Financial Performance - The Company received $40.5 million in cash distributions from the Peak Gold JV during 2024, relating to three campaigns of production at the Manh Choh Project [237]. - The Manh Choh Project produced 41,325 ounces of gold for Contango's share in 2024, with cash costs on a by-product basis per ounce at $1,209 [237]. - The income from the Company's equity investment in the Peak Gold JV for the fiscal year ended December 31, 2024 was $41.7 million, compared to a loss of $6.3 million for the six months ended December 31, 2023 [255]. - The Company invested $31.3 million in the Peak Gold JV during fiscal year ended December 31, 2024, and the Peak Gold JV issued cash distributions of $40.5 million for the same period [255]. - The average blended realized gold price for the Company was $2,281 per ounce sold in 2024 [240]. - The gain on metal sales for the fiscal year ended December 31, 2024 was $1.2 million, with no metal sales reported in prior periods [257]. - Cash Cost on a By-Product Basis, per Ounce for the Peak Gold JV was $1,209 for the fiscal year ended December 31, 2024, with total cost of sales amounting to $195.4 million [264]. Expenses - Exploration expense for the fiscal year ended December 31, 2024 was $4.1 million, primarily related to the 3,000 meter surface drilling exploration program at the Johnson Tract Property [252]. - General and administrative expense for the fiscal year ended December 31, 2024 was $10.6 million, an increase from $6.8 million for the six months ended December 31, 2023 [253]. - Interest expense for the fiscal year ended December 31, 2024 was $11.7 million, an increase due to a cumulative $60.0 million draw-down on the Facility and the Queen's Road Capital Investment, Ltd. Debenture [256]. - The Company recognized claim rental expense of $0.6 million for the fiscal year ended December 31, 2024, compared to $0.3 million for the six months ended December 31, 2023 [251]. - The Company recorded an unrealized loss on derivative contracts of $34.3 million and a realized loss of $19.9 million during the fiscal year ended December 31, 2024 [258]. Acquisitions and Agreements - The Company completed the acquisition of HighGold, issuing 1,698,887 shares valued at approximately $33.4 million to HighGold shareholders [242]. - The Company entered into a stock purchase agreement with Avidian Gold Corp. for an initial consideration of $2.4 million, with a contingent payment of up to $1 million [245]. Cash Flow and Liquidity - As of December 31, 2024, the Company had approximately $20.3 million of cash available [265]. - The Company received a total of $40.5 million in cash distributions from the Peak Gold JV in 2024, including $19.5 million in September and $21.0 million in the fourth quarter [268]. - The Company made a repayment of $13.8 million on the Facility in January 2025, with total repayment obligations of approximately $24.7 million due within the next twelve months [268]. Project Development - The Peak Gold JV's cash calls for 2023 and 2024 totaled approximately $248.1 million, with the Company's share being approximately $74.5 million [238]. - The Peak Gold JV expects that the Manh Choh Project will be mined over approximately five years [237]. - The Peak Gold JV commenced production in July 2024, with operations on schedule and no future anticipated cash calls [267].

Core Viewpoint - Contango ORE, Inc. reported its financial results for FY2024, highlighting gold production exceeding guidance and a focus on debt reduction and cash flow management [1][3]. Financial Performance - The unrestricted cash position increased to $20.1 million as of December 31, 2024, up from $15.5 million a year earlier [2]. - Total income from operations was $26.3 million, with a net loss of $38.0 million for FY2024, which included a non-cash expense of $34.3 million from unrealized losses on derivative contracts [2][5]. - Net cash provided from operating activities improved to $0.7 million for FY2024, compared to net cash used of $9.4 million for the six-month transition period and $14.7 million for FY2023 [4]. Production and Operations - Gold production at the Manh Choh mine reached 41,325 ounces, surpassing the guidance of 30,000 to 35,000 ounces, with cash costs of $1,209 per ounce [3][11]. - The average blended gold price achieved was $2,281 per ounce [8]. - The company is on track to produce between 15,000 and 18,000 ounces of gold in the first campaign of 2025, with a total guidance of 60,000 ounces for the year [3][8]. Debt and Hedge Management - The company reduced its credit facility balance by 36% to $38.3 million and settled 37,861 ounces of gold hedge contracts, reducing the outstanding hedge contract to 86,739 ounces [3][11]. - Cash distributions received from the Peak Gold JV amounted to $40.5 million [8][11]. Project Developments - The Johnson Tract project is advancing with a preliminary economic assessment expected to be released soon [3]. - The company completed a 3,000-meter drilling campaign at the Johnson Tract, focusing on resource characterization and permitting efforts [11].

