Fortitude Gold Reports Third Quarter Net Income of $4.6m or $0.19 per Share
Fortitude Gold Corp. (FTCO) announced Q3 2021 results reporting 11,478 ounces of gold produced at an all-in sustaining cost of $793 per ounce. The company achieved $20.4 million in net sales and a net income of $4.6 million or $0.19 per share. Cash reserves rose by $16.6 million to $44.3 million, while working capital grew to $75.5 million. A dividend increase of 16.7% to $0.42 annually was announced, with further hikes to $0.48 per share. Fortitude is on track to meet its annual production target of 45,000 ounces.
- 11,478 ounces of gold produced, meeting production targets.
- $20.4 million in net sales, indicating business growth.
- $4.6 million net income, or $0.19 per share.
- Increased cash balance to $44.3 million, up $16.6 million from last year.
- 16.7% dividend increase to $0.42 per share, followed by a further increase to $0.48.
- Sustaining costs at $793 per ounce are relatively high.
- Average gold grade mined decreased to 1.42 grams per tonne.
COLORADO SPRINGS, CO / ACCESSWIRE / November 2, 2021 / Fortitude Gold Corp. (OTCQB:FTCO) (the "Company") reported production and financial results for the third quarter ended September 30, 2021 of 11,478 ounces of gold produced at
Q3 2021 FINANCIAL RESULTS AND HIGHLIGHTS
$20.4 million net sales$4.6 million net income or$0.19 per share$44.3 million cash balance on September 30, 2021, an increase of$16.6 million from December 31, 2020- 11,478 gold ounces produced
- 1.42 grams per tonne average gold grade mined
$75.5 million working capital at September 30, 2021, an increase of$33.7 million from December 31, 2020$9.6 million mine gross profit$624 t otal cash cost after by-product credits per gold ounce sold$793 per gold ounce total all-in sustaining cost16.7% dividend increase to$0.42 annually per share, subsequently increased by14% to$0.48 per share
Overview of Q3 2021 Results
Fortitude Gold sold 11,454 gold ounces at a total cash cost of
*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.
Mr. Jason Reid, CEO and President of Fortitude Gold, stated, "The Isabella Pearl mine delivered another strong production quarter with 11,478 low-cost gold ounces keeping us on target to reach the high end of our 2021 production outlook range. Other third quarter highlights included net income of
Mr. Reid continued, "Exploration during the quarter included a positive second round of drill results at the Scarlet target located on the Isabella Pearl property, as well as the Company's largest infill drill program to date at our Golden Mile property. We continue to target an initial resource at Golden Mile in 2021, with the goal to move the project towards a production decision at the earliest possible time. Column leach tests for Golden Mile mineralization were released during the third quarter estimating
The following Production Statistics table summarizes certain information about our Isabella Pearl Mine for three and nine months ended September 30, 2021 and 2020:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Ore (tonnes) | 139,950 | 188,048 | 454,679 | 490,620 | ||||||||||||
Gold grade (g/t) | 1.42 | 2.02 | 4.52 | 1.60 | ||||||||||||
Low-grade stockpile | ||||||||||||||||
Ore (tonnes) | 8,600 | 51,977 | 8,600 | 70,467 | ||||||||||||
Gold grade (g/t) | 0.33 | 0.50 | 0.33 | 0.52 | ||||||||||||
Pre-strip waste | - | - | - | 1,346,316 | ||||||||||||
Waste (tonnes) | 1,838,027 | 1,437,429 | 4,894,937 | 3,597,770 | ||||||||||||
Metal production (before payable metal deductions)(1) | ||||||||||||||||
Gold (ozs.) | 11,478 | 7,847 | 37,593 | 16,747 | ||||||||||||
