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

Contango ORE's Q2 2025 Production Report

Contango ORE, Inc. (NYSE American: CTGO) recently provided an update on its production results for the second quarter ended June 30, 2025, particularly focusing on its Peak Gold Joint Venture (JV). The company noted strong performance across various key metrics, showcasing an ongoing trend of exceeding production guidance and maintaining cost efficiency.

Production Highlights

During Q2 2025, Contango recorded 17,764 ounces of gold sold. This amounted to 35,146 ounces for the year-to-date (YTD) figures. In parallel, the silver production reached 15,472 ounces, contributing to total sales of approximately $58.16 million in gold and $531,100 in silver. The recoverable gold inventory stood at 750 ounces at the end of the quarter, indicating a healthy pipeline for future sales.

Cost Efficiency

Contango achieved remarkable cash costs of $1,416 per ounce of gold sold, with an all-in sustaining cost (AISC) of $1,548 per ounce. Both figures were notably below the initial 2025 target of $1,625 per ounce. The efficiency in cost management reflects the company's commitment to maintaining productive operations while effectively controlling expenses. Continuous improvements in operational practices have allowed Contango to keep cash and AISC lower than industry expectations.

Hedge and Financial Overview

Of particular note is the Carry Trade, where the company delivered 11,900 ounces of gold under hedge contracts, subsequently reducing its hedge balance to 62,900 ounces as of the release date. The company anticipates strong financial performance for the remainder of 2025, expecting total cash distributions from the Peak Gold JV to surpass $95 million, assuming a spot gold price of $3,100 per ounce.

Operational Insights

Rick Van Nieuwenhuyse, President and CEO of Contango, expressed optimism about the ongoing mining operations at the Manh Choh site. The company’s production guidance remains steadfast at 60,000 ounces of gold for the year, while average annual production is projected at 58,750 ounces through 2029. With cash distributions from the Peak Gold JV amounting to $30 million for the quarter, the firm’s cash position is robust, ending H1 2025 with unrestricted cash of $36.5 million.

Future Projections

Looking ahead, Contango's operations are set to begin processing the third campaign of 2025 at the Manh Choh project, predicted to yield 15,000 ounces for the company’s account. This proactive strategy indicates that the Peak Gold JV continues its commitment to operational excellence and sustainable mining practices.

In addition to these operations, Contango is also making progress on the Johnson Tract Project. The permitting work for underground exploration as well as environmental and engineering tasks are ongoing, ensuring that the company is well positioned for future expansion in its mining portfolio. Additionally, significant strides have been made in reducing debt, with $15.3 million prepared for settlement of the Carry Trade hedging agreement on July 31, 2025.

Conclusion

Overall, Contango ORE's second-quarter update reflects a company that not only meets its production targets but continues to develop its projects with a focus on innovative cost management and resource optimization. Investors and stakeholders can look forward to the upcoming conference call on August 14, 2025, where the company will offer further insights into its performance and strategic direction for the remainder of the year.

For those interested in exploring more about Contango's operations, please visit Contango ORE's website.