# Fortitude Gold Corp: Form 10-Q for the period ended Mar 31, 2025

- Company: [Fortitude Gold Corp](/companies/ftco.md) (CIK 1828377)
- Form: 10-Q
- Filed: 2025-04-29
- Accepted by EDGAR: Apr 29, 2025, 16:05 ET
- Period: 2025-03-31
- Accession: 0001558370-25-005828
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1828377/000155837025005828/ftco-20250331x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1828377/000155837025005828/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $6.5m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $148.0k | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $3.3m | us-gaap:GrossProfit |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $1.2m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.05 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.05 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 24,518,364 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$2.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $390.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $2.9m | us-gaap:PaymentsOfDividends |
| Cash and equivalents | at 2025-03-31 | $21.4m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $34.2m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $120.4m | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $3.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $13.6m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-03-31 | $106.8m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 21,961 characters.

We are a Colorado corporation and our subsidiaries are GRC Nevada Inc. (“GRCN”), Walker Lane Minerals Corp. (“WLMC”), County Line Holdings Inc. (“CLH”), County Line Minerals Corp. (“CLMC”), and Golden Mile Minerals Corp. (“GMMC”). WLMC, CLH, CLMC and GMMC are wholly-owned subsidiaries of GRCN. We are a mining company which pursues gold and silver projects that are expected to have both low operating costs and high returns on capital. We are presently focused on mineral production from our Isabella Pearl Mine in Nevada. The ore mined at Isabella Pearl is processed on site at our processing facilities and sold to a refiner as doré, which contains precious metals of gold and silver. We also continue exploration and evaluation work on our portfolio of other precious metal properties in Nevada and continue to evaluate other properties for possible acquisition.

In February 2021, we began trading on the OTC Market “pink sheets” operated by the OTC Markets Group and subsequently up listed to the OTCQB on March 5, 2021 with a symbol change to “FTCO”.

The following discussion summarizes our results of operations for the three months ended March 31, 2025 and 2024. It also analyzes our financial condition at March 31, 2025. This discussion should be read in conjunction with the management’s discussion and analysis and the audited consolidated financial statements and footnotes for the year ended December 31, 2024 contained in our annual report on Form 10-K for the year ended December 31, 2024.

The discussion also presents certain financial measures that are not prepared in accordance with U.S. Generally Accepted Accounting Principles (“Non-GAAP”) but which are important to management in its evaluation of our operating results and are used by management to compare our performance with what we perceive to be peer group mining companies and are relied on as part of management’s decision-making process. Management believes these measures may also be important to investors in evaluating our performance. For a detailed description of each of the non-GAAP financial measures, please see the discussion below under **Non-GAAP Measures.**

See **Forward-Looking Statements** at the end of this Item 2 for important information regarding statements contained herein.

### First Quarter 2025 Financial Results and Highlights

- $6.5 million net sales
- $1.2 million net income or $0.05 per share
- $21.4 million cash balance at March 31, 2025
- 1,780 gold ounces produced
- $30.7 million working capital at March 31, 2025
- $3.3 million mine gross profit
- $1.4 million exploration expenditures
- $1,033 total cash cost after by-product credits per gold ounce sold
- $1,404 per ounce total all-in sustaining cost
- $2.9 million dividends paid
- 619 ounces of gold rounds/bullion at March 31, 2025

*Operating Data*: The following tables summarize certain information about our operations at our Isabella Pearl Mine for the periods indicated:

| ​ ​ ​ ​ Ore mined | ​ ​ | ​ ​ Three months ended March 31, 2025 | ​ ​ | ​ ​ 2024 |
| --- | --- | ---: | --- | ---: |
| Ore (tonnes) |  | 53,927 |  | 66,496 |
| Gold grade (g/t) |  | 0.52 |  | 0.69 |
| Waste (tonnes) |  | 548,069 |  | 451,509 |
| **Metal production (before payable metal deductions)(1)** | ​ | ​ | ​ | ​ |
| Gold (ozs.) |  | 1,780 |  | 3,983 |
| Silver (ozs.) |  | 11,407 |  | 21,115 |

(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 for which we received payment 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 amounts of metals contained in doré produced and sold.

