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Fortuna Silver (FVI.to) (FSM) $FSM 4q13 numbers

They sucked. The two issues with Fortuna Silver’s (FVI.to) (FSM) 4q13 are:

1) Costs, which came in around $4m $3m hotter than expected at $26.004m. Revenues were already largely telegraphed, so put the two on one chart and they look like this:

Yup revs improved from the last two quarters (due to the hike in San José production, which we knew about), but that costs bar on the right is a new high for the company.

2) The write down, which did this to the net quarter numbers:

That’s the second write down in the 2013 period…bit of a habit there. The adjusted net for 4q13 at $3m wasn’t much to write home about, either. We also need to ask just why FVI dumped the way it did today, because it smacks of leaky numbers. NYSE volumes in the FSM ticker were particularly strong at 5X the normal.

Anyway, back to the numbers and this paste-out of a part of the 4q13 MD&A throws a little more light on the subject. DYODD, dude.

Fourth-Quarter 2013 Financial Results 
The fourth-quarter net loss was $14.9 million (Q4 2012: income $8.5 million), resulting in a loss per share of $0.12 (Q4 2012 earnings per share: $0.07). The loss was driven by a non-cash impairment charge of $10.2 million, net of tax (Q4 2012: $nil) and by a one-time non-cash income tax provision of $7.7 million (Q4 2012: $nil) resulting from the initial recognition of the Mexican mining tax reform. 
The Company’s fourth-quarter adjusted net income was $3.0 million (Q4 2012: income $8.5 million) (refer to non-GAAP financial measures). The corresponding adjusted income before taxes was $6.5 million, compared with $8.0 million in the prior-year period. The decrease with respect to Q4 2012 was driven mainly by lower silver and gold prices, of 37% and 26%, respectively, partially offset by higher silver and gold sales resulting from the expansion at the San Jose mine, of 49% and 64%, respectively. Mine operating earnings decreased 22% to $10.4 million (Q4 2012: $13.3 million), and gross margins fell from 35% to 29%, reflecting the impact of lower metal prices, which was partially offset by lower unit cash costs at both our mines. Also contributing to offset the negative impact of metal prices were lower selling, general and administrative expenses which were reduced by $1.5 million. 
Cash generated by operating activities, before changes in working capital, was $11.2 million, a decrease of 6% from the prior-year period, mainly because of lower sales, of 4%. Operating cash flow per share, before changes in working capital, decreased 10% to $0.09 (Q4 2012: $0.10) (refer to non-GAAP financial measures). 
The basic loss per share for Q4 2013 was $0.12 (Q4 2012: earnings per share $0.07). Operating cash flow per share, before changes in working capital, was $0.09 (Q4 2012: $0.10) (refer to non-GAAP financial measures). 

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