Contango Announces Earnings for the Year Ended December 31, 2024

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].