Earnings call transcript Q4 2022

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Operator

Good day, everyone, and welcome to the Fortitude Gold 2022 Year-End Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Jason Reid. Sir, the floor is yours.

Jason Reid

Thank you. thank call. joining and XXXX Gold everyone, conference yearend morning, you Fortitude for Corp's Good

comments the a my us Following in online, who for we joined those will have brief period. associated question-and-answer XX-page presentation

on Mr. Labate, be me portion Financial John the the our for Joining Q&A today will Officer. Chief call

annual to certain described made are our These statements. materially comments. considered this remind on or numerous and in are as call report subject uncertainties risks me implied our and those from our Let filings, statements not XX-K everyone in forward-looking could statements that by expressed which differ on actual other historical and Form are facts to results SEC cause

comments March events on of any call, only in as XXXX, publicly obligation statements made X, as this statements actual unfold. earnings we the issued the Forward-looking are today, we that those forward-looking update to release undertake and of no yesterday, with along

referred reconciliation the in You year a for can XX, Form remarks ended SEC in to our December find XXXX. of filed the our financial XX-K with non-GAAP measures

list a strengths, with exploration Fortitude and a portfolio. property long potential capital our margins, with in long-term the the gold and of Gold space high of including being no ultra-tight significant Nevada structure, strong lowest has treasury, cost debt, one producers on excellent

equity specifically gold and to a create yield. engineered An attractive by of having investment But being an thesis on valuation these metric just merits designed dividend equity. Fortitude shareholder alone as a a was attractive gold transcending second value by

joining the and but to increase same building. publicly have build want as monthly, X.X% up enough we mines the the $X.XX to after today, dividend that currently providing this we goal. we capital dividend paid $X.XX sure to make We next have target could shareholders. increase we slide in to an is trading we presentation to worked yield dividend at began presented substantial This Fortitude's the Fortitude the is for those and attractive annually

outperforming by a junior all Miners Over was been the separates of space into chases case our XXXX. that than regularly translated The frame, capital unique tapping peers thus pool the capital XXXX XX model investment for producer have dividend approach of investment gold our equity Index from far Gold a larger over time Fortitude to most down and and as This pool business yield. Fortitude the the GDXJ This in That were XX%. as itself. last industry. mining again peers Junior is gold peers months difficult Gold other gold or dividends in in that

The majors slide noted physical gold in GLD on Gold the the gold, price Index X.X%. as over Miner down a proxy here for Physical as down GDX ETF, the were was XX%.

as X.X% were Fortitude which small physical a well digits our is beat peers as decrease. double Gold down who gold,

by X% Gold's unique with production quarter but in model so our XXXX XXXX. in with line Production XXXX range, business in the high continues total peers target do for gold end our our not produced. Fortitude only outperformed to outlook were exceeded year-end XXXX results ounces production XX,XXX our and

$X.X cash net shareholders to gross income million mining million $XX.X million a in and in or tax sustaining cash taxes. financial $XX.X net million income and and mine of low cost, highlights $XX.X we XXXX sales, in million very include share, per paid all-in $XXX results dividends, $X.XX $XX.X profit, paid

was we in this exploration, by achieved drilled We million and balance which to $XX.X another over resulted million $X XXXX. the We every $XX terrific We toward have intercepting in growing date for invested $XX.X gold million. deployed to high-grade year. surface toward on our results great near all drill XXXX Mile. Golden and while also CapEx surface deployed million property cash

mined part grade we we the with per year, of stockpiles blended production high-grade from overall X.XX as Operationally, Isabella gold gold average ton low-grade Pearl of this During grams the Mine. mine the an XXXX plan.

We Our to XXXX our ounces again XXXX. a XX,XXX production target of XXXX outlook. high gold production XX,XXX range gold ounces of XX,XXX in exceeded end

on We leach approximately recoverable estimate pad also XX,XXX ounces year-end. the were heap at

coupled XX,XXX in gold be This, with Isabella the ounces XXXX mined Pearl out into to production profile approximately pushes XXXX.

