Loading ...A new kid on the block. 🙂 Caution its a thinly traded small cap. Tread lightly. I bought 300@7.10, if it goes down 10% $200 under water I’ll sell it.
“”Fortitude Gold was spun out from Gold Resource (GORO) on February 12 and delivered on a “substantial” dividend promise on April 5th. … There are only 258 “partners” known as shareholders which means each stock owner receives larger size profit splits-known as dividends. Apr 15, 2021.””
Summary
- Plummeting cash costs translate to windfall profits for investors.
- Spin-off structured to leave large mining capital expenditures with parent company.
- Fortitude mining costs dropping below $650 per ounce provides profitability protection rarely seen in this sector.
- Rising Gold price provides double barreled boost to margins.
- Part:
- 2021-Assuming a $36.4 million pre-tax profit and deducting 26% for Federal and Nevada state tax-shows a profit at $27 million by year end or $1.12 per share. (24 million shares outstanding) If we assign today’s modest PE of 10, we arrive at a stock price of $11.22 for year end. FTCO currently trades at only $5.26 per share today.
- https://seekingalpha.com/article/4419243-fortitude-gold-spin-off-will-deliver-volcanic-cash-dividends-part-two