Group 1 - Contango Ore (NYSE: CTGO) is a gold mining company that employs the Direct Shipment of Ore (DSO) business model to reduce environmental impact, development costs, and time to production [1] - The company focuses on minimizing its environmental footprint while maintaining efficient production processes [1] - The author has been involved in precious metals investment since 2003 and has a background in real estate, indicating a diversified investment strategy [1] Group 2 - The author has shifted focus to writing about companies with market capitalizations exceeding $100 million, as many previously favored companies have grown in value [1] - The author primarily invests in nano-cap junior gold explorers with market caps under $20 million, highlighting a preference for smaller, potentially high-growth companies [1]

Core Viewpoint - Contango ORE, Inc. has amended its credit facility to defer $10.6 million in principal repayments and extend the maturity date to June 30, 2027, allowing for greater flexibility in managing debt and gold hedge contracts while maintaining exposure to rising gold prices [1][4]. Financial Summary - The revised delivery schedule for gold hedge contracts will expose the company to spot gold prices on approximately 30% of net production volumes for 2025 and 2026, 80% for 2027, and 100% thereafter [2]. - Based on a $2,500 spot gold price, the company's projected cash flows from its 30% share of the Peak Gold JV are expected to be approximately $80 million in 2027 and $70 million in 2028 [2]. - With current gold prices near $2,900 per ounce, the company anticipates generating significantly better free cash flows than the previously mentioned projections [4]. Production and Operations - The Peak Gold JV commenced its first gold production campaign of 2025 on February 7, with Contango estimating its share of production to be between 15,000 and 18,000 ounces [3]. - The PGJV is actively working on initiatives to reduce operational costs and improve performance, including reducing moisture content in ore and managing ice, snow, and mud during ore transport [4]. Project Development - Progress on the preliminary economic assessment (PEA) for the Johnson Tract project is ongoing, with completion expected in March 2025 [4]. - The company holds a 30% interest in the Peak Gold JV, which encompasses approximately 675,000 acres for exploration and development on the Manh Choh project [6].

Core Insights - Contango ORE, Inc. received a cash distribution of $9.0 million from the Peak Gold JV, bringing total cash distributions to $40.5 million since July 2024 [1] - In 2024, Contango's share of gold production was approximately 42,000 ounces, exceeding the original guidance of 30,000 to 35,000 ounces by about 30% [2] - The company expects to produce 60,000 ounces of gold in 2025, with an average of 58,750 ounces per year through 2028, and all-in sustaining costs estimated at approximately $1,400 per ounce [2] Company Overview - Contango ORE, Inc. is listed on NYSE American and focuses on gold exploration in Alaska, holding a 30% interest in the Peak Gold JV [3] - The Peak Gold JV operates on approximately 675,000 acres of land for the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [3] - The company also holds leases on the Johnson Tract and Lucky Shot projects, along with 100% ownership of additional mining claims in Alaska [3]

Core Viewpoint - Contango ORE, Inc. has provided guidance for its 30% interest in the Peak Gold JV, reaffirming anticipated gold production for 2025 and updating all-in sustaining costs (AISC) for the mine, along with cash distributions from the Peak Gold JV [1][2]. Production and Cost Estimates - The company expects its share of gold production from the Manh Choh mine in 2025 to be approximately 60,000 ounces [2][5]. - The estimated AISC for the life-of-mine (LOM) is projected to increase to about $1,400 per ounce of gold equivalent (AuEq) sold, up from $1,116 per ounce as per the Manh Choh Technical Report Summary [2][5]. - The estimated AISC for 2025 on a standalone basis is expected to be around $1,625 per ounce of AuEq sold [2][5]. - Factors contributing to the AISC increase include weight restrictions on the Chena Flood Plain Bridge and higher moisture content in the ore, limiting annual ore transport by approximately 20% [2][5]. Financial Projections - At current gold prices of $2,500 per ounce, the company projects cash distributions from the Peak Gold JV to be approximately $50 million in 2025 [2][5]. - The company anticipates producing 38,500 ounces of gold on its account for 2024 and 60,000 ounces for 2025 [5]. Credit Facility Update - The company is working with lenders to restructure a portion of the credit facility principal repayments and related hedge contracts to align better with the production schedule of the Manh Choh production campaigns [3]. Company Overview - Contango ORE, Inc. is engaged in gold exploration in Alaska and holds a 30% interest in the Peak Gold JV, which covers approximately 675,000 acres for exploration and development [8]. - The remaining 70% of the Peak Gold JV is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [8]. - The company also has leases on the Johnson Tract and Lucky Shot projects, along with ownership of additional mining claims in Alaska [8].

