US gold miner and explorer Fortitude Gold [OTCQB:FTCO] has reported preliminary production results for the quarter ending June 30 of 9,684 ounces of gold, which keeps it at the high end of its annual production outlook.
Fortitude Gold has a producing gold mine in Nevada, plus is involved in developing and exploring other gold opportunities on land packages it owns in the state. During Q2 Fortitude processed gold ore sourced from its Isabella Pearl high grade Pearl zone, blended with lower grade stockpiles.
Gold production outlook maintained
Gold production for the first half of this year now totals 21,171 ounces, and the company said this week that it is maintaining its 2023 annual production outlook, which is targeting 40,000 ounces of gold.
Fortitude Gold trades on the US OTC market, and follows an operating model that prioritises low costs, high margins and strong returns on capital. Its strategy is to grow organically, remain debt free, and continue to distribute substantial dividends for shareholders.
Currently the company’s Nevada mining unit consists of five high grade gold properties that are located in the Walker Lane Mineral Belt, and it also has a sixth high-grade property located in west central Nevada. The company’s Isabella Pearl gold mine sits on the Isabella Pearl mineralised trend and currently remains in production.
Q1 was near record breaking quarter for Fortitude
In May the company reported Q1 results that included $21m in net sales, $6.4m in net income ($0.26 per share), and a $52m cash balance for the end of the quarter. It produced 11,487 ounces of gold during that period. The average grade of the gold mined as 3.83 g/t. Working capital reported at the end of March was $90m, with a gross profit of $12.3m.
Isabella Pearl was singled out in Q1 for its exceptionally strong first quarter, with gold production well ahead of budget. CEO Jason Reid said the mine had a near record low all-in sustaining cost per ounce sold, and that Q1 represented one of the best quarters the company has ever had. Fortitude Gold is continuing to see the benefits from processing high grade gold while moving fewer waste tonnes from the Pearl deposit.
Reid has also said that with its strong cash flows and treasury, Fortitude is well positioned to fund its next two targeted mine builds at County Line and Golden Mile.