During the three months ended March 31, 2025 and 2024, we produced 1,780 and 3,983 ounces of gold, respectively. The decreased production in 2025 is primarily due to lower leach pad recoveries due to overall lower-grade ore mined and delays in permitting our next targeted mine build at County Line. Mining and placement of ore on the heap leach pad was primarily from the remaining lower grade mineralized oxide areas of the Isabella Pearl deposit and the utilization of the low-grade ore stockpile.

| ​ ​ ​ ​ Metal sold | ​ ​ ​ | ​ ​ ​ ​ Three months ended March 31, 2025 ​ | ​ ​ ​ | ​ ​ ​ ​ 2024 ​ |
| --- | --- | --- | --- | --- |
| Gold (ozs.) | ​ | ​ 2,336 |  | ​ 3,970 |
| Silver (ozs.) | ​ | ​ 15,385 |  | ​ 20,866 |
| **Average metal prices realized (1)** | ​ | ​ ​ | ​ | ​ ​ |
| Gold ($per oz.) | ​ | ​ 2,861 |  | ​ 2,072 |
| Silver ($per oz.) | ​ | ​ 32.11 |  | ​ 23.28 |
| **Precious metal gold equivalent ounces sold** | ​ | ​ ​ | ​ | ​ ​ |
| Gold Ounces | ​ | ​ 2,336 | ​ | ​ 3,970 |
| Gold Equivalent Ounces from Silver | ​ | ​ 173 | ​ | ​ 234 |
| ​ | ​ | ​ 2,509 | ​ | ​ 4,204 |
| ​ | ​ | ​ ​ | ​ | ​ ​ |
| Total cash cost before by-product credits per gold ounce sold | ​ | $1,244 | ​ | $783 |
| Total cash cost after by-product credits per gold ounce sold | ​ | $1,033 | ​ | $661 |
| Total all-in sustaining cost per gold ounce sold | ​ | $1,404 | ​ | $777 |

(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.

Cash cost after by-product credit increased due mainly to lower sales volumes.

### Consolidated Results of Operations – Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

*Sales, net.* For the three months ended March 31, 2025, consolidated sales, net were $6.5 million as compared to $8.2 million for the same period in 2024. The decrease is attributable to lower sales volumes and higher refining costs due to a shipment of slag and carbon, partially offset by higher average sales price. First quarter 2025 gold sales volumes decreased 41%, while the average realized price for gold increased 38%, from the same period in 2024.

Lower sales volumes during the three months ended March 31, 2025, were the result of decreased production which was primarily due to lower leach pad recoveries due to overall lower-grade ore mined, and delays in permitting our next targeted mine build at County Line. Mining and placement of ore on the heap leach was primarily from the remaining lower grade mineralized oxide areas of the Isabella Pearl deposit and the utilization of the low-grade ore stockpile.

*Mine cost of sales.* For the three months ended March 31, 2025, mine cost of sales totaled $3.2 million compared to $4.0 million for the same period in 2024. The change is mainly attributable to lower production costs and depreciation and amortization expenses due to a decrease in sales volumes, as discussed above.

*Mine gross profit.* For the three months ended March 31, 2025, we recorded $3.3 million mine gross profit compared to $4.2 million mine gross profit for the same period in 2024. The decrease is primarily attributable to lower sales, as discussed above, and increased cost per ounce due to lower-grade ore mined.

*General and administrative*. For the three months ended March 31, 2025, general and administrative expenses totaling $1.3 million did not materially change compared to $1.2 million in the same period in 2024.

*Exploration expenses*. For the three months ending March 31, 2025, property exploration expenses of $1.4 million as compared to $3.6 million for the same period of 2024. The decrease is primarily due to decreased exploration spending to preserve capital due to permit delays of our next targeted mine build at County Line. Exploration spending in the first quarter of 2025 primarily related to exploration, hydrogeological investigations, and permitting studies at East Camp Douglas, County Line and the Isabella Pearl trend properties.

