Updated Thoughts on Fortitude GoldAn update on Fortitude Gold (for older GORO shareholders):
This morning, Fortitude Gold announced re-validation of the prior third party hole results for a portion of the Golden Mile. Results were positive and possibly more promising then expected.
https://www.fortitudegold.com/news/news-releases/fortitude-gold-intercepts-2010-meters-of-360-gt-gold-at-golden-mile-ongoing-delineation--engineering
Further infill and step-out drilling will be done. Areas such as Mina and Spring will represent adjacent opportunities which will feed into the planned potential heap leach pit in the Golden Mile. All of this represents a new stream of production which will most likely come online in 2024 (if we are very lucky than in 2023). The company initiated its first dividend at $0.02/month (or, equivalently, 9%+ dividend yield).
https://www.fortitudegold.com/news/news-releases/fortitude-gold-initiates-024-annual-dividend
This was at the high-end of the "likely" dividend level that the company was targetting and represents ~$5.8MM in dividends paid out (see corporate presentation).
This leaves ~$10MM+ in remaining after-tax free cash flows (after capex and exploration costs) to build up a reserve in anticipation of a buildout for the new mine and associated pads. Given the latest test results and the dividend increase, it is highly likely that the updated P&P reserves for the end of 2021 will show a massive increase . However, the new Corporate Presentation
https://www.fortitudegold.com/_resources/presentations/corporate-presentation.pdf?v=0.059
notes on Slide #7 a dividend increase anticipated in 2021 which means we will very likely see a dividend of $0.03/month sometime this year which will equate to ~ 13% dividend yield. But there is more....other mining areas around the Isabella Pearl as well as County Line are all being explored as well and if those also perform well along the trend line, than there is more resources and reserves to come. So if a current 9% dividend yield and near-term 13% dividend yield sound attractive, get some fortitude and join us. If not, have fun 8-) The share price rose in response today 13%, but with these kinds of dividend yields, I expect this to be only a stepping stone to higher values and as more good news comes out on the exploration, in-fill, upcoming increases in dividends, and uplisting to the NYSE, the share price will continue to rise accordingly.
Hope that helps you all and Happy Investing 8-)