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Fortitude Gold — Third Quarter 2026 Earnings Summary

FTCO

  • Financial Performance:

    • Net sales reached $10.3 million for the quarter, compared to $4.7 million in the same period in 2025.
    • Net income attributable to Fortitude shareholders was $2.0 million ($0.07 per share) for the quarter, up from $0.2 million ($0.01 per share) in Q3 2025.
    • Mine gross profit was $5.2 million for the quarter, compared to $2.5 million in Q3 2025.
    • Cash balance stood at $8.5 million as of September 30, 2026, up from $4.7 million at December 31, 2025.
    • Working capital was $27.3 million at September 30, 2026.
    • Exploration expenses were $3.9 million for the quarter, compared to $1.6 million in Q3 2025.
    • Total cash cost after by-product credits per gold ounce sold was $1,682 for Isabella Pearl and $1,930 for County Line.
    • Total all-in sustaining cost (AISC) per ounce was $2,882 for Isabella Pearl and $1,985 for County Line.
    • Nine-month net income attributable to Fortitude shareholders was $0.9 million ($0.03 per share), down from $2.3 million ($0.10 per share) in the prior year period.
    • Nine-month net sales were $21.7 million, compared to $16.1 million in the first nine months of 2025.
    • Nine-month mine gross profit was $12.9 million, compared to $8.6 million in the prior year period.
    • Net cash used in operating activities for the nine months ended September 30, 2026, was $9.8 million, compared to $8.5 million used in the same period in 2025.
    • Net cash provided by financing activities for the nine months was $15.4 million, primarily driven by stock issuance and noncontrolling interest funding.
    • Capital expenditures for the nine months were $1.7 million.

  • Guidance and Future Outlook:

    • Preliminary 2026 third-quarter production was confirmed at 2,139 gold ounces.
    • Operations at Isabella Pearl Deep are nearing the bottom, with expectations to conclude in the coming months.
    • Scarlet South operations at Isabella Pearl are estimated to continue into the first half of 2027.
    • The County Line main pit waste rock layback project is estimated to conclude in 2027.
    • The East pit at County Line is targeted to continue delivering mineralization during the layback project.
    • A new mine at the Golden Mile property is targeted for construction in 2027, dependent on permit timing.
    • The Company expects to launch its largest drill campaign at East Camp Douglas in 2027.
    • Permitting efforts for Golden Mile are ongoing, with the NEPA review period expected to begin soon.
    • The Company is permitting an increase in exploration acreage at East Camp Douglas and Isabella Pearl.

  • Business Segments and Product Lines:

    • Isabella Pearl Mine: Sold 1,221 gold ounces in Q3 2026, compared to 1,376 ounces in Q3 2025. Realized average gold price was $4,285 per ounce.
    • County Line Mine: Sold 1,216 gold ounces in Q3 2026, compared to zero ounces in Q3 2025. Realized average gold price was $4,258 per ounce.
    • Nine-Month Production: Isabella Pearl sold 2,774 gold ounces (vs. 5,203 in 2025); County Line sold 2,139 gold ounces (vs. 0 in 2025).
    • Inventory: The Company held 611 ounces of gold rounds/bullion at September 30, 2026.
    • Leach Pad: Operations included the ongoing expansion of the heap leach pad.
    • Joint Venture: East Camp Douglas is held in a joint venture with Fortitude owning 60%.

  • Market and Competitive Landscape:

    • Nevada is identified as a premier mining-friendly jurisdiction.
    • Realized average gold prices for the quarter were $4,285 (Isabella Pearl) and $4,258 (County Line), compared to $3,444 and $0 respectively in the prior year quarter.
    • Realized average silver prices were $62.75 (Isabella Pearl) and $62.21 (County Line) in Q3 2026.
    • The Company targets projects with low operating costs, high margins, and strong returns on capital.

  • Risks and Challenges:

    • Forward-looking statements regarding production plans, permitting timelines, and mine construction involve risks and uncertainties.
    • Actual results could differ materially from those discussed in the press release.
    • Construction of the Golden Mile mine is dependent on permit timing.
    • The conclusion of operations at Pearl Deep and the County Line layback project depends on final mine sequencing.

  • Management Commentary and Tone:

    • CEO Jason Reid described the third quarter as "very busy and productive," highlighting the expansion of the heap leach pad.
    • Management expressed encouragement regarding permitting progress at Golden Mile and East Camp Douglas.
    • The Company is optimistic about building the Golden Mile mine and launching the East Camp Douglas drill campaign in 2027.
    • The Company's strategy is to grow organically, remain debt-free, and distribute dividends.

  • Other Key Points:

    • Cash dividends of $0.9 million were paid to shareholders during the quarter.
    • Nine-month dividends paid totaled $2.5 million.
    • The Company issued stock net of issuance costs, raising $17.2 million during the nine-month period.
    • Funding from noncontrolling interests contributed $5.5 million during the nine-month period.
    • Total liabilities decreased to $28.6 million at September 30, 2026, from $31.8 million at December 31, 2025.
    • Total shareholders' equity increased to $122.1 million at September 30, 2026, from $104.4 million at December 31, 2025.
    • The Company owns 100% of its properties except for East Camp Douglas.
    • The Isabella Pearl Project includes the Isabella Pearl and Scarlet South mines; the County Line Project includes the County Line and East Pit Mines.