Contango Announces Record High $25 Million in Income from Operations and Cash Position of $107 Million for the Quarter Ended September 30, 2025

Core Viewpoint - Contango ORE, Inc. reported strong financial performance in Q3-2025, with record income and production levels, while also outlining future production and exploration plans [2][3][4]. Financial Performance - Total income from operations for Q3-2025 was $25 million, an increase from $22.7 million in Q3-2024 [3]. - Adjusted net income for Q3-2025 was $24.9 million, compared to $19.1 million in Q3-2024 [3]. - The company reported a net loss of $5.4 million for Q3-2025, an improvement from a net loss of $9.7 million in Q3-2024 [3]. - Cash costs per ounce sold were $1,402, and all-in-sustaining costs were $1,597, both below the 2025 target of $1,625 [2][3]. Production and Sales - Contango sold 16,669 ounces of gold in Q3-2025, with a total of 17,057 ounces produced [5][13]. - Year-to-date gold production reached 52,020 ounces, with total gold sales amounting to approximately $170.2 million [5]. - The company expects Q4-2025 production to be between 6,000 and 8,000 ounces due to seasonal conditions [2]. Cash Flow and Financial Position - Net cash provided from operating activities for the nine months ended September 30, 2025, was $60.2 million, significantly up from $10.6 million in the same period of 2024 [4]. - The unrestricted cash position as of September 30, 2025, was $107 million, compared to $20.1 million at the end of 2024 [4][14]. - Cash distributions received from the Peak Gold JV amounted to $87 million year-to-date [4][5]. Exploration and Future Plans - A drill rig is being mobilized for a 15,000-meter underground drilling program at the Lucky Shot mine, with results expected in Q1 2026 [9]. - The Lucky Shot project aims to produce 30,000 to 40,000 ounces of gold annually using a Direct Shipping Ore approach, with a feasibility study expected to be completed in 12 to 18 months [9]. - Ongoing work at the Johnson Tract project includes permitting for underground exploration and environmental assessments [10]. Debt and Financing - The company repaid $7 million on its credit facility during Q3-2025, reducing the outstanding balance to $23.1 million [14]. - Subsequent to the period end, an additional $8.5 million was repaid, further lowering the balance to $14.6 million [14]. - Contango raised gross proceeds of $50 million through an equity offering, issuing 1,975,000 shares at a public offering price of $20.00 per share [14].