tango ORE(CTGO) - 2025 Q4 - Annual Results

Q2-2025 Financial and Operational Highlights 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][3] - 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] Financial Performance Overview Statement of Operations (Q2-2025 vs Q2-2024) 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) 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] - 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] - 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][5] Operational Updates Manh Choh Project 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 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 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] Development and Exploration Activities 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] - 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] Debt, Hedge Contracts, and Other Assets 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 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] - 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] Hedge Contract Management 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][8] - As of July 31, 2025, the remaining hedge agreement balance was 62,900 ounces[8] Marketable Securities and Royalties 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] - On July 1, 2025, Contango acquired an existing 0.5% net smelter return royalty on the Lucky Shot project for $250,000[8] Corporate Information About Contango ORE, Inc. 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] - 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] - 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] Conference Call and Webcast 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] - Participants may join the webcast using the link: https://6ix.com/event/contango-ore-q2-update[9](index=9&type=chunk) Forward-Looking Statements 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] - 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] - 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] Contacts Provides contact information for Contango ORE, Inc. for further inquiries - Contact: Rick Van Nieuwenhuyse, President and CEO of Contango ORE, Inc[13] - Phone: (907) 888-4273[13] - Website: www.contangoore.com[13](index=13&type=chunk)