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Fortitude Gold announces preliminary gold production results for Q1

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Nevada-focused gold miner and explorer Fortitude Gold Corp. [OTCQB: FTCO] has reported preliminary production results for the first quarter ended March 31, 2023 of 11,487 gold ounces. Fortitude Gold is a gold producer, developer, and explorer which offers investors exposure to both gold production and dividend yield.

During the first quarter Fortitude Gold said it processed gold ore sourced from the Isabella Pearl high-grade Pearl zone blended with lower grade stockpiles. The company maintains its 2023 production outlook targeting 40,000 ounces of gold (a range of 36,000 to 40,000ounces).

Full financial results for the first quarter will be available to investors when the company files its quarterly report on Form 10-Q with the Securities and Exchange Commission.

Fortitude Gold targets projects with low operating costs, high margins, and strong returns on capital. Its strategy is to grow organically, remain debt-free and distribute substantial dividends. Its 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 mineralised trend, is currently in production.

Dividend paying gold producer

On 6 April Fortitude Gold declared a monthly dividend of $0.04 per common share. At the end of February it reported net income of $14.7m, or $0.61 per share, and said it had increased its cash balance by $5m year over year to $45.1m. It also confirmed its 2022 annual gold production was 41,231 ounces, which exceeded its initial target for the year by 3%.

Fortitude also said that in addition to its updated Reserves and Resources, it had an estimated 51,900 recoverable gold ounces on its Isabella Pearl heap leach pad as of 31 December.

The Isabella Pearl operation continues to deliver strong cash flows and margins which allow the company to also invest in and build on new operations in the same Nevada area. It released an initial resource for its County Line project in January of this year, which is just 19 miles from its Isabella Pearl site. County Line has scope to deliver gold resources to the Isabella Pearl processing facilities, and could extend the life of the Isabella Pearl site out to 2026 and possibly beyond.

Fortitude Gold is also continuing to invest in its Golden Mile property with continued exploration drilling and mine equipment and materials purchased in anticipation of a possible mine development decision this year. According to CEO Jason Reid, the company is aggressively moving both the County Line and Golden Mile properties forward in the permitting process.

Increasing investor interest in gold miners

The news of Fortitude Gold’s production numbers comes as there is increased investor interest in viable gold mining operations and a bullish trend in the gold price. COMEX gold is up from under $1650 in October, surging to test the $2000 level in late January. Renewed interest in gold futures has come on the back of bank collapses in the US and the failure of Credit Suisse.

Investor interest is also being reflected in major gold mining indexes: the NYSE Arca Gold Miners Index recently broke 1200 points on a bullish surge from early March. It appears to be closing on three year highs last seen in the summer of 2020 at the height of the global pandemic.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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