Fortuna Silver repays $40 million of revolver borrowings

By William Gullotti

Buffalo, N.Y., Oct. 10 – Fortuna Silver Mines Inc. paid down $40 million of its $250 million secured revolving credit facility due November 2025 using cash on hand, according to a 6-K filing with the Securities and Exchange Commission.

Following the payment, the outstanding balance will be approximately $206 million.

The company cited increased cash flows from its Seguela Mine, which completed its first full quarter of production, for the progress made in improving its leverage ratio.

As of June 30, the ratio of total net debt to EBITDA was 0.9 to 1.0. The ratio reflects $291.2 million of total debt, less $93.4 million in cash and cash equivalents, for a net debt of $197.8 million. For the same period, the company’s adjusted EBITDA for the previous four quarters was $217.1 million.

As of Sept. 30, the company’s total debt was $255.7 million, less $118.3 million in cash and cash equivalents, for a total net debt of $137.4 million and a net debt reduction of approximately $65 million.

Fortuna Silver expects to release approved and audited figures for the three and nine months ended Sept. 30 on Nov. 8, after market close.

Fortuna is a silver producer based in Vancouver, B.C.

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