Contango Ore (CTGO, Financial) has received a $9 million cash distribution from the Peak Gold Joint Venture as of April 24. This recent payment contributes to a total of $33 million in distributions that the company has garnered from Manh Choh's gold sales in the year 2025.
The Joint Venture has successfully concluded the first of its four planned production campaigns for the year, yielding approximately 20,000 ounces of gold credited to Contango Ore's account up to this point. The second campaign is slated to begin in mid-May 2025, signaling continued prospects for resource extraction and financial growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Contango Ore Inc (CTGO, Financial) is $24.36 with a high estimate of $30.00 and a low estimate of $14.50. The average target implies an upside of 81.80% from the current price of $13.40. More detailed estimate data can be found on the Contango Ore Inc (CTGO) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Contango Ore Inc's (CTGO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CTGO Key Business Developments
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Contango Ore Inc (CTGO, Financial) exceeded its production guidance by over 25% in 2024, producing nearly 42,000 ounces of gold.
- The company successfully reduced its debt from $60 million at the start of 2024 to approximately $38 million as of the earnings call.
- Contango Ore Inc (CTGO) plans to be debt-free and hedge-free by mid-2027, with significant debt repayments scheduled for 2025 and 2026.
- The company has a strategic plan to focus on permitting and infrastructure development for its Johnson Tract project, which aligns with its direct shipping ore model.
- Contango Ore Inc (CTGO) reported positive operating cash flow for 2024, with plans to use excess cash to pay down debt and deliver hedges.
Negative Points
- The company's cash costs slightly exceeded guidance, coming in at $1,209 per ounce for 2024.
- Contango Ore Inc (CTGO) experienced a $20 million realized loss on derivative contracts in 2024.
- The company has a significant hedge book, with 86,000 ounces of gold hedged as of the end of 2024, which could limit upside potential from rising gold prices.
- Exploration results from the 2024 Manhou exploration program were not significant, indicating limited immediate expansion potential.
- The timeline for the preliminary economic assessment (PEA) for the Johnson Tract project has been delayed, with completion now expected in April.
