54
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
Investing activities included $7.5 million of expenditures on mineral properties, plant and equipment that comprised of
the following: $3.9 million for plant and equipment, $2.4 million for mine development, and $1.2 million for brownfields
exploration.
During the three months ended December 31, 2014, cash provided by financing activities totaled $4.8 million (Q4 2013:
$0.1 million) and comprised the repayment of finance lease obligations of $nil (Q4 2013: $0.1 million) and net proceeds
on the issuance of common shares of $4.8 million (Q4 2013: $nil).
Contractual Obligations
The Company expects the following maturities of its financial liabilities (including interest), finance leases, and other
contractual commitments:
Expressed in $ millions
Expected payments due by period as at December 31, 2014
Less than
After
1 year
1–3 years
4–5 years
5 years
Total
Trade and other payables
$ 21.5
$ –
$ –
$ –
$ 21.5
Income tax payable
9.7
–
–
–
9.7
Long term liabilities
–
4.7
–
–
4.7
Operating leases
0.7
1.3
0.1
–
2.1
Provisions
1.0
0.9
1.6
11.4
14.9
$ 32.9
$ 6.9
$ 1.7
$ 11.4
$ 52.9
Operating leases includes leases for office premises, computer and other equipment used in the normal course of
business.
Capital Commitments (expressed in $‘000’s)
As at December 31, 2014, there are no capital commitments.
Other Commitments (expressed in $‘000’s)
The Company has a contract to guarantee the power supply at its Caylloma Mine. Under the contract, the seller is
obligated to deliver a “maximum committed demand” (for the present term this stands at 3,500 kW) and the Company
“is obligated to purchase subject to exemptions under provisions of “Force Majeure”. The contract is automatically
renewed every two years for a period of 10 years and expiring in 2017. Renewal can be avoided without penalties by
notification 10 months in advance of the renewal date.
Tariffs are established annually by the energy market regulator in accordance with applicable regulations in Peru. The
minimum committed demand is $19 per month and the average monthly charge for 2014 is $202.
Operating leases includes leases for office premises, computer and other equipment used in the normal course of
business.
The expected payments due by period as at December 31, 2014 are as follows:
Expressed in $‘000’s
Expected payments due by period as at December 31, 2014
Less than
1 year
1–3 years
4–5 years
Total
Office premises – Canada
$ 132
$ 452
$ 126
$ 710
Office premises – Peru
396
$ 580
–
976
Office premises – Mexico
15
–
–
15
Total office premises
$ 543
$ 1,032
$ 126
$ 1,701
Computer equipment – Peru
185
164
–
349
Computer equipment – Mexico
17
–
–
17
Total computer equipment
$ 202
$ 164
$ –
$ 366
Machinery – Mexico
–
79
–
79
Total machinery
$ –
$ 79
$ –
$ 79
Total operating leases
$ 745
$ 1,275
$ 126
$ 2,146
