Fortitude Gold Reports Third Quarter Net Income of $1.7m or $0.07 Per Share
Fortitude Gold Corporation (OTCQB:FTCO) reported Q3 2022 results, producing 9,500 ounces of gold and generating $16.1 million in net sales. The company achieved a net income of $1.7 million ($0.07 per share) and increased its cash balance to $42.2 million. All-in sustaining costs were $687 per ounce. Fortitude continues to maintain its gold production outlook for 2022 at 40,000 ounces. The quarter included $2.9 million in dividends and significant exploration efforts, with promising results from various drilling projects.
- Generated $16.1 million in net sales.
- Net income of $1.7 million ($0.07 per share).
- Maintained a cash balance of $42.2 million.
- Produced 9,500 ounces of gold, in line with projections.
- Paid $2.9 million in dividends, indicating financial health.
- Strong average gold grade of 5.69 grams per tonne.
- Net sales decreased compared to the previous year's $20.4 million in Q3.
- Production lower than 11,478 ounces in Q3 2021.
COLORADO SPRINGS, CO / ACCESSWIRE / November 1, 2022 / Fortitude Gold Corporation (OTCQB:FTCO) (the "Company") reported production and financial results for the third quarter ended September 30, 2022 of 9,500 ounces of gold produced,
Q3 2022 FINANCIAL RESULTS AND HIGHLIGHTS
$16.1 million net sales$1.7 million net income or$0.07 per share$42.2 million cash balance on September 30, 2022- 9,500 gold ounces produced
- 5.69 grams per tonne average gold grade mined
$82.6 million working capital at September 30, 2022$7.4 million mine gross profit$613 t otal cash cost after by-product credits per gold ounce sold$687 per gold ounce total all-in sustaining cost$2.9 million dividends paid, or$0.12 per share
Overview of Q3 2022 Results
Fortitude Gold sold 9,419 gold ounces at a total cash cost of
Mr. Jason Reid, CEO and President of Fortitude Gold, stated "Production results for the quarter are in line with our 2022 production Outlook range. Financial results included net income of
Mr. Reid continued, "Exploration drilling included continued exciting drill results from Golden Mile and exciting first drill results from County Line. A significant number of surface samples from our Ripper property generated drill targets for a possible 2023 drill program. Our exploration team continues to be exceptionally busy during the fourth quarter with drill programs planned along the Isabella Pearl trend, Golden Mile, County Line and East Camp Douglas properties. We are pleased to remain a profitable gold producer in the Walker Lane Mineral Belt, with a stellar portfolio of
The following Production Statistics table summarizes certain information about our Isabella Pearl Mine for three and nine months ended September 30, 2022 and 2021:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Ore mined | ||||||||||||||||
Ore (tonnes) | 113,111 | 139,950 | 490,764 | 454,679 | ||||||||||||
Gold grade (g/t) | 5.69 | 1.42 | 3.30 | 4.52 | ||||||||||||
Low-grade stockpile | ||||||||||||||||
Ore (tonnes) | - | 8,600 | 34,501 | 8,600 | ||||||||||||
Gold grade (g/t) | - | 0.33 | 0.43 | 0.33 | ||||||||||||
Waste (tonnes) | 202,201 | 1,838,027 | 1,696,225 | 4,894,937 | ||||||||||||
Metal production (before payable metal deductions)(1) | ||||||||||||||||
Gold (ozs.) | 9,500 | 11,478 | 30,355 | 37,593 | ||||||||||||
Silver (ozs.) | 12,497 | 16,467 | 45,047 | 33,643 | ||||||||||||
- 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 nine months ended September 30, 2022 and 2021:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Metal sold | ||||||||||||||||
Gold (ozs.) | 9,419 | 11,454 | 30,567 | 37,436 | ||||||||||||
Silver (ozs.) | 12,111 | 16,330 | 44,819 | 33,171 | ||||||||||||
Average metal prices realized (1) | ||||||||||||||||
Gold ($per oz.) | 1,719 | 1,789 | 1,871 | 1,796 | ||||||||||||
Silver ($per oz.) | 19.44 | 23.98 | 23.34 | 25.14 | ||||||||||||
Precious metal gold equivalent ounces sold | ||||||||||||||||
Gold Ounces | 9,419 | 11,454 | 30,567 | 37,436 | ||||||||||||
Gold Equivalent Ounces from Silver | 137 | 219 | 559 | 464 | ||||||||||||
| 9,556 | 11,673 | 31,126 | 37,900 | |||||||||||||
Total cash cost before by-product credits per gold ounce sold | $ | 638 | $ | 658 | $ | 685 | $ | 596 | ||||||||
Total cash cost after by-product credits per gold ounce sold | $ | 613 | $ | 624 | $ | 652 | $ | 574 | ||||||||
Total all-in sustaining cost per gold ounce sold | $ | 687 | $ | 793 | $ | 749 | $ | 663 | ||||||||
- 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 nine months ended September 30, 2022 and 2021, its financial condition at September 30, 2022 and December 31, 2021, and its cash flows for the nine months ended September 30, 2022 and 2021. The summary data as of September 30, 2022 and for the three and nine months ended September 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)
| September 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 42,196 | $ | 40,017 | ||||
