FTCO - Fortitude Gold: Don't Chase The Stock Here
- Fortitude Gold is one of the best-performing gold stocks year-to-date, up more than 215% since it began trading in March.
- Excitement around the company is understandable, with the company posting an all-in sustaining cost margin of $1,229/oz in Q1, one of the best figures sector-wide.
- However, it might be a mistake to extrapolate current results over the long run, with the company mining well above its reserve grade currently (5.03 vs. 3.88 grams per tonne).
- At a share price of $8.85, I see no reason to chase the stock here, with Fortitude trading at more than $1,200 per reserve ounce as a junior producer with a short mine life.
For further details see:
Fortitude Gold: Don't Chase The Stock Here