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...

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