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]

Core Viewpoint - Contango ORE, Inc. has successfully completed its second production campaign in 2025, achieving a production of approximately 15,700 ounces of gold, exceeding initial guidance and anticipating significant cash distributions from the Peak Gold JV [1][3]. Production Details - The Peak Gold JV processed 255,000 tons of ore from May 13 to June 7, 2025, with an average grade of 0.220 ounces per ton, resulting in approximately 56,000 ounces of gold [2]. - Gold recovery averaged 93%, leading to approximately 52,000 ounces of recovered gold, with Contango's share being about 15,700 ounces [2]. - As of the release date, the company has sold 7,200 ounces of gold from this campaign, with further sales expected throughout June [2]. Financial Expectations - The company expects cash distributions from the Peak Gold JV to exceed $93 million for 2025, based on a projected gold price of $3,200 per ounce for the second half of the year [3]. - The all-in sustaining costs for the second campaign are anticipated to be lower than the first campaign's costs of $1,374 per ounce sold [3]. Operational Insights - Mill throughput averaged 10,122 tons per day, which is 17% above plan and approximately 25% higher than the first campaign of 2025 [3]. - The company maintains a production guidance of 60,000 ounces of gold for its 30% share in the Peak Gold JV for 2025, with an expected average annual production of 58,750 ounces from 2025 to 2029 [3]. Company Overview - Contango ORE, Inc. is engaged in gold exploration in Alaska, holding a 30% interest in the Peak Gold JV, which covers approximately 675,000 acres for exploration and development [4].

Core Points - Contango ORE, Inc. held its annual meeting of stockholders on June 10, 2025, where directors were elected to serve until the 2026 annual meeting [1] - Stockholders approved the ratification of Moss Adams LLP as independent auditors for the fiscal year ending December 31, 2025, and the non-binding advisory approval of executive compensation [3] Company Overview - Contango ORE, Inc. is listed on NYSE American and focuses on gold and associated minerals exploration in Alaska [1] - The company holds a 30% interest in the Peak Gold Joint Venture (JV), which leases approximately 675,000 acres for exploration and development on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [1] - Contango also has leases on the Johnson Tract and Lucky Shot projects, along with 100% ownership of approximately 8,600 acres of peripheral mining claims and a 100% interest in about 145,000 acres of State of Alaska mining claims [1]

Core Viewpoint - Contango ORE, Inc. (CTGO) is showing strong technical indicators, particularly a "golden cross," which suggests a potential bullish breakout for investors [1][2]. Technical Analysis - CTGO's 50-day simple moving average has recently crossed above its 200-day moving average, indicating a bullish trend [1]. - A golden cross typically follows a downtrend, signaling a trend reversal and potential for continued price increases [2]. Performance Metrics - CTGO has experienced a significant price increase of 47.4% over the last four weeks, indicating strong momentum [3]. - The company holds a 1 (Strong Buy) rating on the Zacks Rank, reflecting positive investor sentiment [3]. Earnings Outlook - There has been one upward revision in earnings estimates for CTGO in the past 60 days, with no downward revisions, suggesting a positive earnings outlook for the current quarter [3]. - The Zacks Consensus Estimate for CTGO has also increased, further supporting the bullish case for the company [4].

Group 1 - Contango ORE, Inc. (CTGO) closed at $20.27, with a 45.4% gain over the past four weeks, and a mean price target of $29.33 suggests a 44.7% upside potential [1] - The average price target ranges from a low of $26 to a high of $32, with a standard deviation of $3.06, indicating a potential increase of 28.3% to 57.9% from the current price [2] - Analysts show strong agreement on CTGO's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for CTGO's current year earnings has increased by 176.9% over the last 30 days, with 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 estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement, which appears to be a good guide for potential upside [13]

