Fortitude Gold Corporation Reports Significant Decline in Financial Performance for Fiscal Year 2024

Fortitude Gold Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, compared to the previous year. The company generated net sales of $37.3 million, a decrease from $73.1 million in 2023, primarily due to a 58% drop in gold sales volumes, which fell to 15,825 ounces from 37,836 ounces. The average price of gold sold increased by 22% to $2,371 per ounce, but this was not enough to offset the reduced production. The company recorded a net loss of $2.0 million, a stark contrast to the net income of $17.0 million reported in 2023.

Operationally, Fortitude Gold's production was heavily impacted by lower leach pad recoveries and delays in obtaining necessary permits for new mining projects, particularly at the County Line site. The Isabella Pearl Mine, the company's sole operating property, produced 16,472 ounces of gold in 2024, down from 37,996 ounces in 2023. The decrease in production was attributed to mining lower-grade ore and utilizing stockpiled low-grade ore. The company also reported a total cash cost after by-product credits of $827 per ounce sold, up from $536 in the previous year.

In terms of strategic developments, Fortitude Gold continued to focus on exploration and evaluation of its properties in Nevada, which include eight properties totaling 2,408 claims. The company invested $12.9 million in exploration activities during 2024, down from $17.2 million in 2023, as it sought to preserve capital amid permitting delays. The company holds a 100% interest in the Isabella Pearl Mine and is actively pursuing additional permits for the County Line and Golden Mile properties.

The company’s workforce remained stable with 60 full-time employees, while it also contracted approximately 15 individuals for various services. As of December 31, 2024, Fortitude Gold had a cash balance of $27.1 million and working capital of $37.7 million, indicating a decrease from the previous year. The company declared dividends totaling $11.6 million during the year, reflecting its ongoing commitment to returning value to shareholders despite the operational challenges faced.

Looking ahead, Fortitude Gold's outlook remains cautious due to the ongoing permit backlog and regulatory challenges that have hindered its ability to expand production. The company has indicated that future gold production will largely depend on the successful execution of its long-term plans, including the development of new mining sites and the completion of the Isabella Pearl deposit. The management has not provided specific production forecasts for 2025, citing uncertainties related to permitting and the availability of fresh ore from planned mining operations.