*Other income, net*. For the three months ending March 31, 2025, other income totaling $0.6 million did not materially change from the same period in 2024.

*Mining and income tax expense (benefit).* For the three months ended March 31, 2025, mining and income tax expense was nil as compared to $0.1 million income and mining tax (benefit) for the same period in 2024. The increase is the result of higher income before income and mining taxes, offset by a decrease in Nevada net proceeds of minerals tax due to lower sales volumes. See **Note 6** to the **Condensed Consolidated Financial Statements.**

*Net income (loss)*. For the three months ended March 31, 2025, we recorded net income of $1.2 million as compared to $2.0 thousand net loss in the corresponding period for 2024. The increase is due to the changes in our consolidated results of operations as discussed above.

### Non-GAAP Measures

Throughout this report, we have provided information prepared or calculated according to U.S. GAAP and have referenced some non-GAAP performance measures which we believe will assist with understanding the performance of our business. These measures are based on precious metal gold equivalent ounces sold and include cash cost before by-product credits per ounce, total cash cost after by-product credits per ounce, and total all-in sustaining cost per ounce (“AISC”). Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation, or as a substitute for measures of performance prepared in accordance with U.S. GAAP. These non-GAAP measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.

Revenue generated from the sale of silver is considered a by-product of our gold production for the purpose of our total cash cost after by-product credits for our Isabella Pearl Mine. We periodically review our revenues to ensure that our reporting of primary products and by-products is appropriate. Because we consider silver to be a by-product of our gold production, the value of silver continues to be applied as a reduction to total cash costs in our calculation of total cash cost after by-product credits per precious metal gold equivalent ounce sold. Likewise, we believe the identification of silver as by-product credits is appropriate because of its lower individual economic value compared to gold and since gold is the primary product we produce.

Total cash cost, after by-product credits, is a measure developed by the World Gold Institute to provide a uniform standard for comparison purposes. AISC is calculated based on the current guidance from the World Gold Council.

Total cash cost before by-product credits includes all direct and indirect production costs related to our production of metals (including mining, crushing and conveying and other plant facility costs, royalties, and site general and administrative costs) plus treatment and refining costs.

Total cash cost after by-product credits includes total cash cost before by-product credits less by-product credits, or revenues earned from silver.

AISC includes total cash cost after by-product credits plus other costs related to sustaining production, including sustaining allocated general and administrative expenses and sustaining capital expenditures. We determined sustaining capital expenditures as those capital expenditures that are necessary to maintain current production and execute the current mine plan.

Cash cost before by-product credits per ounce, total cash cost after by-product credits per ounce and AISC are calculated by dividing the relevant costs, as determined using the cost elements noted above, by gold ounces sold for the periods presented.

### Reconciliations to U.S. GAAP

The following table provides a reconciliation of total cash cost after by-product credits to total mine cost of sales (a U.S. GAAP measure) as presented in the Consolidated Statements of Operations:

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ |
| --- | --- | ---: | --- | --- |
| Total cash cost after by-product credits | ​ | $2,411 | ​ | $2,622 |
| Treatment and refining charges | ​ | (148) | ​ | ​ (45) |
| Depreciation and amortization | ​ | 887 | ​ | ​ 1,391 |
| Reclamation and remediation | ​ | ​ 51 | ​ | ​ 48 |
| Total consolidated mine cost of sales | ​ | $3,201 | ​ | $4,016 |

