Fortitude Gold Corp - FTCO stock
OTC Symbol: FTCO | OTC Tier: OTCQB
Introduction[edit]
Fortitude Gold Corporation (OTC: FTCO) is a US based mining company focused on exploration, development, mining, and production of precious metals. Headquartered in Colorado, Fortitude Gold Corp was founded on August 11, 2020 and got listed on the Stock market on February 19, 2021. Fortitude Gold’s 100% owned Nevada Mining unit was established in 2014. In December 2020, Fortitude Gold was spun out of Gold Resource Corporation, an NYSE American listed company trading under the symbol “GORO”.[1]
Company Operations[edit]
Portfolio[edit]
Company’s property portfolio consists of five gold properties in Nevada’s Walker Lane Mineral Belt - Isabella Pearl project, Golden Mile property, East Camp Douglas property, Mina Gold property, and County Line property.[2] All five properties are within an approximate 30-mile radius of one another within the prolific Walker Lane Mineral Belt.
Isabella Pearl[edit]
The company's primary asset is the Isabella Pearl mine, which is located in Mineral County, Nevada, USA. The Isabella Pearl mine produces gold and silver and has been in production since 2019. The mine is expected to have a production life of approximately 5 years. Isabella Pearl project is an open-pit heap leach project, which covers approximately 9,000 acres. The Golden Mile property covers an area of approximately 9,300 acres consisting of 451 unpatented and five patented claims. Its Mina Gold property covers an area of approximately 1,200 acres consisting of 61 unpatented claims and five patented claims. Its East Camp Douglas gold property covers an area of approximately 5,600 acres consisting of 289 unpatented claims and 16 patented claims. Its County Line property has a total land package of 2,400 acres consisting of 116 unpatented lode mining claims and six unpatented placer mining claims.[3]
Other Properties[edit]
In addition to the Isabella Pearl mine, FGC also has exploration properties in Nevada and New Mexico. The company is focused on exploring and developing these properties to expand its mineral reserves and ultimately increase production.[4]
Production[edit]
In a Q1 2023 update, the company reported its preliminary first-quarter production results for 2023. During the quarter, FGC produced a total of 11,487 ounces of gold from its Isabella Pearl mine in Nevada. In addition to the gold production, FGC also produced 18,023 ounces of silver during the quarter. The company notes that the preliminary production results are subject to final adjustments and may be revised in the future. Jason Reid, CEO of Fortitude Gold Corp, commented on the preliminary results, stating that the company is pleased with its performance in the first quarter and that it remains focused on optimizing operations at the Isabella Pearl mine to increase production and reduce costs. The news release also notes that FGC is on track to achieve its full-year 2023 production guidance of 45,000 to 50,000 ounces of gold.[5]
Financial Performance[edit]
Dividends[edit]
Fortitude has been paying a dividend of $0.04 per month, which is $0.48 annually.[6]
Financial Statements[edit]
Fortitude has had a good operating and net margin for the past three years, as well as a very impressive amount of cash.[7]
| Year Ending | Total Revenue | Net Income | Cash Balance |
|---|---|---|---|
| 12/31/2022 | $74,379,000 | $14,684,000 | 45,054,000 |
| 12/31/2021 | $82,109,000 | $17,866,000 | 40,017,000 |
| 12/31/2020 | $53,967,000 | $10,217,000 | 27,774,000 |
| 12/31/2019 | $15,065,000 | ($2,292,000) | 866,000 |
The Team[edit]
Fortitude Gold Corp currently has 68 full-time employees.[8]
Jason Reid, President & CEO[edit]
Jason Reid is currently the CEO, President, and Director of Fortitude Gold Corporation (FGC), and has extensive experience in the mining industry. He previously held similar positions at Gold Resource Corporation (GRC), which is where FGC originated from. Jason has been with GRC since 2006, and played a key role in taking the company public through a self-underwritten IPO. During his time at GRC, the company transitioned from an exploration stage to a development stage, eventually becoming a producer of gold and silver that paid dividends to its shareholders. Jason's leadership resulted in over a decade of production, generating more than $1 billion in revenue, and returning over $115 million in dividends to shareholders. He also initiated a program where shareholders could receive physical gold and silver as dividends. Prior to his work at GRC, Jason was an entrepreneur who founded and ran two successful businesses for 13 years. He holds a Bachelor of Science degree from Fort Lewis College.[8]
John Labate, CFO[edit]
With more than 35 years of experience in financial management and accounting in the mining industry, Mr. Labate is a seasoned executive. He has held the position of CFO at several companies, including Gold Resource Corporation, Golden Star Resources Ltd., Constellation Copper Corporation, and Crown Resources Corporation.[8]
Barry Devlin, VP Exploration[edit]
Mr. Devlin is a highly experienced executive in the mining industry with a background in exploration that spans over 39 years. He has held positions at companies such as Gold Resource Corporation, Endeavor Silver Corporation, and Hecla Mining Company. Throughout his career, he has been involved in the discovery, acquisition, and development of numerous mineral deposits, with a particular focus on epithermal gold-silver systems and porphyry copper gold skarns. He has worked in a variety of geological environments across North and South America, and has established a strong reputation in generative exploration programs. Mr. Devlin holds a Bachelor of Science degree with honors in Geology and a Master's degree in Geology, both from the University of British Columbia in Vancouver, Canada. He is a Registered Professional Geologist in British Columbia, as well as a Fellow of the Geological Association of Canada and Society of Economic Geologists. He has published several works on epithermal systems.[8]
Company Environmental, Social, and Governance (ESG)[edit]
Fortitude Gold Corp has developed and follows an approach to ESG that is based on international best practices. Company’s operating mine has a reclamation plan in place that meets all applicable legal and regulatory requirements. At December 31, 2021, $4.7 million was accrued on their consolidated balance sheet for reclamation costs relating to their properties.[9]
- ↑ Fortitudegold.com. Company Presentation. Retrieved on 11/14/2022.
- ↑ Yahoo Finance. FTCO Quote. Retrieved on 11/13/2022.
- ↑ fortitudegold.com. Isabella Pearl Project. Retrieved on 4/24/2023.
- ↑ fortitudegold.com. Projects Overview. Retrieved on 4/24/2023.
- ↑ Accesswire. Fortitude Gold Reports Preliminary First Quarter Production Of 11,487 Gold Ounces. April 13, 2023.
- ↑ Yahoo Finance. FTCO Stock Summary. Retrieved on 4/24/2023.
- ↑ OTC Markets. FTCO Stock Financials. Retrieved on 4/24/2023.
- ↑ 8.0 8.1 8.2 8.3 fortitudegold.com. Management. Retrieved on 11/13/2022.
- ↑ Fortitudegold.com. 2021 Annual Report. December 31/2022
