Fortitude Gold Corp. · OTC:FTCO
Fortitude Gold — Investor Presentation (August 2024)
45 slides from Fortitude Gold's investor presentation, Aug 22, 2024
Slide 1: OTCQB: FTCO
OTCQB: FTCO August 22, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Summary: If you are risk-averse you should NOT buy shares in Fortitude Gold. Unexpected events happen and are likely to change forecasts and targets. This presentation is to be read in conjunction with the most current 10K & 10Q available at the Securities & Exchange Commi
Slide 3: Investment Thesis
Investment Thesis Exposure To Gold “Physical gold, and most mining equities, provide no yield. We counter 99% revenue from gold this criticism of gold by providing our shareholders with a monthly dividend and attractive yield. This differentiates Fortitude from our Yield peers and transcends gold eq
Slide 4: Overview
Overview Unique Business Strategy Mining Co. garnering equity & yield valuations Experienced Management Extensive successful mining industry experience Premier Mining Jurisdiction Nevada, U.S.A. Walker Lane Mineral Belt Gold Producer Low-cost open pit heap leach operation High-Grade Targeting ~1 gra
Slide 5: Strategy
Strategy Target Projects with low operating costs, strong returns on capital and high margins Strategy Grow organically, remain debt-free and distribute substantial dividends Leverage An ultra tight capital structure from which to distribute outsized dividends Our strategy targets not only gold inve
Slide 6: Experienced Management
Experienced Management Previous mining company success includes; Decade of gold production 10 consecutive years of profitability Generated over 1 billion dollars in revenue Distributed over $116,000,000 in dividends to shareholders Built 2 mining units and 4 mines (2 open-pit & 2 underground) Previo
Slide 7: Project Pipeline
Project Pipeline Production Isabella Pearl (IP) Development County Line Scarlet North (IP) Golden Mile Delineation East Camp Mina Gold Exploration Dauntless Intrepid Ripper 7 OTC QB: FTCO
Slide 8: Revenue
Revenue ~1% 99% Gold dominate Silver credited against production cost Gold Silver 8 OTC QB: FTCO
Slide 9: Production
Production 2024 annual production target TBD Dependent on permit and construction timing of County Line 46,000 41,000 TBD TBD TBD TBD TBD 40,000 38,000 35,000 30,000 29,479 25,000 GOLD oz 20,000 15,000 10,883 10,000 5,000 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Isabella Pearl Mine Produc
Slide 10: Milestones
2018 Milestones Received permits Project groundbreaking, heap leach construction 2019 Produced gold 10 months from groundbreaking Commercial production Reached Pearl zone high grade (~3.7g/t Au avg) 2020 Initiate dividend Increase dividend 2021 +40,000 oz Au produced Golden Mile In
Slide 11: High-Grade Projects
High-Grade Projects All-in-Sustaining Cost / oz Isabella Pearl 2 2.00g/t Avg grade $1,342 1.8 United States Gold Open Pit Mines 1,000 Golden Mile** (Au as primary metal) by Reserve Grade* 1.6 1.13g/t Resource grade $898 1.4 County Line** 500 0.97g/t Resource grade 1.2 1 0 Global Average FTCO H1 2024
Slide 12: Dividend
Dividend $0.48 annually / $0.04 per month Dividend Policy* Returning as much cash to shareholders as soon as possible while balancing the capital needs of operations, reinvesting capital back into the business for organic growth and paying taxes. *Dividends are not guaranteed and may be initiated, m
Slide 13: Exploration
Exploration Our exploration mission is to expand known deposits, delineate known mineralized zones and discover new deposits for production longevity. 13 OTC QB: FTCO
Slide 14: 8 Nevada high-grade gold exploration properties
8 Nevada high-grade gold exploration properties Isabella Pearl Mina Gold 1 5 Surface & near surface high-grade gold 2 County Line Dauntless 2 1 6 5 8 3 7 4 6 Intrepid Golden Mile 3 7 East Camp Douglas Ripper 4 8 Walker Lane Mineral Belt (7 properties) Proximity 8 West Central Nevada (1 property) All
Slide 15: Isabella Pearl: 10Km Mineralized Trend
Isabella Pearl: 10Km Mineralized Trend Slab York Clavada Santa Fe Isabella Pearl Mine 300k oz au production to date +165k oz Au Wild Horse West Rabbit Springs Northwest Ridge Nevada-Juneau Corridor North Historic open pits on trend Pyrite Springs Additional open pit deposits likely Corridor Copper C
Slide 16: Isabella Pearl trend: Scarlet Target
