FTCO - Earnings call transcript Q1 2024 | Fortitude Gold Corporation

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Operator

Good morning, everyone, and welcome to the Fortitude Gold 2024 First Quarter Conference Call. [Operator Instructions].

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, President and CEO, Jason Reid. Sir, the floor is yours.

Jason Reid

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

comments associated period. my Q&A Chief will on Following Financial and call portion have online, who the John a we will joined Officer. be brief Labate, for question-and-answer today And Mr. me presentation joining the for our those

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

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

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

Isabella $X.X The high-grade delays gold ongoing deeper pit. mine and to on of the was million cash had $XXX strong produced, Pearl million net the a fronts sales, permit cash despite in approval cost, in ounces all-in million profit, cash We expenditures paid XXXX cash shareholders and first sustaining numerous dividends, to $XX.X quarter the gold successful gross cost, $X.X of total $X.X million million. $XXX mine exploration balance $X.X X,XXX

Line Pearl a with D agencies construction. focus Isabella the permits permit work numerous begin permit with to continue the to We permit and County on on

mine understaffed growing submittals liked. and to movement, Isabella turn than to a we approval. received Isabella seeing like are be agencies potential overworked, as be permits Scarlet open to are target, positive plan would Pearl receive expansion others but permit albeit in toward on have submit mine the once The boundary to the We have continue encompass expansion trend. second pit IPD the the looks ready to we Pearl that plan slower as soon we We

quarter, intercepted X.XX from X land speed on Isabella properties target Douglas. surface had X the X East feet as and Pearl grading over as Camp explored County per and focused grams North XX ounce our drills at as the at We we the tonne per well operating project, East During Scarlet as Douglas aggressively our Camp ton target area. grading same Veins many

East believe X.X Camp XX gold, lithocap. grams have where into grading the first discovered tonne feeder Southern lithocap returned Douglas target zone feet at per we Our we may our

grading potential County Overall, Intrepid and tonne in per exceptional to County meters properties in belt, released X.XX these Subsequent Pearl Nevada, land gold gold. grading additional acquired to XX.XX property. tonne including to North larger announced meters to add now gold to potential portfolio have X.XX gold grams and mineral quarter acquisition see successful Scarlet feet We property, ounces the XX acres. of the We per of from grams over strong become we meters the properties. the Walker from Lines tonne Line just continue Scarlett resource. fortunate feel per gold X also the XXXX, an Early encompassing additional open the away North We Dauntless gold X.X XX,XXX Lane XXX% to very properties. own along grading we drill Isabella results mineral pit of our exciting X.XX X from we where from we target tonne surface. drill results also The X.XX great meters target, XXX drilled facility processing Isabella X.XX has per grams on gold, end, grams released Pearl the

a gold and to made have soon. we those are release in initial discovery programs share a Our excited at press results Intrepid, drill

drill We also property. Dallas our recently first program at commenced our have

the best if I her of Officer to her several Janet for on past of had operator, the has like pleasure that. him has And retirement also Financial Gold. years very promotion and X John company Financial with to years working this John's congratulate can potential to his open time And be to a also this the be get done positive asset Fortitude Chief been at over and on Q&A. everyone in announce do the new I Fortitude you for have would with their which possible to would that, in to with any focusing an for for Fortitude forward they company. turn conference of join pleasure the would how as do Gold's over retirement. her written We With John felt past working Before day incredible have pull we Janet at him Officer. to John working some fortunate questions, up will I today he I've call to I company thank last to X, will on retirement. you Gold's I a lines years, of as prior after us like the I Chief job a the out CFO. thank will these June look please with service like after to Labate wish Fortitude I all Gold. call. Turner Q&A role and

Operator

Instructions]. [Operator Certainly.

