Contango ORE Receives $9 Million Cash Distribution from Peak Gold JV
Contango ORE, Inc. (CTGO), a NYSE American-listed gold exploration company, announced a significant cash distribution from its Peak Gold Joint Venture (JV). The JV paid Contango $9 million, representing its 30% share of profits from processing Manh Choh ore from Campaign #3. This brings the total cash distributions received by Contango from the Peak Gold JV since July 2024 to $40.5 million.
Impressive 2024 Gold and Silver Production Exceeds Expectations
Contango’s 2024 production from its 30% stake in the Peak Gold JV significantly surpassed initial projections. The company produced approximately 42,000 ounces of gold and 16,330 ounces of silver, exceeding the initial guidance of 30,000 to 35,000 ounces of gold by roughly 30%. This success underscores the potential of the Manh Choh project and the effectiveness of Contango’s exploration and development strategies. The high production numbers could lead to increased investor interest in gold mining stocks.
Strong Future Outlook and Growth Projections
Looking ahead, Contango anticipates a substantial increase in gold production from its share of the Manh Choh mine. The company expects to receive an average of 58,750 ounces of gold per year through 2028, with estimated all-in sustaining costs of approximately $1,400 per ounce. This projection reflects the considerable long-term value of the Manh Choh project and positions Contango for sustained growth and profitability in the coming years. The positive outlook for gold prices could enhance profitability further.
Contango’s Alaskan Operations and Portfolio Diversification
Contango holds a significant portfolio of Alaskan mining assets, including a 30% interest in the Peak Gold JV, which operates on approximately 675,000 acres of land. This is in addition to leases on the Johnson Tract and Lucky Shot projects and ownership of approximately 153,600 acres of State of Alaska mining claims. This diversification of assets mitigates risk and provides multiple avenues for future growth and value creation. Investors are showing increased interest in companies that diversify their mining portfolios to mitigate various risks.
Financial Performance and Future Reporting
Contango’s strong performance in 2024 is reflected in the substantial cash distributions received and the exceeding of initial production targets. The company reported total gold and silver sales of $95,411,875, with an average blended realized gold price of $2,285 per ounce. Contango plans to release its complete 2024 financial results in March 2025, providing a more comprehensive overview of its financial performance. Investors will await this detailed report to assess the full impact of the year’s successes.
Forward-Looking Statements and Risk Factors
It is important to note that this press release contains forward-looking statements, which are subject to inherent risks and uncertainties. Actual results may differ materially from those projected. These risks include those associated with the mining industry, exploration, and development. Investors should review Contango’s SEC filings for a more comprehensive understanding of these risks before making any investment decisions. Understanding the risks involved in investing in resource companies is key to making informed investment choices.