Isabella Pearl trend: Scarlet Target Wild Horse West Rabbit Springs Northwest Ridge Nevada-Juneau Corridor North Pyrite Springs Corridor Copper Cliffs Prospect Mt Silica Knob The Wedge Elvira Company claims ~4,222 Hectares (10,434 acres) Gold deposit Mineralized target Scarlet is ~700 meters from Co
Slide 17: Scarlet North
Scarlet North Surface & near surface gold drill highlights include: Interval Grade From 21.34 m @ 1.14 g/t Au surface 18.29 m @ 1.20 g/t Au 35 meters 44.20 m @ 0.84 g/t Au surface 18.29 m @ 1.01 g/t Au surface 12.19 m @ 1.26 g/t Au surface 13.72 m @ 1.28 g/t Au 37 meters 50.29 m @ 0.86 g/t Au surfac
Slide 18: Scarlet North
Scarlet North Delineating high-grade gold mineralization Expansion potential to the northeast Preparing permit modification for a mine boundary expansion to Isabella Pearl (IP) Leverage IP infrastructure Mined as an aggregate Short haul distance Utilize IP’s waste storage and process Only permits an
Slide 19: County Line
County Line Next targeted mine build Mine permit phase (BLM, NDEP) High-grade gold open pit potential 19 OTC QB: FTCO
Slide 20: County Line
County Line Initial County Line pit resource complete Expansion Potential East Pit maiden resource underway County Line Pit Expansion potential & untested targets 19 miles to Isabella Pearl processing Mined as an aggregate, haul ore to Isabella Pearl processing facility East Pit Initial Mineral Reso
Slide 21: Golden Mile
Golden Mile Permitting phase Initial Resource established Mineralization expansion likely District size land position (11,971 acres) High-grade gold drill intercepts Multiple open pit potential Multiple areas of mineralization 21 OTC QB: FTCO
Slide 22: Golden Mile
Golden Mile Metallurgy at 1 ½” crush Open Pit Design High-grade open-pit gold Resource* Indicated 2,160,000 tonnes @ 1.13g/t = 78,500 Au oz Inferred 2,400,000 tonnes @ 1.10g/t = 84,500 Au oz Deposit open on strike and depth Mineralized Envelopes Open Pit Design 85% gold recovery (column leach tests
Slide 23: Golden Mile
Golden Mile Surface & near surface gold Third party drill intercepts include Interval Grade From 6.10 m @ 46.53 g/t Au 18.29 meters 36.60 m @ 10.26 g/t Au 15.20 meters 7.62 m @ 9.34 g/t Au 51.82 meters 10.70 m @ 8.76 g/t Au 00.00 meters 10.67 m @ 8.35 g/t Au 51.82 meters 16.70 m @ 6.04 g/t Au 67.10
Slide 24: East Camp Douglas
East Camp Douglas Large district size land position (6,078 acres) High-grade open pit potential Lithocap associated with high-grade Au Indicates proximity to intrusive center Potential to host significant deposit High-grade gold veins at north end Surface gold 24 OTC QB: FTCO
Slide 25: East Camp Douglas
East Camp Douglas Lithocap Surface and near surface gold Drill highlights include: Interval Grade From Veins Veins 22.86 m @ 13.55 g/t Au 4.6 meters* 18.29 m @ 4.28 g/t Au 83.8 meters 13.72 m @ 2.88 g/t Au 13.0 meters* 7.62 m @ 2.86 g/t Au 3.0 meters* 6.10 m @ 4.23 g/t Au 2.2 meters 23.86 m @ 1.99 g
Slide 26: East Camp Douglas
East Camp Douglas Lithocap alteration size compared to other lithocap associated deposits globally. Base of D2 cliffs with strongly silicified “Mineralization in multiple directions, different styles of mineralization (sheeted veins, stockwork, tuffaceous units with steep southeast- and disseminated
Slide 27: Mina Gold
Mina Gold Surface & near surface gold High-grade gold intercepts: Interval Grade* From 15.24 m @ 3.34 g/t Au surface 12.19 m @ 2.98 g/t Au 6.1 m 19.81 m @ 1.47 g/t Au 3.1 m Open pit heap leach potential Metallurgical recovery 70% - 80%* Particle agglomeration heap leach Patented claims with known mi
Slide 28: Dauntless
Dauntless Historic high-grade gold mine Mineralization expansion potential Proximity to Isabella Pearl facilities Third Party drill highlights include: Interval Grade 16.5 m @ 3.36 g/t Au 15.2 m @ 3.11 g/t Au 6.1 m @ 7.46 g/t Au 3.0 m @ 2.79 g/t Au 28 OTC QB: FTCO
Slide 29: Intrepid
Intrepid July 27, 2024 High-grade gold discovery drill hole: 27.43 m @ 1.21 g/t Au including 6.10 m @ 2.01 g/t Au 29 OTC QB: FTCO
Slide 30: Ripper
Ripper High-grade gold: 8.44 g/t Au surface sample 6.52 g/t Au surface sample 6.30 g/t Au surface sample Open pit heap leach potential Multiple geologic settings Jasperoids Collapse breccias Veined & mudstones Silicified breccias 30 OTC QB: FTCO
Slide 31: Synergy