Accounts receivable | 339 | 238 | ||||||
Inventories | 45,131 | 37,550 | ||||||
Prepaid taxes | 875 | 1,289 | ||||||
Prepaid expenses and other current assets | 959 | 2,228 | ||||||
Total current assets | 89,500 | 81,322 | ||||||
Property, plant and mine development, net | 34,514 | 37,226 | ||||||
Operating lease assets, net | 1,027 | 463 | ||||||
Deferred tax assets | 1,491 | 509 | ||||||
Other non-current assets | 882 | 2,909 | ||||||
Total assets | $ | 127,414 | $ | 122,429 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,546 | $ | 2,127 | ||||
Operating lease liabilities, current | 1,027 | 463 | ||||||
Mining taxes payable | 1,249 | 1,699 | ||||||
Other current liabilities | 1,080 | 1,022 | ||||||
Total current liabilities | 6,902 | 5,311 | ||||||
Asset retirement obligations | 5,694 | 4,725 | ||||||
Other non-current liabilities | 5 | 45 | ||||||
Total liabilities | 12,601 | 10,081 | ||||||
Shareholders' equity: | ||||||||
Preferred stock - | - | - | ||||||
Common stock - | 240 | 240 | ||||||
Additional paid-in capital | 103,682 | 103,476 | ||||||
Retained earnings | 10,891 | 8,632 | ||||||
Total shareholders' equity | 114,813 | 112,348 | ||||||
Total liabilities and shareholders' equity | $ | 127,414 | $ | 122,429 | ||||
FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales, net | $ | 16,122 | $ | 20,422 | $ | 55,476 | $ | 66,979 | ||||||||
Mine cost of sales: | ||||||||||||||||
Production costs | 5,703 | 7,075 | 19,673 | 21,219 | ||||||||||||
Depreciation and amortization | 3,005 | 3,668 | 9,938 | 11,953 | ||||||||||||
Reclamation and remediation | 60 | 40 | 183 | 116 | ||||||||||||
Total mine cost of sales | 8,768 | 10,783 | 29,794 | 33,288 | ||||||||||||
Mine gross profit | 7,354 | 9,639 | 25,682 | 33,691 | ||||||||||||
Costs and expenses: | ||||||||||||||||
General and administrative expenses | 1,638 | 1,378 | 3,912 | 8,723 | ||||||||||||
Exploration expenses | 3,687 | 2,023 | 8,627 | 4,380 | ||||||||||||
Other expense, net | 60 | 48 | 142 | 132 | ||||||||||||
Total costs and expenses | 5,385 | 3,449 | 12,681 | 13,235 | ||||||||||||
Income before income and mining taxes | 1,969 | 6,190 | 13,001 | 20,456 | ||||||||||||
Mining and income tax expense | 248 | 1,544 | 2,097 | 5,075 | ||||||||||||
Net income | $ | 1,721 | $ | 4,646 | $ | 10,904 | $ | 15,381 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.07 | $ | 0.19 | $ | 0.45 | $ | 0.64 | ||||||||
Diluted | $ | 0.07 | $ | 0.19 | $ | 0.45 | $ | 0.64 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 24,024,542 | 23,961,208 | 24,014,959 | 23,846,686 | ||||||||||||
Diluted | 24,190,375 | 24,211,606 | 24,201,239 | 24,078,226 | ||||||||||||
FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)
| Nine months ended | ||||||||
| September 30, | ||||||||
| 2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 10,904 | $ | 15,381 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 10,052 | 12,045 | ||||||
Stock-based compensation | 143 | 3,363 | ||||||
Deferred taxes | (982 | ) | (140 | ) | ||||
Reclamation and remediation accretion | 183 | 116 | ||||||
Other operating adjustments | (38 | ) | (88 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (101 | ) | (1,483 | ) | ||||
Inventories | (2,199 | ) | (6,318 | ) | ||||
Prepaid expenses and other current assets | 1,269 | (343 | ) | |||||
Other non-current assets | (31 | ) | (19 | ) | ||||
Accounts payable and other accrued liabilities | 1,866 | 555 | ||||||
Income and mining taxes payable | (36 | ) | 153 | |||||
Net cash provided by operating activities | 21,030 | 23,222 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (10,184 | ) | (1,753 | ) | ||||
Net cash used in investing activities | (10,184 | ) | (1,753 | ) | ||||
Cash flows from financing activities: | ||||||||
Dividends paid | (8,645 | ) | (4,433 | ) | ||||
Issuance of common stock | - | 500 | ||||||
Proceeds from exercise of stock options | 63 | - | ||||||
Repayment of loans payable | (65 | ) | (629 | ) | ||||
Repayment of capital leases | (20 | ) | (344 | ) | ||||
Net cash used in financing activities | (8,667 | ) | (4,906 | ) | ||||
Net increase in cash and cash equivalents | 2,179 | 16,563 | ||||||
Cash and cash equivalents at beginning of period | 40,017 | 27,774 | ||||||
Cash and cash equivalents at end of period | $ | 42,196 | $ | 44,337 | ||||
Supplemental Cash Flow Information | ||||||||
Income and mining taxes paid | $ | 3,149 | $ | 5,063 | ||||
Non-cash investing and financing activities: | ||||||||
Change in capital expenditures in accounts payable | $ | (343 | ) | $ | 1,132 | |||
Change in estimate for asset retirement costs | $ | 710 | $ | 499 | ||||
Equipment purchased under finance lease | $ | - | $ | 16 | ||||
Right-of-Use assets acquired through operating lease | $ | 3,899 | $ | - | ||||
About Fortitude Gold Corporation
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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FAQ
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