Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Fortuna Silver Mines boosted production by close to a third last year at its Mexico and Peru silver mines.
Fortuna (NYSE:FM, TSE:FVI) said it produced 2.5 million ounces of silver in 2011, a 31% increase over 2010. Fortuna more than doubled its gold production to 7,000 ounces for a 174% increase over 2010. Lead and zinc production also increased, by 8% and 10% respectively, to 19.7 million and 23.4 million pounds.
It was the fifth-consecutive year of growth for the Vancouver-based metals producer.
“2011 was marked by two milestones for the Company, our NYSE listing on September 19th and the start of commercial operations on September 1st at our San Jose Mine in Mexico. The San Jose Mine initiated operations at a rate of 1,000 tonnes per day and for 2012 we have an approved plan and budget to expand capacity to 1,500 tpd. This expansion will continue fueling our low cost annual silver production growth into 2012 and 2013,” President and CEO Jorge Ganoza said in a statement.
The company has a 2012 production guidance of 3.7 million ounces of silver, 17,400 ounces of gold, 21 million pounds of zinc and 18 million pounds of lead.
