9
BUILDING ON OUR STRENGTHS
increased marginally to 137 g/t, the lead grade
increased by 11% to 1.7% and the zinc grade by 16%
to 2.5%. Contained silver in the inferred resource
category decreased to 24 million ounces.
Maintaining low-cost operations
In mid-2013, in the face of lower metal prices, we
implemented cost reduction measures, restricted
capital expenditures and focused exploration
programs on higher reward targets. These measures
enabled us to achieve revised 2013 guidance for
consolidated all-in sustaining cash cost of $20.45
per ounce of silver, net of by-products. Our annual
capital expenditures declined by 9.4% from initial
guidance of $66.9 million to $60.6 million, which
included $10 million to purchase the Taviche Oeste
concession covering the Trinidad North discovery.
Our 2014 consolidated all-in sustaining cash cost
is forecast to be $17.14 per ounce of silver, net of
by-products. This figure includes $40 million in
sustaining capital spending. Our lowest cost
operation will be San Jose at $14.43 per ounce,
compared with Caylloma at $17.01 per ounce.
Realizing our vision
Fortuna continues to establish itself as a positive
force and strategic partner in neighboring
communities in Peru and Mexico. During 2013, we
invested approximately $3 million to execute joint
social programs with an emphasis on education,
health and nutrition and sustainable development.
Our goal is to collaboratively improve the quality of
life in ways that are both good for business and for
human development in the countries where we
operate.
Fortuna is a successful company today only because
of the commitment and dedication of its more than
700 employees and 1,000 contractors working
together in Peru, Mexico and Canada. It has been my
privilege to contribute to the growth of our organization
since it was formed in 2004.
I express my gratitude to our entire team. Because of
your efforts, we have grown and evolved to become a
multinational enterprise that is equipped to thrive in
a challenging operating environment.
All of us at Fortuna are deeply proud of the role we
play in producing metals that are essential to society.
Silver, gold, lead and zinc are all important to the
advancement of humankind. We also take great pride
in using best practices in all aspects of our business
to create shared value for our stakeholders.
In closing, I thank our shareholders for the
confidence you place in our company. I look forward
to reporting our continued growth and success.
Jorge A. Ganoza
President and Chief Executive Officer
Our goal is to collaboratively improve the quality of life in ways that
are both good for business and for human development in the
countries where we operate.
