Contango Announces Earnings for the Quarter Ended September 30, 2024

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].