Production Constraints
The pandemic did have an affect on Fortuna Silver as mine production was closed for 5-6 weeks.Consequently mine production went from 796,000 tonnes to 662,000 tonnes.So silver and gold production for 9 months was down from 2019.However the increase in price helped to compensate for the drop in production;the price of silver went from $16 /ounce to $20/ounce in the first 9 months and $25/ounce for Q3.While the gold price went from $1365/ounce to $1752/ounce for 9 months and $1921/ounce for Q3.At the same time FVI reports they are mining higher grades of both silver and gold.
The Lindero Mine
Lindero is a mine in Argentina and FVI has been developing it since 2017.Their total capital expenditures on development will be about $325 million before production begins.And production is expected in the first quarter of 2021.Full production will be 18,750 tonnes per day and a high grade of silver and gold is expected.This is a substantial sized mill.However Fortuna does not estimate how much total production will be enhanced in Q1 2021 nor for 2021 by their Lindero production.But a rough estimate would be by 5% in Q1 and 20%-25% for 2021 assuming the grades are the same as in their other mines. 
Price Movement
Fortuna has traded in the $8-$9 price range since July.And in November it hit a high of $10 but has fallen off to the $8.50 recently.Management expected the healthy third quarter report could send it back up to $10 and quite a few analysts expect FVI to go to the $10-$11 area.This blog expects that production for Q4 will be flat compared to Q3 production.But the price of silver and gold should be up from present levels and from the average price for Q3.This could easily bring the price up to the $10.50-$11.00 area.If this blog is right and production for the Lindero mine comes in as expected then look for the price to nibble on $12 a share in Q1 2021.
