Contango Ore Stock Price, News & Analysis

Contango ORE (NYSE American: CTGO) reported strong Q2 2025 production results, with 17,764 gold ounces sold at cash costs of $1,416 per ounce and AISC of $1,548 per ounce, below the 2025 target of $1,625. The company's Peak Gold JV processed 255,000 tons of ore with a 93% gold recovery rate.

Key financial highlights include $58.1 million in total gold sales and $30 million in cash distributions received from Peak Gold JV in Q2. The company reduced its hedge balance to 62,900 ounces through Carry Trade transactions and maintains its 2025 guidance of 60,000 ounces (30% basis). The company's unrestricted cash position stood at $36.5 million as of June 30, 2025, with debt reduction progress reducing the facility balance to $23.1 million.

Contango (NYSE American: CTGO) has received a $21 million cash distribution from the Peak Gold JV for Campaign #2-2025, bringing year-to-date distributions to $54 million. The company has produced approximately 36,000 ounces of gold year-to-date, maintaining its 2025 guidance of 60,000 ounces for its 30% share.

The company plans to early pay $7 million of principal against its credit facility, reducing the balance to $23 million. Contango has delivered 11,900 ounces of gold into hedge contracts, with remaining hedges expected to be 43,000 ounces by end of 2025. Total cash distributions for 2025 are projected to exceed $95 million, assuming a $3,100 per ounce gold price.

Contango ORE announced successful completion of its second 2025 production campaign at Peak Gold JV, producing 15,700 ounces of gold (Contango's 30% share). The JV processed 255,000 tons of ore with 0.220 oz/ton grade and 93% gold recovery, resulting in 52,000 total recovered ounces. The company expects a cash distribution exceeding $20M in June 2025. Mill throughput averaged 10,122 tons per day, 17% above plan and 25% higher than the first 2025 campaign. Contango maintains its 2025 production guidance of 60,000 ounces (30% share) with life-of-mine annual production expected at 58,750 ounces through 2029. Based on current projections and $3,200/oz gold price assumption, 2025 cash distributions are expected to exceed $93M, which will be used for strengthening cash position, debt reduction, and fulfilling hedge contracts.

Contango ORE (NYSE American: CTGO) held its 2025 Virtual Annual Meeting of Stockholders on June 10, 2025. Shareholders elected six directors to serve until the 2026 annual meeting: Brad Juneau, Clynton Nauman, Darwin Green, Michael Cinnamond, Richard A. Shortz, and Rick Van Nieuwenhuyse. Additionally, stockholders approved two key proposals: the ratification of Baker Tilly US, LLP (following their merger with Moss Adams LLP on June 3, 2025) as the company's independent auditors for fiscal year 2025, and a non-binding advisory vote approving the compensation of named executive officers.

Contango (NYSE: CTGO) reported strong Q1-2025 operational results with $19.3M in income from operations, compared to a $2.9M loss in Q1-2024. The company's Manh Choh project exceeded quarterly guidance, selling 17,382 ounces of gold at cash costs of $1,334/oz and AISC of $1,374/oz, well below the 2025 target of $1,625/oz. Despite operational success, Contango posted a net loss of $22.3M, primarily due to a $40.5M non-cash expense from unrealized derivative contract losses. The company's cash position strengthened to $35.0M from $20.1M in December 2024. Notable achievements include receiving $24M in Q1 cash distributions plus an additional $9M in April, reduction of hedge balance to 74,800 ounces, and the dismissal of a lawsuit against DOT regarding ore trucking. Additionally, Contango announced positive results from Johnson Tract Project's Technical Report Summary, showing potential for a seven-year underground mining operation with Pre-Tax NPV5 of $359M.

Contango (NYSE: CTGO) has released a Technical Report Summary for its Johnson Tract Project in Alaska, revealing robust economic potential. The project shows a Post-Tax NPV5 of $225 million and IRR of 30% with a one-year payback period, based on a $2,200/oz gold price base case. The seven-year underground mining operation requires initial capital costs of $214 million with an all-in-sustaining cost of $860 per gold equivalent ounce. The project is expected to produce an annual average of 102,258 gold equivalent ounces at a grade of 7.58 g/t. At a higher gold price of $3,000/oz, the project's NPV5 increases to $400 million with 45% IRR. The company is currently focused on permitting an underground tunnel and conducting necessary studies for a feasibility study. The project has received support from federal agencies and may be selected for FAST-41 priority permitting under the National Energy Dominance Council.

Contango ORE (NYSE American: CTGO) is participating in the annual 'Alaska On The Hill' event in Washington DC alongside 120 Alaskan business representatives. CEO Rick Van Nieuwenhuyse highlighted three key projects:

• Manh Choh gold mine is on track to produce 60,000 ounces of gold in 2025, with the second campaign starting mid-May
• Lucky Shot development project is in progress
• Johnson Tract project is gaining attention from the Trump administration for its potential to produce four critical metals: gold, silver, copper, and zinc

The company expects to release its Johnson Tract PEA next week, followed by Q1-2025 financials. The federal government is showing strong support for mining initiatives in Alaska, focusing on unleashing the state's resource potential.

Contango ORE (NYSE American: CTGO) has received a $9 million cash distribution from the Peak Gold JV on April 24, 2025, bringing total distributions from Manh Choh profits to $33 million in 2025. The company has completed the first of four campaigns in 2025, producing approximately 20,000 ounces of gold for Contango's account, with the second campaign set to begin in mid-May 2025.

The company's 2025 gold production target remains at 60,000 ounces with all-in-sustaining costs of $1,625 per ounce. Contango has prepaid $8.2 million of principal against its credit facility, reducing the balance to $30.1 million. The company has also reduced its hedge contract by 11,939 ounces to 74,800 ounces. Q1-2025 financial results will be released on May 14, 2025, and a preliminary economic assessment for the Johnson Tract project is expected by end of April.

Contango ORE (NYSE American: CTGO) has announced significant board changes and set its 2025 Annual Meeting of Stockholders for June 10, 2025. The company has nominated two new independent directors: Michael Cinnamond, current SVP of Finance and CFO of B2Gold Corp, and Clynton Nauman, a mining executive with over 45 years of experience.

Current directors Joe Compofelice (serving since 2010) and Curtis Freeman (serving since 2022) will not stand for re-election, with their terms ending at the Annual Meeting. Their departure is not due to any disagreements with company operations or policies.

The virtual Annual Meeting will be held at 10:00 am Central Time, with proxy materials to be distributed after April 29, 2025 to stockholders of record as of April 11, 2025. The company has also announced deadlines for stockholder proposals and board nominations, set for April 28, 2025.