There has been a notable selloff in the Fortuna Silver Mines Inc (NYSE:FSM) (TSX:FVI) stock over the course of the past two days and the situation remained the same yesterday as the stock dropped by 3%. The decline in the stock yesterday took the decline over the past week to as much as 12% and at this point it is perhaps important for investors to figure out if the selloff is going to continue or not.
On Tuesday, FSM stock fell by 3.08% to $3.46 with 5.21 million shares, compared to its average volume of 5.31 million shares. The stock has moved within a range of $3.4150 – 3.6400 after opening trade at $3.55.
Fortuna drills 20.2 g/t gold over 18.2 meters at the Séguéla gold Project, Côte d’Ivoire
Yesterday, the company was actually in the news after it provided an update with regards to the Sunbird exploration initiative. The program is being conducted at the Seguela gold project that is situated in Cote d’Ivoire.
Fortuna Silver announced yesterday that back in September last year it had decided to launch the process in relation to the construction of an open pit mine with the capacity of 3700 tonnes per day at the project. However, it was also noted that the first gold pour was only expected at some point in the middle of 2023. It seems that investors were not fully impressed with the announcement form the company and that probably led to the selloff in the Fortuna Silver Mines stock yesterday.
Paul Weedon, Senior Vice President of Exploration, commented, “Exploration results at Séguéla continue to support the high-grade trend we have seen from the recent drilling at the Sunbird Prospect, and with all results now to hand, the Company is looking forward to seeing a maiden inferred resource estimate for Sunbird.”
FSM stock is trading below the 50-Day and 200-Day Moving averages of $3.69 and $3.64 respectively. However, the stock is trading above the 20-Day moving average of $4.86.