Core Viewpoint - Contango ORE, Inc. has announced positive drill results from its 2024 surface drill campaign at the Johnson Tract polymetallic gold project, highlighting the high-grade nature of the JT Deposit with an Indicated Resource of 1.05 million ounces at 9.39 grams per tonne gold equivalent [1][14]. Exploration and Development Activities - The 2024 exploration program involved approximately 3,000 meters of drilling across 18 holes, focusing on infill drilling and hydrogeological testing to characterize the hydrology and water quality around the JT Deposit [2][4]. - A 404 Permit has been received for the construction of a 2.6-mile access road to the proposed portal and laydown site, facilitating further development [3][12]. - The infill drilling targeted the upper third of the deposit to upgrade the 2022 Mineral Resource Estimate to Measured and Indicated categories, with deeper drilling planned from underground following the development of an exploration drift [8][11]. Drill Results - The 2024 drill program yielded significant intercepts, including: - GT24-008: 223.5 meters at 11.5 g/t AuEq, with a notable 55.5 meters at 30.3 g/t AuEq [3][6]. - GT24-007: 93.0 meters at 9.1 g/t AuEq, including 22.1 meters at 20.7 g/t AuEq [3][7]. - JT24-159: 30.2 meters at 6.3 g/t AuEq, including 14.7 meters at 10.6 g/t AuEq [3][7]. - A total of 21 HQ diamond drill holes were completed, totaling 3,092.3 meters, with three dedicated to hydrogeological and geotechnical testing [6][12]. Future Plans - The company is focused on advancing the Johnson Tract Project towards feasibility and mine development, with ongoing geotechnical, hydrologic, and environmental studies [5][12]. - Planning is underway for a 2025 program to continue exploration and development efforts [5][12].

Financial Performance - Net loss for the three months ended September 30, 2024, was $9.71 million, compared to a loss of $13.15 million for the same period in 2023, reflecting a 26% improvement[9]. - The net loss for the nine months ended September 30, 2024, was $48,755,408, compared to a net loss of $31,490,226 for the same period in 2023, representing a 55% increase in losses[13]. - Basic net loss per share for the three months ended September 30, 2024, was $(0.81), compared to $(1.47) for the same period in 2023[33]. - Basic net loss per share for the nine months ended September 30, 2024, was $(4.67), compared to $(3.93) for the same period in 2023[33]. Assets and Liabilities - Total assets increased to $158.33 million as of September 30, 2024, compared to $58.59 million as of December 31, 2023, representing a growth of 169%[6]. - Current assets rose to $37.48 million from $16.85 million, a 122% increase[6]. - Total liabilities surged to $168.55 million from $73.14 million, marking a 130% increase[5]. - The company’s total stockholders' equity improved to a deficit of $10.22 million from a deficit of $14.54 million[5]. - The accumulated deficit increased to $187,797,254 as of September 30, 2024, compared to $111,424,765 as of September 30, 2023[15]. Cash Flow and Financing - Cash and restricted cash at the end of the period totaled $36.40 million, up from $18.74 million, a 94% increase[12]. - Cash provided by operating activities was $10,639,082 for the nine months ended September 30, 2024, compared to cash used in operating activities of $(7,684,867) for the same period in 2023[13]. - Cash proceeds from debt issuance amounted to $30 million during the financing activities[11]. - The company raised approximately $28.2 million from the July 2023 Offering of 1,600,000 shares at a price of $19.00 per share[37]. - The company completed a public offering of 731,750 units at a price of $20.50 per unit, resulting in net proceeds of $13.7 million after underwriting discounts and commissions[36]. Investments and Acquisitions - Cash invested in Peak Gold, LLC was $31.29 million for the nine months ended September 30, 2024[10]. - The company issued shares for acquisitions totaling $35,331,402 during the nine months ended September 30, 2024[14]. - The total consideration for the HighGold Acquisition was approximately $35,000,000, including $33,800,000 in shares and $1,200,000 in direct transaction costs[112]. - The Avidian Alaska Acquisition had a total purchase price of $2,063,539, consisting of $400,000 in cash and $1,663,539 in shares[111]. Operational Highlights - The Manh Choh Project began production in early Q3 2024, with a total of $31.3 million in capital calls already funded by the Company as of September 30, 2024[21]. - The Peak Gold JV reported revenue of $225.7 million and a net income of $95.1 million for the three months ended September 30, 2024, compared to a loss of $4.6 million in the same period of 2023[30]. - The Company's share of the Peak Gold JV's net income for the three months ended September 30, 2024, was approximately $28.5 million, a significant improvement from a loss of $1.4 million in the same period of 2023[30]. - The Peak Gold JV issued a cash distribution of $19.5 million in Q3 2024, whereas no distributions were made in Q3 2023[146]. Debt and Interest - As of September 30, 2024, the Company had total net debt of $73,862,344, an increase from $44,679,859 as of December 31, 2023[68]. - The principal amount of the secured debt facility increased to $58,000,000 as of September 30, 2024, up from $30,000,000 as of December 31, 2023[68]. - The Company recognized interest expense totaling $7.2 million related to its debt for the nine months ended September 30, 2024, compared to $0.5 million for the same period in 2023[75]. - Interest expense for Q3 2024 was $3.7 million, compared to $1.0 million in Q3 2023, reflecting a drawdown increase from $20 million to $58 million on the Facility[147]. Stock and Shareholder Information - The company reported a weighted average of 11,973,992 common shares outstanding for the three months ended September 30, 2024[9]. - The balance of common shares increased to 12,226,238 as of September 30, 2024, from 9,395,112 as of September 30, 2023[15]. - As of September 30, 2024, the company had 12,223,758 shares of common stock outstanding, including 437,089 shares of unvested restricted stock[34]. - The company has $32.8 million of common stock remaining available for sale under the ATM Program as of September 30, 2024[35]. Taxation - The Company recognized a federal income tax expense of $507,880 and a state income tax expense of $210,947 for the three and nine months ended September 30, 2024, compared to $0 for the same periods in 2023[67]. - The effective tax rate for the three and nine months ended September 30, 2024, was (1.51)%, while it was 0% for the same periods in 2023[67]. Risks and Contingencies - The Company anticipates potential delays or changes in plans regarding exploration or development projects due to various operational risks[117]. - The Company’s operational risks include fluctuations in gold prices and the ability to raise capital for future expenditures[119]. - The Company has a contingent consideration liability of $1,100,480 related to the Lucky Shot Property, dependent on production milestones[105].

