Contango to discuss $50 million financing in webinar today

FAIRBANKS, Alaska - Contango ORE, Inc. (NYSE American:CTGO), currently valued at $294 million, will host a webinar today at 2:00 p.m. EST to discuss its recently closed $50 million financing and plans for using the proceeds to advance exploration and development at its Lucky Shot and Johnson Tract properties in Alaska. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with analyst price targets ranging from $26 to $35.

The gold exploration company, which currently produces approximately 60,000 ounces of gold annually, aims to increase production to 200,000 ounces using what it calls a direct ship ore model, according to information shared in a press release. The company’s stock has shown remarkable momentum, surging 143% over the past six months and currently trading near its 52-week high of $25.20.

Rick Van Nieuwenhuyse, President and CEO of Contango, stated that the company views the financing as "transformational" and will help achieve growth objectives while maintaining operations at its Manh Choh project. The company also plans to report results from its third exploration campaign of 2025 soon.

Contango holds a 30% interest in the Peak Gold joint venture, which leases approximately 675,000 acres for the Manh Choh project, with the remaining 70% owned by a Kinross Gold Corporation subsidiary. The company also maintains leases on the Johnson Tract and Lucky Shot projects, along with ownership of various Alaska mining claims. InvestingPro subscribers can access detailed analysis of Contango’s asset portfolio and 12 additional exclusive insights about the company’s financial health and growth prospects.

The webinar will be held today at 2:00 p.m. EST (11:00 a.m. PST) and will provide details on how the company plans to allocate the financing toward its exploration and development initiatives.

Contango currently has 15.5 million shares outstanding and reports it has been working to reduce its hedge book and debt obligations. The company’s next earnings report is scheduled for November 13, 2025, with analysts expecting profitability this year despite current liquidity challenges indicated by a current ratio of 0.47.

In other recent news, Contango ORE, Inc. reported a significant turnaround in its financial performance for the second quarter of 2025. The company posted operating earnings of $23 million, a notable improvement from the $3.1 million loss during the same period last year. Net income reached $16 million, contrasting sharply with the $18.5 million net loss recorded in Q2 2024. However, the company’s earnings per share (EPS) of $1.24 fell short of analysts’ expectations, which had anticipated a loss of $0.0367 per share. This resulted in an earnings surprise of -3478.75%.

In addition to its earnings report, Contango ORE closed a $50 million underwritten public offering. The offering consisted of 1,975,000 common shares priced at $20.00 per share, alongside a pre-funded warrant to purchase 525,000 shares at $19.99 per share. Canaccord Genuity acted as the Sole Bookrunner, with Cormark Securities as Lead Manager, and Maxim Group LLC, Roth Capital Partners, and Freedom Capital Markets as Co-Managers. The offering is expected to generate approximately $50 million in gross proceeds, before underwriting discounts and other expenses.

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