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Fortitude Gold Reports Second Quarter 2024 Results

COLORADO SPRINGS, CO / ACCESSWIRE / July 30, 2024 / Fortitude Gold Corporation (OTCQB:FTCO) (the "Company") today reported its second quarter 2024 results including $9.6 million net sales, $4.3 million in exploration expense, $2.9 million cash dividends to shareholders, $4.8 million mine gross profit, and a cash balance on June 30, 2024 of $32.9 million. The Company confirmed its previously announced preliminary 2024 second quarter production of 4,150 gold ounces as it awaits permit approval to mine deeper in the Pearl zone of the Isabella Pearl pit. Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A. offering investors exposure to both gold production and substantial dividend yield.

Second Quarter 2024 Financial Results and Highlights

  • $9.6 million net sales

  • $(0.01) per share, $0.1 million net loss

  • $32.9 million cash balance on June 30, 2024

  • 4,150 gold ounces produced

  • $48.4 million working capital at June 30, 2024

  • $4.8 million mine gross profit

  • $4.3 million exploration expenditures

  • $782 total cash cost after by-product credits per gold ounce sold*

  • $1,013 per ounce total all-in sustaining cost*

  • $2.9 million dividends paid

* 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 4,123 gold ounces at a total cash cost of $782 per ounce (after by-product credits) and an all-in-sustaining-cost per ounce of $1,013. Realized gold metal prices during the quarter averaged $2,341 per ounce(1). While the Company produced 4,150 ounces of gold during the quarter, the 2024 annual production outlook was previously deferred as the Company awaits permits from regulatory agencies to mine deeper in the Isabella Pearl deposit as well as expand mine operations with permit approval to build its second mine, its County Line project.

"The second quarter of 2024 was successful on numerous fronts despite the ongoing permitting delays," stated Fortitude Gold CEO and President, Mr. Jason Reid. "Our Isabella Pearl mine generated over $9 million dollars of revenue, we deployed $4.3 million dollars in exploration intercepting high-grade gold on numerous properties, and we distributed $2.9 million dollars in cash dividends to shareholders. The Company remains in a very strong financial position as we await our permits to mine both deeper in the higher-grade Pearl zone in the Isabella Pearl Pit and to begin mine construction of our County Line project, our next targeted mine build."

The following Sales Statistics table summarizes certain information about our operations for the three and six months ended June 30, 2024 and 2023:

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

Metal sold

Gold (ozs.)

4,123

9,702

8,093

21,131

Silver (ozs.)

15,806

13,464

36,672

30,944

Average metal prices realized (1)

Gold ($per oz.)

2,341

1,990

2,209

1,935

Silver ($per oz.)

29.11

24.46

25.80

23.42

Precious metal gold equivalent ounces sold

Gold Ounces

4,123

9,702

8,093

21,131

Gold Equivalent Ounces from Silver

197

165

428

375

4,320

9,867

8,521

21,506

Total cash cost before by-product credits per gold ounce sold

$

894

$

561

$

840

$

546

Total cash cost after by-product credits per gold ounce sold

$

782

$

527

$

723

$

512

Total all-in sustaining cost per gold ounce sold

$

1,013

$

680

$

898

$

625

(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 six months ended June 30, 2024 and 2023:

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

Ore mined

Ore (tonnes)

120,270

112,834

186,766

219,309

Gold grade (g/t)

0.53

3.36

0.59

3.71

Low-grade stockpile

Ore (tonnes)

-

-

-

61,854

Gold grade (g/t)

-

-

-

0.47

Waste (tonnes)

348,488

312,614

799,997

530,741

Metal production (before payable metal deductions)(1)

Gold (ozs.)

4,150

9,684

8,133

21,171

Silver (ozs.)

