US stock futures dip as Nvidia earnings spark little cheer
FAIRBANKS, Alaska - Contango ORE, Inc. (NYSE American:CTGO), whose stock has surged over 95% in the past six months according to InvestingPro data, received a $21 million cash distribution from the Peak Gold Joint Venture on Wednesday, bringing total distributions to $54 million year-to-date, according to a press release statement. The company’s market capitalization stands at $246 million, with current analysis suggesting the stock is trading near its Fair Value.
The Peak Gold JV has completed the second of four planned production campaigns for 2025, producing approximately 36,000 ounces of gold for Contango’s account so far this year. The third campaign is scheduled to begin in August.
Contango maintains its 2025 production guidance of 60,000 ounces of gold for its 30% share of the joint venture. The company plans to make an early payment of $7 million against its credit facility in early July, reducing the balance to $23 million.
The company has also early delivered 11,900 ounces of gold into hedge contracts due July 31, reducing its current hedge contract balance to 62,900 ounces. Contango expects its remaining hedges at year-end to total 43,000 ounces.
Based on current projections and assuming a $3,100 per ounce gold price for the remainder of the year, Contango now anticipates cash distributions from the Peak Gold JV to exceed $95 million for 2025. Analysts tracked by InvestingPro are optimistic about the company’s prospects, with price targets ranging from $26 to $34.80 per share, and expectations of profitability this year. Get access to 12 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
Contango holds a 30% interest in the Peak Gold JV, which operates the Manh Choh project in Alaska. The remaining 70% is owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross Gold Corporation, which serves as the operator of the joint venture.
The company plans to release its second quarter financial results in early August.
In other recent news, Contango ORE reported a net loss of $22.5 million for the first quarter of 2025, primarily attributed to unrealized hedge contract losses. Despite this setback, the company generated $19 million in income from operations and $22.3 million in equity income from its Peak Gold joint venture. Gold production remained strong with over 17,000 ounces produced during the quarter. The company’s cash position at the end of the quarter was $35 million, and it repaid $13.8 million in principal debt, with an additional $8.2 million paid post-quarter. Contango ORE also held its annual meeting where six directors were elected, and Baker Tilly US, LLP was ratified as the company’s independent auditor for the fiscal year ending December 31, 2025. In terms of future strategy, Contango plans to focus on debt reduction and potential drilling projects, with a $5.7 million exploration program at Montanore and expectations of approximately $80 million in cash distributions from its joint venture. The company is also considering potential development at Johnson Track within the next three to four years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.