Contango ORE Reports Strong Q3-2024 Earnings: Gold Production Commences at Manh Choh, Strong Financial Position Fuels Growth
Contango ORE, Inc. (CTGO) announced today that it has filed its Form 10-Q for the quarter ended September 30, 2024, with the Securities and Exchange Commission. The company’s Q3-2024 earnings report reflects a significant milestone with the commencement of gold production at the Manh Choh project, contributing to a robust financial position and fueling expansion plans for other projects.
Key Highlights:
*
Gold Production at Manh Choh:
Contango achieved a key milestone with the start of gold production at the Manh Choh project, operated by its 30% owned joint venture (JV), Peak Gold JV. The company anticipates producing near the upper end of its 2024 guidance with gold production of approximately 38,500 ounces. This achievement has significantly boosted Contango’s cash flow from operations.*
Strong Financial Position:
Contango’s unrestricted cash position as of September 30, 2024, was $36.2 million, reflecting a substantial increase from $24.1 million as of June 30, 2024. This strong financial position enables the company to aggressively pay down debt in 2025, while advancing its Lucky Shot and Johnson Tract projects towards production decisions using its Direct Shipping Ore (DSO) approach.*
DSO Approach:
Contango’s DSO approach streamlines operations by reducing the environmental footprint, simplifying permitting processes, and minimizing construction capital. This approach allows the company to accelerate project development and capitalize on the current gold market.Performance Summary:
*
Net cash provided from operating activities:
$10.6 million for YTD-2024 compared to net cash used of $7.7 million for YTD-2023, demonstrating the significant impact of gold production at Manh Choh and the first cash distribution of $19.5 million from the Peak Gold JV.*
Cash costs on a by-product basis:
$1,181 per ounce of gold sold, aligning with expectations and resulting in an average blended cash profit of $1,072 per ounce for gold sold.*
Net Loss for Q3-2024:
$9.7 million, which includes a non-cash expense of $22.9 million related to an unrealized loss on mark-to-market derivative contracts. However, this is a significant reduction compared to the net loss of $13.2 million in Q3-2023.Future Outlook:
Contango is well-positioned for continued growth with its strong financial position, successful gold production at Manh Choh, and the advancement of its Lucky Shot and Johnson Tract projects. The company plans to release drill results from its Summer’s Johnson Tract surface drill program followed by the results of the Preliminary Economic Assessment on the Johnson Tract property. Contango is committed to executing its DSO approach, maximizing shareholder value, and capturing opportunities in the gold market.
Conference Call and Webcast:
Contango will host a conference call and webcast to discuss its Q3-2024 results on Friday, November 15, 2024, at 11:00 am EST / 8:00 am PST. Participants can join the webcast using the following call-in details: https://6ix.com/event/contango-ore-q3-results.
About Contango ORE, Inc.:
Contango is a NYSE American listed company engaged in exploration for gold and associated minerals in Alaska. The company holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres of land for exploration and development on the Manh Choh project. Contango also holds a lease on the Johnson Tract project, a lease on the Lucky Shot project, and 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims. The company owns a 100% interest in an additional approximately 145,000 acres of State of Alaska mining claims, providing it with exclusive rights to explore and develop minerals on these lands.
Forward-Looking Statements:
This press release contains forward-looking statements based on Contango’s current expectations and involves risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. Investors are cautioned that any forward-looking statements are not guarantees of future performance.