The following table presents the non-GAAP measures of total cash cost and AISC:

| ​ ​ ​ ​ | ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ |
| --- | --- | --- | ---: | --- | --- |
| Total cash cost before by-product credits (1) | ​ | ​ | $2,905 | ​ | $3,108 |
| By-product credits (2) | ​ | ​ | (494) | ​ | ​ (486) |
| Total cash cost after by-product credits | ​ | ​ | $2,411 | ​ | $2,622 |
| Sustaining capital expenditures | ​ | ​ | ​ 490 | ​ | ​ 2 |
| Sustaining exploration expenses | ​ | ​ | ​ 376 | ​ | ​ 458 |
| Total all-in sustaining cost | ​ | ​ | $3,277 | ​ | $3,082 |
| ​ | ​ | ​ | ​ ​ | ​ | ​ ​ |
| Gold ounces sold | ​ | ​ | 2,336 | ​ | ​ 3,970 |
| ​ | ​ | ​ | ​ ​ | ​ | ​ ​ |
| Total cash cost before by-product credits per gold ounce sold | ​ | ​ | $1,244 | ​ | $783 |
| By-product credits per gold ounce sold (2) | ​ | ​ | ​ (211) | ​ | ​ (122) |
| Total cash cost after by-product credits per gold ounce sold | ​ | ​ | ​ 1,033 | ​ | ​ 661 |
| Other sustaining expenditures per gold ounce sold (3) | ​ | ​ | ​ 371 | ​ | ​ 116 |
| Total all-in sustaining cost per gold ounce sold | ​ | ​ | $1,404 | ​ | $777 |

(1) Production cost plus treatment and refining charges.

(2) Please see the tables below for a summary of our by-product revenue and by-product credit per precious metal equivalent ounces sold.

(3) Sustaining capital expenditures and sustaining exploration expenses divided by gold ounces sold.

The following tables summarize our by-product revenue and by-product credit gold ounce sold:

| ​ ​ ​ By-product credits by dollar value: | ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ | ​ ​ | ​ ​ 2024 ​ ​ |
| --- | --- | ---: | --- | ---: |
| Silver sales | ​ | $494 | ​ | $486 |
| Total sales from by-products | ​ | $494 | ​ | $486 |

| ​ ​ ​ By-product credits per gold pounce sold: | ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ | ​ ​ | ​ ​ 2024 ​ ​ |
| --- | --- | ---: | --- | ---: |
| Silver sales | ​ | $211 | ​ | $122 |
| Total by-product credits per gold ounce sold | ​ | $211 | ​ | $122 |

### Liquidity and Capital Resources

As of March 31, 2025, we had a cash position of $21.4 million compared to $27.1 million at December 31, 2024. The change is primarily due to decreased cash from operations, exploration spending and dividends paid.

As of March 31, 2025, we had working capital of $30.7 million compared to $37.7 million at December 31, 2024. Our working capital balance fluctuates as we use cash to fund our operations, financing and investing activities, including exploration, mine development and income taxes. With our working capital balance as of March 31, 2025, we believe that our liquidity and capital resources are adequate to fund our operations, exploration, capital, and corporate activities for the next twelve months.

Net cash used in operating activities for the three months ended March 31, 2025 was $2.4 million, compared to $2.9 million for three months ended March 31, 2024. The change is primarily due to higher net income and changes in inventory, stock-based compensation, depreciation and amortization and accounts payable.

Net cash used in investing activities for the three months ended March 31, 2025, was $0.4 million compared to $1.1 million during the same period in 2024. The decrease is primarily due to less capital expenditures.

Net cash used in financing activities for the three months ended March 31, 2025 totaling $2.9 million did not materially change from the same period in 2024.

### Development and Exploration Activities

*Isabella Pearl Mine:* During the first quarter, operations continued at the Isabella Pearl (“IP”) Mine open-pit and heap leach operations. Geological and resource modeling was initiated to assess the viability of further extraction of gold-bearing oxide material from the southern and eastern portions of the IP Mine. A mapping and sampling campaign was started to the east of the Isabella Pearl Mine to further understand the structures that are exposed on surface. A Minor Modification to the IP Mine Plan of Operations was submitted in the first quarter to the Bureau of Land Management and the Nevada Division of Environmental Protection Bureau of Mining Regulation and Reclamation. The priorities of the Minor Modification are to obtain approvals to increase the authorized project area boundary, complete a Phase 3 expansion of the heap leach pad, build a public access reroute north of the main Project components, and obtain permission to develop the South Scarlet mineralized area that is to the west of the IP Mine.