Gold Production and Sales - Contango reported a total gold production of 31,000 ounces to date in 2024, with a year-end guidance of 30,000 to 40,000 ounces[10]. - The average blended realized gold price for Q3 was $2,253 per ounce, with total gold sales amounting to $62.34 million[10]. - The Manh Choh Mine achieved a gold recovery average of 95% in Campaign 1 and 92% in Campaign 2, producing 55,000 ounces and 49,000 ounces of gold respectively[9]. - The estimated annual production from the Manh Choh Mine is projected to be 67,500 GEO, generating over $75 million at a blended gold price of $2,175[7]. - The first gold pour from the Manh Choh project is scheduled for July 8, 2024, with campaign 1 gold sales estimated at $36 million USD[41]. - Contango sold $36 million worth of gold during Campaign 1 and expects to generate over $60 million in free cash flow per year from the Manh Choh project[58]. Financial Position and Projections - Contango's cash position stands at $36 million, with a projected cash distribution of $19.5 million from the Peak Gold JV[4][10]. - The company aims to pay down its credit facility to $52 million in 2024 and eliminate debt by 2025[23]. - Contango's 2024 All-In Sustaining Cost (AISC) is projected at $1,116 per ounce, positioning it favorably compared to peers[12]. - At a gold price of $1,920 per ounce, Contango expects annual revenue exceeding $129 million and cash flow of over $54 million[65]. - Contango's ownership in the Manh Choh project is 30%, with projected revenue of $102.6 million at a gold price of $1,520 per ounce[65]. Project Development and Resources - The Lucky Shot and Johnson Tract projects are being advanced towards production, with a target of approximately 60,000 ounces in 2025[23]. - Lucky Shot Mine has a current resource of 110,000 GEO at a grade of 14.5 g/t, with a target annual production of 30,000 to 40,000 GEO over the next 2-3 years[30]. - Johnson Tract Project has a current resource of 1.1 million ounces at a grade of 9.4 g/t, aiming for an annual production target of 150,000 GEO within five years[30]. - The total inferred resource at Lucky Shot is 226,963 tonnes at an average grade of 14.5 g/t, equating to 105,620 ounces[26]. - Proven reserves at the Manh Choh project total 1,181,000 tonnes with an average gold grade of 7.9 g/t, equating to 299,000 ounces of gold[66]. - Measured and indicated resources at the Manh Choh project amount to 254,000 tonnes with an average gold grade of 2.4 g/t, totaling 20,000 ounces of gold[71]. - Inferred resources at the Johnson Tract project are 706,000 tonnes with a gold grade of 1.4 g/t, yielding 31,000 ounces of gold[71]. - The Johnson Tract deposit features a hybrid epithermal-VMS model, indicating a complex geological structure[61]. Exploration and Drilling Programs - The company plans to conduct a 15,000-meter in-fill drill program at Lucky Shot to define high-grade ore shoots and support resource definition[28]. - The Johnson Tract drill program includes a 3,000m oriented core program with 10 holes, targeting the upper third of the resource to upgrade its category[59]. - The 2024 infill drilling program aims to upgrade inferred resources to indicated resources and improve overall resource classification[38]. Environmental and Operational Strategy - Contango Ore is building its strategy around high-grade resources and responsible practices, aiming for minimal environmental impact and efficient permitting processes[44]. - The company is focused on minimizing environmental footprint and lowering permitting risk through its innovative business model[58]. - Future guidance includes a commitment to sustainable practices, aiming for a K% reduction in carbon footprint by 2025[10]. Market Position and Ownership - The company has a fully diluted share count of 13.1 million, with a market capitalization of $222 million[4]. - Contango's institutional ownership is at 21%, with significant holdings from major mutual funds including Blackrock and Vanguard[5]. - The company holds a 30% ownership stake in the reported mineral reserves and resources[67]. Revenue and User Growth - The company reported a significant increase in revenue, achieving a total of $X million for the quarter, representing a Y% growth year-over-year[1]. - User data indicates a growth in active users, reaching Z million, which is an increase of A% compared to the previous quarter[2]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% and an increase in user engagement metrics[3]. - New product launches are expected to contribute an additional C million in revenue, with anticipated market penetration of D%[4]. - The company is investing in new technology development, allocating E million towards R&D initiatives aimed at enhancing operational efficiency[5]. - Market expansion efforts are underway, with plans to enter F new regions by the end of the fiscal year, targeting a market share increase of G%[6]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could add H million in annual revenue[7]. - Other new strategies include enhancing customer service capabilities, which are projected to improve customer satisfaction scores by I%[8]. - The company has reported a decrease in operational costs by J%, contributing to improved profit margins[9].

