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FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
1. Corporate Information
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.
2. Basis of Consolidation and Summary of
Significant Accounting Policies
a) Statement of Compliance
These consolidated financial statements have been prepared in accordance with the International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The policies applied in these
consolidated financial statements are based on IFRS issued and effective as at December 31, 2014. The Board of
Directors approved these financial statements for issue on March 12, 2015.
b) Basis of Consolidation
These Financial Statements include the accounts of the Company and its subsidiaries. All significant inter-company
transactions, balances, revenues, and expenses have been eliminated upon consolidation.
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power to govern the
financial and operating policies of an entity so as to obtain benefits from the entity’s activities. Control is normally
achieved through ownership, directly or indirectly, of more than 50% of the voting power. Control can also be achieved
through power over more than half the voting rights by virtue of an agreement with other investors or through the exercise
of de facto control.
For non-wholly owned subsidiaries, the net assets attributable to outside equity shareholders are presented as “non-
controlling interests” in the equity section of the consolidated statements of financial position. Net income for the period
that is attributable to non-controlling interests is calculated based on the ownership of the minority shareholders in the
subsidiary.
Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up
to the effective date of disposition or loss of control. The principal subsidiaries of the Company and their geographic
locations at December 31, 2014 were as follows:
Economic
Entity Type at
Interest at
December 31,
December 31,
Name
2014
Location 2014
Principal Activity
Method
Minera Bateas S.A.C. (“Bateas”)
Subsidiary Peru
100%
Caylloma Mine
Consolidation
Fortuna Silver Mines Peru S.A.C. (“FSM Peru”)
Subsidiary Peru
100%
Service company
Consolidation
Compania Minera Cuzcatlan SA (“Cuzcatlan”)
Subsidiary Mexico 100%
San Jose Mine
Consolidation
Fortuna Silver Mexico, S.A. de CV. (“FS Mexico”) Subsidiary Mexico 100%
Exploration company Consolidation
Fortuna Silver (Barbados) Inc. (“Barbados”)
Subsidiary Barbados 100%
Holding company
Consolidation
Continuum Resources Ltd. (“Continuum”)
Subsidiary Canada 100%
Holding company
Consolidation
As at December 31, 2014, the Company has no joint arrangements or associates.
Notes to the Consolidated Financial Statements
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$’000’s unless otherwise stated)
