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Fortitude Gold Reports Third Quarter 2024 Results

COLORADO SPRINGS – November 5, 2024 - Fortitude Gold Corporation (OTCQB: FTCO) (the “Company”) reported results for the third quarter ended September 30, 2024, including $10.2 million net sales, $2.7 million exploration expense, $2.9 million cash dividends to shareholders, $4.8 million mine gross profit, $946 thousand net income, or $0.04 per share, and a cash balance of $30.3 million at quarter end.  The Company confirmed its previously announced preliminary 2024 third quarter production of 4,220 gold ounces as it awaits permit approval to build its second mine, its County Line project.  The Company did successfully receive permit approvals to mine deeper in the Pearl zone of the Isabella Pearl pit during the closing weeks of the third quarter of 2024.  Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A. offering investors exposure to both gold production and dividend yield.

Third Quarter 2024 Financial Results and Highlights

* The calculation of our cash cost and all-in sustaining cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company’s recently filed Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

Fortitude Gold sold 4,199 gold ounces at a total cash cost of $906 per ounce (after by-product credits) and an all-in-sustaining-cost per ounce of $990. Realized metal prices during the quarter averaged $2,441 per ounce gold(1).  While the Company produced 4,220 ounces of gold during the quarter, the 2024 annual production outlook was previously deferred as the Company awaits permits from regulatory agencies to expand mine operations with permit approval to build its second mine, its County Line project.

“The third quarter of 2024 was successful on numerous fronts for Fortitude despite continued permitting delays,” stated Mr. Jason Reid, CEO and President of Fortitude Gold.  “We are hopeful that under a different federal administration than the current one, its agencies will become fully staffed and our future permits approved on a timelier basis.  The Company remains in a strong financial position as we await permits to begin mine construction of our County Line project, our next targeted mine build.”

The following Sales Statistics table summarize certain information about our operations for the three and nine months ended September 30, 2024 and 2023:

                           
                                 
      Three months ended September 30,    Nine months ended September 30, 
         2024      2023      2024      2023
Metal sold                              
Gold (ozs.)        4,199      11,042      12,292      32,173
Silver (ozs.)        11,380      24,694      48,052      55,638
Average metal prices realized (1)                              
Gold ($per oz.)        2,441      1,931      2,288      1,934
Silver ($per oz.)        29.07      23.54      26.57      23.51
Precious metal gold equivalent ounces sold                          
Gold Ounces        4,199      11,042      12,292      32,173
Gold Equivalent Ounces from Silver        136      301      558      676
         4,335      11,343      12,850      32,849
                           
Total cash cost before by-product credits per gold ounce sold     $  985   $  600   $  889   $  564
Total cash cost after by-product credits per gold ounce sold     $  906   $  547   $  785   $  523
Total all-in sustaining cost per gold ounce sold     $  990   $  651   $  929   $  633
  1. Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.

The following Production Statistics table summarize certain information about our operations for the three and nine months ended September 30, 2024 and 2023:

                 
                       
    Three months ended September 30,    Nine months ended September 30, 
       2024      2023      2024      2023
Ore mined                    
Ore (tonnes)    149,259    110,456    336,025    329,765
Gold grade (g/t)    0.66    2.04    0.62    3.07
Low-grade stockpile                   
Ore (tonnes)    —    —    —    2,118
Gold grade (g/t)    —    —    —    0.46
Waste (tonnes)    208,176    434,571    1,008,173    965,312
Metal production (before payable metal deductions)(1)                   
Gold (ozs.)    4,220    11,122    12,353    32,293
Silver (ozs.)    11,488    25,012    48,781    56,272
  1. The difference between what we report as “metal production” and “metal sold” is attributable to the difference between the quantities of metals contained in the doré we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in doré produced and sold.
 

See Accompanying Tables

The following information summarizes the results of operations for Fortitude Gold Corporation for the three and nine months ended September 30, 2024 and 2023, its financial condition at September 30, 2024 and December 31, 2023, and its cash flows for the nine months ended September 30, 2024 and 2023. The summary data as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 is unaudited; the summary data as of December 31, 2023 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2023, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

The calculation of its cash cost before by-product credits per gold ounce sold, total cash cost after by-product credits per gold ounce sold and total all-in sustaining cost per gold ounce sold contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company’s most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

 

FORTITUDE GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)