X.XX We from within the cyanide drill to transitional Pearl X.XX elevations ton mineral the intercepts XX.XX per had Oxide mineral and grading pit window XXXX, per pit at intercepted Isabella In meters we at grading small gold. addition, ton included of grading of grams blocks oxide gold in permitted oxide which the to and per meters XX.XX gold, end leaching. a amicable meters deeper of grams bottom. ton below X.XX additional XX.XX time grams

amount made inclusion. tested resource, this amicability for small pit leach the it's fully ultimate pH heap gold mined blocks the the ounces mineral known recoverable and elevations a it While and bottom be ore until and the of into transitional are permitted won't below actually

extending our mine open modify exploration permit to deeper is depth year-over-year. in mine working mineral further pull are by we to Pearl Isabella into during XXXX, which We existing life. so spend million benches the $XX.X more production, several We this pit XXX% can more deployed

into properties. Drilling property launched paid for County mineralization next for Mile numerous on on in exploration off race Excellent even exciting mine. measured Our that. of ounces the top our more gold XX,XXX Golden County of approximately delivered Line efforts drill indicated results inferred several with maiden Line and a our operating and position with results pole a of drill resource

grade of excess We ounces, but gold. in model the per higher-grade were grams strike on at not to down grades add excellent grade depth. only While of this improve further that that zones X an both remains per opportunity close with and portions is there ton block of to gram believe X brought mineral open possibly drilling is ton, low the in

County as main open they East the for to public Zone exciting, are due main Equally a the at Line at history. and of timing the the the at ounces. time and information made Line We business were extensions County identified issues looking on pit to we prices gold open currently drilling away from mineral pit. half Line References area County leaving walked that operator past pit, possible ground low in metal mineral in east when additional

the the rock blasted pit East X in sampled bottom at Zone ton of We per grams gold.

being resource, drill with add are pit permit only planning mining to operation initial at as into We followed the County the of an to as our but transporting This possible and aggregate potential mine now moving proximity County the Pearl approached to property's as an keep East pull a look Due program are crushed permit this plan much Line's We processing and preparations. quantify to is gold and/or to facility, minimum to expedite forward processing mine by Isabella cost not a timing. Isabella opportunity. production. material build as should to A Pearl gold Line for well

of QX. submission is we factors, permit EA County requirements QX foot keeping these remaining on Because the Golden gas of and and our finalizing I the likely other At are a Golden and become to updated Mile, early an Line by than mine or Phase end are Mile. sooner target permit

grams recently released over to XX of high-grade within intercept X XX per meters grams Mile intercepts, including ton Golden very continue meters over X ton gold, at We with gold gold. of per

the shed Golden press fault on only light in more may whereby as recent and strata most release, opposed to vein the has in to geologic date noted vertical Mile drilling model, an expanded situate mineralization horizontal we structures. As

test the programs pit, model While to the pull X need with more Phase we subsequent we have starter pit defined to mineral we additional goal blocks believe and spaces ore enough the geologic into drilling open extensions blocks of for a open phases. new

than million Golden to spent equipment been have all $XX or materials more totaling now committed and Most for date. purchased Mile

intercepts currently to heap among loader monitoring wells open drilling a in carbon pit this of had that and the date large has target, Much includes in takes leach not or processing I drill dozer, any our we that Camp It operational mineral several been to first as other materials modular is plant like forward. materials soon.Exploration numerous are in stacking been East is We target. gold been at our deterred. lithocap a pad offices, and campaigns, move liner, expected modular it drilling rolling Douglas hit within a delivered Phase be process to equipment would have for have gold phase, area delivered purchased such and crushing stock purchased. X the property Equipment huge and equipment, we of not

first geologic structures while to Like our But fortunate in to grams in understand drill County per gold within meters X.X target to meters drill ton campaigns litho primarily include Intercepts plan just ton to the Camp this we mineral we continue grading have Golden and both unique hit have grams target. second we looking XXXX. in been per and Mile, gold. Line grading X.XX East hard X.XX XX.X were

lithocap also target vein those targets beneficial the we the and exciting have exciting. possibly the at gold Camp's forth are to in target, drilling and addition high-grade and Camp's and as drill end, back between at very XXXX East Alternating target north vein very looking we the well. East In lithocap veins could Northern be

and the the forth these and campaign's we assay alternating prior advancement back targets the could both speed permits, receive exploration and rigs of digest drill up NOI between both of results these availability Assuming drill targets. while

campaign was sampling surface and our a our XXXX. property a of warrants drill point mapping and targeted at at this XXXX, During gold late for high-grade maiden success Ripper

