COLORADO SPRINGS, CO / ACCESSWIRE / May 4, 2022 / Fortitude Gold Corporation (OTCQB:FTCO) (the "Company") reported results for the first quarter ended March 31, 2022, including $15.4 million net sales, $2.6 million net income or $0.11 per share, and a $36.3 million cash balance at quarter end. The Company produced 9,875 ounces of gold and maintains its 2022 production outlook. Fortitude Gold is a gold producer, developer, and explorer with operations in Nevada, U.S.A. offering investors exposure to both gold production and dividend yield.

Q1 2022 FINANCIAL RESULTS AND HIGHLIGHTS

• $15.4 million net sales
• $2.6 million net income or $0.11 per share
• $36.3 million cash balance on March 31, 2022
• 9,875 gold ounces produced
• 2.16 grams per tonne average gold grade mined
• $75.7 million working capital at March 31, 2022
• $6.8 million mine gross profit
• $708 total cash cost after by-product credits per gold ounce sold
• $848 per ounce total all-in sustaining cost

Overview of Q1 2022 Results

Fortitude Gold sold 8,297 gold ounces at a total cash cost of $708 per ounce (after by-product credits) and an all-in sustaining cost per ounce of $848. Realized metal prices during the quarter averaged $1,863 per ounce gold*. The Company recorded net income of $2.6 million, or $0.11 per share and maintained substantial cash and cash equivalents at quarter end of $36.3 million. The Company produced 9,875 ounces of gold during the quarter and maintains its 2022 Annual Outlook, targeting 40,000 gold ounces (a range of 36,000 to 40,000 ounces).

"Our first quarter results set a strong tone for the 2022 production year, especially considering the low and high-grade ore stockpiles the operations leaned on during the quarter," stated Mr. Jason Reid, CEO and President of Fortitude Gold. "We successfully made the transition from open-pit phase one waste rock removal to open-pit phase two mining by quarter end. Operations now have access to high-grade pearl zone ore for the next three years with a mine plan that is scheduled to move substantially less waste rock each subsequent year, resulting in lower expected mining costs and greater free cash flow. This strong future cash flow is expected to replenish our already strong cash treasury as we allocated cash to fund our second mine build located on the Golden Mile property. This approach should enable us to build our second mine without shareholder dilution, add to mine life longevity, continue to explore our portfolio of properties, pay taxes as a profitable company, and distribute substantial dividends to shareholders with an attractive industry leading yield."

The following Production Statistics table summarizes certain information about our Isabella Pearl Mine for three months ended March 31, 2022 and 2021:

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 actually paid for 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 amount of metals contained in doré produced and sold.

The following Sales Statistics table summarizes certain information about our Isabella Pearl Mine for three months ended March 31, 2022 and 2021:

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.

*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Provisional sales may remain unsettled from one quarter into the next. Realized prices will therefore vary from average spot metal market prices upon final settlement.

See Accompanying Tables

The following information summarizes the results of operations for Fortitude Gold Corporation for the three months ended March 31, 2022 and 2021, its financial condition at March 31, 2022 and December 31, 2021, and its cash flows for the three months ended March 31, 2022 and 2021. The summary data as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 is unaudited; the summary data as of December 31, 2021 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2021, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

The calculation of its cash cost before by-product credits per gold ounce sold, total cash cost after by-product credits per gold ounce sold and total all-in sustaining cost per gold ounce sold contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company's most recent Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

FORTITUDE GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share amounts)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

FORTITUDE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2022 and 2021
(U.S. dollars in thousands, except share and per share amounts)
(Unaudited)

About Fortitude Gold Corp.:

Fortitude Gold is a U.S. based gold producer targeting projects with low operating costs, high margins, and strong returns on capital. The Company's strategy is to grow organically, remain debt-free and distribute substantial dividends. The Company's Nevada Mining Unit consists of five high-grade gold properties located in the Walker Lane Mineral Belt and a sixth high-grade gold property in west central Nevada. The Isabella Pearl gold mine, located on the Isabella Pearl mineralized trend, is currently in production. Nevada, U.S.A. is among the world's premier mining friendly jurisdictions.

Cautionary Statements: This press release contains forward-looking statements that involve risks and uncertainties. If you are risk-averse you should NOT buy shares in Fortitude Gold Corp. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material are forward-looking statements. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements.

Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause future actual results to differ materially from those expressed or implied by any forward-looking statements. Also, there can be no assurance that production will continue at any specific rate.

Contact:

Greg Patterson
719-717-9825
greg.patterson@fortitudegold.com
www.Fortitudegold.com

SOURCE: Fortitude Gold Corporation