#United States #Contango ORE #Peak Gold JV #Manh Choh #Fairbanks

Overview of Contango ORE's Financial Year 2024

On March 17, 2025, Contango ORE, Inc., also known simply as Contango, released its earnings report detailing the financial performance for the fiscal year ending December 31, 2024. The results, which were publicly filed in their Form 10-K with the Securities and Exchange Commission, highlighted significant production success and ongoing financial strategies aimed at debt reduction and mining expansion.

Key Financial Highlights

As of the end of FY2024, the company reported an unrestricted cash balance of $20.1 million, an increase from $15.5 million the previous year. Despite this positive cash position, Contango faced a net loss of $38.0 million, which was affected by a non-cash expense of $34.3 million attributed to unrealized losses on derivative contracts. The total revenue for operations in that year was $26.3 million.

Rick Van Nieuwenhuyse, the company’s President and CEO, stated that the production at the Manh Choh mine exceeded expectations, with 41,325 ounces of gold produced attributable to their 30% ownership. The average cash cost of production was reported at $1,209 per ounce, with sales fetching an encouraging average price of $2,281 per ounce.

Production and Future Guidance

The next campaign in 2025 is projected to produce between 15,000 and 18,000 ounces of gold, with an overall target of 60,000 ounces across four campaigns in 2025. Van Nieuwenhuyse mentioned that over 30% of net gold production in both 2025 and 2026 will be directly tied to spot gold prices, ensuring robust cash flow stability as the mine continues operations.

In terms of cost and financial responsibilities, Contango has made significant strides in reducing its credit facility obligations. The company reported a 36% reduction, bringing the outstanding balance down to $38.3 million as of familiarizing themselves through securing better terms on hedge contracts.

Innovations and Developments in Johnson Tract

On July 10, 2024, Contango successfully acquired 100% equity interests of HighGold Mining Inc., further solidifying its expansion strategy within Johnson Tract. Investments have been geared towards completing a 3,000-meter surface drilling campaign to enhance resource estimation and support permitting and engineering operations. The company also received the necessary 404 permit to construct a 2.6-mile access road, easing logistical operations for future mining endeavors.

Outlook and Future Strategies

Looking ahead, the commitment to expedite debt repayment and enhance production efficiency remains a central theme for Contango. This strategy involves actively managing the hedge contracts to safeguard against market fluctuations while ensuring operational continuity at the Manh Choh mine and exploring development opportunities at the Johnson Tract.

Analysts and investors are optimistic towards the semi-annual conference call scheduled for March 17, 2025, where Contango will elaborate on its strategic vision and operational updates,

Conclusion

In conclusion, while Contango ORE, Inc. faced challenges in FY2024, their proactive strategies and commitment to debt reduction and production growth set a strong foundation for future operational success. Stakeholders and interested parties are looking forward to further developments in upcoming fiscal periods.