Core Viewpoint - Contango ORE, Inc. reported significant progress in gold production and financial performance for Q3-2024, driven by the commencement of operations at the Manh Choh project and positive cash flow from ongoing activities [1][4]. Financial Performance - The company reported total gold sales of $62.34 million and silver sales of $0.25 million for the quarter [2]. - As of September 30, 2024, the unrestricted cash position was $36.2 million, an increase from $24.1 million as of June 30, 2024, and $15.5 million as of December 31, 2023 [3]. - For YTD-2024, net cash provided from operating activities was $10.6 million, compared to a net cash used of $7.7 million for YTD-2023, primarily due to gold production at Manh Choh and a cash distribution of $19.5 million from the Peak Gold JV [5]. Production and Sales - The company sold 27,677 ounces of gold and 8,343 ounces of silver during the quarter [2]. - Average blended gold price realized was $2,252 per ounce, with cash costs on a by-product basis at $1,181 per ounce, resulting in an average blended cash profit of $1,072 per ounce [4][7]. Loss and Derivative Contracts - The company reported a net loss of $9.7 million for Q3-2024, which included a non-cash expense of $22.9 million related to unrealized losses on derivative contracts [6]. - This loss was an improvement compared to a net loss of $13.2 million in Q3-2023, attributed to the commencement of production at Manh Choh [6]. Project Updates - The Manh Choh project commenced gold production on July 8, 2024, and is on track to meet production guidance of 30,000 to 40,000 ounces for 2024 [8]. - The Johnson Tract project saw the completion of a surface drilling campaign targeting 3,000 meters, with 1,500 meters completed by September 9, 2024 [9]. Future Plans - The company plans to provide formal production guidance for 2025 and advance its Lucky Shot and Johnson Tract projects towards a production decision [4]. - A conference call to discuss quarterly results is scheduled for November 15, 2024 [10]. Company Overview - Contango ORE, Inc. is engaged in the exploration of gold and associated minerals in Alaska, holding a 30% interest in the Peak Gold JV and additional projects in the region [11].