Financial Data and Key Metrics Changes - The company is producing approximately 60,000 ounces of gold annually at the Monchaux project, with all-in sustaining costs projected to be around $1,400 per ounce, although current costs are higher due to increased stripping activities [2][3][7] - The company generated about $54 million in cash last year, with a share of production amounting to approximately 35,000 ounces in the first half of the current year [6][7] - The company expects to end the year with around $20 million in cash [4] Business Line Data and Key Metrics Changes - The Monchaux project is currently in production, while the Lucky Shot mine and Johnson Track are in development stages [5][17] - The Lucky Shot mine has a historical production of 250,000 ounces of gold and is expected to produce around 40,000 ounces annually once operational [13][26] - Johnson Track is anticipated to contribute significantly to production, with projections indicating it will add approximately 100,000 gold equivalent ounces annually [26] Market Data and Key Metrics Changes - The company is currently operating under a direct shipping ore model, which allows for lower infrastructure costs and quicker production timelines compared to traditional mining methods [3][10] - The company is closely monitoring oil prices, which have been lower than projected, positively impacting all-in sustaining costs [9] Company Strategy and Development Direction - The growth strategy focuses on increasing production from 60,000 ounces to 200,000 ounces annually through the development of Lucky Shot and Johnson Track [26][27] - The company aims to clear its hedge book, which currently has about 42,000 ounces left, to maximize cash flow from gold sales at current prices [15][27] - The company is exploring strategic options for processing the ore from Johnson Track, including the possibility of owning a mill [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate over $100 million in free cash flow, which will support growth without significant dilutive financing [27] - The management highlighted the importance of maintaining a low-cost structure and avoiding large capital expenditures associated with traditional mining operations [10][27] Other Important Information - The company has a tight share structure with 12.7 million shares outstanding [4] - The company is in the permitting phase for the Johnson Track project, which is expected to progress in the coming year [19][24] Q&A Session Summary Question: Where do you plan to process the Lucky Shot ore? - The company plans to transport Lucky Shot ore to Kinross for processing, leveraging existing infrastructure [29] Question: What are the processing options for Johnson Track? - The company is evaluating multiple options for processing Johnson Track ore, including the potential ownership of a mill [30]

Company Overview - Contango Ore Inc (CTGO) is an Alaskan focused portfolio executing on a Direct Ship Ore (DSO) model[22, 23, 24] - The company's capital structure includes 126 million issued and outstanding shares and 07 million warrants, resulting in 133 million fully diluted shares[17] - As of June 30, 2025, the company's financial position includes $369 million in cash, $200 million in convertible debentures, and $231 million in debt[18] Manh Choh Mine - Manh Choh mine is Contango's flagship project with commercial production starting in July 2024[27] - The mine is projected to produce approximately 60,000 Gold Equivalent Ounces (GEO) in 2025[26] and generate approximately $450 million in Life of Mine (LOM) free cash flow at $3,200/oz gold[26] - In H1 2025, the mine produced 35,146 ounces of gold, resulting in $54 million USD distribution[37] Lucky Shot Project - Lucky Shot is the company's next DSO project, focused on resource expansion over the next 2-3 years[56] - The project has a current resource of 110,000 GEO at 145 g/t[26] - The company plans to conduct a 15,000m in-fill drill program for resource definition, targeting 30,000 to 40,000 gold ounces initial production[66, 67] Johnson Tract Project - Johnson Tract has a current resource of 11 million GEO at 94 g/t[26] - An initial assessment released in May 2025 shows a Post-Tax NPV5 of $2245 million and a 302% IRR, with a 7-year LOM and a 13-year discounted payback period[26] - The LOM annual average production is estimated at 102,258 GEO at 758g/t GEO[100]

