Contango ORE, Inc. Delivers Strong Production Performance
Contango ORE, Inc. Announces Q2-2025 Production Results
Contango ORE, Inc. (NYSE: CTGO) has released its production results for the quarter ending June 30, 2025. The company's output at the Peak Gold Joint Venture (JV) has shown impressive numbers. The results highlight that during the second quarter of 2025, Contango sold an astounding 17,764 ounces of gold at a cash cost of $1,416 per ounce and an all-in sustaining cost (AISC) of $1,548 per ounce. This remarkable performance is well below their 2025 target of $1,625 per ounce, demonstrating effective cost management.
Growth and Expectations for 2025
President and CEO Rick Van Nieuwenhuyse noted, “Our production during the second quarter continued to exceed our expectations. We also made a significant delivery of 11,900 ounces to the hedge contract, thereby reducing our hedge balance to 62,900 ounces as of the date of this report.” This proactive management of the hedge indicates that Contango is strategically positioning itself for future growth.
Detailed Production Outcomes
The comprehensive production data showcases the performance metrics for Contango's operations. For the Q2-2025, the company reported:
- **Gold Ounces Sold**: 17,764 (YTD: 35,146)
- **Silver Ounces Sold**: 15,472 (YTD: 28,242)
- **Recoverable Gold Inventory**: 750 ounces
- **Total Gold Sales**: $58,157,337 (YTD: $109,384,105)
- **Cash Costs on a By-Product Basis**: $1,416 per ounce
Future Projections and Mining Operations
Looking ahead, the guidance for 2025 remains robust. The anticipated production for Contango's 30% share in the Peak Gold JV is set at 60,000 ounces. The estimated average annual production for the life of the mine (LOM) spans from 2023 to 2029, projected to reach approximately 58,750 ounces of gold per year, with an AISC of $1,400 per ounce. The company is also expecting total cash distributions from the Peak Gold JV to exceed $95 million based on the projected spot gold price of $3,100 per ounce for the remainder of the year.
Highlights from Manh Choh Project
The Manh Choh project continues to showcase strong outputs. In Q2-2025, a total of 255,000 tons of ore processed yielded a remarkable recovery rate of 93%, resulting in approximately 52,000 ounces of recoverable gold. Contango's share averaged at 15,700 ounces. This performance underscores the effectiveness of ongoing mining operations at the site, promising a bright outlook for the company's future endeavors.
Updates and Strategic Developments
Contango has also kept its stakeholders informed about ongoing and future projects. The Johnson Tract project is moving forward positively, with field crews expected to start work on road and barge landing easements. Additionally, the company has effectively reduced outstanding debts, demonstrating strong financial discipline.
Conference Call Details
A conference call and webcast are scheduled to discuss these results in detail on Thursday, August 14, 2025. Participants may join in for insights from the leadership team regarding the quarterly results and future plans.
Company Overview
Contango ORE, Inc. is primarily involved in gold exploration and mining in Alaska and holds a 30% interest in the Peak Gold JV. The company continues to seek growth opportunities in gold and related minerals along with expanding their operational footprint in the state.
Frequently Asked Questions
1. What were Contango Ore’s production results for Q2-2025?
Contango Ore reported production of 17,764 ounces of gold sold during Q2-2025.
2. What is the expected gold production guidance for 2025?
The company projects 60,000 ounces of gold production for its 30% share in 2025.
3. What is the cash cost per ounce for Contango's gold production?
The cash cost on a by-product basis is $1,416 per ounce for Q2-2025.
4. How much cash did the Peak Gold JV distribute to Contango in Q2-2025?
The Peak Gold JV distributed cash payments of $30 million in Q2-2025.
5. When is Contango's next conference call regarding its results?
Contango's next conference call is scheduled for August 14, 2025.
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