Contango Announces $19.3 Million in Income from Operations for the Quarter Ended March 31, 2025

Core Viewpoint - Contango ORE, Inc. reported significant improvements in its financial performance for Q1-2025 compared to Q1-2024, with total income from operations of $19.3 million and a net loss of $22.3 million, primarily due to non-cash expenses related to derivative contracts [2][8]. Financial Performance - Total income for operations in Q1-2025 was $19.3 million, a substantial increase from a loss of $2.9 million in Q1-2024 [2]. - The net loss for Q1-2025 was $22.3 million, which included a non-cash expense of $40.5 million from an unrealized loss on derivative contracts [2][8]. - The unrestricted cash position as of March 31, 2025, was $35.0 million, up from $20.1 million as of December 31, 2024 [2]. Gold Production and Costs - Contango sold 17,382 ounces of gold in Q1-2025, with cash costs on a by-product basis of $1,334 per ounce and all-in-sustaining costs (AISC) of $1,374 per ounce [2][11]. - The company’s share of gold production from the Peak Gold JV is expected to reach 60,000 ounces in 2025, with a life-of-mine average annual production estimated at 58,750 ounces per year until 2029 [4]. Cash Flow and Investments - Net cash provided from operating activities was $28.6 million for Q1-2025, a significant improvement from a net cash used of $4.4 million in Q1-2024 [7]. - Cash used in investing activities was zero for Q1-2025, compared to $15.5 million in Q1-2024, which was related to development costs for the Peak Gold JV [7]. Legal and Regulatory Developments - The Committee for Safe Communities dismissed their lawsuit against the State of Alaska DOT regarding trucking ore from Manh Choh to Fort Knox, which is expected to have favorable impacts on the project [5]. Project Updates - The Technical Report Summary on the Johnson Tract Project indicates robust economics with a net present value (NPV) exceeding $400 million at current gold prices, supporting the potential for a seven-year underground mining operation [6][14]. - The Peak Gold JV processed 323,000 tons of ore in Q1-2025, yielding approximately 65,000 ounces of recovered gold, of which Contango's share was 19,500 ounces [11].