VANCOUVER - Fortuna Silver Mines Inc . (NYSE: NYSE:FSM) (TSX: FVI), a Canadian precious metals mining company, has reported a significant reduction in its debt levels. The company paid down an additional $41M of its revolving credit facility at the end of the fourth quarter of 2023, utilizing its available cash reserves.
This payment is expected to lower the company's leverage ratio, with total net debt to adjusted EBITDA falling below 0.5 times. Fortuna's total outstanding debt balance is anticipated to be approximately $165M on its credit facility, excluding letters of credit, and around $46M in convertible notes as of December 31, 2023. This suggests an estimated total net debt, after cash and cash equivalents, of $83M, marking a reduction of about $50M in total net debt for the period.
The reduction in debt is attributed in part to the cash flow contributions from the Séguéla Mine, which completed its second full quarter of production. The financial figures provided are preliminary and subject to final review by the company's audit committee and board of directors. They have not been audited, nor has any opinion or form of assurance been provided by the company's auditor on the preliminary financial information.
Investors are advised to anticipate the release of Fortuna's financial statements and management's discussion and analysis for the three and twelve months ended December 31, 2023, by mid-March 2024, following approval by the audit committee and board of directors.
Fortuna Silver (TSX:FVI) Mines operates five mines across Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. The company emphasizes sustainability in its operations, focusing on environmental protection and social responsibility while producing gold and silver.
The information in this article is based on a press release statement, and the financial data mentioned are preliminary and not final until reviewed and approved by the appropriate company committees.
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