Advertisement
Australia markets closed
  • ALL ORDS

    8,039.90
    +27.80 (+0.35%)
     
  • ASX 200

    7,796.00
    +26.60 (+0.34%)
     
  • AUD/USD

    0.6643
    -0.0015 (-0.23%)
     
  • OIL

    80.59
    -0.70 (-0.86%)
     
  • GOLD

    2,334.70
    -34.30 (-1.45%)
     
  • Bitcoin AUD

    96,624.83
    +56.42 (+0.06%)
     
  • CMC Crypto 200

    1,348.08
    -12.24 (-0.90%)
     
  • AUD/EUR

    0.6209
    -0.0008 (-0.13%)
     
  • AUD/NZD

    1.0849
    -0.0024 (-0.22%)
     
  • NZX 50

    11,682.39
    -89.42 (-0.76%)
     
  • NASDAQ

    19,700.43
    -51.87 (-0.26%)
     
  • FTSE

    8,237.72
    -34.74 (-0.42%)
     
  • Dow Jones

    39,150.33
    +15.57 (+0.04%)
     
  • DAX

    18,163.52
    -90.66 (-0.50%)
     
  • Hang Seng

    18,028.52
    -306.80 (-1.67%)
     
  • NIKKEI 225

    38,596.47
    -36.55 (-0.09%)
     

Fortuna Silver (FSM) Hits 52-Week High: What's Driving It?

Shares of Fortuna Silver Mines Inc. FSM scaled a new 52-week high of $5.44 on May 16, before ending the session slightly lower at $5.43. The appreciation was driven by rising gold and silver prices and strong first-quarter results.

FSM has a market capitalization of $1.66 billion and carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Fortuna Silver have soared 91.2% in the past three months compared with the industry’s 62.1% growth. The S&P 500 has meanwhile moved up 6.4%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Fortuna Silver’s shares have gained 10% since it reported first-quarter results on May 7, 2024. Adjusted earnings per share of 9 cents marked an 80% improvement year over year. Revenues increased 28% year over year to $225 million, which was attributed to an increase in gold sales volumes and higher realized gold and silver prices.

ADVERTISEMENT

Fortuna Silver produced 89,678 ounces of gold, 49% higher than the year-ago quarter while silver production plunged 32% to 1.07 million ounces. Gold equivalent production increased 19.6% year over year to 112,543 ounces. The improvement in gold sales volume was mainly attributed to the contribution of Séguéla. The mine had been under construction in the first quarter of 2023.

FSM expects to produce gold in the range of 343-385 thousand ounces in 2024. Silver production is expected to be between 4.0 million and 4.7 million ounces. Gold equivalent ounces is expected at 457,000-497,000 ounces of gold equivalent ouncesa

The company’s shares have also benefited from the uptrend in gold and silver prices so far in 2024. Since the beginning of this year, gold prices have risen 15.3% while silver prices have surged 24.7%. Gold has remained consistently above the $2,000-per-ounce mark.

Several factors have contributed to this upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. Physical demand has also been strong in China of late since the weaker yuan, volatile stock market and comparatively low deposit rates have led investors to explore alternatives for their savings. Gold is currently at $2,385 an ounce boosted by expectations of interest rate cuts fueled by cooling U.S. inflation date. Silver prices are at $29.71 per ounce.

Other mining companies have also benefited from these trends as well as their upbeat Q1 performances and are currently trading near their 52-week highs.

Avino Silver & Gold Mines Ltd. ASM shares have gained 88.7% in the past three months and closed at $0.90 on May 17, near its 52-week high of $0.92.

The company recently reported earnings per share of 2 cents for the first quarter, which marked a 100% year-over-year improvement attributed to higher gold prices and lower costs. Avino Silver’s revenues rose 26% year over year to $12.4 million, owing to higher gold and silver prices.

MAG Silver Corp. MAG shares have gained 53.3% in the past three months and closed at $13.38 on May 17, near its 52-week high of $13.47.

MAG reported adjusted earnings per share of 14 cents for first-quarter 2024 on May 14. Compared with the year-ago quarter, earnings improved a solid 180% attributed to higher metal volumes and realized metal prices. Sales were recorded at $124 million, up 140% from $51 million recorded in the first quarter of 2023.

Kinross Gold Corporation KGC shares have gained 57% in the past three months and closed at $7.84 on May 17, near its 52-week high of $7.92.

On May 7, Kinross Gold reported adjusted earnings of 10 cents per share in the first quarter. The bottom-line figure was 43% higher than the prior-year quarter’s figure of earnings of 7 cents per share. Revenues rose 16% year over year to $1.08 billion. KGC produced 527,399 gold equivalent ounces from continuing operations, up 13% year over year. Average realized gold prices were $2,070 per ounce, up 9% from the year-ago quarter.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kinross Gold Corporation (KGC) : Free Stock Analysis Report

Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report

Avino Silver (ASM) : Free Stock Analysis Report

MAG Silver Corporation (MAG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research