Fortuna Silver Mines Inc. plans to make acquisition. Jorge Ganoza, CEO of the firm said that it is on track to complete a prefeasibility study by year-end at its San José silver-gold project in Mexico, and expects to have all permits necessary for construction in hand “in the coming days.” He added that the building of San José is an important financial commitment that will not leave a lot of cash free to make acquisitions, though the company is actively looking for opportunities. Fortuna has been evaluating prospects in Argentina, Chile, Mexico and Peru over the last two months. He noted, “We are active, but we are also selective,” adding that a project must present margins of at least 100% over cash costs to be attractive. He also said that Fortuna would consider issuing shares to fund an acquisition. He noted, “Certainly we are focused on growth. Caylloma has been a stepping stone for us. With San José coming into production in 2011 we will be in a position to more than double our silver output and double our revenues. We are on that path. We believe in growth.”

Fortuna Silver Mines Inc. announced consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported revenue of $13.23 million and operating income of $4.39 million against revenue of $7.49 million and operating loss of $0.38 million a year ago. Net loss was $0.56 million against net loss of $0.30 million a year ago. Adjusted net income was $1.22 million as compared to the adjusted net income of $0.23 million for the same period a year ago. The net loss was due primarily to negative mark-to-market movements on the commodity hedge book. The increase in adjusted net income is primarily a result of record mine operating income of $7.07 million compared to $1.73 million in the same period of 2008. For nine months, the company reported revenue of $35.07 million and operating income of $8.82 million against revenue of $22.07 million and operating income of $0.64 million a year ago. Net loss was $0.41 million against net loss of $1.56 million a year ago. Adjusted net income was $1.85 million as compared to the adjusted net income of $0.30 million for the same period a year ago.

Fortuna Silver Mines Inc. announced earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported cash flow from operations before changes in non-cash working capital items was $2,658,000 compared to $2,577,000 for the same period last year. For the nine months, the company reported mine operating income of $17,534,000 compared to $6,886,000 for the same period last year. Cash flow from operations before changes in non-cash working capital items was $10,909,000 compared to cash used in operations before changes in non-cash working capital items of $7,659,000 for the same period last year.