Fortitude Gold Corp. (FTCO) AI Stock Analysis

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Fortitude Gold Corp.

(OTC:FTCO)

48Neutral

Fortitude Gold Corp.'s overall stock score reflects significant financial challenges, including declining revenue and negative cash flow, offset by strong liquidity and zero debt. Technical analysis signals are mixed, and valuation metrics reveal profitability concerns, despite a high dividend yield. The stock's risk profile is heightened, necessitating careful consideration for potential investors.

Fortitude Gold Corp. (FTCO) vs. S&P 500 (SPY)

Market Cap

$119.66M

Dividend Yield10.11%

Average Volume (3M)83.86K

Price to Earnings (P/E)62.0

Beta (1Y)0.47

Revenue Growth-48.91%

EPS Growth-111.96%

CountryUS

Employees60

SectorBasic Materials

Sector Strength52

IndustryGold

Share Statistics

EPS (TTM)-0.08

Shares Outstanding24,173,208

10 Day Avg. Volume67,219

30 Day Avg. Volume83,861

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.33

Price to Cash Flow (P/CF)-152.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Fortitude Gold Corp. Business Overview & Revenue Model

Company DescriptionFortitude Gold Corp. (FTCO) is a mining company primarily engaged in the exploration, development, and production of gold and other precious metals. The company operates within the mining sector, focusing on extracting high-grade ore deposits to produce gold bullion. Fortitude Gold Corp.'s operations are primarily located in Nevada, USA, which is known for its prolific gold mining region. The company is committed to sustainable mining practices and aims to maximize shareholder value through efficient and responsible resource management.

How the Company Makes MoneyFortitude Gold Corp. generates revenue through the sale of gold and other precious metals extracted from its mining operations. The company's primary revenue stream comes from the production and sale of gold bullion in the global commodities market. Fortitude Gold Corp. focuses on operating high-grade, low-cost mining operations to maximize profitability. The company may also engage in strategic partnerships or joint ventures to enhance its exploration and production capabilities, although specific partnerships contributing to earnings are not disclosed. Additionally, the company may leverage fluctuations in gold prices to optimize its revenue, adjusting production levels and sales strategies accordingly.

Fortitude Gold Corp. Financial Statement Overview

Summary

Fortitude Gold Corp. faces a difficult period with declining revenues and net losses impacting its financial statements. Despite strong gross profit margins and zero debt, the negative net income and cash flow challenges pose significant risks. The company's strong equity base and liquidity provide some resilience, but a focus on revenue growth and cash flow management is needed to improve financial health.

Income Statement

Neutral

The income statement reveals a challenging year for Fortitude Gold Corp. with a decline in revenue from $73.07M in 2023 to $18.33M in 2024. The gross profit margin remained strong at 100% due to the absence of reported costs, but the net profit margin turned negative at -11.14%, reflecting a net loss. The EBIT and EBITDA margins were 67.61% and 39.63%, respectively, indicating operational efficiency despite the revenue downturn. Previous years showed fluctuating revenue growth, with a significant decline from 2022 to 2023.

Balance Sheet

Positive

Fortitude Gold Corp. maintains a solid balance sheet with zero debt in 2024, enhancing financial stability. The equity ratio stands at 88.54%, indicating strong reliance on equity financing. However, return on equity plummeted to -1.89% due to the net loss. The company has consistently maintained a high level of cash and cash equivalents, signifying strong liquidity.

Cash Flow

Neutral

The cash flow statement highlights challenges with a negative operating cash flow of -$6.64M and free cash flow of -$10.10M in 2024. This contrasts with stronger cash flows in previous years, such as a positive free cash flow of $17.55M in 2023. The operating cash flow to net income and free cash flow to net income ratios were not favorable, indicating cash flow issues alongside a net loss.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
18.33M	73.07M	74.38M	82.11M	53.97M
	Gross Profit
-668.00K	41.23M	35.40M	40.56M	16.18M
	EBIT
-19.00M	36.23M	18.02M	23.73M	10.65M
	EBITDA
5.54M	30.67M	31.45M	38.85M	21.05M
	Net Income Common Stockholders
-2.04M	17.02M	14.68M	17.87M	10.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.08M	50.21M	45.05M	40.02M	27.77M
	Total Assets
122.11M	135.00M	131.16M	122.43M	113.03M
	Total Debt
0.00	631.00K	3.83M	618.00K	7.41M
	Net Debt
-27.08M	-48.05M	-41.23M	-39.40M	-20.37M
	Total Liabilities
14.01M	14.45M	15.40M	10.08M	15.06M
	Stockholders Equity
108.09M	120.55M	115.76M	112.35M	97.97M
Cash Flow		Free Cash Flow
-10.10M	17.55M	16.61M	20.12M	6.51M
	Operating Cash Flow
-6.64M	22.98M	28.57M	24.66M	13.00M
	Investing Cash Flow
-3.43M	-6.85M	-11.96M	-4.55M	-6.49M
	Financing Cash Flow
-11.52M	-12.50M	-11.57M	-7.88M	20.39M

