COLORADO SPRINGS, CO / ACCESSWIRE / May 7, 2024 / Fortitude Gold Corporation (OTCQB:FTCO) (the "Company") today reported its first quarter 2024 results including $8.2 million net sales, $3.6 million in exploration expense, $2.9 million cash dividends to shareholders, $4.2 million mine gross profit, and a cash balance on March 31, 2024 of $41.9 million. The Company confirmed its previously announced preliminary 2024 first quarter production of 3,983 gold ounces as it awaits permit approval to mine deeper in the Pearl zone of the Isabella Pearl pit. Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A. offering investors exposure to both gold production and substantial dividend yield.

First Quarter 2024 Financial Results and Highlights

• $8.2 million net sales
• $0.00 per share, $2 thousand net loss
• $41.9 million cash balance on March 31, 2024
• 3,983 gold ounces produced
• $63.3 million working capital at March 31, 2024
• $4.2 million mine gross profit
• $3.6 million exploration expenditures
• $661 total cash cost after by-product credits per gold ounce sold*
• $777 per ounce total all-in sustaining cost*
• $2.9 million dividends paid

* The calculation of our cash cost and all-in sustaining cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company's recently filed Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

Fortitude Gold sold 3,970 gold ounces at a total cash cost of $661 per ounce (after by-product credits) and an all-in-sustaining-cost per ounce of $777. Realized metal prices during the quarter averaged $2,072 per ounce gold⁽¹⁾. While the Company produced 3,983 ounces of gold during the quarter, the 2024 annual production outlook was previously deferred as the Company awaits permits from regulatory agencies to mine deeper in the Isabella Pearl deposit as well as expand mine operations with permit approval to build its second mine, its County Line project.

"The first quarter of 2024 was successful on numerous fronts despite the ongoing permitting delays," stated Fortitude Gold CEO and President, Mr. Jason Reid. "Our Isabella Pearl mine's lower grade Civit Cat zone and our heap leach pad operations generated over $8 million in revenue for the Company at $777 per ounce all-in sustaining cost. During the quarter we aggressively explored our properties and had as many as six drills operating at a time focusing on our County Line project, the Scarlet target on the Isabella Pearl mineralized trend, and East Camp Douglas. The Company remains in a very strong financial position as we await our permits to mine both deeper in the higher-grade Pearl zone in the Isabella Pearl Pit and to begin mine construction of our County Line project, our next targeted mine build."

Mr. Reid continued, "We continue to work with the permitting agencies and look to execute our original plan to overlap mine operations and layer production while transitioning to our second mine targeted to be County Line. We remain ready to begin development of County Line upon regulatory approvals, with a plan to mine it as an aggregate operation, hauling crushed ore to our nearby processing facilities at Isabella Pearl. With minimal infrastructure to be built, we are optimizing the mining sequence to access the highest-grade ore possible in the phased mining approach and look forward to being able to add additional new ore from County Line to our Isabella Pearl heap leach pad for operational longevity."

"Our exploration team continued to generate exceptional drill results during the quarter," stated Mr. Reid. "We intercepted from surface 90 feet grading 1.49 grams per tonne at the East Camp Douglas northern veins as well as 5 feet grading over one ounce per tonne at the same target area. Our southern lithocap target at East Camp Douglas returned 40 feet grading 2.90 grams per tonne gold, where we believe we may have discovered our first feeder zone into the lithocap. We also released successful drill results from our Isabella Pearl Scarlet North target where we drilled 70 feet of 1.14 grams per tonne gold from surface. The Scarlet North target, just 700 meters away from the processing facility, has great potential to become an additional open pit on the larger Isabella Pearl property. Subsequent to quarter end, we also released exciting drill results from the County Line property including 16.76 meters grading 2.19 grams per tonne gold, 7.62 meters grading 1.28 grams per tonne gold, and 6.10 meters grading 1.49 grams per tonne gold. We see strong potential to continue adding gold ounces to County Line's mineral resource. Overall, we feel very fortunate to have acquired 100% interest in the exceptional land portfolio of eight gold properties in Nevada, now encompassing over 40,000 acres."

The following Sales Statistics table summarizes certain information about our operations for the three months ended March 31, 2024 and 2023:

1. Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.

The following Production Statistics table summarize certain information about our operations for the three months ended March 31, 2024 and 2023:

1. The difference between what we report as "metal production" and "metal sold" is attributable to the difference between the quantities of metals contained in the doré we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in doré produced and sold.

See Accompanying Tables

The following information summarizes the results of operations for Fortitude Gold Corporation for the three months ended March 31, 2024 and 2023, its financial condition at March 31, 2024 and December 31, 2023, and its cash flows for the three months ended March 31, 2024 and 2023. The summary data as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 is unaudited; the summary data as of December 31, 2023 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2023, 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)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2024 and 2023
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

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 seven high-grade gold properties located in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada. The Isabella Pearl gold mine, located on the Isabella Pearl mineralized trend, is currently in 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.

Contact:

Greg Patterson
719-717-9825
greg.patterson@fortitudegold.com

SOURCE: Fortitude Gold Corporation