NOI allow. We and are rig Pearl focused exploration as permits of prioritizing also our very Isabella trend exploration and are availability

With another portfolio next properties exciting drill of northwest extensive $XX million expect We the to mine. another queue properties. are year begin the XXX% corridor Pearl in excited I mineralized million stellar $XX to targets the our of drilling results owned our drill XXXX, for budget from Isabella on and our along

forward of the Pearl to deeper at and a mining mine into beyond, for ounces. and approval additional Isabella clear look we XXXX include vision we our to have continued permit As goals

mines very working the in bringing potentially gold years. hard additional online coming are at We two

We producer continues our our success. A goal gold while with to yield at explore portfolio and also producing shareholders. producer are We plan to end distribute dividends being significant cash continued that both addition positioned gold in Nevada. financially exposure long-term for properties profit gold in exploration of solid and to a exceptional of gold also a the to provide unique

year exceptional up fellow as for on another we Gold start the for would that earlier, in Operator, open To conclude, with to year, Corporation. much before several have with thank their and I'll Fortitude to call. live a XXXX XXXX like With of Q&A was We that, And those. do questions shareholders today support. this your e-mail came everybody for thank we time the continued I and great I being you look

from is for CapEx the Ribe who one Golden more asked first Mile? much The Gary how question,

Mile, Golden toward We now $XX spend are is an about approaching great, $XX million of approximately spend. which CapEx of million estimated

on well way to our flow. off CapEx fighting are We cash the with our

in cash County on the Mile the generate holds especially what to us expect no true hand lot shareholders. with at and CapEx I build XXXX. for With cash to in believe should same be to with we XXXX, County Line. Golden dilution and expect make can very cash a I The since of we Line low

was next a write-in Bob question from The question Schwering.

couple them. Let's of see, he's got a

$X date. CapEx is, one first The to spent million

think just that question. that. I I'll I addressed skip

early the is to Number or two, turn in that to try end comprehensive really ones? For Mile, big by EA, hard the permits, of working package and more in waiting and of seek. big That it the we're that is next we called we which permit are get the you permits this on quarter quarter. finalize Golden

building longest Now the took we Mile, at plant for of Isabella the that an and permitting the are Pearl. not portion Golden that ADR was

timing. permit We expect the that shorten to

that in to because being ready it leach to especially for that be conservative, think be I go. But the Isabella largest less be XX pad. we hauled not process we of just building be built project a be less modularly, Pearl building ADR. will off-site a the will modularly, build is The that, would say, and is Golden project. year. to ground again, That put than in conservative, all building Mile produced gold tested very very to so heap perspective, year, an I should since ADR, broke the and and at an largest months, than that in will, We're

see. can, But why maybe beat know, our couldn't I target? don't we'll we we XX-month

oxide question then mid-XXXX? mine of And last Okay. is from is, Bob The yes. at life answer current is still estimated one

yes. And extend answer can benches additional it? is The

have you few take if Operator, a Okay. questions, let's any those. live of

Operator

[Operator Certainly. Instructions]

Jason Reid

those. see few to if of in bunch joined wait we I on telephone see a take any there's While portal the online. I'll for coming questions. those a

the that for that budget slightly is first I investor. exploration private than The Harvey one from less noticed for Boland, XXXX is XXXX.

add of increase? today In your XXXX a this at to to million that dividend to assets. flow could are take be XXXX, least with increase the We view Harvey. was to Cash we Thanks the production But to what all longer-term equal prospects company. and for dividend in no also problem. enough $X for for strong want view question,

want mines very things in sure we that sure of Those of to We sizable enough mining two the but returning low build. we to want build, But grand to cash having in a the just on said on have CapEx. heard, to dividend scheme hand after. that, cash are you make mines as we nice make plenty of we're strike going industry balance all also that shareholders, to having hand

not to it today. increase today. could again, So We're we going

growing we're mispronounced The our hope increase a future, I receive in dividend. everybody, name. there main our your But in think next pretty to last I -- cash Is our that's peers so some and doing the be is the to outsizes building, in At we're think dividends our chance if so sorry we well. to I Clyde we approach. And dividend to the Lagomarcino, a gold? position we're from point compared question

question, Great Clyde.

