Latest news with #ContangoOre
Yahoo
2 days ago
- Business
- Yahoo
Contango Ore Inc (CTGO) Q2 2025 Earnings Call Highlights: A Remarkable Financial Turnaround
Release Date: August 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Contango Ore Inc (CTGO) reported a significant turnaround from a $2.1 million operating loss in Q2 of last year to a $23 million operating income this quarter. The company achieved a net income of $15.9 million, a substantial improvement from a net loss of $18.5 million in the same quarter last year. Cash costs for the quarter were well under guidance, with all-in sustaining costs also coming in below expectations. The company is successfully managing its debt, having paid down $29 million so far this year. Contango Ore Inc (CTGO) is maintaining a high recovery rate of 92-93% from its mining operations, which is considered very respectable in the industry. Negative Points The Lucky Shot project is still on hold, with no clear timeline for resumption. There is an ongoing lawsuit related to the Johnson Track project, which could pose future operational risks. The company is still heavily reliant on hedging strategies, which limits its exposure to potential gold price increases. Operational costs are expected to rise in Q4 due to planned capital expenditures, including truck replacements. The company has not yet provided guidance on 2026 production, leaving some uncertainty about future operational plans. Q & A Highlights Warning! GuruFocus has detected 3 Warning Sign with CTGO. Q: Beyond increased gold production, what initiatives contributed to the significant change from a $2.1 million operating loss in Q2 last year to $23 million operating income this quarter? A: Rick Van Nuna, CEO: The transition from loss to profit is largely due to the smooth and on-schedule mining operations, improved ore transport, and high recovery rates averaging 92-93%. The lawsuit resolution and effective ore processing have also contributed to the financial turnaround. Mike Clark, CFO, added that the stabilization of gold prices and a $6.4 million gain on Onyx shares further boosted net income. Q: Can you provide some color on your pricing strategy and how it contributed to the bottom line this quarter? A: Mike Clark, CFO: Our hedging strategy involves delivering about 70% of our gold into hedges and selling 30% at spot price. This approach, combined with a carry trade, helps manage cash flows and mitigate risks associated with gold price fluctuations, resulting in a slight gain on metal sales each quarter. Q: How does the current processing campaign compare to your Q2 performance, and what's driving the grade consistency at Moncho? A: Rick Van Nuna, CEO: The mill operates efficiently with a 2/3 oxide to 1/3 sulfide ore ratio, maintaining grade consistency. We have a large stockpile of oxide ore to blend, and an oxygen sparing system is being added to improve processing as we encounter more sulfide ore. Q: How are you balancing debt reduction with reinvestment and growth projects? A: Mike Clark, CFO: Our focus is on ensuring sufficient capital to meet debt obligations while advancing projects like Johnson Track (JT) and Lucky Shot. We aim to reduce debt from $23 million to $15 million by year-end, while also progressing with permitting and exploration activities. Q: What tonnage potential are you targeting at Johnson Track? A: Rick Van Nuna, CEO: We are targeting a 1,500 ton per day operation at Johnson Track. The deposit's geometry is favorable for mining, allowing for efficient underground development and clean environmental management. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
5 days ago
- Business
- Globe and Mail
Undervalued Gold Equities Poised for a Breakout
Equity Insider News Commentary Issued on behalf of Lake Victoria Gold Ltd. VANCOUVER, BC, Aug. 12, 2025 /CNW/ -- Late last week as global equities rose, U.S. gold futures hit a record high. This week, despite a pullback on Monday, experts continue to see more optimism to come in gold. Now, even though gold miners earned double the profits of 2011, the last year the market saw such sector momentum as now, analysts are claiming that gold equities are still undervalued. Looking ahead, the market is looking at the miners making moves, from explorers to producers, with recent traction gaining around Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Contango Ore, Inc. (NYSE-American: CTGO), Jaguar Mining Inc. (TSX: JAG) (OTCQX: JAGGF), B2Gold Corp. (NYSE-American: BTG) (TSX: BTO), and Orla Mining Ltd. (NYSE-American: ORLA) (TSX: OLA).