Financial Data and Key Metrics Changes - Operating earnings increased from a loss of $3.1 million in Q2 of last year to an income of $23 million this quarter [8] - Net income improved from a loss of $18.5 million in Q2 of last year to a net income of $15.9 million this quarter [9] - Earnings per share rose from a loss of $1.9 to a profit of $1.24 per diluted share [16] Business Line Data and Key Metrics Changes - Cash costs for the quarter were $14.16, with year-to-date costs at $13.75 [4] - All-in sustaining costs were $15.48 for the quarter and $14.62 year-to-date [4] - The company processed 250,000 tons of ore at a grade of 0.23 ounces per ton in the current campaign, compared to 255,000 tons at 0.22 ounces per ton in Q2 of the previous year [21] Market Data and Key Metrics Changes - The average realized gold price was $3,274 per ounce, compared to a blended carry trade price of $2,441 [16] - The company’s hedge position is currently at just under 63,000 ounces, expected to decrease to about 43,000 ounces by year-end [30] Company Strategy and Development Direction - The company is focused on debt reduction and advancing projects like Johnson Track and Lucky Shot, with a goal to reduce debt from $23 million to around $15 million by year-end [30][31] - The strategy includes maintaining a low share count and ensuring operational efficiency to maximize margins [51][60] - The company aims to produce 30,000 to 40,000 ounces annually from Lucky Shot, with a diluted grade above 10 grams [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational smoothness and the potential for increased gold production as the market conditions remain favorable [51][63] - The company is optimistic about the gold price outlook and is focused on prudent growth without taking excessive risks [52][89] Other Important Information - The lawsuit regarding the beluga whale issue is still ongoing, with the company involved in the legal proceedings [68] - The company is considering monetizing its Onex shares but is currently restricted by escrow agreements [78] Q&A Session Summary Question: How long will campaign three last and potential timing of the check from the JV? - Campaign three is expected to last roughly three weeks, with distributions anticipated in late September [65][66] Question: Is there still a beluga whale lawsuit issue? - Yes, the lawsuit is ongoing in federal court, and the company has joined the lawsuit [68] Question: What allowed the ASIC for the second quarter to be lower than expected? - The lower ASIC was attributed to favorable weather conditions and operational efficiencies, with expectations to remain below the target of $16.25 [70][72] Question: Are there plans to monetize the Onex shares? - Yes, the company is considering the timing for monetization but is currently restricted by escrow agreements [77][78] Question: What are the upcoming catalysts for Contango? - The focus will be on drilling underground at Lucky Shot and advancing the Johnson Track project [79]

Company Overview - Contango Ore Inc is traded on NYSE American under the ticker CTGO[1,15] - The company has a market capitalization of $280 million[15] - Contango has $36.9 million in cash, $20 million in convertible debentures, and $23.1 million in debt[17] Manh Choh Mine (30% Ownership) - The mine started production in Q3 2024[26,60] - 2025 gold production is estimated to be approximately 60,000 GEO (Gold Equivalent Ounces)[26,60] - The Life of Mine (LOM) free cash flow is estimated at approximately $320 million at a gold price of $2,800/oz[26,60] - Contango's share of cash distributions received from Peak Gold JV was $30 million in Q2 2025 and $54 million Year-To-Date 2025[38] Lucky Shot Mine (100% Ownership) - The current resource is 110,000 GEO at 14.5 g/t[26,60] - The company aims to develop 400,000-500,000 GEO resource within 2-3 years[26,60] - Initial production target is 30,000 – 40,000 GEO annually[26,60] Johnson Tract Project (100% Ownership) - The current resource is 1.1 million GEO at 9.4 g/t[26,60] - The goal is to complete permitting in 2 years and start production in 5 years, targeting 100,000 GEO annual production[26,60] - The Initial Assessment released in May 2025 shows a Post-Tax NPV5 of $224.5 million and a 30.2% IRR with a 7-year LOM and a 1.3-year discounted payback period[26,60]

