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

Fortuna Silver Mines: This Quality Silver Miner Has Run Too Far

Fortuna Silver Mines (NYSE:FSM) has been one of the better performing silver mining stocks as of late. Since I recommended it back on July 23 shares have risen 46% vs the iShares Silver Trust (NYSEARCA:SLV) (+ 2.4%) and the Global X Silver Miners ETF (NYSEARCA:SIL) (+4.3%). Fortuna has bucked the trend among silver miners and it has remained profitable. Furthermore, going forward the company is going to reduce its production costs and net silver production, which means that it is going to be able to increase its cash-flow even if the price of silver does nothing.

Despite these positives the run-up in the shares has priced this in and then some. Recall that my...

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