a But chance? As that developed Greg again, into point, a when developed our you Patterson guys there's we we were there Sure, and know, potentially here company, have dividends gold. at do don't our -- chance. of may that my We but previous conversion I this we ability. associate is that

plate when be it We'd do before. point, do have in like yes, would we've now. on did at to it But We some focus more that. done fun time, a our past do again. on a again. and to right it have lot And We it we it the little we'll

non-oxide ore Lieb, Isabella this, initial But at complicated, Ray take It from different so investor. Pearl? pretty it's completely one from depends metallurgy the another ore. would have non-oxide on from What the the to really it We individual recover of a taking look operation.

is go heap oxides business to and after an so our our plan leach. from pit with them the And properties open mine

To sulfide ball is go a other game. the after whole

them, have large even majors there which them. you sell because That's major I future for care some a and look doing, too. to some the some your hope don't someday you doing them, approach, on toll could who one the take where don't our sulfides, a we particularly control which Walker process the someday Now bunch are for mine ores. they that the or to the are you wants us then sulfides of sell what of knows, and these approach on neighbors to at you Lane sulfides are from over mill whatever, potentially maybe sulfide approach of to who There's optionality a barrel those somebody destiny in when produce. else own who facilities to

in major. they some don't to material, mill your would to to awakening rude speak, focus. yourself it when a that we're and again, to Sure, can't total, What we it's I for anytime Great to and not put so take going it in potentially but that But would know open not take? that's ourselves mine take up could It it a going you be question, position. us our soon. lot,

Since could ready typical Question. delivering Great metal pad? finish Okay, plan. you to there Nelson. And leach leach business ore the also timing leach job, the of managing one to next for Greg currency guys, is in pads market? scooping the pads, on product significant is and elaborate

leach makeup our how can and I It A mean even its it change is of hard a chemistry organism. pad rain like question. Great the leaches. takes Thanks. own. living a life

different what these will. the a time. we leach and very depths then a depends is. as you if build we after everybody those in high you who done many follows science, ore anybody then we knows, leach and on put being pads how really cells pads And call intricate it divide We're benches of When stack a pad. on stacked produce it as they're long is we how leach cell, world else with for, mean as into operate. leach living solution the it cells, of just function who each the same just It benches I long how takes

the but lot stack into some to believe reasons You are really that Things right their it lot and a rabbit more. we and maybe off a and put alternate being, leach before is back be just news to it's dive you hole actually leach, those good on, The ore, gold pad, point them you take and done depleted there's won't get we is, while. I been adding later. cells cells Operationally, under time you them well. now. back on going come But we're takes put that going of good all really a have and

Hopefully, that more answers less or question. your

is question in said the Scarlet, is Smith. reduction next see what we on what okay, said waste. Mark On -- You status? would You the status? is Scarlet, Okay, a

Thanks for delivering.

Okay. Scarlet Pearl if And drilling the are there area, of them mineral will, at you and an Scarlet. We all. found several them Isabella is from just ancillary mine. we're

targets actually to that in area. it. other looking trying We're at We're connect additional

ground So our Northwest. you and of leaches the we then and Pearl end up picture, that on And a all the claims if going Scarlet. claim Isabella hopefully, bigger to of we've us. the your get heap locked followed on on and up highway to northwest trend, you from that know, amount there's is tremendous answers pits along question But goes open that us, four across that past the

Pearl. Isabella at this believe mineral stops don't I that just

in that become this find Hopefully, conference does it's drill short and I going question Isabella on here, of some time. them a be think take I'll targets haul we're will trend Pearl. answers the and we call, believe Pearl very trend, because but Scarlet. not we're What And deposit, all but mentioned on will. if deposits we it to the the that the additional I homerun I a find reiterate along trend, on Isabella focused something obviously, to distance your many

we delivering, you and get see look of thanks our bit waste, a little we we may in you part numbers like your and would dropping forward, which is question, Pearl from million our second going you tons reduction for down at these help have at our couple waste, Yes, our least said And going dramatically, cash I at X of thousand. X Isabella The costs went waste a to when million say change. operations. hundred will but out off, a if on or

waste the a are So waste, strip all Pearl and of as reducing Isabella we're this yes, function through a X:X we at ratio, basically.