Jason Reid

several for we have wait right questions. as I So in in, e-mail call any

is average an there's do me I and years exploration tribulations don't I that get the from Leev. it, any exploration Right a to know I wait e-mail that their finally Nevada. X in alone time? recent permits a this trials after Ray for an our first times. tell don't But you I waiting getting is I are average time, not is permits. the lengthy that that we short average companies but an one is permit. someone permit, and So Are associate have gotten know Ray wait on wait pointing EA morning will of an time guess What sent other in company, approved the has out for which long

feeling I the you function industry permitting today, Environmental think is XX% Land the long about speak will, with Bureau of Nevada both you with these as both that are of to a Management is delays, operating what Department at staff levels. if Protection the I and

and yet overseas, focus at won't the watch and billions staff when level, even this in so, own country we're at if can I ramifications permitting they Quite XX% the our staff And long regard. levels, but frustrating be I were seeing on administration sometimes think that. process arduous, of this of dollars XXX%

of Ray, resource we The second at there your we've Mile part there's Golden that But when? is structure. will mineralized Possibly, also be question, Mile Golden structures. a we for doing vertical knew then been some and what horizontal always there realized Ray these new is, were estimate

been understand So really the to we've working hard structures.

And so, but update, the primary it trying to structural just we is been controls is an that's understand that do focus of possible our that deposit.

have, a plant. you Ray, East IP for concentrate trucking to candidate question Another Camp Douglas is

battery Camp now some trucking we're Douglas of is What don't back, doing There right Camp or we gold-infused possible of seeing some a as oxide ore potentially we're anything potentially carbon. East is -- a far could all but truck transitional. we East have have attests Douglas, truck lot and it sulfide and the As material. out seeing, to there's we're results

that facility So on we develop I have camp truck carbon could there. infuse we to truck, potentially and think like take oxide positive oxide piece portions, plan mountain up Golden gold grade, unsure Mile.So of truck or guess very then But the on process could processing pearls I the the we're the do to high-grade down it, a to the we a Adis carbon yet. build facility it's depending ore and we

gold additional And Leev, you what announced on We Is IP by question subtracted earlier. leach? added to Okay. heap much probably have then close had the some. remains we Ray some. an We how

around where that. that's I'm XX,XXX, John will wrong stand or XX,XXX today. if I me ounces. think less we correct on But more it's

dividend that's balance, going end -- way are the Dinsmore, looking to hold. I late no point, fully And But all on intend is a we'll the the the with going cash ball have continue what yes, permits what address to off, -- that. time, year change XXXX, until we at to to year. long the see. and the just at have like Phil, assuming maybe administration to going dividend years don't delay wait previous great throughout a We're X do future this strong But by have this permits our question point Yes, a see change. get were And new that's to crystal hoping, is like a to end in Another you X delay I what we the of to If it's the dividend and then rate? in don't in permits Phil XXXX, question. and get and a we they to I'm will under the will open used president a gets year And that I continue on. much business this we yes, for one country. But faster future if they to new ball. new our we'll before. case, be the the dropping in and the yes, the another think like here years, crystal have administration permits we Phil, start of is more and with that if a brighter

we on. being administration our Another that years, permitting a as dragging In permits for the frustrated we a speak. permits is has would the sure ultimately we their earnings by under we And Steve, think delays. of opinion, had has the question a miners, Steve like speak. share for the received has the Pearl share my the previously price market the would for is this deeper enterprise. manner you question. be caused price underlying Isabella County administration This building I problem? am we mining We are, issue. is on Or at to thanks completely feet this previous the from as in timely miscalculated permit weighed I be Banker, high Had as the led power several Line grade

manner, So, with be we And can permits again, what can on our control, we what shown on permits we executing a our only I if manner. right? the continue on would only And as in long company would plan. And in, do execute those focus permits received we we've business timely we we a the to dropped that when timely plan. this so have we do can business say would in get we as

or calculating dividend for substantial the as X tight high-grade producing peers. our power So capital ran of with this ounces running pay underlying earnings years low-cost far a our plan a as enterprise, business to miscalculating of structure out

have we as think ability mines. I long the So have tremendous earnings power that's to we build as

