Fortitude Gold (OTCQB:FTCO) Corporation has reported record 2021 gold production of 46,459 ounces, exceeding its full-year forecast by 16%.
The gold mining company said its Isabella Pearl mine delivered net income of $17.9 million, or $0.75 per share, compared to $10.2 million in FY2020. Net sales hit $82.1 million, up from $54 million in the same year-ago period.
Fortitude’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, with the Isabella Pearl gold mine currently in production.
READ: Fortitude Gold handily beats its own upwardly revised 2021 production guidance as Isabella Pearl delivers higher-grade gold
Other highlights from the balance sheet include $40 million in cash as of December 31, 2021, and $76 million in working capital. Production costs came in at around $705 per ounce.
"Management of Fortitude Gold delivered strong operational results beating our increased annual gold outlook with record production, delivered strong financial results increasing cash to $40 million and delivered strong shareholder value distributing monthly dividends and outperforming our market peers," CEO Jason Reid told shareholders in a statement.
Year-end 2021 proven and probable reserves at the Isabella Pearl Mine totaled 908,800 tonnes at a grade of 3.75 grams per tonne (g/t) gold, or 109,700 gold ounces. In addition, Fortitude reported high-grade stockpile reserves of 14,000 tonnes grading 10.09 g/t gold and low-grade stockpile reserves of 435,000 tonnes grading 0.53 g/t gold.
On the exploration front, Fortitude said it expects to spend approximately $5.7 million in 2022 for exploration drill programs, including testing targets along the mineralized trend and structural corridor around Isabella Pearl, planned delineation and expansion drilling of the known mineralized zones at Golden Mile and exploration drilling at the County Line and East Camp Douglas properties.
"For 2022 we have a clear vision of where we are going and expect Fortitude Gold to generate record free cash flow as we transition into the open pit phase two by the second quarter of this year, allowing access to higher grade ore while moving significantly less waste rock,” Reid added. “We also expect to heavily invest in exploration and continue to move our Golden Mile property towards a development decision and construction to be paid for with our strong treasury.”
Fortitude is setting its 2022 production guidance at a range of 36,000 to 40,000 ounces.
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