Silver (ozs.) | 16,467 | 9,169 | 33,643 | 20,154 | ||||||||||||
The following Sales Statistics table summarizes certain information about our Isabella Pearl Mine for three and nine months ended September 30, 2021 and 2020:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Metal sold | ||||||||||||||||
Gold (ozs.) | 11,454 | 8,396 | 37,436 | 17,205 | ||||||||||||
Silver (ozs.) | 16,330 | 9,616 | 33,171 | 21,046 | ||||||||||||
Average metal prices realized (1) | ||||||||||||||||
Gold ($per oz.) | 1,789 | 1,901 | 1,796 | 1,773 | ||||||||||||
Silver ($per oz.) | 23.98 | 24.02 | 25.14 | 19.86 | ||||||||||||
Precious metal gold equivalent ounces sold | ||||||||||||||||
Gold Ounces | 11,454 | 8,396 | 37,436 | 17,205 | ||||||||||||
Gold Equivalent Ounces from Silver | 219 | 122 | 464 | 236 | ||||||||||||
| 11,673 | 8,518 | 37,900 | 17,441 | |||||||||||||
Total cash cost before by-product credits per gold ounce sold | $ | 658 | $ | 963 | $ | 596 | $ | 1,182 | ||||||||
Total cash cost after by-product credits per gold ounce sold | $ | 624 | $ | 935 | $ | 574 | $ | 1,158 | ||||||||
Total all-in sustaining cost per gold ounce sold | $ | 793 | $ | 945 | $ | 663 | $ | 1,191 | ||||||||
See Accompanying Tables
The following information summarizes the results of operations for Fortitude Gold Corporation for the three and nine months ended September 30, 2021 and 2020, its financial condition at September 30, 2021 and December 31, 2020, and its cash flows for the nine months ended September 30, 2021 and 2020. The summary data as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 is unaudited; the summary data as of December 31, 2020 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2020, 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, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 44,337 | $ | 27,774 | ||||
Accounts receivable | 1,628 | 145 | ||||||
Inventories | 33,012 | 23,051 | ||||||
Prepaid expenses and other current assets | 2,305 | 1,962 | ||||||
Total current assets | 81,282 | 52,932 | ||||||
Property, plant and mine development, net | 37,531 | 50,990 | ||||||
Operating lease assets, net | 220 | 6,198 | ||||||
Deferred tax assets | 1,099 | 959 | ||||||
Other non-current assets | 2,947 | 1,946 | ||||||
Total assets | $ | 123,079 | $ | 113,025 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,982 | $ | 1,715 | ||||
Loans payable, current | 101 | 665 | ||||||
Finance lease liabilities, current | 78 | 398 | ||||||
Operating lease liabilities, current | 220 | 6,198 | ||||||
Mining taxes payable | 1,153 | 1,001 | ||||||
Other current liabilities | 1,212 | 1,092 | ||||||
Total current liabilities | 5,746 | 11,069 | ||||||
Asset retirement obligations | 4,483 | 3,844 | ||||||
Loans payable, long-term | 52 | 117 | ||||||
Finance lease liabilities, long-term | 19 | 27 | ||||||
Total liabilities | 10,300 | 15,057 | ||||||
Shareholders' equity: | ||||||||
Preferred stock - | - | - | ||||||
Common stock - | 240 | 212 | ||||||
Additional paid-in capital | 103,517 | 99,682 | ||||||
Retained earnings (accumulated deficit) | 9,022 | (1,926 | ) | |||||
Total shareholders' equity | 112,779 | 97,968 | ||||||
Total liabilities and shareholders' equity | $ | 123,079 | $ | 113,025 | ||||
FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 2021 and 2020
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Sales, net | $ | 20,422 | $ | 15,851 | $ | 66,979 | $ | 30,284 | ||||||||
Mine cost of sales: | ||||||||||||||||
Production costs | 7,075 | 7,741 | 21,219 | 19,698 | ||||||||||||
Depreciation and amortization | 3,668 | 2,949 | 11,953 | 6,157 | ||||||||||||
Reclamation and remediation | 40 | 24 | 116 | 17 | ||||||||||||
