Gold prices slip lower; consolidating after recent gains
Contango ORE, Inc. (CTGO) stock has reached a 52-week low, touching down at $9.65, with a market capitalization of $125.46 million, as the company navigates through a turbulent market period. InvestingPro data reveals the stock is currently trading at Fair Value levels, with analyst price targets ranging from $17.30 to $30.00. This new low comes as a stark contrast to its performance over the past year, with the stock experiencing a significant downturn of -39.6%. Investors are closely monitoring Contango ORE’s strategic moves and market conditions, with InvestingPro analysis showing a current ratio of 0.47 and EBITDA of -$65.29 million. Despite current challenges, analysts predict profitability this year, with net income expected to grow. The 52-week low serves as a critical indicator for shareholders and potential investors, reflecting the challenges Contango ORE has faced within the current economic landscape. For deeper insights, InvestingPro offers 8 additional key tips about CTGO’s financial health and prospects.
In other recent news, Contango ORE, Inc. announced a $9 million cash distribution from the Peak Gold Joint Venture, representing its 30% share of profits from processing Manh Choh ore. The company has received a total of $40.5 million in distributions since July 2024. Contango’s share of production reached approximately 42,000 ounces of gold and 16,330 ounces of silver, surpassing its initial 2024 production guidance by about 30%. For 2025, the company anticipates producing around 60,000 ounces of gold, with an expected average of 58,750 ounces per year through 2028. However, Contango updated its financial guidance for the Manh Choh mine, projecting higher costs, with all-in sustaining costs for 2025 anticipated to be approximately $1,625 per ounce. These increased costs are due to logistical challenges and higher moisture content in the ore. Despite these challenges, Contango forecasts roughly $50 million in cash distributions from the joint venture in 2025, assuming a spot gold price of $2,500 per ounce. The company is negotiating with lenders to restructure credit facility repayments and related hedge contracts to align with the revised production schedule.
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