Contango ORE Reports $22.5 Million Net Loss in Q1 2025, Highlights Operational Developments

Contango ORE, Inc. reported a net loss of $22.5 million for the first quarter of 2025, a slight increase from the $20.5 million loss recorded in the same period of 2024. The company's revenue from operations was significantly impacted by a $22.3 million income from its equity investment in Peak Gold, LLC, contrasting with a loss of $0.1 million in the prior year. Total expenses rose to $3.05 million, up from $2.71 million a year earlier, primarily driven by increased exploration expenses, which surged to $460,003 from $86,644, reflecting ongoing development activities at the Johnson Tract Project.

The company's financial performance was influenced by its recent operational developments, particularly the commencement of production at the Manh Choh Project in July 2024. During the first quarter of 2025, the Peak Gold JV processed 323,000 tons of ore, yielding approximately 65,000 ounces of gold, of which Contango's share was about 19,500 ounces. The company received $24 million in cash distributions from the Peak Gold JV during the quarter, a notable increase from no distributions in the same period last year. This operational success has positioned the company to operate from cash flows generated by the Peak Gold JV, alleviating the need for future capital calls.

Contango's strategic initiatives included the completion of two significant acquisitions: HighGold Mining Inc. and Avidian Gold Alaska Inc. The HighGold acquisition, finalized in July 2024, involved the exchange of shares valued at approximately $33.8 million, while the Avidian acquisition was completed for a total consideration of $2.1 million. These acquisitions are expected to enhance Contango's exploration capabilities and resource portfolio in Alaska.

As of March 31, 2025, Contango reported cash and restricted cash of $35.2 million, a substantial increase from $7.9 million at the end of the previous year. The company’s total debt decreased to $56.1 million from $68.9 million, reflecting principal repayments on its secured credit facility. The company anticipates maintaining sufficient liquidity to meet its working capital requirements, including approximately $24.7 million in upcoming debt obligations. Looking ahead, Contango aims to leverage its operational successes and strategic acquisitions to enhance its exploration and production capabilities while navigating the challenges of the mining industry.