Fortitude Gold (OTCQB:FTCO) Corp has posted third-quarter results showing strong production, net income of $4.6 million and a record cash balance of $44.3 million.
The junior gold producer also said it is maintaining its 2021 production outlook in the upper range of 45,000 gold ounces after producing 37,593 gold ounces in the first nine months.
For the period ended September 30, 2021, Fortitude reported 11,478 ounces of gold produced at $793 per ounce all-in sustaining cost. It reported 1.42 grams per tonne average gold grade mined. Realized metal prices during the quarter averaged $1,789 per ounce gold, with the company clocking up $20.4 million in net sales.
READ: Fortitude Gold announces preliminary 3Q production of 11,478 gold ounces
In a statement accompanying the numbers, CEO and president Jason Reid said: “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.”
“We are pleased to be executing our strategic business strategy, outperforming our industry peers on year-to-date valuations and we are proud to be one of the few junior producers delivering substantial dividends to shareholders,” he added.
The Nevada-focused mining company posted $4.6 million in net earnings or $0.19 per share in the third quarter.
Its treasury increased to $44.3 million on September 30, 2021, an increase of $16.6 million from December 31, 2020. The company also had $75.5 million in working capital, up $33.7 million from December 31, 2020.
Significantly, the annual cash dividend per share has been raised for a third time this year, by 14% to $0.48 per share.
Operationally, Fortitude said 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 its Golden Mile property.
It said it continues 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 85% gold recovery. The company also received a permit to expand the heap leach pad at the Isabella Pearl project in July and began construction activities during the quarter with pad completion expected in early 2022.
“We are excited to be a profitable gold producer in the Walker Lane Mineral Belt, with a stellar portfolio of 100% owned properties,” Reid continued.
“We look forward to moving closer to building our second mine in Nevada, USA, arguably the world’s premier mining jurisdiction.”
Fortitude’s Nevada Mining Unit consists of five high-grade gold properties located in the Walker Lane Mineral Belt along with the Isabella Pearl gold mine.
Contact the author at stephen.gunnion@proactiveinvestors.com