Fortitude Gold Corporation

What they do

Fortitude Gold owns 100% of seven Nevada properties totaling 2,491 claims and roughly 44,408 acres, with production concentrated at the Isabella Pearl Mine, where ore is processed on site and sold as dor containing gold and silver. The company added County Line as a second producing mine in 2026, mining mineralized material that is also processed at the Isabella Pearl facilities. It also holds a 60% interest in the East Camp Douglas joint venture with a third party holding 40%. Other Nevada properties range from exploration to resource definition and permitting.

Revenue drivers

• Gold sales — The primary revenue source; in 2025 the company sold 5,774 gold ounces at an average realized price of $3,235 per ounce, generating $18.4 million of net sales.
• Silver sales as by-product — Silver is sold alongside gold in dor; 2025 silver sales were 35,091 ounces at an average realized price of $36.23 per ounce, equal to 393 gold-equivalent ounces versus 5,774 gold ounces.
• Isabella Pearl Mine — In Q2 2026, Isabella Pearl sold 1,020 gold ounces at a total cash cost after by-product credits of $1,200 per ounce and an all-in sustaining cost of $2,549 per ounce.
• County Line Mine — A newer producing mine that contributed 775 gold ounces sold in Q2 2026 at a total cash cost after by-product credits of $1,326 per ounce and an all-in sustaining cost of $1,886 per ounce.

Recent performance

Q2 2026 net sales were $8.2 million with net income of $0.6 million, or $0.02 per share, and mine gross profit of $5.4 million. Gold production was 2,133 ounces, up 210% from Q1 2026, as the company mined at Scarlet South and County Line while continuing Isabella Pearl Deep mineralization. The cash balance was $13.5 million at June 30, 2026, with working capital of $35.4 million. Q2 2026 exploration expenditures were $4.7 million and dividends paid were $0.8 million. Full-year 2025 net sales were $18.4 million with 5,236 gold ounces produced, down from 16,472 ounces in 2024, due to lower leach pad recoveries and permitting delays.

Strategy

The company is ramping mine operations at Scarlet South and County Line and plans to increase tonnage throughput to offset lower gold grades from Scarlet South and County Line's East pit. It closed a $5.5 million private placement in Q2 2026, selling 1.15 million unregistered shares at $4.82 per share, primarily to accelerate an expansion of the Isabella Pearl heap leach pad. It has connected to grid power and expects substantial monthly energy cost savings. Permitting continues for a standalone Golden Mile mine and heap leach facility targeted for 2027, an open pit at Scarlet North, and increased exploration acreage at East Camp Douglas and Isabella Pearl. It also began the County Line main pit waste rock layback, anticipated for completion in 2027, which is expected to access approximately 40,000 ounces of high-grade gold mineralization.

Risks

• Metals price volatility — Revenue depends on gold and silver prices, which the company notes fluctuated in 2025 from $2,633 to $4,481 per gold ounce and $29.41 to $74.84 per silver ounce, and a sustained decline would materially hurt results and cash flows.
• Permitting delays — The 10-K states that a BLM permitting backlog disrupted the original timeline for new mine permits, and delays for the deep Pearl zones and County Line ore significantly increased uncertainty around forecasting 2026 production.
• Grade and recovery declines — 2025 gold production fell to 5,236 ounces from 16,472 ounces in 2024 due to lower leach pad recoveries from lower-grade ore, and the company is now mining lower grades at Scarlet South and County Line's East pit.
• Capital intensity and insurance limits — The business requires ongoing investment in equipment and facilities, and the 10-K states insurance coverage at Isabella Pearl is limited, with earthquake coverage for the open pit and heap leach pad currently cost prohibitive.

Outlook

Management says 2026 production is expected primarily from County Line, Isabella Pearl, and residual leaching of the Isabella Pearl heap leach pad, with all areas of the pad expected to be returned to rotational leaching as new ore is placed. The company plans to continue extracting mineralization from Pearl Deep while targeting a ramp-up in tonnage throughput. It is moving forward to construct a standalone Golden Mile mine and heap leach facility targeted for 2027 development and is permitting an open pit at Scarlet North and increased exploration acreage. Completion of the County Line main pit waste rock layback is anticipated in 2027.