[Q2-2025 Financial and Operational Highlights](index=1&type=section&id=Q2-2025%20Financial%20and%20Operational%20Highlights) Contango ORE, Inc. announced record high income from operations of **$23.0 million** and net income of **$15.9 million** for the quarter ended June 30, 2025 (Q2-2025) - Production during Q2-2025 exceeded quarterly guidance, with **17,764 ounces of gold** sold at cash costs of **$1,416 per ounce** and all-in-sustaining costs (AISC) of **$1,548 per ounce**, which is well below the **2025 target of $1,625 per ounce**[2](index=2&type=chunk)[3](index=3&type=chunk) - The third campaign of 2025 is scheduled to commence on August 14, 2025, with Contango's share of production expected to be **15,000 ounces of gold**[2](index=2&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Statement of Operations (Q2-2025 vs Q2-2024)](index=1&type=section&id=Statement%20of%20Operations%20%28Q2-2025%20vs%20Q2-2024%29) Contango ORE, Inc. achieved a substantial turnaround in its Q2-2025 statement of operations, reporting significant income from operations and net income, a stark contrast to losses in the prior year period Q2-2025 vs Q2-2024 Financial Performance | Metric | Q2-2025 | Q2-2024 | | :-------------------------- | :---------- | :---------- | | Income from Operations | $23.0 M | ($3.1 M) | | Net Income (Loss) | $15.9 M | ($18.5 M) | | EPS (Issued Share) | $1.26 | ($1.90) | | EPS (Fully-Diluted Share) | $1.24 | ($1.90) | | Gold Ounces Sold | 17,764 oz | N/A | | Cash Costs per Ounce | $1,416 | N/A | | AISC per Ounce | $1,548 | N/A | [Statement of Cash Flows (YTD-2025 vs YTD-2024)](index=1&type=section&id=Statement%20of%20Cash%20Flows%20%28YTD-2025%20vs%20YTD-2024%29) Year-to-date cash flow from operating activities saw a significant positive shift, primarily driven by gold production and distributions from the Peak Gold JV, while investing activities decreased substantially YTD-2025 vs YTD-2024 Cash Flow Summary | Metric | YTD-2025 | YTD-2024 | | :-------------------------------- | :---------- | :---------- | | Net Cash from Operating Activities | $36.9 M | ($6.9 M) | | Cash Used in Investing Activities | $0.16 M | $27.2 M | | Cash Used in Financing Activities | $20.5 M | ($42.7 M) | | Unrestricted Cash (as of June 30) | $36.5 M | N/A | | Unrestricted Cash (as of Dec 31, 2024) | N/A | $20.1 M | - The increase in net cash provided by operating activities was primarily driven by gold production at the Manh Choh project and the receipt of **$54.0 million** in cash distributions from the Peak Gold JV[4](index=4&type=chunk) - Cash used in investing activities significantly decreased to **$0.16 million** in YTD-2025 compared to **$27.2 million** in YTD-2024, which related to funding Contango's share of Manh Choh development costs in 2024[4](index=4&type=chunk) - Cash used in financing activities for YTD-2025 was **$20.5 million**, primarily due to **$22.0 million** in principal repayments on its credit facility, contrasting with YTD-2024 inflows from debt drawdowns and an equity raise[4](index=4&type=chunk)[5](index=5&type=chunk) [Operational Updates](index=2&type=section&id=Operational%20Updates) [Manh Choh Project](index=2&type=section&id=Manh%20Choh%20Project) The Manh Choh Project demonstrated robust production and sales figures for Q2-2025 and YTD-2025, with costs managed below target, and continued progress in development and exploration [Production and Sales Performance](index=2&type=section&id=Production%20and%20Sales%20Performance) Contango's share of gold and silver sales from the Manh Choh project contributed significantly to revenue, supported by favorable realized gold prices and substantial cash distributions from the Peak Gold JV Contango's Share (30% basis) - Manh Choh Project | Metric | Q2-2025 | YTD-2025 | Unit | | :-------------------------------- | :---------- | :---------- | :--- | | Gold ounces sold | 17,764 | 35,146 | oz | | Silver ounces sold | 15,472 | 28,242 | oz | | Total gold sales | $58,157,337 | $109,384,105 | | | Total silver sales | $531,100 | $943,964 | | | Average realized spot gold price | $3,274 | $3,112 | per oz sold | | Average realized blended Carry Trade gold price | $2,441 | $2,385 | per oz sold | | Cash distributions received from Peak Gold JV | $30,000,000 | $54,000,000 | | [Costs and Guidance](index=2&type=section&id=Costs%20and%20Guidance) The project maintained competitive cash costs and AISC, with the latter seeing a slight increase due to planned capital expenditures, while reaffirming its 2025 gold production guidance Manh Choh Project Costs and Guidance | Metric | Q2-2025 | YTD-2025 | Unit | | :-------------------------------- | :---------- | :---------- | :--- | | Cash costs on By-Product Basis | $1,416 | $1,375 | per oz sold | | AISC on By-Product Basis | $1,548 | $1,461 | per oz sold | | 2025 Gold Production Guidance | N/A | 60,000 | oz | - The increase in AISC from Q1-2025 to Q2-2025 was primarily a result of sustaining capital expenditures on planned tractor replacements and the ongoing exploration drilling program at Manh Choh[5](index=5&type=chunk) [Development and Exploration Activities](index=2&type=section&id=Development%20and%20Exploration%20Activities) The Peak Gold JV successfully processed a significant volume of ore with high gold recovery, and Contango continued its permitting and baseline environmental work for future development - During Q2-2025, the Peak Gold JV (100% basis) processed **255,000 tons of ore** with an average grade of **0.220 oz per ton**, resulting in approximately **52,000 oz of recovered gold** (Contango's 30% share amounts to **15,700 oz**)[5](index=5&type=chunk) - The Company continued with ongoing work to permit the underground exploration drift and baseline environmental and engineering work for road and barge landing easements, with field crews starting at the end of July 2025[6](index=6&type=chunk) [Debt, Hedge Contracts, and Other Assets](index=3&type=section&id=Debt%2C%20Hedge%20Contracts%2C%20and%20Other%20Assets) The company actively managed its financial position through significant debt repayments, settlement of hedge contracts, and strategic acquisition of a new royalty, while maintaining a healthy cash balance [Debt Repayments](index=3&type=section&id=Debt%20Repayments) Contango made substantial repayments on its credit facility during and after Q2-2025, significantly reducing its outstanding principal balance - During Q2-2025, Contango repaid **$8.2 million** on its credit facility, reducing the outstanding principal balance by **21% to $30.1 million**[8](index=8&type=chunk) - Subsequent to period end, on July 11, 2025, an additional **$7 million** was repaid, further reducing the outstanding principal balance by **23% to $23.1 million**[8](index=8&type=chunk) [Hedge Contract Management](index=3&type=section&id=Hedge%20Contract%20Management) The company settled a "Carry Trade" hedge contract, reducing its overall hedge agreement balance - Contango settled a "Carry Trade" on July 31, 2025, involving **11,900 ounces of gold**, with a net payment of **$15.7 million** from Contango in exchange for the reduction of ounces under the hedge agreement[5](index=5&type=chunk)[8](index=8&type=chunk) - As of July 31, 2025, the remaining hedge agreement balance was **62,900 ounces**[8](index=8&type=chunk) [Marketable Securities and Royalties](index=3&type=section&id=Marketable%20Securities%20and%20Royalties) Contango holds a significant stake in Onyx Gold Corp. and recently acquired a new royalty, diversifying its asset base - The Company owns **5 million shares** in Onyx Gold Corp., valued at **Cdn$10.4 million** as of June 30, 2025, as a result of acquiring Highgold Mining Inc. in July 2024[8](index=8&type=chunk) - On July 1, 2025, Contango acquired an existing **0.5% net smelter return royalty** on the Lucky Shot project for **$250,000**[8](index=8&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) [About Contango ORE, Inc.](index=4&type=section&id=About%20Contango%20ORE%2C%20Inc.) Contango ORE, Inc. is a NYSE American-listed company focused on gold and associated mineral exploration in Alaska, holding significant interests in several key projects including the Manh Choh project - Contango is a NYSE American listed company engaged in exploration for gold and associated minerals in Alaska[10](index=10&type=chunk) - The Company holds a **30% interest** in the Peak Gold JV, which operates the Manh Choh project, with the remaining **70%** owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation[10](index=10&type=chunk) - Contango also holds leases on the Johnson Tract and Lucky Shot projects, and **100% interest** in approximately **153,600 acres** of State of Alaska mining claims[10](index=10&type=chunk) [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Contango will host a conference call and webcast on August 14, 2025, to discuss its second-quarter results - Contango will host a conference call and webcast to discuss the second quarter results on **Thursday, August 14, 2025, at 1:00pm EST / 10:00am PST**[9](index=9&type=chunk) - Participants