So no, -- these taking I to than so don't think anything wondering long. Operator, are market our scratching questions? market with miscalculating do head as the other we their anything the do why it has calling any is have we are permits

Operator

the There in are this no Instructions]. queue time. questions [Operator at

Jason Reid

phone. Once again, everyone on your

what here. are was a still significant leach We questions write-in a the on couple Ariel, that Ariel the no, am on right. there gold of more I Dickens, remember the unleached I had hearing goal you wrong? is Okay. residing heap recoverable or of -- going there with margins is that

You are correct.

a We heap the of margins have the of leach. of couple put cells under

Cat starting of and and pad. to are now, before gold and long right them we have all or from bid them half leach on we Civit to of we're to that's go we them mine have of starting X/X a heap doing heap, or also leach sides first way been the leach leach continuing continue for matter. the to that those even of But We from

So that speak. as is going on we

if processing Another the Henry to [indiscernible] I anything last Is of Wow, me. officials respect I Iosky. incorrectly. do question with shareholders their that to Henry, permits can your name up from for elected apologize there pronounced facilitate

justify I've money I it If do resource when you're administration their rational permits future. the just can way get voting for investment said it say in under for struggle somebody any now, in before, your I'll then putting shooting see and not this and administration. that say voting you're in administration, they this this the and foot. to I'll companies

now So, you really yes, matter. does do, anything attention pay it because you vote can

resource has intercepted overburden removed think also and mining of Civit see, through I majority Ray. Civit let's a But some initial We're Leev. over from in there question was small -- and mineral Ray Cat from the came of been there, Cat. resource the resource. that outside another the we

mining we're Civit Cat. it's no, to economic chase. So looking see to But we're if at the still

overburden overburden mining because the we're completely is as that ore and to mining speak. there waste hasn't we answer removed my So been over

have confirm And seeing don't phone not I'm questions. operator, Okay. any questions, we that. let's any additional if

Operator

Absolutely.

first Stephen Mogan. question is from Your coming

Stephen Mogan

mining me, what permit, theoretically, you happen if started the tell could Jason, to the without company. possibly

Jason Reid

heartbeat. do We never would we a would And get down shut in that.

Stephen Mogan

litigate Wouldn't tie you the be it able up for court that many and to system years? in

Jason Reid

be tied a legal is do agents. in up on ever shut down that. to for would be would would and many years, never us the with We want permitting would to heartbeat. but Everything site I they do I

Stephen Mogan

in all pad, all they're not what's I I it's understand you all at you like or words, they down, going that the not getting that, have business, in and need that's up there your for but reason to long. the the they're other mean jeopardizing staffing shutting and leach speeding no in process. last is

Jason Reid

we control. is on focused are we what again, Well, what Yes. can

to and excellent of the been several that doing drill what ability on we've and do So getting have properties, we our is results.

it's county not not it's it are Golden discovering going new line, Stephen. the that over just hit a regulators us hit this future. exciting to East me. that it's giving our indication whether whether whether All Intrepid, any discovery, to for so, is we're over ounces Douglas The gold we Camp get adding Mile continuing And excuse -- over permit,

They we're situation a look the of attention we I do, even more we not saying but have kind heard bigger [indiscernible] to you're get not saying, they fish when going companies smaller to the permits. I it's haven't are of So we've of anything get get have where and this to a to you them. get It's point. at operate believe, imagine they're, imagine in struggling matter going are to And understaffed. new other large when. a so Nevada, at hey, than We're them companies I that just heard

to Stephen. I might. this. stonewall I through imagine But weather They -- think going just happen. going we'll oblivian, I they're don't everybody just to So cannot into that's

Stephen Mogan

and my concern mentioned another permit X -- in more years. X.X sort less you here's him, or called a But fear here's said he had that that years going he excuse and your That's permits? other forward, some wait got Yes. X one years, my of after [indiscernible] me, year you could finally or words, with had for of associates spoke you

