Contango Announces Record High $23.0 Million in Income from Operations and $15.9 Million in Net Income for the Quarter Ended June 30, 2025

Core Viewpoint - Contango ORE, Inc. reported significant improvements in its financial performance for Q2-2025 compared to Q2-2024, including record net income and increased gold production [2][3]. Financial Performance - Total income for operations in Q2-2025 was $23.0 million, a turnaround from a loss of $3.1 million in Q2-2024 [3]. - Net income for Q2-2025 reached $15.9 million, or $1.26 per issued share, compared to a net loss of $18.5 million, or a loss of $1.90 per issued share in Q2-2024 [3]. - Cash costs per ounce of gold sold were $1,416, while all-in-sustaining costs (AISC) were $1,548, both below the 2025 target of $1,625 per ounce [2][3]. Production and Sales - The company sold 17,764 ounces of gold in Q2-2025, with a total of 35,146 ounces sold year-to-date [5]. - The third production campaign is set to begin on August 14, 2025, with an expected output of 15,000 ounces of gold [2]. Cash Flow and Investments - Net cash provided from operating activities for the six months ended June 30, 2025, was $36.9 million, a significant increase from a net cash used of $6.9 million in the same period of 2024 [4]. - Cash used in investing activities was $159,870 for YTD-2025, compared to $27.2 million in YTD-2024, primarily for the Peak Gold JV [4]. Debt and Financing - The company repaid $8.2 million on its credit facility during Q2-2025, reducing the outstanding principal balance by 21% to $30.1 million [12]. - Subsequent to the period end, an additional $7 million was repaid, further reducing the balance to $23.1 million [12]. Project Updates - The Peak Gold JV processed 255,000 tons of ore in Q2-2025, with an average grade of 0.220 ounces per ton, resulting in approximately 52,000 ounces of recovered gold [12]. - The company is actively working on permitting for underground exploration and environmental assessments for the Manh Choh project [8]. Shareholder Returns - Cash distributions received from the Peak Gold JV amounted to $30 million in Q2-2025 [12]. - The company's unrestricted cash position as of June 30, 2025, was $36.5 million, up from $20.1 million at the end of 2024 [4][12]. Additional Information - Contango holds a 30% interest in the Peak Gold JV, which encompasses approximately 675,000 acres for exploration and development [11]. - The company also owns various mining claims and leases in Alaska, enhancing its exploration capabilities [11].