Executive Summary

Q2 2025 revenue came in at $4.9M and diluted EPS at $0.03, down sequentially from Q1 ($6.5M, $0.05) and sharply lower year over year vs Q2 2024 ($9.6M, $(0.01)), reflecting lower ounces sold and higher unit costs, partially offset by a higher realized gold price .
Unit costs rose year over year (AISC $1,452/oz vs $1,013/oz in Q2’24) on lower grades/volumes and waste movement; management reiterated costs will remain pressured while advancing to “Pearl deep,” with cash expected to decline through year-end 2025 before improving post-access .
Catalysts: BLM posted County Line’s Plan of Operations for 30-day public review in Q2, moving the project into final approval stages; management remains optimistic on permits near term and positions County Line as the next mine build supplying Isabella Pearl’s heap leach/ADR .
Dividends: Company paid $1.5M in Q2 dividends; monthly dividend was reduced from $0.04 to $0.01 beginning May 2025 to conserve cash for Pearl deep and permit delays (decision announced mid-April) .
Street context: No S&P Global consensus was available for Q2 2025 EPS or revenue, limiting “beat/miss” framing; FTCO has limited/no analyst coverage for quarterly forecasts (S&P Global returned no published consensus for Q2 2025). Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

Realized gold price averaged $3,287/oz in Q2, materially higher year over year ($2,341/oz), supporting mine gross profit despite lower volumes .
Regulatory progress: BLM posted the County Line Plan of Operations for 30-day public review during Q2—management says this advances the project into “final approval stages” .
Management maintained a shareholder return while funding near-term priorities: $1.5M dividends paid in Q2 as the company balances capital for the Pearl deep access and County Line timing .

Management quote: “We are excited that the Bureau of Land Management is moving our County Line Project closer to permit approval…we remain optimistic we will be granted all the necessary approvals to build the project in the near future.” — CEO Jason Reid .

What Went Wrong

Volumes and revenue declined: gold ounces sold fell to 1,491 (vs 2,336 in Q1 and 4,123 in Q2’24), driving revenue down to $4.9M (vs $6.5M in Q1 and $9.6M in Q2’24) .
Costs climbed on lower grade/throughput and waste movement: AISC rose to $1,452/oz (vs $1,013/oz in Q2’24); management explained AISC inflation is tied to end-of-life mining sequence and moving waste to reach deeper mineralization .
Cash burn: cash and equivalents declined to $17.1M at quarter-end from $21.4M in Q1; management guided to further cash drawdown through year-end 2025 while advancing the Pearl deep layback before expected improvement when ore access is achieved .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Net Sales (Revenue, $M)	$9.554	$6.536	$4.883
Mine Gross Profit ($M)	$4.818	$3.335	$2.614
Net Income ($M)	$(0.138)	$1.249	$0.849
Diluted EPS ($/sh)	$(0.01)	$0.05	$0.03

KPIs (Operations & Costs)

KPI	Q2 2024	Q1 2025	Q2 2025
Gold Ounces Produced	4,150	1,780	1,500
Gold Ounces Sold	4,123	2,336	1,491
Realized Gold Price ($/oz)	$2,341	$2,861	$3,287
Total Cash Cost After By-Product ($/oz)	$782	$1,033	$1,131
All-in Sustaining Cost ($/oz)	$1,013	$1,404	$1,452

Notes: Cash cost and AISC are non-GAAP measures, with reconciliations referenced in the company’s filings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Dividend	Starting May 2025	$0.04/month	$0.01/month	Lowered (announced Apr 15, 2025)
2025 Production Outlook	FY 2025	No formal outlook	No formal outlook	Maintained (no 2025 production guidance)
County Line Permitting Status	Q2 2025	Awaiting permits (Q1)	Plan of Operations posted for 30-day public review; “final approval stages”	Progressed
Cash Balance Trajectory	2H 2025	N/A	Mgmt expects cash to decrease through YE25 while accessing Pearl deep	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 & Q1’25)	Current Period (Q2’25)	Trend
Permitting/BLM	Management attributes significant permit backlog to prior administration; expects improved throughput under current administration; targeting County Line first; saw “light switch” change post-election .	BLM posted County Line Plan of Ops for 30-day public comment; project “in final approval stages” .	Improving momentum toward County Line approval.
Dividend Policy	Dividend cut from $0.04 to $0.01 per month to conserve cash for Pearl deep and permit delays; could adjust further depending on cash/permits .	$1.5M dividends paid in Q2; no further change disclosed .	Reduced level maintained; cautious capital stance.
Production Bridge (Isabella Pearl deep & residual leach)	Decision to mine deeper Pearl zone outside original reserve driven by higher gold price and permit delays; expects cash drain until access achieved, then improvement into 1H26 .	1,500 oz produced in Q2, residual leach + steps toward Pearl deep; mgmt reiterates near-term bridge until County Line build .	Bridge intact; near-term lean production.
Costs/AISC	AISC inflation driven by lower grades, end-of-life sequencing, and heavy waste movement to reach deeper ore; near-term pressure expected .	AISC rose to $1,452/oz; cash cost $1,131/oz .	Elevated near-term; likely to ease only after deeper ore access.
Exploration/Drilling	2024 exploration spend was high; pulling back drilling to conserve cash; focus on mapping and modeling .	$1.3M Q2 exploration expense; continues selective spend while awaiting permits .	Reduced drilling intensity; disciplined spend.