Jason Reid

previous overseas permits that, permits running. don't a did are and take be and believe. and put choose And fashion. business in, plan truly Well, administration, is this in had not just everything we all, Why what's Stephen, shareholders staff relatively to administration, billions throwing that's fully weighing has of is always that struggle, the country, outcome they stock these and to executed, we'd and not. BLM. That staffed enjoyed to off I relied they one and then They it they're could do as on design. want by a on our our ordinary dropping changed, of we under are this and the the that. Under they're

that's So the weighing stock. what's this is on by design. But

ounces a years, lot the and we fortunately, heap even pad, said producing that, having so a if of have, Now, years on be couple to of we're we leach going mine didn't for for all

Stephen Mogan

You producing a are it's year? going going to you're not but X,XXX ounces much, I X,XXX, to get mean be not... a

Jason Reid

X,XXX of did no, -- or didn't Steve Stephen. good we did mine made last just But the question, and good look we million. what quarter. shy $X We So point, yet

but in we did. X turning we had an we not situation, exploration. what ideal and So drills tremendous that's that, look had doing And at

this I -- as on expect fingers by, our we'll the cut fully as different to process. cash we my So our with they keep a streamlining look, far be fully administration, streamlining, the truly storm. costly expect I better. They to that were drilling year looking Stephen, crossed which exploration to manage we'll permitting streamline. administration, goes towards move weather back dealing But as were previous to And the trying

And worst in be for going in we've did, we it. forward. with X,XXX going be we if to weather good production. the a it's coming you no that, shut a said, several month but produce but been never So way we mine you, tougher and what to path X,XXX, a while another Stephen, to gets me, If go assuming we're to to the That frustration, to hear not hear administration years, back would is what in this much I for come a the quickest would I goal, get current government want just originally understand just around this would -- the and look can never doing, us case years, down, is be your wouldn't storm. suit it's they can world we and like X then all

frustration. again, share So I Stephen, well, your

Stephen Mogan

they process do what mine I words, less Just my legitimate you say understand scouts and being not you're out that able everything other than they -- anybody do find what to legal in if find a do is a thinking does without digging more the see to if that or have How permit. deeper But they Isabella -- way. you mine that supposed out out? to want Pearl you're in mind. your to sent ever how that

Jason Reid

know basis. it's site There's whether imshaw, make visits a they it's make different regulators EP, different No, the so whether factions, and that BLM site many they on wouldn't visits regular

Stephen Mogan

So send give to It have permits. resources but they your have no sense. scouts, makes to they you out resources don't enough

Jason Reid

XX their a day office a was this the That it day, and days saying permits, all The is very this in whether put getting This in sense shot very that President from for bow. has gas, it's he across anti-mining wood, under permits. been on X. mining, administration that stop Well, makes day administration, Stephen. whatever nobody oil, got

their and company dot this administration matter. for ballot fills is this against again, company anybody voting any that who in the for So, other resource under little

associates And that, what my still but they for going believe we'll tougher. I that's you our it's administration. going tougher. the out do may So life considering Yes, storm, do. can if -- word the the it's hurt much get voting who to going to this weather make to is be to just be

Stephen Mogan

absolutely your drop. idea there's part, when permits no these And on could

clot. not a You have even

that and You there the over [indiscernible]. the to at an you don't BLM insider have talked

Jason Reid

The not mine to days. We're talk we instance, have time. Yes, My wider. major not We're deeper. for any a to modification. going the into all getting pit, It's water. didn't taken boundary in them get should only the XX deeper pit

get really it turnover in whether So you expansion, up needs lead to to to needs that routine now course want I will. was new leave it's or get do this to new mean a them or changing lead and add the then to speed saying, permit. up to if always this the okay, and And then there's something. we speed they it and staff

with work we We how just so offer that office. continue higher is to astounding. shows And work And governments them. red our somebody inefficient It cost to the around at tape offer We just me are. to to help. their actually in

-- staff still asking on And unbelievable, really. right? help are to jumping But taken it's up them. yet. us We that, they I'd at haven't they be it

everything doing ahead. can. Do Yes, you go we have the we're So question?