may join the webcast using the link: https://6ix.com/event/contango-ore-q2-update[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note, highlighting that the press release contains forward-looking statements subject to various risks and uncertainties inherent in the mining industry, which could cause actual results to differ materially - This press release contains forward-looking statements intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995[11](index=11&type=chunk) - Forward-looking statements are based on current expectations, estimates, and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements[11](index=11&type=chunk) - Key risks include operational risks in exploration and mining, geological uncertainties, volatility of natural resources prices, availability and cost of financing, and potential delays or changes in government policies or approvals[11](index=11&type=chunk) [Contacts](index=5&type=section&id=Contacts) Provides contact information for Contango ORE, Inc. for further inquiries - Contact: Rick Van Nieuwenhuyse, President and CEO of Contango ORE, Inc[13](index=13&type=chunk) - Phone: (907) 888-4273[13](index=13&type=chunk) - Website: www.contangoore.com[13](index=13&type=chunk)

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial information, including statements and management's discussion and analysis [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025, including Balance Sheets, Statements of Operations, Cash Flows, and Stockholders' Equity, along with detailed explanatory notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total current assets** | 38,862,072 | 22,079,169 | | **Total long-term assets** | 114,275,611 | 111,813,094 | | **TOTAL ASSETS** | **153,137,683** | **133,892,263** | | **Total current liabilities** | 82,108,661 | 75,754,564 | | **Total non-current liabilities** | 73,420,399 | 56,865,054 | | **TOTAL LIABILITIES** | **155,529,060** | **132,619,618** | | **TOTAL STOCKHOLDERS' EQUITY/(DEFICIT)** | **(2,391,377)** | **1,272,645** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025 (USD)** | **2024 (USD)** | **2025 (USD)** | **2024 (USD)** | | **Total expenses** | (4,289,073) | (2,386,488) | (7,339,602) | (5,099,380) | | **Income/(loss) from equity investment in Peak Gold, LLC** | 27,326,184 | (695,633) | 49,646,218 | (835,886) | | **Total income/(loss) from operations** | 23,037,111 | (3,082,121) | 42,306,616 | (5,935,266) | | **Loss on derivative contracts** | (12,844,803) | (12,553,491) | (53,320,459) | (28,178,821) | | **NET INCOME/(LOSS)** | **15,924,865** | **(18,545,753)** | **(6,623,460)** | **(39,042,992)** | | **Basic EPS** | 1.26 | (1.90) | (0.55) | (4.03) | | **Diluted EPS** | 1.24 | (1.90) | (0.55) | (4.03) | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025 (USD)** | **2024 (USD)** | | **Net cash provided by (used in) operating activities** | 36,936,388 | (6,855,143) | | **Net cash used in investing activities** | (159,870) | (27,247,167) | | **Net cash provided by (used in) financing activities** | (20,532,250) | 42,718,270 | | **NET CHANGE IN CASH AND RESTRICTED CASH** | **16,244,268** | **8,615,960** | | **CASH AND RESTRICTED CASH, BEGINNING OF PERIOD** | 20,315,522 | 15,737,391 | | **CASH AND RESTRICTED CASH, END OF PERIOD** | **36,559,790** | **24,353,351** | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) This section details the unaudited condensed consolidated statements of stockholders' equity (deficit) for the periods presented - Total stockholders' deficit increased from a surplus of **$1.27 million** at the end of 2024 to a deficit of **$2.39 million** as of June 30, 2025, primarily driven by a net loss of **$6.62 million** for the six-month period, partially offset by stock-based compensation and common stock issuances[17](index=17&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the unaudited condensed consolidated financial statements, offering context and additional information - The company's Manh Choh Project is in the production stage, while all other projects are in the exploration stage, with the company holding a **30% interest** in the Peak Gold JV which operates the Manh Choh Project[19](index=19&type=chunk)[21](index=21&type=chunk) - As of June 30, 2025, the company has a working capital deficit of **$43.2 million**, but generated **$36.9 million** from operating activities and received **$54.0 million** in cash distributions from the Peak