52
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
Expressed in $ millions
Three months ended December 31,
Years ended December 31,
2014
2013
2014
2013
NET INCOME (LOSS) FOR THE YEAR
$ 0.1
$ (14.9)
$ 15.6
$ (19.1)
Items of note, net of tax:
Write-off of mineral properties
–
–
–
0.4
Impairment of mineral properties, plant
and equipment
–
10.2
–
20.4
Impairment of inventories
$ 0.1
–
0.1
–
Initial recognition impact of Mexican
mining tax reform
–
7.7
–
7.7
ADJUSTED NET INCOME FOR THE YEAR
1
$ 0.2
$ 3.0
$ 15.7
$ 9.4
1
A non-GAAP financial measure
Additional Measures (non-GAAP financial measures)
The Company uses other financial measures the presentation of which is not meant to be a substitute for other subtotals
or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures.
The following other financial measures are used: operating cash flow per share before changes in working capital, and
mine operating earnings. The terms described below do not have standardized meaning prescribed by IFRS, and therefore
the Company’s definitions are unlikely to be comparable to similar measures presented by other companies. The
Company’s management believes that their presentation provides useful information to investors.
Operating cash flow per share before changes in working capital (non-GAAP financial measure)
Expressed in $‘000’s (except per share measures)
Three months ended December 31,
Years ended December 31,
2014
2013
2014
2013
Net income (loss) for the year
$ 57
$ (14,930)
$ 15,602
$ (19,100)
Items not involving cash
10,712
27,456
47,295
63,851
$ 10,769
$ 12,526
$ 62,897
$ 44,751
Income taxes paid
(890)
(1,408)
(3,417)
(4,430)
Interest expense paid
–
(3)
(4)
(20)
Interest income received
87
69
275
608
Cash generated by operating activities
before changes in working capital
$ 9,966
$ 11,184
$ 59,751
$ 40,909
Divided by
Weighted average number of shares (‘000’s)
127,700
125,974
126,787
125,553
Operating cash flow per share before
changes in working capital
1
$ 0.08
$ 0.09
$ 0.47
$ 0.33
1
A non-GAAP financial measure
Mine operating earnings (non-GAAP financial measure)
Expressed in $’000’s
Three months ended December 31,
Years ended December 31,
2014
2013
2014
2013
Sales
$ 37,823
$ 36,377
$ 174,006 $ 137,394
Cost of sales
27,771
26,004
113,753
95,619
Mine operating earnings
1
$ 10,052
$ 10,373
$ 60,253 $ 41,775
1
A non-GAAP financial measure
