Fortuna Mining Corp

Good day, ladies and gentlemen, and welcome to the Fortuna Silver Q3 2022 Financial and Operational Results Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Carlos Baca, Director of Investor Relations. Sir, the floor is yours.

Thank you, Tom. Good morning, ladies and gentlemen. I would like to welcome you to Fortuna Silver Mines and to our financial and operations result call for the third quarter of 2022. Hosting the call today on behalf of Fortuna will be Jorge Alberto Ganosa, President and Chief Executive Officer, Luis Darío Ganosa, Chief Financial Officer, Cesar Velasco, Chief Operating Officer, Latin America, and David Whittle, Chief Operating Officer, West Africa. Earnings call presentation is available on the featured presentation box on our homepage at fortunasilver.com. As a reminder, statements made during this call are subject to the reader's advisories included in yesterday's news release and in the earnings call presentation. Financial figures contained in 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 risk 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 overlooking information in the future except as required by law. I would like now to turn the call over to Jorge Alberto Ganosa, co-founder of Fortuna.

Jorge Alberto Ganosa Thank you, Carlos. Our business continued to perform well in the third quarter. We had a small adjusted gain in net income of one cent per share, slightly short of analyst and beat consensus estimates for cash flow per share with 22 cents versus 18 cents of the analysts. We provide in our results news release a measure of free cash flow from operations after capital investments at the mines, taxes and interests paid, and corporate overhead. This figure is a strong $34 million for the period in this metal price and inflationary environment. or business continues generating very healthy cash flows. The financial performance is underpinned by steady and meaningful quarterly production of approximately 100,000 ounces of gold equivalent ounces. For the quarter, 68% of sales were attributable to gold, 20% to silver, and 12% to a byproduct sink and lead out of the Cayoma mine in Peru. Costs at all our mines are tracking within the range we guided at the beginning of the year. Inflation pressures on key consumables like diesel, cyanide, steel, explosives, cement have pushed site costs to the upper range of guidance. But at this time, late in the year, we believe risks for major deviations from our annual cost projections are largely diminished. Our safety culture and safety performance continue to show sustained improvement with multiple key initiatives ongoing in both LATAM and West African regions. We reported the second consecutive quarter free of lost time injuries to our people and a total recordable injury rate of 2.6 million per million hours worked for the quarter. Our project team at Seguela continues to deliver exceptional performance. As at the end of October, the construction is 83% complete, remaining on time and on budget. We have accrued $119 million of the 173 total CAPEX and have already committed approximately 95% of the total CAPEX. David Whittle, our Chief Operating Officer for West Africa, will share with you more details on the status of the project and what is coming over the next few months in a moment. I want to bring to your attention a few additional important topics for the quarter and subsequent events. One is on Monday, November 7th, the Mexican Federal Court ruled in our favor on the disputed attempt by a Semarnat official to reduce the term of her 12-year environmental permit extension at the San Jose mine down to two years. With this ruling, our 12-year environmental permit extension stands as originally granted in December of last year. Needless to say, we're extremely pleased with this outcome, which is consistent with our position that we have always been in material compliance with applicable laws and standard procedures on this matter. A second matter to bring to your attention is the expansion or extension of our great facility, which is set to close in December. Although we are past our peak capital demands and remain well-funded to take Seguela construction to completion and meet sustaining capital needs at our minds, this added financial flexibility is welcome for a business of our size today and also at a time when we want to be able to continue capturing organic growth opportunities in our portfolio at an accelerated pace. On September 12th, we published an exploration news release sharing the continued success we're having with our drilling programs at Seguela. At the newly discovered Sandberg deposit, we successfully extended gold mineralization significantly beyond the limits of the maiden 350,000 inferred gold research at a grade of 3.2 grams gold. We're working to produce an updated estimate with all these new data before year end. Additionally, our scout drilling within the property continues to yield significant gold intersects at multiple prospects like Kestrel, G7, and Winning. Please refer to the September 12th exploration news release for the details on the program. We're all excited about the opportunities for organic growth that Ceguela continues to present to us. With that, I'll ask Luis now to share the highlights of the financial results.