Contango Announces $21.0 Million Cash Distribution from the Peak Gold JV for Production from Campaign #2-2025

Core Insights - Contango ORE, Inc. announced a cash distribution of $21 million from the Peak Gold JV, totaling $54 million received year-to-date [1] - The Peak Gold JV has produced approximately 36,000 ounces of gold for Contango's account in 2025, with a third campaign set to begin in August [1] - The company expects cash distributions from the Peak Gold JV to exceed $95 million for 2025, based on a projected gold price of $3,100 per ounce for the remainder of the year [2] Financial Performance - The company's guidance for its 30% share of the Peak Gold JV's 2025 production remains at 60,000 ounces of gold, with an average annual production of 58,750 ounces expected until 2029 [2] - All-in sustaining costs (AISC) are estimated at $1,400 per ounce of gold sold [2] - The company plans to early pay $7 million of principal against its credit facility, reducing the balance to $23 million [2] Operational Updates - The Peak Gold JV has completed the second of four campaigns in 2025 [1] - The company has early delivered 11,900 ounces of gold into hedge contracts, reducing the current hedge contract balance to 62,900 ounces [2] - Remaining hedges at the end of 2025 are anticipated to be 43,000 ounces [2] Company Overview - Contango holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres for exploration and development [3] - The remaining 70% of the Peak Gold JV is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [3] - The company also has leases on the Johnson Tract and Lucky Shot projects, along with 100% ownership of additional mining claims in Alaska [3]