Fortitude Gold posts strong results, mulls monthly dividend strategy
(Kitco News) - Fortitude Gold (OTCQB: FTCO) reported year-end 2020 results, including net income of $10.2 million, or $0.48 per share, and a strong balance sheet including $27.8 million cash. Total all-in sustaining cost per ounce was $952/oz.
The company confirmed both its previously announced 2020 annual production of 29,479 gold ounces and its 2021 production outlook targeting 40,000 ounces of gold (a range of 36,000 to 40,000 ounces). The production outlook assumes no disruptions from the COVID-19 global pandemic or unforeseen operational challenges.
For the year ended December 31, 2020, the company sold 29,929 gold ounces at a total cash cost of $928 per gold ounce, and a realized 2020 average sales price for gold of $1,813 per ounce. The company recorded revenues of $54.0 million, and net income of $10.2 million, or $0.48 per share.
On December 31, 2020, Fortitude Gold became an independent, stand-alone public company after successfully being spun-off from Gold Resource.
CEO and President Jason Reid commented, "I am very pleased to report Fortitude Gold delivered a successful 2020 production ramp up at its Isabella Pearl mine in Mineral County, Nevada, culminating in record annual gold production with fourth quarter gold production exceeding 12,000 ounces. With $54 million in net sales, $10.2 million in net income and $27.8 million in cash on December 31, 2020, Fortitude Gold is in a strong financial position with an exciting future. We believe Fortitude Gold is well positioned to generate significant free cash flow during 2021, and we are currently evaluating the potential of a monthly dividend strategy which would reward shareholders with a yield on their Fortitude Gold investment."
Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A.