Fortitude Gold Corp. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.75

Price Trends

50DMA

5.05

Negative

100DMA

5.07

Negative

200DMA

4.81

Positive

Market Momentum

MACD

-0.02

Negative

RSI

48.51

Neutral

STOCH

20.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTCO, the sentiment is Positive. The current price of 4.75 is below the 20-day moving average (MA) of 4.93, below the 50-day MA of 5.05, and below the 200-day MA of 4.81, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCO.

Fortitude Gold Corp. Risk Analysis

Fortitude Gold Corp. disclosed 36 risk factors in its most recent earnings report. Fortitude Gold Corp. reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Fortitude Gold Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (47)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSL	68 Neutral	C$2.99B	155.02	1.00%	0.84%	-0.35%	-65.11%
EDR	54 Neutral	C$1.37B	―	-7.23%	―	6.18%	-515.57%
FTCO	48 Neutral	$119.66M	61.98	-1.79%	10.11%	-48.91%	-111.96%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%
USA	44 Neutral	$387.33M	―	-84.12%	―	12.93%	-5.87%
GORO	35 Underperform	$46.26M	―	-91.15%	―	-34.57%	-238.18%
AUMN	34 Underperform	$2.71M	―	-1307.49%	―	-98.16%	64.61%

* Basic Materials Sector Average

Performance Comparison

FTCO

Fortitude Gold Corp.

4.95

0.17

3.56%

GORO

Gold Resource

0.38

-0.20

-34.48%

AUMN

Golden Minerals Co

0.18

-0.48

-72.73%

TSE:SSL

Sandstorm Gold

10.20

2.81

37.95%

TSE:USA

Americas Gold and Silver

0.68

0.30

76.62%

TSE:EDR

Endeavour Silver

5.22

1.34

34.54%

Fortitude Gold Corp. Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -11.71% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call displayed a balance of positive financial performance and exploration success against significant challenges with permitting and administration staffing. There is a positive outlook tied to anticipated political changes that may improve business conditions.

Highlights

Strong Financial Metrics

Achieved $10.2 million net sales, $30.3 million cash balance, 4,220 gold ounces produced, $41.5 million working capital, $4.8 million mine gross profit, $2.7 million exploration expenditures, $906 total cash cost per gold ounce sold, $990 per ounce total all-in sustaining cost, $2.9 million dividends paid, and $2 million in gold and silver bullion.

Exploration Success

Great drill results from Scarlet North, including 9.14 meters grading 2.33 grams per tonne gold within 16.76 meters grading 1.58 grams per tonne gold.

Optimism with Political Changes

Optimism for better permitting conditions with the anticipated change to a more business-friendly administration, potentially speeding up the process with the Bureau of Land Management.

Lowlights

Permitting Challenges

Ongoing permit delays and staffing issues with the Bureau of Land Management under the Biden-Harris administration have hindered growth and exploration efforts.

Reduced Exploration Activities

Exploration drilling cut back to conserve cash amid permit delays, affecting the ability to expand reserves.

Company Guidance

During the Fortitude Gold Q3 2024 earnings call, CEO Jason Reid highlighted several key performance metrics despite ongoing permitting challenges. The company reported net sales of $10.2 million, a cash balance of $30.3 million, and working capital of $41.5 million. Fortitude Gold produced 4,220 ounces of gold, achieving a mine gross profit of $4.8 million. Exploration expenditures amounted to $2.7 million, with total cash costs after by-product credits at $906 per gold ounce sold and an all-in sustaining cost of $990 per ounce. Dividends paid totaled $2.9 million, and the company held $2 million in gold and silver bullion. Reid expressed optimism for the future, citing a favorable shift in the political landscape likely to enhance business conditions and expedite permitting processes crucial for expanding their mining operations.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.