Gold JV, leading management to believe it has sufficient liquidity for the next twelve months[25](index=25&type=chunk) Investment in Peak Gold JV Roll-Forward | | Amount (USD) | | :--- | :--- | | **Investment balance at Dec 31, 2024** | **60,523,622** | | Distributions received from Peak Gold, LLC (H1 2025) | (54,000,000) | | Income from equity investment in Peak Gold, LLC (H1 2025) | 49,646,218 | | **Investment balance at June 30, 2025** | **56,169,840** | Peak Gold JV Net Income/(Loss) (100% Basis) | | Three Months Ended June 30, 2025 (USD) | Six Months Ended June 30, 2025 (USD) | | :--- | :--- | :--- | | **Revenue** | 195,062,829 | 363,292,223 | | **Gross profit** | 109,471,334 | 199,078,004 | | **Net Income** | 91,087,279 | 165,487,392 | Debt Summary (as of June 30, 2025) | Debt Instrument | Principal Amount (USD) | Debt, net (USD) | | :--- | :--- | :--- | | Secured Debt Facility | 30,100,000 | 28,884,007 | | Unsecured, Subordinated Convertible Debenture | 20,000,000 | 19,659,056 | | **Total Debt, net** | **50,100,000** | **48,543,063** | - The company has hedging agreements for the sale of an aggregate of **124,600 ounces of gold**, with **74,800 ounces** remaining to be delivered through June 2027 at a weighted average price of **$2,007 per ounce**[79](index=79&type=chunk)[80](index=80&type=chunk) Derivative Liability (Fair Value) | | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Derivative Liability - current** | 59,731,655 | 29,076,582 | | **Derivative Liability - noncurrent** | 40,542,862 | 28,615,525 | | **Total Derivative Liability** | **100,274,517** | **57,692,107** | - The company operates two segments: Peak Gold JV and Exploration, with the Peak Gold JV segment generating **$49.6 million** in equity investment income and the Exploration segment incurring **$1.5 million** in expenses for the six months ended June 30, 2025[105](index=105&type=chunk)[106](index=106&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, comparing the three and six months ended June 30, 2025, to the same periods in 2024, covering project highlights, operational analysis, liquidity, and non-GAAP measures - The Manh Choh Project commenced ore processing in July 2024, and the company received **$54.0 million** in cash distributions from the Peak Gold JV in the first half of 2025[117](index=117&type=chunk) Manh Choh Production (Contango's 30% Share) | Period | Recovered Gold (oz) | Gold Delivered to Contango (oz) | | :--- | :--- | :--- | | **Q1 2025** | 19,500 | 17,382 | | **Q2 2025** | 15,700 | 17,764 | - An Initial Assessment for the Johnson Tract Project outlined a potential seven-year mine life with a post-tax NPV5 of **$224.5 million** and an IRR of **30.2%**, based on an All-In Sustaining Cost (AISC) of **$860 per gold equivalent ounce**[121](index=121&type=chunk)[128](index=128&type=chunk) Comparison of Results of Operations (Six Months Ended June 30) | | 2025 (Millions USD) | 2024 (Millions USD) | Change (Millions USD) | | :--- | :--- | :--- | :--- | | **Exploration Expense** | 1.5 | 0.1 | +1.4 | | **General & Admin Expense** | 5.6 | 4.7 | +0.9 | | **Income/(Loss) from Peak Gold JV** | 49.6 | (0.8) | +50.4 | | **Loss on Derivative Contracts** | (53.3) | (28.2) | +(25.1) | | **Net Loss** | (6.6) | (39.0) | +32.4 | - As of June 30, 2025, the company had **$36.5 million** in cash, and management anticipates probable distributions from the Peak Gold JV will provide sufficient liquidity for working capital and debt repayment obligations over the next twelve months[154](index=154&type=chunk)[157](index=157&type=chunk) Peak Gold JV Non-GAAP Costs per Ounce Sold (H1 2025) | Metric | Amount per Ounce (USD) | | :--- | :--- | | **Cash Cost on a By-product Basis** | 1,375 | | **AISC on a By-product Basis** | 1,462 | [Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company, classified as a "smaller reporting company," is exempt from the requirement to provide quantitative and qualitative disclosures about market risk - As a "smaller reporting company," the Company is not required to provide this information[162](index=162&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[163](index=163&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[164](index=164&type=chunk) [PART II – OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information beyond the financial statements, including legal proceedings, risk factors, and other disclosures [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section