*County Line property:* Permitting activities continued with regulatory authorities relating to the development of the proposed County Line Mine.

*East Camp Douglas property*: The Exploration Plan of Operations / Nevada Reclamation Permit application was submitted in the first quarter to the Bureau of Land Management and Nevada Division of Environmental Protection Bureau of Regulation and Reclamation for the East Camp Douglas property. This exploration permit is expected to open approximately 25 acres for exploration drilling under Phase 1 of a multiphase authorization (for a total of 150 acres), which includes the lithocap area, as well as the East and West White Rock Springs targets located on the northern portion of the property. This Exploration Plan of Operations, when granted, would allow exploration efforts beyond the current Notice of Intent (“NOI”) drill permits that limit exploration to just five acres.

*Golden Mile property:* No progress on permitting was completed during the quarter due to the previous administrations permit backlog.

*Intrepid property:* Laboratory testing was completed on samples from the Intrepid property to assess cyanide leachability.

### Accounting Developments

For a discussion of recently adopted and recently issued accounting pronouncements, please see **Note 2** to the **Condensed Consolidated Financial Statements.**

### Forward-Looking Statements

This report contains or incorporates by reference “forward-looking statements,” as that term is used in federal securities laws, about our financial condition, results of operations and business. These statements include, among others:

- statements about our future exploration, permitting, production, development, and plans for development of our properties
- statements concerning the benefits that we expect will result from our business activities and certain transactions that we contemplate or have completed, such as receipt of proceeds, decreased expenses and prevented expenses and expenditures
- statements of our expectations, beliefs, future plans and strategies, our targets, exploration activities, anticipated developments and other matters that are not historical facts

These statements may be made expressly in this document or may be incorporated by reference from other documents that we will file with the SEC. You can find many of these statements by looking for words such as “believes,” “expects,” “targets,” “anticipates,” “estimates,” “proposes,” or similar expressions used in this report or incorporated by reference in this report.

These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause our actual results to be materially different from any future results expressed or implied in those statements. Because the statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied. We caution you not to put undue reliance on these statements, which speak only as of the date of this report. Further, the information contained in this document or incorporated herein by reference, is a statement of our present intention and is based on present facts and assumptions, which may change at any time and without notice, based on changes in such facts or assumptions.

### Risk Factors Impacting Forward-Looking Statements

The important factors that could prevent us from achieving our stated goals and objectives include, but are not limited to, those set forth in other reports we have filed with the SEC, including our Form 10-K for the year ended December 31, 2024, and the following:

- Permit timing due to the Bureau of Land Management (“BLM”) permit backlog caused by the Biden administration
- The BLM and Nevada Division of Environmental Protection staffing shortages
- Changes in the worldwide price for gold and/or silver
- Inflationary pressures and supply chain disruptions, with particular consideration on the outlook for increased costs specific to labor, materials, consumables and fuel and energy on operations
- Government freezes on issuing resource permits
- Political and regulatory risks
- Untimely permit issuance
- Volatility in the equities markets
- Adverse results from our exploration or production efforts
- Producing at rates lower than those targeted
- Global pandemics such as COVID-19 and governmental responses designed to control the pandemic
- Weather conditions, including unusually heavy rains
- Earthquakes or other unforeseen ground movements impacting mining or processing
- Failure to meet our revenue or profit goals or operating budget
- Technological innovations by competitors or in competing technologies
- Cybersecurity threats
- Investor perception of our industry or our prospects
- Lawsuits
- General economic trends

## Controls and procedures

As filed, 1,707 characters.

#### Disclosure Controls and Procedures

As required by Rule 15d-15 under the 1934 Act, as of March 31, 2025, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer (our principal financial officer). Based upon and as of the date of that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2025.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the 1934 Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

#### Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the 1934 Act) during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Filed Apr 29, 2025.
Source: SEC EDGAR, the filing index for accession 0001558370-25-005828. Last ingested by Listed: Oct 24, 2026, 15:15 ET. No prices; not investment advice.