NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$’000’s unless otherwise stated)
104
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
21. Restructuring and Severance Costs
The restructuring and severance costs for the years ended December 31, 2014 and 2013 are as follows:
Years ended December 31,
2014
2013
Restructuring costs
$
–
$
493
Severance costs
1,091
–
$
1,091
$
493
The restructuring and severance costs include the Company’s cost-reduction program, and include all salaries and post-
employment costs.
22. Net Finance (Expense) Income
The net finance (expense) income for the years ended December 31, 2014 and 2013 are as follows:
Years ended December 31,
2014
2013
Finance income
Interest income on FVTPL financial assets
$ 281
$
591
Total finance income
281
591
Finance expenses
Interest expense
5
21
Standby and commitment fees
404
373
Accretion of provisions (Note 12)
743
538
Total finance expense
1,152
932
Net finance (expense) income
$
(871)
$
(341)
23. Contingencies and Capital Commitments
a) Bank Letter of Guarantee
The Caylloma Mine closure plan was approved in November 2009 with total closure costs of $3,587 of which $1,756 is
subject to annual collateral in the form of a letter of guarantee, to be awarded each year in increments of $146 over 12
years based on the estimated life of the mine. In March 2013 the closure plan was updated with total closure costs of
$7,996 of which $4,167 is subject to annual collateral in the form of a letter of guarantee.
Scotiabank Peru, a third party, has established a bank letter of guarantee on behalf of Bateas in favor of the Peruvian
mining regulatory agency in compliance with local regulation and to collateralize Bateas’ mine closure plan, in the amount
of $1,842 (2013: $1,204). This bank letter of guarantee expires on December 31, 2015
Scotiabank Peru, a third party, has established a bank letter of guarantee on behalf of Bateas in favor of the Peruvian
Energy and Mining Ministry to collateralize Bateas’s regulatory compliance with the electric transmission line project, in
the amount of $3 (2013: $3). This bank letter of guarantee expires on December 6, 2015.
Scotiabank Peru, a third party, has established a bank letter of guarantee, for office rental, on behalf of Bateas in favor
of Centro Empresarial Nuevo Mundo S.A.C., in the amount of $58. This bank letter of guarantee expires on July 18,
2015.
