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

Contango ORE Achieves Noteworthy Financial Milestones in Q3 2025

Contango ORE, Inc., a publicly traded company on NYSE American (CTGO), made headlines on November 13, 2025, when it announced a record-breaking income of $25 million from operations for the third quarter of 2025, which ended on September 30. The company also revealed a strong cash position totaling $107 million, showcasing its robust financial health amid the ongoing challenges in the mining sector.

Rick Van Nieuwenhuyse, President and CEO of Contango, shared positive insights regarding the quarterly performance. He noted that production levels exceeded forecasts and expressed excitement about the company's prospects in the coming months. In total, Contango sold 16,669 ounces of gold during this quarter, achieving impressive cash costs per ounce sold at $1,402 and all-in sustaining costs at $1,597, undercutting their target of $1,625 for the year.

Strong Performance Despite Market Challenges

The results for the third quarter demonstrated a marked improvement over the previous year. Total income from operations rose from $22.7 million in Q3 2024 to the current $25 million in Q3 2025. Adjusted net income also surged, moving from $19.1 million last year to $24.9 million in the latest reporting period. Despite facing a net loss of $5.4 million, which reflects a reduction in the unrealized loss on derivative contracts, the overall financial indicators remain positive, demonstrating Contango's effective management strategies.

Contango attributes its successful quarter to robust production at the Manh Choh mine and a significant inflow of cash distributions totaling $87 million from their joint venture in Peak Gold. The company's ongoing operational efficiencies have allowed for sustained profitability even amidst fluctuations in gold prices, consolidating their position as a leader in the mining sector.

Upcoming Production Campaign

Looking ahead, Contango is gearing up for its fourth production campaign of 2025, set to commence on November 19. This campaign is expected to bring lower production volumes due to the shorter operational timeframe as winter approaches. The guidance provided indicates a production range of 6,000 to 8,000 ounces of gold for Contango's 30% share. Included in the upcoming campaign is a test batch from the Manh Choh ore, which is blended with ore from Fort Knox, promising an additional contribution of approximately 1,300 gold ounces following successful processing.

In addition to the upcoming campaign, Contango is also mobilizing resources for an underground drilling program at the Lucky Shot mine site. This phase, consisting of 15,000 meters of drilling, is set to begin soon, with the first assay results anticipated early in 2026. The continual investment in exploration and facilities reflects Contango's commitment to expanding its operational capacity and securing future growth opportunities.

Financial Strategy and Future Outlook

Further enhancing its operational capabilities, Contango has been active in managing debts and financial commitments. As of September 30, 2025, the company repaid $7 million of its credit facility, demonstrating prudent financial management. Subsequent repayments have reduced outstanding debts, ensuring better financial flexibility and stability going forward.

Even as global economic conditions present potential challenges, Contango remains committed to its long-term vision, aiming for sustainable production targets of 30,000 to 40,000 gold ounces annually at the Lucky Shot project. A feasibility study is slated for completion within the next 12 to 18 months, with production decisions expected in 2027.

Overall, Contango ORE's recent quarter highlights robust operational performance, effective financial management, and forward-looking exploration strategies. The commitment to operational excellence and financial prudence sets a solid foundation for the company's growth trajectory in the competitive mining sector.