details legal challenges related to the Manh Choh and Johnson Tract projects, with dismissals for Manh Choh complaints and a new challenge to the Johnson Tract project's Clean Water Act permit where the company is intervening - The lawsuit filed by the Committee for Safe Communities regarding the Manh Choh ore haul plan was dismissed in May 2025[167](index=167&type=chunk) - The complaint from the Village of Dot Lake against the U.S. Army Corps of Engineers concerning a wetlands permit for the Manh Choh mine was dismissed in July 2025[168](index=168&type=chunk) - A lawsuit has been filed by several groups challenging the Clean Water Act Section 404 permit for the Johnson Tract project, and the company has filed a motion to intervene as a defendant to protect its legal rights and significant investment[169](index=169&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's risk factors from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period covered by this report - None[171](index=171&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company is not required to provide mine safety disclosures because it does not operate the Manh Choh mine, and all its other projects are in the exploration stage, thus not subject to MSHA regulation - The Company does not operate the Manh Choh mine and its other projects are in the exploration stage, therefore its operations were not subject to MSHA regulation, and no disclosure is required[173](index=173&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During the six months ended June 30, 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the six months ended June 30, 2025[174](index=174&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed as part of the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and financial statements formatted in Inline XBRL - The exhibits filed with this Form 10-Q include CEO and CFO certifications pursuant to Rules 13a-14, 15d-14, and 18 U.S.C. 1350, as well as financial statements formatted in Inline XBRL[177](index=177&type=chunk)

Core Viewpoint - Contango ORE, Inc. reported significant improvements in its financial performance for Q2-2025 compared to Q2-2024, including record net income and increased gold production [2][3]. Financial Performance - Total income for operations in Q2-2025 was $23.0 million, a turnaround from a loss of $3.1 million in Q2-2024 [3]. - Net income for Q2-2025 reached $15.9 million, or $1.26 per issued share, compared to a net loss of $18.5 million, or a loss of $1.90 per issued share in Q2-2024 [3]. - Cash costs per ounce of gold sold were $1,416, while all-in-sustaining costs (AISC) were $1,548, both below the 2025 target of $1,625 per ounce [2][3]. Production and Sales - The company sold 17,764 ounces of gold in Q2-2025, with a total of 35,146 ounces sold year-to-date [5]. - The third production campaign is set to begin on August 14, 2025, with an expected output of 15,000 ounces of gold [2]. Cash Flow and Investments - Net cash provided from operating activities for the six months ended June 30, 2025, was $36.9 million, a significant increase from a net cash used of $6.9 million in the same period of 2024 [4]. - Cash used in investing activities was $159,870 for YTD-2025, compared to $27.2 million in YTD-2024, primarily for the Peak Gold JV [4]. Debt and Financing - The company repaid $8.2 million on its credit facility during Q2-2025, reducing the outstanding principal balance by 21% to $30.1 million [12]. - Subsequent to the period end, an additional $7 million was repaid, further reducing the balance to $23.1 million [12]. Project Updates - The Peak Gold JV processed 255,000 tons of ore in Q2-2025, with an average grade of 0.220 ounces per ton, resulting in approximately 52,000 ounces of recovered gold [12]. - The company is actively working on permitting for underground exploration and environmental assessments for the Manh Choh project [8]. Shareholder Returns - Cash distributions received from the Peak Gold JV amounted to $30 million in Q2-2025 [12]. - The company's unrestricted cash position as of June 30, 2025, was $36.5 million, up from $20.1 million at the end of 2024 [4][12]. Additional Information - Contango holds a 30% interest in the Peak Gold JV, which encompasses approximately 675,000 acres for exploration and development [11]. - The company also owns various mining claims and leases in Alaska, enhancing its exploration capabilities [11].

