Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Solid Costs And Expansion Potential For Fortuna Silver

The closest thing to a safe hiding place that investors in precious metal miners can find today is a company with a clean balance sheet and a competitive cost structure. Fortuna Silver (NYSE:FSM) seems to fit the bill, as the company's cash production costs are on the correct side of industry-wide averages and the company has a net cash position with no particularly demanding capital requirements in the near term.

Even though Fortuna Silver has a better cost position than Pan American Silver (NASDAQ:PAAS) and Coeur Mining (NYSE:CDE), the all-in sustaining cost of more than $20/oz is a little higher than the current spot price of silver. What that suggests to me is that...

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