Fortitude Gold Corp. · OTC:FTCO
Fortitude Gold — Investor Presentation (September 2022)
41 slides from Fortitude Gold's investor presentation, Sep 20, 2022
Slide 1: OTCQB:FTCO September 20, 2022
OTCQB:FTCO September 20, 2022
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 - 99% revenue from gold “Physical gold, and most mining equities, provide no 2 valuation Metrics Yield yield. We counter this criticism of gold by providing our - Providing a substantial dividend yield shareholders with a monthly dividend and attractive yield. - $0
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 +1 gram per tonn
Slide 5: Strategy
“Having experienced high-yield valuations for several years while distributing large dividends with a previous Company, we target duplicating the same business plan Strategy and eye a similar success unique in the junior gold mining industry.” Jason Reid, CEO Target Projects with low operating costs
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 undergrou
Slide 7: Production
Production 2022 Annual production target range 36,000 to 40,000 oz Au 46,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 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 RESERVES Isabella Pearl Mine Production Reser
Slide 8: Milestones
Finalized Isabella Pearl project 2018 engineering Milestones Received permits 2019 Project groundbreaking, heap leach construction Initiated mining Isabella zone lower grade (~1g/t Au avg) Built process plant Produced gold 10 months from breaking ground 2020 Commercial production Rea
Slide 9: Isabella Pearl Mine
Isabella Pearl Mine All-in-Sustaining Cost / oz Exceptional Grade / Low Cost 1,400 4 1,200 $1,232 Isabella Pearl 3.5 3.75 g/t gold** 1,000 Dec, 2021 800 3 $778 600 Grams per tonne 2.5 United States Gold Open Pit Mines 400 (g/t) gold 2 (Au as primary metal) by Reserve Grade* 200 0 Global Average FTCO
Slide 10: 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. Dividend Yield % 8.00 FTCO ~8% Dividend Yield 6.00 US
Slide 11: Project Pipeline
Project Pipeline Production Isabella Pearl Delineation Golden Mile Mina Gold Exploration East Camp County Line Ripper 11 OTC QB: FTCO
Slide 12: Exploration
Exploration Our exploration mission is to expand known deposits, delineate known mineralized zones and discover new deposits for production longevity. 12 OTC QB: FTCO
Slide 13: Nevada high-grade gold exploration properties
6 Nevada high-grade gold exploration properties 1 Isabella Pearl 4 Mina Gold Surface & near surface gold 2 Golden Mile 5 County Line 3 East Camp Douglas Ripper Walker Lane Mineral Belt (5 properties) West Central Nevada (1 property) 100% owned Proximity (Synergistic mining unit) (subject to 3% or le
Slide 14: High-grade gold highlights
~30 mile radius 5 High-grade gold highlights Targeting open pit deposits >1 g/t Au avg. Hawthorne 1 1 ISABELLA PEARL (2019) (Production & exploration phase) 4 P&P 220,100 oz Au @ 3.05 g/t Au avg 2 2 GOLDEN MILE (Resource delineation & exploration phase) Drill highlights include*; 3 36.6m @10.26 g/t
Slide 15: Isabella Pearl: Extensive Mineralized Trend
Isabella Pearl: Extensive Mineralized Trend Slab York Clavada Santa Fe Isabella Pearl Mine 300k oz au +220k 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 Cliffs Prospect
Slide 16: Golden Mile
Golden Mile ― 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 16 OTC QB: FTCO
Slide 17: 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 Open Pit Design ― Deposit open on strike and depth Mineralized Envelopes ― 85% gold recovery (column leach
Slide 18: 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 19: East Camp Douglas
East Camp Douglas ― Large district size land position (5,571 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 19 OTC QB: FTCO
Slide 20: East Camp Douglas
East Camp Douglas Lithocap Surface & near surface gold Third party drill highlights include: Interval Grade From 22.86 m @ 13.55 g/t Au 4.6 meters 4.57 m @ 4.39 g/t Au 13.72 m @ 2.88 g/t Au 13 meters 7.62 m @ 2.86 g/t Au 3 meters 18.29 m @ 2.42 g/t Au 6.10 m @ 2.00 g/t Au 23.86 m @ 1.99 g/t Au surfa
Slide 21: 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
Slide 22: County Line