16,178

13,611

37,293

31,260

(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 six months ended June 30, 2024 and 2023, its financial condition at June 30, 2024 and December 31, 2023, and its cash flows for the six months ended June 30, 2024 and 2023. The summary data as of June 30, 2024 and for the three and six months ended June 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)

June 30,
2024

December 31,
2023

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

32,873

$

48,678

Gold and silver rounds/bullion

1,756

1,532

Accounts receivable

527

42

Inventories

15,238

23,848

Prepaid taxes

672

355

Prepaid expenses and other current assets

1,078

811

Total current assets

52,144

75,266

Property, plant and mine development, net

23,883

25,365

Operating lease assets, net

-

631

Deferred tax assets

2,768

2,860

Leach pad inventories

46,334

30,533

Other non-current assets

386

344

Total assets

$

125,515

$

134,999

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

3,010

$

3,881

Operating lease liabilities, current

-

631

Mining taxes payable

207

2,309

Other current liabilities

516

1,133

Total current liabilities

3,733

7,954

Asset retirement obligations

6,796

6,500

Total liabilities

10,529

14,454

Shareholders' equity:

Preferred stock - $0.01 par value, 20,000,000 shares authorized and nil outstanding at June 30, 2024 and December 31, 2023

-

-

Common stock - $0.01 par value, 200,000,000 shares authorized and 24,173,209 shares outstanding at June 30, 2024 and 24,084,542 shares outstanding at December 31, 2023

242

241

Additional paid-in capital

104,396

104,020

Retained earnings

10,348

16,284

Total shareholders' equity

114,986

120,545

Total liabilities and shareholders' equity

$

125,515

$

134,999

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and six months ended June 30, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Sales, net

$

9,554

$

19,219

$

17,735

$

40,759

Mine cost of sales:

Production costs

3,130

5,020

5,707

10,673

Depreciation and amortization

1,547

2,905

2,938

6,384

Reclamation and remediation

59

68

107

140

Total mine cost of sales

4,736

7,993

8,752

17,197

Mine gross profit

4,818

11,226

8,983

23,562

Costs and expenses:

General and administrative expenses

1,190

1,087

2,411

2,146

Exploration expenses

4,252

6,061

7,890

9,749

Other (income), net

(539

)

(434

)

(1,160

)

(761

)

Total costs and expenses

4,903

6,714

9,141

11,134

(Loss) income before income and mining taxes

(85

)

4,512

(158

)

12,428

Mining and income tax expense (benefit)

53

908

(18

)

2,456

Net (loss) income

$

(138

)

$

3,604

$

(140

)

$

9,972

Net (loss) income per common share:

Basic

$

(0.01

)

$

0.15

$

(0.01

)

$

0.41

Diluted

$

(0.01

)

$

0.15

$

(0.01

)

$

0.41

Weighted average shares outstanding:

Basic

24,165,209

24,084,542

24,150,288

24,074,312

Diluted

24,165,209

24,225,953

24,150,288

24,219,270

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

Six months ended

June 30,

2024

2023

Cash flows from operating activities:

Net (loss) income

$

(140

)

$

9,972

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

3,016

6,430

Stock-based compensation

300

103

Deferred taxes

92

(1,018

)

Reclamation and remediation accretion

107

140

Unrealized (gain) loss on gold and silver rounds/bullion

(224

)

14

Other operating adjustments

-

(72

)

Changes in operating assets and liabilities:

Accounts receivable

(485

)

-

Inventories

(5,896

)

(2,167

)

Prepaid expenses and other current assets

(267

)

(531

)

Other non-current assets

(42

)

-

Accounts payable and other accrued liabilities

(1,921

)

519

Income and mining taxes payable

(2,419

)

(601

)

Net cash (used in) provided by operating activities

(7,879

)

12,789

Cash flows from investing activities:

Capital expenditures

(2,204

)

(3,974

)

Purchase of gold and silver rounds/bullion

-

(239

)

Net cash used in investing activities

(2,204

)

(4,213

)

Cash flows from financing activities:

Dividends paid

(5,796

)

(6,741

)

Proceeds from exercise of stock options

77

60

Repayment of loans payable

(3

)

(30

)

Repayment of capital leases

-

(6

)

Net cash used in financing activities

(5,722

)

(6,717

)

Net (decrease) increase in cash and cash equivalents

(15,805

)

1,859

Cash and cash equivalents at beginning of period

48,678

45,054

Cash and cash equivalents at end of period

$

32,873

$

46,913

Supplemental Cash Flow Information

Income and mining taxes paid

$

2,309

$

4,074

Non-cash investing and financing activities:

Change in capital expenditures in accounts payable

$

436

$

231

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. In particular, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause future actual results to differ materially from those expressed or implied by any forward-looking statements. Also, there can be no assurance that production will continue at any specific rate.

Contact:

Greg Patterson
719-717-9825
greg.patterson@fortitudegold.com
www.Fortitudegold.com

SOURCE: Fortitude Gold Corporation



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