Synergy Isabella Pearl Processing facility Mining Unit Synergy / Hub and Spoke (Shared ADR process plant and equipment) Future project processing plants built to take gold to carbon phase only. Truck carbon to Isabella Pearl’s ADR processing facility for final doré production. Potential to substanti
Slide 32: The Team
The Team Jason Reid Janet Turner Allan Turner Greg Patterson CEO | President | Director Chief Financial Officer VP Exploration VP Corp. Development | IR +17 years industry experience +10 years industry experience +26 years industry experience +13 years industry experience Full management bios in pre
Slide 33: The Board
The Board Bill Conrad Jason Reid Board Chairman CEO | President | Director Bill M. Conrad currently serves as Chairman of Fortitude Gold Corporation. He previously Jason Reid serves as CEO, President and Director of Fortitude Gold Corporation (FGC). FGC served on the Board of Directors of Gold Resou
Slide 34: Capital Structure
Capital Structure Shares Outstanding 24,173,209 Options Outstanding 172,000 Warrants Outstanding 0 RSU’s (3-year vest) 1,124,000 Shares Fully Diluted 25,469,209 Long Term Debt 0 Equipment Financing US$ 0 Hedging NA Net Cash (6-30-2024) US$ 33M Market Cap (US$4.50/share) US$ 109M Average Daily Volume
Slide 35: Investment
Investment Gold Safety Experience Grade Nevada Dividends Open-pit Low cost 35 OTC QB: FTCO
Slide 36: Fortitude Gold Corporation contact details
Fortitude Gold Corporation P + 719-717-9825 2886 Carriage Manor Point F + 719-247-8608 Colorado Springs, CO 80906 Email: info@fortitudegold.com U.S.A. www.FORTITUDEGOLD.com 36 OTC QB: FTCO
Slide 37: FORTITUDE Strength of mind and courage in the face of adversity
FORTITUDE Strength of mind and courage in the face of adversity Fortitude Gold Corporation’s “Isabella Pearl” round is named after the Company’s flagship gold project in Nevada, U.S.A. The round design was conceptualized by management and commissioned and created by a leading American Medalist and s
Slide 38: Appendix
Appendix Management Bios Proven & Probable Reserves Mina Gold / Golden Mile District Golden Mile Exploration 38 OTC QB: FTCO
Slide 39: Management Bios
Management Bios Jason Reid Jason Reid serves as CEO, President and Director of Fortitude Gold Corporation (FGC). FGC was spun out of Gold Resource Corporation (GRC) (NYSE American: GORO) where Jason previously served for over 14 years including CEO, CEO | President | Director President and Director
Slide 40: Isabella Pearl Heap Leach Pad
Isabella Pearl Heap Leap Pad The Company estimates ~51,000 recoverable gold ounces on the Isabella Pearl heap leach pad at 12/31/2023. No 2023 reserve update was reported for the Isabella Pearl deposit. Mining of the deposit is projected to conclude in 2024 after the Civit Cat and Pearl deep zones a
Slide 41: County Line Resources
County Line Resources December 31, 2022 County Line Property Resource Summary Description Tonnes Au g/t Ag g/t Au oz Ag oz Golden Mile Measured 579,500 1.04 19,500 Indicated 623,000 0.90 17,900 Inferred 438,000 0.87 12,200 1. Reported at a cutoff grade of 0.33 g/t Au. 2. Cutoff grade calculations us
Slide 42: Golden Mile Resources
Golden Mile Resources September 30, 2021 Golden Mile Property Resource Summary Description Tonnes Au g/t Ag** g/t Au oz* Ag** oz Golden Mile Indicated 2,160,000 1.13 78,500 Inferred 2,400,000 1.10 84,500 1 Mineral Resource Inventory as of September 30, 2021 2 Reported at a cutoff of 0.34 g/t Au (0.0
Slide 43: Nevada open pit gold grades comparison
Grams per tonne (g/t) gold 0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 ** Resource Grade Nevada Operations Atlanta Pine Grove *Source: S&P Market Intelligence GOLDEN MILE Talapoosa Gold Bar South Wilson-Independence County Line 1.13 g/t gold New Pass Golden Mile** McMahon Ridge Palmetto Sterling
Slide 44: Mina Gold / Golden Mile District
Mina Gold Spring Golden Mile Mina Gold Golden Mile +8 Miles Mina Gold mineralization District size land position (100% owned) Two adjoining properties (Mina Gold & Golden Mile) Three known areas of mineralization Spring mineralization Surface and near surface gold Resource delineation phase Numerous
Slide 45: Golden Mile
Golden Mile High hydrothermal alteration coincident with mineralization Hydrothermal alteration Mineralization Spring mineralization Alteration associated mineralization Golden Mile mineralization Numerous targets Structural fault conduits Numerous additional targets 45 OTC QB: FTCO