Fortuna Mining Corp

Please stand by. We are about to begin. Ladies and gentlemen, good day, and thank you all for joining us for this Fortuna Silvermine's first quarter 2020 financial call and operational results. As a reminder, all phone participants will remain in a listen-only mode, and today's session is being recorded. To get us started with opening remarks and introductions, I am pleased to yield the floor to Mr. Carlos Baca with Investor Relations Manager. Please go ahead, sir.

Thank you very much. Good morning, ladies and gentlemen. I would like to welcome you to Fortuna Silver Mines and to our financial and operations results call for the first quarter of 2020. Today, we will be using a webcast presentation, which will be controlled by us. To download the presentation, please go to our website at www.fortunasilver.com, click on the Investors tab, then click on the Financial sub-tab, And under Q1 2020, click on the earnings call webcast link. Jorge Alberto Ganosa, President, CEO, and Director, and Luis Dario Ganosa, CFO, will be hosting the call from their home offices in Lima, Peru. Before I turn over the call to Jorge, I would like to indicate that this earnings call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs. This forward-looking information is subject to a number of risks, uncertainties, and other factors. Actual results could differ materially from a conclusion, forecast, or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information about the material factor that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the company's annual information form and MD&A, which are publicly available on CDER. The company assumes no obligation to update such forward-looking information in the future except as required by law. In addition, as Fortuna is in the midst of a public offering of its securities, Management will not be taking any questions during or after the call today. I would now like to turn the call over to Jorge Alberto Ganosa, President, CEO, and co-founder of Fortuna.

Thank you, Carlos, and good morning to all. I'll be presenting an introduction to our first quarter results and discuss actions taken during these months of unprecedented uncertainty we're living in, and then turn the call over to Luis who will take you through the financial statement. On slide six of the presentation, We'll give it a second so we can move on slide six of the presentation. In the quarter, we reported strong free cash flow of $14 million and EBITDA margin of 34% below our targeted 40% margin. Overall, our results were negatively impacted by lower gold and silver production and sales against the comparable period and year budget. This is a result of mining from lower-grade zones at the San Jose mine and lower silver and byproduct metal prices. We will provide more detail on this during the presentation. The company has taken actions to maintain an adequate level of liquidity, considering this uncertain times and the capital demands of our project pipelines. As of the end of March, we reported $88.5 million in cash, announced a $60 million equity financing, planned for $23 million in 2020 CAPEX and OPEX reductions, and proposed amendments to financial governance in our credit facility. As of March 19th, the date of the demobilization due to mandatory isolation period in Argentina, Our Lindero project is 94% complete. Remaining funding to commercial operations is $75 to $80 million. Our construction and operations crews are mobilizing back to site during this second half of May. We expect to be up and running at full speed under a new construction and commissioning plan by the end of the month. Considering all the COVID-related delays and limitations, we're now planning to be in commercial operations in Q1 2020. Over the past month, the COVID pandemic has put our generation to a non-precedented test. During these times of extreme uncertainty, our actions at Fortuna are being guided by three principles. support of local government actions, safety of our personnel and neighboring communities, and business continuity. We have withdrawn our 2020 production guidance. Our Cayoma mine has managed to operate all this time, but our Lindero project and San Jose mine were halted on March 19 and April 2, respectively. During this second half of May, we're mobilizing and preparing to resume activities at both units. In early May, we published our 2019 sustainability report. This report is a more comprehensive and significant improvement over the previous year's publication. We're listening to our stakeholders and working to address the demands placed in our industry by a rapidly changing world. I invite you to read the document and provide comments to the company. Moving on to slide seven.