Fortuna silver wants to quadrule its silver production
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By Jeremy Holcombe Contributing writer for Goldco Direct and End the Lie [caption id="attachment_40713" align="alignleft" width="300" caption="Riot police arrest activist protesting against Fortuna mine in Mexico, January 2012"] [/caption] Fortuna silver mining company is looking for takeover prospects in an effort to quadruple its silver production over the next 5-years. This should come as no surprise, as Fortuna is a well-established mining company that has just finished spending the last few years establishing its San Jose mine down in Mexico. It is now ready to make another leap in silver production. This is as good of time as any I suppose. The demand for silver is so strong from both investors and collectors that silver is already being used up faster than it can be mined. As I previously pointed out, silver price in the future will also be heavily dependent on the demand in industrial sectors . Fortuna Mining chief executive Jorge Ganoza has expressed his interest in expanding and now it looks as though the company is going to make a serious move for several takeover bids in an attempt to quadruple its silver production over the next five years. "We have a strategic objective of producing 14 million ounces of silver (annually) within five years," said Ganoza, adding that the company plans to produce 3.7 million ounces this year. "We want to become a force in world silver production." With already half of their production coming from mining Mexico and Peru, Fortuna is taking its time looking at its options. The amount of silver that it wants to target per year (a stunning 14 million ounces) is very impressive. To get to this type of massive output is going to take some hard work and some very strategic moves. That is probably why they gave a 5-year timetable on the project. To get to this number, Fortuna will indeed have to make some acquisitions and win some takeover bids, as there would be no way to make this type of move without buying up some already established mines. "It will likely come from an acquisition," said Ganoza. "Now will it be a post-discovery, pre-development stage opportunity? Very likely, that's where we look." In addition to the current news from Fortuna, the company also plans to spend in excess of $71 million this year. Using these funds as its expands output at San Jose, revamps facilities at the Caylloma mine in Peru and continues exploration drilling on its Mario deposit, which is also in Peru. This is fantastic news for silver investors, as it shows at least one big silver mining company is aware of the popularity of silver and is making an effort to do something about it. Furthermore, it shows that the demand for silver, at least in the eyes of Fortuna, is high enough that they need to expand their output to meet it. They also seem to believe that the demand will continue at this level, or perhaps even grow, in the coming five years and into the future. This is a good sign for people who want to get it on silver before the price just continues to rise. [Note from Madison Ruppert: these mining projects in Mexico are highly contentious and have resulted in many protests. As you can see from the above picture, the demonstrations can attract quite a crowd. It will be interesting to see if these demonstrations continue as Fortuna expands.] The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct . Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.