2024-07-29 23:14:46 ET
Summary
- Fortitude Gold has had a rough 2024.
- An investment in this stock is a risky bet with a significant payoff.
- The bet is a speculation on FTCO finally receiving a delayed permit for the Isabella Pearl Mine and continued commodity price strength.
- If FTCO receives its permit, it will serve as a potent growth catalyst. The production, sales, and profits should increase, and the shares could rally back over $6.00.
- Even if these speculations materialize, FTCO has many risks, including its relatively short mine life, OTC listing, and illiquidity, which mean it is likely unsuitable as a long-term hold.
Introduction to Fortitude
Fortitude Gold ( FTCO ) is a micro-cap gold and silver miner which produced 38,787 gold equivalent ounces in 2023. The company owns the Isabella Pearl Mine in Nevada, which is an open pit operation. It owns roughly 40,200 acres around Isebella which are home to additional mineral deposits including Golden Mile, County Line, Mina Gold, and East Camp Douglas. Fortitude was spun out from Gold Resource Corp at the end of 2020 and is headquartered in Colorado....
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Fortitude Gold: A Risky All Or Nothing Permit Play