Total mine cost of sales | 10,783 | 10,714 | 33,288 | 25,872 | ||||||||||||
Mine gross profit | 9,639 | 5,137 | 33,691 | 4,412 | ||||||||||||
Costs and expenses: | ||||||||||||||||
General and administrative expenses | 1,378 | 593 | 8,723 | 1,781 | ||||||||||||
Exploration expenses | 2,023 | 780 | 4,380 | 1,373 | ||||||||||||
Other expense, net | 48 | 62 | 132 | 172 | ||||||||||||
Total costs and expenses | 3,449 | 1,435 | 13,235 | 3,326 | ||||||||||||
Income before income and mining taxes | 6,190 | 3,702 | 20,456 | 1,086 | ||||||||||||
Mining and income tax expense | 1,544 | 225 | 5,075 | 675 | ||||||||||||
Net income | $ | 4,646 | $ | 3,477 | $ | 15,381 | $ | 411 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.19 | $ | 348 | $ | 0.64 | $ | 41 | ||||||||
Diluted | $ | 0.19 | $ | 348 | $ | 0.64 | $ | 41 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 23,961,208 | 10,000 | 23,846,686 | 10,000 | ||||||||||||
Diluted | 24,211,606 | 10,000 | 24,078,226 | 10,000 | ||||||||||||
FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2021 and 2020
(U.S. dollars in thousands)
(Unaudited)
| Nine months ended | ||||||||
| September 30, | ||||||||
| 2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 15,381 | $ | 411 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 12,045 | 6,263 | ||||||
Stock-based compensation | 3,363 | - | ||||||
Deferred taxes | (140 | ) | - | |||||
Other operating adjustments | 28 | 16 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,483 | ) | (1,599 | ) | ||||
Inventories | (6,318 | ) | (2,662 | ) | ||||
Prepaid expenses and other current assets | (343 | ) | (17 | ) | ||||
Other non-current assets | (19 | ) | (1,304 | ) | ||||
Accounts payable and other accrued liabilities | 555 | 958 | ||||||
Income and mining taxes payable | 153 | 675 | ||||||
Net cash provided by operating activities | 23,222 | 2,741 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (1,753 | ) | (6,368 | ) | ||||
Net cash used in investing activities | (1,753 | ) | (6,368 | ) | ||||
Cash flows from financing activities: | ||||||||
Contributions from GRC | - | 10,567 | ||||||
Dividends paid | (4,433 | ) | - | |||||
Issuance of common stock | 500 | - | ||||||
Repayment of loans payable | (629 | ) | (656 | ) | ||||
Repayment of capital leases | (344 | ) | (326 | ) | ||||
Net cash (used in) provided by financing activities | (4,906 | ) | 9,585 | |||||
Net increase in cash and cash equivalents | 16,563 | 5,958 | ||||||
Cash and cash equivalents at beginning of period | 27,774 | 866 | ||||||
Cash and cash equivalents at end of period | $ | 44,337 | $ | 6,824 | ||||
Supplemental Cash Flow Information | ||||||||
Interest expense paid | $ | 24 | $ | 72 | ||||
Income and mining taxes paid | $ | 5,063 | $ | - | ||||
Non-cash investing and financing activities: | ||||||||
Change in capital expenditures in accounts payable | $ | 1,132 | $ | (1,532 | ) | |||
Change in estimate for asset retirement costs | $ | 499 | $ | 1,404 | ||||
Stock contributed from Parent | $ | - | $ | 100 | ||||
Equipment purchased under finance lease | $ | 16 | $ | - | ||||
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, with the Isabella Pearl gold mine in current 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 Corp.
View source version on accesswire.com:
https://www.accesswire.com/670803/Fortitude-Gold-Reports-Third-Quarter-Net-Income-of-46m-or-019-per-Share
FAQ
What were Fortitude Gold's Q3 2021 production results?
What was Fortitude Gold's net income for Q3 2021?
How much cash did Fortitude Gold hold at the end of Q3 2021?
What is the dividend announced by Fortitude Gold for 2021?
What is Fortitude Gold's production outlook for 2021?
