Analyst Kevin O’Halloran of BMO Capital maintained a Buy rating on Fortuna Silver Mines (FSM – Research Report), with a price target of C$7.00.
Kevin O’Halloran has given Fortuna Silver Mines a Buy rating due to a combination of factors including the company’s updated mineral reserves and resources, and anticipated cash flow generation. Despite a year-over-year decrease in Mineral Reserve and Resource estimates, which was partly due to higher cut-off grades reflecting rising operational costs, the financial valuation of the firm has improved. This is largely attributed to notable exploration successes, particularly at the Yaramoko mine, which have resulted in higher-grade reserves that positively impact the net asset value (NAV) forecasts.
Furthermore, the Seguela mine’s NAV has seen a slight increase due to an upgrade in the average reserve grade, indicating a robust potential for the company’s assets despite increased cost assumptions. O’Halloran’s outlook is also bolstered by the expectation of a growing track record in cash flow generation, driven by the Séguéla gold mine’s performance. Additionally, there is optimism surrounding ongoing exploration efforts, which are anticipated to extend mine lives and provide further visibility on production growth, thereby presenting potential positive catalysts for the stock.
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Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FSM in relation to earlier this year.
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Fortuna Silver Mines (FSM) Company Description:
Fortuna Silver Mines, Inc. engages in the exploration, extraction and processing of precious and base metal in Latin America. It operates through the following segments: Bateas, Cuzcatlan, Mansfield, and Corporate. The Beates segment operates the Caylloma silver, lead, and zinc mine. The Cuzcatlan segment handles the San Jose silver-gold mine. The Mansfield segment is the development of the Lindero Gold project. The Corporate segment represents the corporate stewardship. The company was founded by Jorge A. Ganoza Durant, Simon T. P. Ridgway and Mario David Szotlender on September 4, 1990 and is headquartered in Vancouver, Canada.
Read More on FSM:
- Fortuna reports updated Mineral Reserves and Mineral Resources
- Fortuna Announces GHG Emissions Reduction Target for 2030 and Long-Term Objectives to 2050
- Fortuna Silver Mines price target lowered to C$5.35 at National Bank
- Fortuna Silver Mines price target lowered to C$5.50 from C$6 at National Bank
- Fortuna Silver Mines falls -13.9%