Financial Data and Key Metrics Changes - The company reported $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, reflecting a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts [3][4] - Cash costs were approximately $13.34 per ounce of gold sold, with an all-in sustaining cost (AISC) of $13.74 per ounce [4] - The company ended the quarter with $35 million in cash and marketable securities valued at about $900,000, which increased to approximately $4 million post-quarter [5] Business Line Data and Key Metrics Changes - At the Mancho operations, over 17,000 ounces of gold were sold, with an additional 3,800 ounces in recoverable inventory [4] - The company maintained its guidance for 2025 at 60,000 ounces of gold with an AISC of about $16.25, anticipating an increase in AISC due to rising sustaining capital and an exploration drill program costing $5.7 million [4][28] Market Data and Key Metrics Changes - Gold prices increased from $2,600 at the beginning of the year to around $3,100 by the end of the quarter, impacting the company's hedge liabilities [3] Company Strategy and Development Direction - The company is focused on managing its hedge obligations while balancing the benefits of spot prices, with a current strategy of selling 30% of gold at spot prices and 70% into hedges [34][36] - The company plans to continue paying down debt and delivering into hedges, with expectations of being unhedged in the near future [36][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced in Q1 compared to plans [9] - The dismissal of a lawsuit against the company was viewed positively, as it supports the project and the mining industry in Alaska [20][23] - The company anticipates a strong cash flow from Mancho for the next four years, contingent on stable gold prices [66] Other Important Information - The company is in the process of permitting an underground access tunnel for the Johnson Track project, which is expected to take about a year [40][41] - The company is exploring potential drilling at the Lucky Shot site and evaluating other projects to extend mine life and improve resource grades [47][49] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted to a carry trade approach to better manage cash flow, allowing them to sell gold at spot prices while managing hedge obligations [11][12] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million Canadian, providing an additional source of capital [15][16] Question: What are the capital allocation priorities for the remainder of the year? - The focus will be on paying down debt, delivering into hedges, and potentially funding a drill program at Lucky Shot [45][46] Question: What is the expected balance on the facility by the end of the year? - The facility is expected to be around $15 million by year-end [24] Question: Are there any active takeover bids for Contango? - Management is not aware of any active takeover bids at this time [80]

Financial Data and Key Metrics Changes - The company recorded $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, resulting in a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts [3][4] - Cash costs were approximately $13.34 per ounce of gold sold, with an all-in sustaining cost (AISC) of $13.74 per ounce [4] - The company ended the quarter with $35 million in cash and marketable securities valued at about $900,000, which increased to approximately $4 million post-quarter [5] Business Line Data and Key Metrics Changes - At the Mancho operations, over 17,000 ounces of gold were sold, with an additional 3,800 ounces in recoverable inventory [4] - The company maintained its guidance for 2025 at 60,000 ounces of gold with an AISC of about $1,625, expecting AISC to increase in later quarters due to rising sustaining capital [4][29] Market Data and Key Metrics Changes - Gold prices increased from $2,600 at the beginning of the year to around $3,100 by the end of the quarter, impacting the company's hedge liabilities [3][6] Company Strategy and Development Direction - The company is focused on managing cash flow through a carry trade strategy, allowing it to sell gold at spot prices while managing hedge obligations [15][36] - The management emphasized the importance of continuing to deliver into hedges and paying down debt, with a target to finish the year with approximately $15 million in facility balance [25][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced compared to plans for Q1 [11][12] - The dismissal of a lawsuit against the company was viewed positively, as it supports the Mancho project and mining operations in Alaska [21][24] - The company plans to focus on permitting the Johnson Track project, with expectations of a year-long process for the tunnel permit [42][43] Other Important Information - The company is currently selling 30% of its gold at spot prices and 70% into hedges, with plans to manage this ratio effectively [36] - The management highlighted the potential for a significant balance sheet transformation as debt is reduced and production increases [90] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted its approach to better manage cash flow through carry trades, allowing for gold sales at spot prices while settling hedges in cash [15][16] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million, providing an additional source of capital [18][19] Question: What is the impact of the dismissed lawsuit? - The dismissal of the lawsuit is seen as beneficial for the Mancho project and for mining in Alaska, reducing regulatory hurdles [21][24] Question: What are the capital allocation priorities for the remainder of the year? - The focus will be on paying down debt, delivering into hedges, and potentially reviewing budgets for exploration programs [47][48] Question: What are the next key milestones for the Johnson Track project? - The next stage involves permitting the underground access tunnel, expected to take about a year [42][43] Question: Will the derivative liability decline significantly? - The hedge liability is expected to decrease significantly, potentially halving by the end of the year if gold prices remain stable [90]