Sat, 13 Aug 2022

COLORADO SPRINGS, CO / ACCESSWIRE August 2, 2022 / Fortitude Gold Corporation (OTCQB:FTCO) (the 'Company') reported results for the second quarter ended June 30, 2022, including $24.0 million net sales, $6.6 million net income or $0.27 per share, and a $40.7 million cash balance at quarter end. The Company produced 10,980 ounces of gold and maintains its 2022 production outlook. 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.

Q2 2022 FINANCIAL RESULTS AND HIGHLIGHTS

• $24.0 million net sales
• $6.6 million net income or $0.27 per share
• $40.7 million cash balance on June 30, 2022
• 10,980 gold ounces produced
• 3.46 grams per tonne average gold grade mined
• $76.9 million working capital at June 30, 2022
• $11.6 million mine gross profit
• $646 total cash cost after by-product credits per gold ounce sold
• $733 per ounce total all-in sustaining cost
• $2.9 million dividends paid

Overview of Q2 2022 Results

Fortitude Gold sold 12,851 gold ounces at a total cash cost of $646 per ounce (after by-product credits) and an all-in sustaining cost per ounce of $733. Realized metal prices during the quarter averaged $1,876 per ounce gold*. The Company recorded net income of $6.6 million, or $0.27 per share and maintained substantial cash and cash equivalents at quarter end of $40.7 million. The Company produced 10,980 ounces of gold during the quarter and maintains its 2022 Annual Outlook, targeting 40,000 gold ounces (a range of 36,000 to 40,000 ounces).

'Our Isabella Pearl operations delivered another solid quarter,' stated Mr. Jason Reid, CEO and President of Fortitude Gold. 'This included focusing on the high-grade Pearl zone during the second quarter with less of a strip ratio. We are beginning to enjoy the benefits of moving substantially less waste at the Isabella Pearl mine, which translates directly to lower mining costs. When comparing the first half of 2022 to the first half of 2021, we moved 51 percent less waste year-over-year at Isabella Pearl and expect the waste tonnes moved on an annual basis to continue to decline in the coming years.'

Mr. Reid continued, 'The Company increased its cash position to over $40 million at the end of the quarter, which is after investing $2.4 million into exploration and distributing over $2.9 million to shareholders in dividends. We believe this balanced approach will allow us to fund our next targeted mine build at Golden Mile, continue an aggressive exploration program on several of our properties, while continuing the distribution of monthly dividends to shareholders with an industry leading dividend yield.'

The following Production Statistics table summarizes certain information about our Isabella Pearl Mine for three and six months ended June 30, 2022 and 2021:

  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.

The following Sales Statistics table summarizes certain information about our Isabella Pearl Mine for three and six months ended June 30, 2022 and 2021:

  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.

*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Provisional sales may remain unsettled from one quarter into the next. Realized prices will therefore vary from average spot metal market prices upon final settlement.

See Accompanying Tables

The following information summarizes the results of operations for Fortitude Gold Corporation for the three and six months ended June 30, 2022 and 2021, its financial condition at June 30, 2022 and December 31, 2021, and its cash flows for the six months ended June 30, 2022 and 2021. The summary data as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 is unaudited; the summary data as of December 31, 2021 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2021, 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)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and six months ended June 30, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

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 five high-grade gold properties located in the Walker Lane Mineral Belt and a sixth 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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https://www.accesswire.com/710592/Fortitude-Gold-Reports-Second-Quarter-Net-Income-Of-027-Per-Share-Maintains-2022-Production-Outlook

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