Contango Ore Stock Price, News & Analysis

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.

Contango (NYSE: CTGO) has received $24 million in cash distributions from Peak Gold JV in Q1-2025, comprising $9M from 2024 production profits and $15M from Campaign #1-2025's first half. The company completed Campaign #1-2025, processing 323,000 tons of ore with a 0.215 oz/ton average grade, yielding approximately 65,000 oz of recovered gold at 93.5% recovery rate.

Contango's 30% share amounts to approximately 19,500 oz of gold, exceeding original guidance of 15,000-18,000 oz. The company has already sold 13,961 oz, with remaining sales expected by late April. Full-year 2025 cash distributions are projected at $80 million, based on $2,800/oz gold price.

The company maintains its 2025 production guidance of 60,000 oz (30% share), with life-of-mine annual production expected at 58,750 oz through 2029. All-in sustaining costs are estimated at $1,400 per oz sold.

Contango ORE (NYSE: CTGO) reported its FY2024 financial results with mixed performance. The company's unrestricted cash position increased to $20.1M from $15.5M year-over-year. While reporting total income from operations of $26.3M, the company posted a net loss of $38.0M, largely due to a $34.3M non-cash expense from unrealized derivative losses.

The Manh Choh mine exceeded 2024 production guidance, delivering 41,325 ounces of gold (Contango's 30% share) at a cash cost of $1,209 per ounce, with an average selling price of $2,281 per ounce. The company has reduced its credit facility by 36% to $38.3M and settled 30% of its gold hedge contracts. For 2025, Contango projects gold production of 60,000 ounces across four campaigns.

The company received $40.5M in cash distributions from Peak Gold JV during FY2024. Operating cash flow improved significantly to $0.7M, compared to negative cash flows in previous periods. The company continues to advance its Johnson Tract project, with a preliminary economic assessment expected in the coming weeks.

Contango ORE (NYSE American: CTGO) has amended its credit facility, deferring $10.6M of principal repayments and 15,000 hedged gold ounces delivery to first half 2027, while extending facility maturity to June 30, 2027. The revised schedule allows exposure to spot gold prices on ~30% of net production for 2025-2026, 80% for 2027, and 100% thereafter.

The company projects its 30% share of Peak Gold JV cash flows, after debt and hedge deliveries, to be approximately $80M in 2027 and $70M in 2028, based on $2,500 gold price. The first gold production campaign of 2025 began February 7, with Contango's estimated share between 15,000-18,000 gold ounces.

The Peak Gold JV continues ore transportation from Manh Choh to Fort Knox on schedule, while working on initiatives to reduce costs and improve operations. A Johnson Tract project PEA is expected in March 2025.