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MANAGEMENT’S DISCUSSION AND ANALYSIS
DRIVING GROWTH FROM WITHIN
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2014
As at March 12, 2015
(Dollar amounts expressed in US dollars, unless otherwise indicated)
Management’s discussion and analysis (“MD&A”) is intended to help the reader understand the significant factors that
have affected Fortuna Silver Mines Inc.’s and its subsidiaries’ (“Fortuna’s” or the “Company’s”) performance and factors
that may affect its future performance. This MD&A was prepared as of March 12, 2015. It should be read in conjunction
with the Company’s audited consolidated financial statements for the year ended December 31, 2014, and the related
notes contained therewith. The Company reports its financial position, financial performance and cash flows in accordance
with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”). This MD&A refers to various non-GAAP financial measures, such as cash cost per tonne of processed ore, cash
cost per payable ounce of silver, total production cost per tonne, all-in sustaining cash cost, all-in cash cost, adjusted net
income, operating cash flow per share before changes in working capital, income taxes, and interest income, and mine
operating earnings. These measures are used by the Company to manage and evaluate operating performance and ability
to generate cash and are widely reported in the silver mining industry as benchmarks for performance. However, the
measures do not have a standardized meaning and may differ from methods used by other companies with similar
descriptions. The Company believes that certain investors use these non-GAAP financial measures to evaluate the
Company’s performance. Accordingly, non-GAAP financial measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS. To facilitate a better understanding of these
measures as calculated by the Company, we have provided detailed descriptions and reconciliations as required.
This document contains forward-looking statements. Please refer to the cautionary language under the heading
“Cautionary Statement on Forward-Looking Statements”.
Business of the Company
Fortuna Silver Mines Inc. (“Fortuna” or the “Company”) is engaged in silver mining and related activities in Latin America,
including exploration, extraction, and processing. The Company operates the Caylloma silver, lead, and zinc mine
(“Caylloma”) in southern Peru and the San Jose silver and gold mine (“San Jose”) in southern Mexico.
Fortuna is a publicly traded company incorporated and domiciled in Canada. Its common shares are listed on the New
York Stock Exchange under the trading symbol FSM; on the Toronto Stock Exchange and Lima Stock Exchange, both
under the trading symbol FVI; and on the Frankfurt Stock Exchange under the trading symbol F4S.F.
The Company’s registered office is located at Suite 650, 200 Burrard Street, Vancouver, British Columbia, Canada V6C 3L6.
The financial results include the accounts of the Company and its wholly owned subsidiaries: Minera Bateas S.A.C.
(“Bateas”); Fortuna Silver (Barbados) Inc. (“Barbados”); Compania Minera Cuzcatlan SA (“Cuzcatlan”); Continuum
Resources Ltd. (“Continuum”); Fortuna Silver Mines Peru S.A.C. (“FSM Peru”); and Fortuna Silver Mexico, S.A. de CV.
(“FS Mexico”).
