Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Silver Bulls Should Consider Fortuna Silver Mines

This article is about Fortuna Silver Mines (NYSE:FSM). The company currently has a market capitalization of around $460 million. It currently produces silver with some gold and base metal offsets at its two properties: San Jose in Mexico and Caylloma in Peru. It also has $68 million in cash and equivalents.

In 2012 it produced nearly 4 million ounces of silver and showed net profits of $31.5 million, up substantially from $19.5 million in 2011 despite lower silver prices. In 2013 the company plans to produce 4.5 million ounces of silver, and in subsequent years it will produce around 5.5 million ounces annually.

Relative to other silver miners Fortuna Silver appears to be overvalued in terms of its...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details