             
    September 30,    December 31, 
       2024      2023
    (Unaudited)       
ASSETS              
Current assets:              
Cash and cash equivalents   $  30,316   $  48,678
Gold and silver rounds/bullion      1,960      1,532
Accounts receivable      —      42
Inventories      11,974      23,848
Prepaid taxes      387      355
Prepaid expenses and other current assets      805      811
Total current assets      45,442      75,266
Property, plant and mine development, net      26,815      25,365
Operating lease assets, net      —      631
Deferred tax assets      3,338      2,860
Leach pad inventories      51,164      30,533
Other non-current assets      386      344
Total assets   $  127,145   $  134,999
LIABILITIES AND SHAREHOLDERS' EQUITY              
Current liabilities:              
Accounts payable   $  2,832   $  3,881
Operating lease liabilities, current      —      631
Mining taxes payable      376      2,309
Other current liabilities      703      1,133
Total current liabilities      3,911      7,954
Asset retirement obligations      9,798      6,500
Total liabilities      13,709      14,454
Shareholders' equity:              
Preferred stock - $0.01 par value, 20,000,000 shares authorized and nil outstanding at September 30, 2024 and December 31, 2023      —      —
Common stock - $0.01 par value, 200,000,000 shares authorized and 24,173,209 shares outstanding at September 30, 2024 and 24,084,542 shares outstanding at December 31, 2023      242      241
Additional paid-in capital      104,801      104,020
Retained earnings      8,393      16,284
Total shareholders' equity      113,436      120,545
Total liabilities and shareholders' equity   $  127,145   $  134,999
 

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

For the three and nine months ended September 30, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

                           
       Three months ended   Nine months ended  
    September 30,    September 30,   
       2024      2023      2024      2023  
Sales, net   $  10,229   $  21,268   $  27,964   $  62,027  
Mine cost of sales:                              
Production costs      3,784      5,992      9,491      16,665  
Depreciation and amortization      1,597      3,349      4,535      9,733  
Reclamation and remediation      69      91      176      231  
Total mine cost of sales      5,450      9,432      14,202      26,629  
Mine gross profit      4,779      11,836      13,762      35,398  
Costs and expenses:                              
General and administrative expenses      1,739      1,335      4,150      3,481  
Exploration expenses      2,731      3,833      10,621      13,582  
Other (income), net      (520)      (491)      (1,680)      (1,252)  
Total costs and expenses      3,950      4,677      13,091      15,811  
Income before income and mining taxes      829      7,159      671      19,587  
Mining and income tax (benefit) expense      (117)      1,437      (135)      3,893  
Net income   $  946   $  5,722   $  806   $  15,694  
Net income per common share:                              
Basic   $  0.04   $  0.24   $  0.03   $  0.65  
Diluted   $  0.04   $  0.24   $  0.03   $  0.65  
Weighted average shares outstanding:                              
Basic      24,173,209      24,084,542      24,156,816      24,077,772  
Diluted      24,261,954      24,212,436      24,242,708      24,217,420  
 

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended September 30, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

             
    Nine months ended
    September 30, 
       2024      2023
Cash flows from operating activities:              
Net income   $  806   $  15,694
Adjustments to reconcile net income to net cash from operating activities:              
Depreciation and amortization      4,668      9,804
Stock-based compensation      705      171
Deferred taxes      (478)      (607)
Reclamation and remediation accretion      176      231
Reclamation payments      (83)      —
Unrealized (gain) loss on gold and silver rounds/bullion      (428)      33
Other operating adjustments      —      (55)
Changes in operating assets and liabilities:              
Accounts receivable      42      —
Inventories      (8,434)      (3,016)
Prepaid expenses and other current assets      6      (292)
Other non-current assets      (42)      (19)
Accounts payable and other accrued liabilities      (1,407)      347
Income and mining taxes payable      (1,965)      325
Net cash (used in) provided by operating activities      (6,434)      22,616
             
Cash flows from investing activities:              
Capital expenditures      (3,305)      (5,047)
Purchase of gold and silver rounds/bullion      —      (978)
Net cash used in investing activities      (3,305)      (6,025)
             
Cash flows from financing activities:              
Dividends paid      (8,697)      (9,631)
Proceeds from exercise of stock options      77      60
Repayment of loans payable      (3)      (30)
Repayment of capital leases      —      (9)
Net cash used in financing activities      (8,623)      (9,610)
             
Net (decrease) increase in cash and cash equivalents      (18,362)      6,981
Cash and cash equivalents at beginning of period      48,678      45,054
Cash and cash equivalents at end of period   $  30,316   $  52,035
             
Supplemental Cash Flow Information              
Income and mining taxes paid   $  2,309   $  4,174
Non-cash investing and financing activities:              
Change in capital expenditures in accounts payable   $  (69)   $  15
Change in estimate for asset retirement costs   $  2,937   $  —

About Fortitude Gold Corp.:

Fortitude Gold is a U.S. based gold producer targeting projects with low operating costs, high margins, and strong returns on capital. The Company’s strategy is to grow organically, remain debt-free and distribute substantial dividends. The Company’s Nevada Mining Unit consists of seven high-grade gold properties located in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada. The Isabella Pearl gold mine, located on the Isabella Pearl mineralized trend, is currently in production. Nevada, U.S.A. is among the world’s premier mining friendly jurisdictions.

Cautionary Statements:  This press release contains forward-looking statements that involve risks and uncertainties. If you are risk-averse you should NOT buy shares in Fortitude Gold Corp.  The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words “plan”, “target”, "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements.  Such forward-looking statements include, without limitation, the statements regarding the Company’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material are forward-looking statements.  All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements.  Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate.  The Company's actual results could differ materially from those discussed in this press release.

Contact:

Greg Patterson

719-717-9825

greg.patterson@fortitudegold.com

www.Fortitudegold.com

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