Fortuna Mining Corp

Good day, ladies and gentlemen, and welcome to the Fortuna Silvermine's first quarter 2021 financial and operational results. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Carlos Baca, Investor Relations Manager. Sir, the floor is yours.

Thank you, Kate. 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 2021. Hosting the call today on behalf of Fortuna will be Jorge Alberto Ganosa, President and Chief Executive Officer, and Luis Dario Ganosa, Chief Financial Officer. Today's webcast presentation will be available after this call on the latest presentation box on our homepage at fortunasilver.com. As a reminder, statements made during this call are subject to the reader advisories included in yesterday's news release and in the earnings call presentation. Financial figures containing the presentation and discussed in today's call are presented in U.S. dollars unless otherwise stated. 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 factors 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. I would now like to turn the call over to Jorge Alberto Ganosa, co-founder of Fortuna. Jorge Alberto Ganosa Thank you, Carlos. If we can move to slide six on the presentation, highlights. In this first quarter of the year, we're exhibiting the soundness of our strategy and strength of our business. We have been investing in growth since late 2016, taking a counter-cyclical approach during a period where several of our peers restrained capital investment because of a depressed market for mining equities and low interest in precious metals. And now, with renewed interest in the sector over the last 24 months, we're in a strong position to harvest, as our results show. We have reported record Adjusted net income of $27.5 million or 14 cents per share. Ahead of analyst consensus of 10 cents per share. Adjusted EBITDA of 61 million with a peer leading EBITDA margin of 52%. We maintain a strong balance sheet with 145 million in liquidity and a low debt to EBITDA ratio of 0.1. for third mine, reported its first full quarter of production, delivering 22,300 gold ounces. We have been cash flowing positive at Lindero since Q4 of 2020, and Q1 has also been a quarter of strong free cash flow generation, even as we ramp up. Except for the conveyor stacking system and SAR plant, all our unit operations are performing within design parameters. The equipment is fit for purpose. We need our operation team to get their performance and efficiency up during operation and setup of the conveyor system. And I believe we're going to be achieving design parameters at the conveyor operations this quarter, second quarter. This has been a challenge, again, due to the limitations imposed by COVID to get foreign experience technical support in-country. Our team is delivering a great job on site in spite of these challenges. On April 26th, we announced the definitive agreement to acquire Roxgold. This combination will create a low-cost intermediate global precious metals producer with a significant silver credit. John and his team at Roxgold have successfully built a robust business platform in West Africa. And we believe that together, with a strong balance sheet and diversified sizable production, we are better positioned to lower the risks of the business and unlock the value of the assets for the benefit of shareholders. Something I am particularly excited about is the opportunity to bring together two teams of high performance in their respective jurisdictions. Any investor seeking to invest in the intermediate precious metals producer space will have to give consideration to the pro forma company. We call the equivalent production of 450,000 ounces of gold to half a million ounces of gold and even the margins in the 40 to 50 percent range with a robust pipeline of development exploration projects.

Next slide, please.