Yahoo
17-07-2025
- Business
- Yahoo
Contango Insider Trim Follows Gold Milestone Amid Modest Confidence Boost
Contango Ore, Inc. (NYSE:CTGO) is one of the . Following the successful completion of its second production campaign for 2025, the company witnessed a significant sale from its director. Aerial view of a gold mine in the mountains, trees reflecting the light from the sun. Alaska-based company, Contango Ore, Inc. (NYSE:CTGO) focuses on exploration and development of precious metals and copper projects in the Tintina Gold Belt. While holding a 30% interest in the Manh Choh gold mine via a joint venture with Kinross Gold, the company also manages large, leased claim positions, including Lucky Shot and Johnson Tract. On June 16, 2025, Contango Ore, Inc. (NYSE:CTGO) reported the successful completion of its second production campaign for 2025, with its share constituting 15,700 ounces of gold, approximately. Following the completion, the company anticipates a cash distribution of more than $20M in late June from Peak Gold JV. Despite the expected income in cash from the second production campaign, Contango Ore, Inc. (NYSE:CTGO) witnessed a decline in insider ownership on July 11, 2025. The company's Director, Darwin Green, sold 1,818 shares in a transaction valued at $36,778. Even so, the insider transaction, over the last six months, remains positive with an uptick of 0.46%, pointing to reduced but modest confidence in the stock's growth. While we acknowledge the potential of CTGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 12 Best MLP Dividend Stocks to Buy According to Analysts Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Contango ORE Inc. Receives $21M from Joint Venture
Contango Ore, Inc. (NYSE:CTGO) is one of the 10 most undervalued gold stocks to buy, according to analysts. On June 25, the company confirmed it had received a cash distribution of $21 million from the Peak Gold Joint Venture. Year to date, it has received $54 million in cash distribution. A modern and brightly lit gold mine with miners on the surface, illuminated by the setting sun. The significant cash distribution is from the joint venture, which produces approximately 36,000 ounces of gold while maintaining a guidance of 60,000 ounces. Contango plans to use $7 million of the new payment to settle its debt under a credit facility. The payment should reduce the balance to $23 million. Management has already revised its expected 2025 cash distribution to above $95 million. The upward revision is in response to gold prices averaging more than $3,100 for the year. The higher-than-expected cash flow is to be used to strengthen the cash position, fulfill hedge contracts, and advance permitting activities at the Johnson Tract project. Contango Ore, Inc. (NYSE:CTGO) is a company that explores and develops gold and associated mineral properties in Alaska. It is a partner in the Peak Gold joint venture, which includes the Manh Choh gold mine, and also holds other leases and claims for exploration. While we acknowledge the potential of CTGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-05-2025
- Business
- Yahoo
Roth Capital Lifted its Price Target for Contango Ore, Inc. (CTGO)
Roth Capital has reiterated its Buy rating on Contango Ore, Inc. (NYSE:CTGO) and increased its price objective from $22 to $26. Aerial view of a gold mine in the mountains, trees reflecting the light from the sun. According to the firm, Contango Ore, Inc. (NYSE:CTGO)'s key aim for 2025 is to manage hedging contracts and reduce debt through the strategic use of operating cash flow. It also highlighted the company's enhanced gold output in Q1 from the Manh Choh project. Roth also mentioned the firm's willingness to keep the Johnson Tract's development schedule intact and finance exploration drilling at its Lucky Shot project. Favorable exploration results and a lower cutoff grade at Manh Choh could enable a possible pit enlargement that would boost long-term cash flow and mine life. Contango Ore, Inc. (NYSE:CTGO) sold more than 17,000 ounces of gold and generated operating profits of $19 million, which included $22.3 million from the Peak Gold JV. By the end of the quarter, its debt facility balance had dropped to $30 million, and it had $35 million in cash and $4 million in marketable securities. While we acknowledge the potential of CTGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CTGO and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