Core Insights - Contango Ore, Inc. (CTGO) is expected to report a loss of $0.01 per share for Q2 2025, an improvement from the $1.90 loss per share reported in the same quarter last year [1][6] Financial Performance - The Zacks Consensus Estimate for CTGO's Q2 2025 results has remained unchanged over the past 60 days [1] - CTGO's earnings surprise history shows that the company has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 276.02% [4][5] - The company delivered 17,764 ounces of gold, generating $58.16 million in sales at a spot price of $3,274 per ounce [10][11] Production and Costs - During Q2, the Peak Gold Joint Venture processed 255,000 tons of ore, yielding approximately 52,000 ounces of recovered gold, of which CTGO's share was 15,700 ounces [10] - The All-In Sustaining Costs (AISC) rose to $1,548 per ounce due to capital expenditures and exploration drilling, although it remains below the 2025 target of $1,625 per ounce [11] - General and administrative expenses are expected to have increased due to legal, regulatory, and payroll costs, contributing to the anticipated quarterly loss [12] Stock Performance - CTGO shares have increased by 122.8% year-to-date, significantly outperforming the industry average growth of 17.8% [13]

Core Insights - Contango ORE, Inc. announced a cash distribution of $21 million from the Peak Gold JV, totaling $54 million received year-to-date [1] - The Peak Gold JV has produced approximately 36,000 ounces of gold for Contango's account in 2025, with a third campaign set to begin in August [1] - The company expects cash distributions from the Peak Gold JV to exceed $95 million for 2025, based on a projected gold price of $3,100 per ounce for the remainder of the year [2] Financial Performance - The company's guidance for its 30% share of the Peak Gold JV's 2025 production remains at 60,000 ounces of gold, with an average annual production of 58,750 ounces expected until 2029 [2] - All-in sustaining costs (AISC) are estimated at $1,400 per ounce of gold sold [2] - The company plans to early pay $7 million of principal against its credit facility, reducing the balance to $23 million [2] Operational Updates - The Peak Gold JV has completed the second of four campaigns in 2025 [1] - The company has early delivered 11,900 ounces of gold into hedge contracts, reducing the current hedge contract balance to 62,900 ounces [2] - Remaining hedges at the end of 2025 are anticipated to be 43,000 ounces [2] Company Overview - Contango holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres for exploration and development [3] - The remaining 70% of the Peak Gold JV is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [3] - The company also has 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. (CTGO) shows significant potential for upside, with a current trading price of $21.30 and a mean price target of $29.33, indicating a 37.7% upside potential [1] Price Targets and Analyst Consensus - The average price target for CTGO ranges from a low of $26.00 to a high of $32.00, with a standard deviation of $3.06, suggesting a relatively tight clustering of estimates [2] - The lowest estimate indicates a potential increase of 22.1%, while the highest suggests a 50.2% upside [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about CTGO's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher [11] - The Zacks Consensus Estimate for the current year has increased by 176.9% over the past month, with one estimate rising and no negative revisions [12] - CTGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [13] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the magnitude of potential gains, it does provide a useful guide for the direction of price movement [14]