Contango Announces $24.0 Million in Cash Distribution from the Peak Gold JV and Completion of First Campaign of 2025

Core Insights - Contango ORE, Inc. announced cash distributions of $24 million from the Peak Gold JV in Q1-2025, consisting of $9 million from 2024 production and $15 million from the first half of Campaign 1-2025 [1][2][3] - The first campaign of 2025 processed 323,000 tons of ore with an average grade of 0.215 ounces per ton, resulting in approximately 65,000 ounces of recovered gold, of which Contango's share is about 19,500 ounces [2][3] - Cash distributions for 2025 are now expected to increase to $80 million based on a $2,800 per ounce spot gold price, which will be used to strengthen cash position, reduce debt, and fulfill hedge contracts [3] Financial Performance - The Peak Gold JV processed 323,000 tons of ore, exceeding the planned 275,000 tons, with gold recovery averaging 93.5% [2][3] - Contango's share of production for Campaign 1-2025 was approximately 19,500 ounces, surpassing the original guidance of 15,000 to 18,000 ounces [3] - The company plans to report results for the first campaign of 2025 alongside Q1-2025 financial results in May 2025 [3] Future Outlook - Ore processing for the second campaign of 2025 is scheduled for May 2025, with guidance for Contango's share of the Peak Gold JV's 2025 production remaining at 60,000 ounces [3] - Life-of-mine average annual production is expected to be 58,750 ounces per year through 2029, with all-in sustaining costs estimated at $1,400 per ounce [3] - The company continues to advance permitting activities and preliminary economic assessments on the Johnson Tract project [3]