Stephen Mogan

if spoke in not what a to other told words, just an decision other you them. gave rocket X-minute in process. science. the It's Basically, me, It's you gave information Yes. them I to individual and words, just me,

Jason Reid

X or -- a permit do. years, years in update, turned we've have about happens X to a routine routine you it there's every Well, --

that's people, -- underpaid. Again, that pretty kind I You a the it's they shots probably working through. arguably it at XX% turned at individuals look either the their you're understaffed. But and tough levels. We I'm delays have didn't at -- hardworking for taking and at when happening. of mean they're overworked that's whole the the to year. not go in staff

do off we and our we we yes to would if deployed not It's will Steven, running, never wouldn't have the appreciate money we that be do. of it -- yes, gave anything of instead that that would but and site with your actually ever on So, administration something but comments, this could so away much just I country, staff be we regulators. and

Stephen Mogan

sound other understand I listen, not wouldn't I'm want trying what That's hypothetically, me get were to said. what just were not it's why taking conference so I and dropped. wrong. to theoretical. that said on weeks, a don't And your I understand have to. you within whole couple you like words, those I was long. mean In of call. going process I permits it just last

Jason Reid

things change that then let that say course. Sometimes and believe they us they'll

so And me say that this not in you're call. hearing

You're and doesn't. time believe to I'm frame. not any hearing on not I'm then going me not anymore. day, I've in that it's quantificating that say to it been drop quantificating any led

know going we're cannot going business back timing, just plan. optimism. in we dial So The I what to they're enough that's land. changed? But got our where our permits in. just and emphasize It's previous the to we drop has our administration, to on going -- don't manner we executed I timely a

build. We mines to have

We have the ability them. to build

It's simple. We have what's This the changed. the administration?"That's has money. simple. What that team Stephen, changed? and

Stephen Mogan

I to to along words, to for In get in. wait everything for your moving other on Trump start end. have

otherwise, I question, million $XX cash. know you in Another have

going before with to You're dividend? regulation something reduce to your need the other drop going that you to What level would do forward. cash in words,

Jason Reid

drilling. the out are And time more exploration, his team almost we're depends will longer trying front. the over knocking throughout as as hitting what we we us we see stand. can the this going really which And much get year. it It back in unfortunate. we Stephen. have everywhere of And know, permits, park. don't don't [indiscernible] it's you takes, on And we're of time the is be and to dial decision out I look year, the the I where to our mean we'll Yes. gold, if end to do is and

that But delays, continue dial going back. be that permit would have under to great to it these we're on. So to

flow, position. X,XXX made million. strong mine have shy not we just we'll ounces see, So wait and produced while of the a to And and $X it's in cash just again, ideal we're very but

will gold we for that some be time. -- quite So producing

the we'll when managing make it. year and we'll on a drop gold have hope end waiting of to be lot We the of down for permanent and doing we'll we're to keep not to get in. this. let's just cash, we heap But But those the decisions

Stephen Mogan

those I forward in very so. a other to simple for words, I that in for that, other it's hope something because change going annoying a other it sit and when hope in to like seems it's company such as like things words, wait, the shareholder in towards words, happen and easy process to

Jason Reid

it you It about We matters under that. again, is, one you as don't pro mining. simple so it how I is. matters to Stephen, both else it yes, different anti that how And lived vote. a now, as And that. we with It's live -- know administration say was it

Stephen Mogan

got and When number all one back vote. voted vom an Trump. of office I for going years Well, again. ago That's a he

Jason Reid

Well, Okay. thanks, call. Steven. the I appreciate

Stephen Mogan

you, good Thank Jason. Have day. a

Operator

no in queue. are questions further the There

Jason Reid

We forward on our right. Matthew, you, call today. Thanks updating helping for listening. appreciate look the us thank And it. Perfect. everybody, you joining conference for quarter. conference to for call. We thank All next you

Operator

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

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

Fortitude Gold (FTCO) 8 May 242024 Q1 Earnings call transcript