ANDREW KAIP, BMO Capital Markets (07/12/2010)

"BMO Research is initiating coverage of Fortuna Silver Mines with an Outperform rating and C$3.20 target price. FVI has demonstrated sound operational capabilities, having restarted and ramped up production rates at its Caylloma mine to a Q110 annualized rate of 5.5 Moz. silver eq. (using BMO Research assumptions) over the course of 12 months. The company has initiated development of a second mine (San Jose) that is expected to increase production ~77% by 2013, with startup scheduled in mid-2011. Investment in FVI is supported by an attractive valuation relative to peers. BMO Research expects FVI's share price to appreciate as development milestones are achieved at San Jose."