Contango Announces Production of 17,000 ounces of Gold and $33 Million Cash Distribution from Campaign 3-2025 from the Peak Gold JV

Core Insights - Contango ORE, Inc. has successfully completed its third production campaign for 2025, yielding approximately 17,000 ounces of gold, exceeding initial guidance of 15,000 ounces [1][2] - The Peak Gold JV has distributed a total of $87 million in cash to Contango year-to-date, with expectations of exceeding $100 million in cash distributions for 2025 [1][5] - The company is actively reducing its debt and hedge contracts, with a current outstanding debt of $14.6 million after an early repayment of $8.5 million [3][4] Production and Financial Performance - Campaign 3-2025 processed about 287,000 tons of ore with an average grade of 0.214 ounces per ton, resulting in a gold recovery rate of 92.5% [1][2] - The Peak Gold JV's cash distribution to Contango for this campaign was $33 million, contributing to a strong cash flow position [1][5] - The company anticipates using the higher-than-expected cash flow to strengthen its cash position and further reduce debt [6] Future Plans and Developments - Contango aims to triple its annual production from 60,000 ounces to 200,000 gold equivalent ounces over the next five years, funded internally [4] - The company is preparing for a 15,000-meter underground drill program at the Lucky Shot project, expected to commence by the end of October 2025 [4] - The Johnson Tract project is progressing through the permitting stage, with plans to report on developments once permits are secured [4] Strategic Initiatives - A test campaign is underway to evaluate the blending of low-grade Manh Choh ore with standard Fort Knox ore to optimize processing costs [2] - The company is focused on delivering exceptional shareholder returns by executing a robust growth strategy [4] - The dismissal of a lawsuit against the US Army Corps of Engineers related to the Manh Choh project is seen as a favorable development [4]