County Line ― Surface & near surface gold ― High-grade gold open pit potential ― Potential expansion of historic pit ― Numerous untested targets ― 14 miles to Isabella Pearl Drill Highlights Include: 15.24m @ 7.66 g/t Au 19.81m @ 4.14 g/t Au 15.24m @ 4.13 g/t Au 18.29m @ 3.89 g/t Au Channel Samples*
Slide 23: 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 and brecciated mudstones -Silicified breccias 23 OTC QB: FTCO
Slide 24: Synergy
Synergy Isabella Pearl Golden Mile East Camp Mina Gold County Line 1 2 3 4 5 5 Mining Unit Synergy (Shared ADR process plant and equipment) ~30 mile radius Future project processing plants built to take gold to carbon phase only. Hawthorne 1 4 Truck carbon to Isabella Pearl’s ADR processing facility
Slide 25: Revenue
~1% Revenue 99% Gold dominate Silver credited against production cost Gold Silver 25 OTC QB: FTCO
Slide 26: The Team
The Team Jason Reid John Labate Barry Devlin Greg Patterson CEO | President | Director Chief Financial Officer VP Exploration VP Corp. Development | IR +16 years industry experience +36 years industry experience +40 years industry experience +12 years industry experience Full management bios in pres
Slide 27: 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 28: ESG (Environment, Safety & Governance)
ESG (Environment, Safety & Governance) ― Prioritizing operational safety ― Third party safety audits ― Adherence to SASB guidelines 28 OTC QB: FTCO
Slide 29: Capital Structure
Capital Structure Shares Outstanding 24,024,542 Options Outstanding 422,000 Warrants Outstanding - Shares Fully Diluted 24,446,542 Long Term Debt - Equipment Financing US$ <0.1M Hedging - Net Cash (6-30-2022) US$ 41M Market Cap (US$6.50/share) US$ 155M Average Daily Volume 42,745 52 week low / high
Slide 30: Investment
Investment Gold Safety Experience Grade Nevada Dividends Open-pit Low cost 30 OTC QB: FTCO
Slide 31: FTCO Has Outperformed Industry Peers
FTCO Has Outperformed Industry Peers FTCO +82.1% FTCO GDXJ -35.4% GDX -24.5% (from 02/19/2021) GDX GDXJ 31 OTC QB: FTCO
Slide 32: Results
Results Strategy Targets gold investors, dividends, yield investors and yield valuations Result: multiple valuation metrics attracting larger pool of investment capital Execution Generating cash flow, distributing dividends and targeting second mine build Result: Garnering market premium yield v
Slide 33: Fortitude Gold Corporation
Fortitude Gold Corporation P + 719-717-9825 2886 Carriage Manor Point F + 719-247-8608 Colorado Springs, CO 80906 Email: [email protected] U.S.A. www.FORTITUDEGOLD.com 33 OTC QB: FTCO
Slide 34: Appendix
Appendix Management Bios Proven & Probable Reserves Mina Gold / Golden Mile District Golden Mile Exploration 34 OTC QB: FTCO
Slide 35: 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 36: Proven & Probable Reserves
Proven & Probable Reserves December 31, 2021 Isabella Pearl Mine Proven & Probable Reserve Summary Description Tonnes Au g/t Ag g/t Au oz Ag* oz ISABELLA PEARL Proven 483,300 5.26 47 81,800 733,100 Probable 425,500 2.04 16 27,900 221,000 P&P TOTAL 908,800 3.75 33 109,700 954,100 High Grade Stockpile
Slide 37: Resources
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 30,2020, 2021 2 Reported at a cutoff of 0.34 g/t Au (0.010 opst
Slide 38: Golden Mile Excellent open pit gold grade
Golden Mile Excellent open pit gold grade Golden Mile Compared to U.S. Gold Open-Pit Mines (Au as primary metal) by Reserve Grade* 4.00 3.50 3.00 Golden Mile 2.50 1.13 g/t gold Grams per tonne Most U.S. operating open pit mines are sub 1 g/t gold 2.00 (g/t) gold 1.50 1.00 0.50 Fortitude Gold 0.00 Ac
Slide 39: Wilson-Independence
Grams per tonne (g/t) gold 0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 Nevada Operations Atlanta Pine Grove GOLDEN MILE Talapoosa Gold Bar South Wilson-Independence New Pass McMahon Ridge Palmetto Golden Mile 1.13 g/t gold Sterling Golden Mile Lucerne Model Gold Bar Dayton Model Borealis Goldfie
Slide 40: Mina Gold and Golden Mile district land position
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 Targetin
Slide 41: 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 41 OTC QB: FTCO
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