant recovery.

Zinc and lead production in 2022 totaled 46.2 and 34.6 million pounds, respectively; both exceeding the upper range of annual guidance. Base metal production benefitted from material mined at level 16 of the Animas vein allowing for a significant improvement in ore grade and oxide-sulfide ratios hence boosting plant recovery.

West Africa

In the fourth quarter of 2022, the West African operations continued their solid performance. Gold production at the Yaramoko Mine in Burkina Faso met the mid-point of the annual production guidance range.

At the Séguéla Gold Project in Côte d’Ivoire, construction activities continued as planned. The mining contractor continued its mobilization and establishment activities with the establishment of key infrastructure and the arrival on site of mining equipment. All senior operational management roles were filled and commenced work on site, with recruitment now focusing on other operational roles. First gold pour is on track for mid-2023.

Yaramoko Mine, Burkina Faso: Gold production achieved the mid-point range of annual guidance

The Yaramoko Mine produced 26,190 ounces of gold in the fourth quarter of 2022 with an average head grade of 6.45 g/t Au, which is in line with the mining sequence and Mineral Reserve estimate, and an 8 percent decrease year-over-year. Compared to the comparative period in 2021, the decrease in production was due to lower head grades. However, grades for the full year were in line with planned estimates.

Gold production in 2022 totaled 106,108 ounces achieving the mid-point of the annual guidance range.

2023 Consolidated Production and Cost Guidance

Notes:

1. Cash Cost and all-in sustaining cost (AISC) are non-IFRS financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial…