Fortitude Gold (OTCQB:FTCO) Corp, a junior gold producer with operations in the goldfields of Nevada, posted second-quarter results that saw record production, net income of $8.3 million and a strong cash position of $41.5 million.
For the period ended June 30, 2021, Fortitude reported 14,579 ounces of gold produced at $628 per ounce all-in sustaining cost. The company reported 6.75 grams per tonne average gold grade mined.
Realized metal prices during the quarter averaged $1,794 per ounce gold, with the company clocking up $25.9 million in net sales.
READ: Fortitude Gold sees its flagship Isabella Pearl mine producing 40,000 gold ounces in 2021
The Nevada-focused mining company posted $8.3 million in net earnings or $0.35 per share in the second quarter.
Fortitude’s treasury increased to $41.5 million on June 30, 2021, up $13.8 million or 50%, from December 31, 2020.
The company also had $72 million in working capital, up 72% from December 31, 2020.
Significantly, the $0.24 annual cash dividend per share, which was initiated, has subsequently increased by 50% to $0.36 per share.
In a statement accompanying the stellar numbers, Fortitude Gold (OTCQB:FTCO) CEO and President Jason Reid said: "This record-breaking quarter, on the back of an outstanding first quarter, gave us the confidence and ability to initiate our dividend business strategy. We declared a $0.24 annual dividend in April and a 50% increase in May to $0.36 annually.”
“Subsequent to the quarter we increased the dividend again by 17% to $0.42 annually. Our Isabella Pearl mine continues to exceed expectations, including the average grade mined during the quarter of 6.75 grams gold per tonne. We had excellent exploration results during the quarter on the Isabella Pearl mineralized trend, specifically at our Scarlet target, as well as on our Golden Mile and East Camp Douglas properties,” he added.
Fortitude has five high-grade gold properties in Nevada’s Walker Lane Mineral Belt, with the Isabella Pearl mine in current production. All five properties — Isabella Pearl, Golden Mile, Mina Gold, East Camp Douglas, and County Line — are in a 30-mile radius of one another within Nevada’s prolific Walker Lane Mineral Belt. Fortitude’s business strategy is to grow organically, remain debt-free and distribute substantial dividends.
“Fortitude Gold (OTCQB:FTCO) is poised to make additional deposit discoveries on our exceptional property portfolio in the best region of the Walker Lane Mineral Belt of Nevada,” said Reid. “We aim to be a long-term gold producer in Nevada as we look to build our second mine and as a dividend payer as we return substantial cashback to our shareholders."
Fortitude recently raised its 2021 annual outlook and is targeting its flagship Isabella Pearl mine producing 45,000 gold ounces in 2021 (a range of 40,000 to 45,000 ounces).
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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