Fortuna Silver Mines Inc., a Canadian precious metals mining company with operations in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru, has announced a substantial debt reduction of $40 million. This payment, made from available cash, brings the total outstanding debt balance to approximately $206 million on its credit facility, excluding letters of credit, and about $46 million of convertible notes, resulting in an estimated total net debt, after accounting for cash and cash equivalents, of $133 million by the end of the third quarter of 2023. This significant reduction is attributed to improved cash flows from the Séguéla Mine's contribution during its first full production quarter.
With Fortuna's operational and financial focus shifting to the latter half of 2023 after completing a two-year capital investment phase at Séguéla, the company now prioritizes debt repayment, advancing high-value exploration opportunities, and exploring initiatives to enhance shareholder value. Fortuna Silver Mines Inc.'s proactive debt reduction underscores its commitment to strengthening its financial position and driving long-term value for stakeholders.