Management Commentary

“We are excited that the Bureau of Land Management is moving our County Line Project closer to permit approval…we remain optimistic we will be granted all the necessary approvals to build the project in the near future.” — CEO Jason Reid
“As we wait for our permits, we continue to chase the deep Isabella Pearl mineralization with the pit layback. Between quarterly production from residual leach coupled with near term Pearl deep mineralization, we target production from both as our bridge to our next mine build at County Line.” — CEO Jason Reid
On dividend cut rationale and cash: “These drivers necessitated the decrease in monthly dividends…beginning in May 2025. This redeployment of dividend cash toward the ongoing Pearl deep mining and to offset the County Line permit delays is also targeted to eventually construct County Line with our own cash.” — CEO Jason Reid (Q1 call)

Q&A Highlights

(No Q2 2025 earnings call transcript was available. Highlights below reflect Q1 2025 Q&A to inform current themes.)

Cost drivers and AISC: Management cited lower grades and substantial waste movement to access deeper mineralization as primary reasons for elevated AISC; costs expected to remain pressured until Pearl deep is accessed .
Dividend policy and cash conservation: Management preferred a single decisive cut vs phased reductions to preserve cash while executing the Pearl deep plan and navigating permitting delays .
Permitting timeline: Management’s expectation (not guidance) was County Line permitting within ~6 months (subject to agency timelines), with Golden Mile longer-dated .
County Line production cadence: Depending on mining pace, management suggested a rough range contextually discussed of ~20–40k oz if mined faster vs over 2+ years; likely paced over ~2 years in current plans (illustrative commentary, not formal guidance) .

Estimates Context

S&P Global/Capital IQ showed no published consensus for Q2 2025 EPS or revenue for FTCO; therefore, “beat/miss” vs Street is not determinable for the quarter. Values retrieved from S&P Global.*
Actuals: Revenue $4.883M; diluted EPS $0.03 .

Metric	Q2 2025 Actual	Q2 2025 Consensus
Revenue ($M)	$4.883	N/A (no published consensus)*
Primary EPS ($)	$0.03	N/A (no published consensus)*

*Values retrieved from S&P Global.

Where estimates may adjust: With no formal Street forecasts, near-term adjustments are more likely in internal buy-side models (e.g., lower ounces and higher AISC assumptions through YE25, with potential uplift when County Line permits and build timing firm).

Key Takeaways for Investors

Near-term print reflected volume headwinds: ounces sold declined sequentially and year over year, pressuring revenue and margins despite a strong realized gold price .
Cost pressure persists into 2H: AISC and cash costs remain elevated until Pearl deep access improves grade/ore availability; management telegraphed continued cash usage through year-end 2025 to reach that zone .
Permit progress is the swing factor: BLM’s public comment posting for County Line is a tangible step; full approval and build decision are key catalysts for resetting the production trajectory .
Capital allocation is conservative: the dividend cut to $0.01/month is designed to self-fund Pearl deep work and County Line permitting/build; further changes remain possible if timelines or cash flows deviate .
Limited Street coverage: With no Q2 consensus, stock reactions may hinge more on project milestones (County Line permit) and management’s updates on Pearl deep access than on quarterly beats/misses (S&P Global). Values retrieved from S&P Global.*
Gold price sensitivity: The realized price tailwind ($3,287/oz in Q2) mitigated some volume/cost pressure; continued strength provides upside torque once ore access and volumes improve .
Watchlist: timing of County Line permit approval and disclosure on build schedule; Pearl deep development progress and any updates to production cadence; cost trajectory as waste movement subsides .

Fortitude Gold Corp (FTCO)·Q2 2025 Earnings Summary