you're to you'll see seeing the the results and of it. that think in financials, continue I

Thanks for question, the Mark.

online, Another uplist when question get new two from you XXXX to get from Chris quite bit. a Management. do you mines exchange? a Capital Great question, Chris. start question Once major Abbott these We to this

if the over guys be there. experience NASDAQ. Stock Exchange. over We Our logical update will company be New the won't uplist, and the It at past know through and We've had there. been New on being spot, We've we landing Stock when our York Exchange. York

just and reasons to uplist, it and there want We them. company here, a are to a there's I to do under uplisted didn't move throw won't of names that of the some some lot have it bus studies, There anything case it's matter just are timing. some but just right. for And time good up,

the at York be uplist, catalyst. New NASDAQ. You that opposed when as and if to want We're well, Exchange as but Stock to it we will the looking a

Scarlet, Capital or Capital. question, Goss hit H.R. think that. another Status Okay, -- at H.R. I I Goss, from Goss Gross

that. I think on touched I

Yes, Will may. reserves? as Gary. with Gary We company, Hayes. treasury, question, and we be we gold again. that Another holding Great gold cash did in that had our do previous may our FTCO question, we

don't lot Did drop ever thanks in. questions, all Okay, I you Ariel coming Dickins. hearing. recall question -- There's another we've Isabella a got power guys. these Pearl? to ever for

having to great anything hooked with the large do line to been us, with up, the not us. but on There's and to some that do with trying having bureaucracies organizations everything question. hiccups focus No, getting power

we working connect Having unfortunately We power companies, like some jurisdictions, getting fully feel and at we're and expect grid. been them, that, of We we've we're focus. to of traction. really the hard right are different the a said getting electric we where with to don't border lot believe two

that they can And one We're we're when we working forward. on of because push on hesitant -- get timing. our We've another just the control give to I to and that. yes, kind hard just done you. money. end, timeframe I'm have we everything obviously We that can to It's don't continuing like

think we've Operator? have see answered of well, Let's do I with that, questions, any a -- -- lot we phone

Operator

Yes.

Your next from question is coming Caballo. Paul

live. is line Your

Unidentified Analyst

that's I've question Sir. got it's once to for running. Is County Congratulations. to dividend regard leadership, your up you and the Great a going? increase Line with once intention

Jason Reid

I with Company. Yes, -- want catalyst. picture do the to of has to don't possibly. it's have dividend like the that I the trajectory only overall be of a the mean bigger

If this thought then have dividend you launched, ask we $X.XX. trading to a even people and started it. were started and slowly get increase who first when dividend we'd we we And first question were to to when we a there never create me didn't

everybody we saying, higher? as doesn't have increasing get after dividend the or because and it. I a going is necessitate at dividend great. But is $X.XX another dividend just because Line shareholder. County bring we'll hey, on build when you're love we're be Now mine we The to the that. I mean

mines as Line think be I County Could build. we of Sure. will function just the our a to will look we down it it. prudent be to on hang to road, the cash. have happen? It don't as sit two It's for reason on we But today just bringing

then these decide. nice We get a paid built still dividend, let's but and

history think Paul, needs I Gold we've as Hopefully, and So that answer, dividend whether company balancing to that. I as continue of And be operation. to we've the distributed with that will don't catalyst. Fortitude not But do dividend, we question. shown only and the the with but of our that yes, sorry, can your large we're we'll the answers an have while very demonstrated a committed past

Unidentified Analyst

thank Yes, you.

Jason Reid

Yes.

Okay, a close With questions close the conference -- lot I the answered of let's that, there. let's call.

Operator

event. concludes everyone. you, This Thank Absolutely. today's

You a wonderful time may for this at disconnect day. Thank have and participation. you your

Jason Reid	Chief Executive Officer
John Labate	Chief Financial Officer

Fortitude Gold (FTCO) 1 Mar 232022 Q4 Earnings call transcript