FAIRBANKS, Alaska, March 17, 2025 /PRNewswire/ – Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American: CTGO) introduced these days that it filed its Mode 10-Ok for the fiscal time ended December 31, 2024 (“FY2024”) with the Securities and Change Fee. Alternative classes referenced on this shed come with the six-month transition duration ended December 31, 2023 (“6ME12-2023”), and the fiscal time ended June 30, 2023 (“FY2023”).

The Corporate’s unrestricted coins place as of December 31, 2024 used to be $20.1 million (“M”) in comparison to $15.5 M as of December 31, 2023. The Corporate reported general source of revenue for operations of $26.3 M and a web lack of $38.0 M, together with a non-cash expense of $34.3 M from an unrealized loss on by-product pledges for FY2024.

Rick Van Nieuwenhuyse, President and CEO of the Corporate, said, “Gold production at the Manh Choh mine surpassed 2024 guidance, with 41,325 ounces of gold produced for Contango’s 30% share of production at a cash cost of $1,209 per ounce of gold sold. The Company achieved an average blended gold price of $2,281 per ounce. Since commencement of Manh Choh production, our focus has been and continues to be paying down the debt and hedge obligations under our credit facility (the “Facility”) as quickly as possible. As of today, we have reduced the Facility by 36% to a balance of $38.3 M and settled 37,861 ounces of gold hedge contracts, or 30% of the obligation, reducing the outstanding hedge contract to 86,739 ounces. The remaining hedge contract balance represents 36% of the total updated 239,000 proven and probable reserves gold ounces for Manh Choh. Meanwhile, the first campaign of 2025 is more than 50% complete and on track to produce between 15,000 and 18,000 ounces of gold for Contango’s account and we continue to guide to 60,000 ounces of gold production in four campaigns for 2025. Following the recent restructuring of the Facility, the Company is well-positioned financially, with approximately 30% of net gold production for both fiscal years 2025 and 2026 linked to spot gold prices, ensuring robust cash flow throughout the remaining mine life at Manh Choh. This strong financial foundation supports critical permitting efforts at the Johnson Tract project and ongoing discussions regarding milling facilities for Johnson Tract and Lucky Shot ores using our direct ship ore (DSO) approach.”

Mr. Van Nieuwenhuyse added, “We remain focused on delivering the previously announced preliminary economic assessment (PEA) for the Johnson Tract project, which we expect to complete and release in the next few weeks.”

Commentary of Money Flows for FY2024 in comparison to 6ME12-2023 and FY2023:
Internet coins supplied from working actions used to be $0.7 M for FY2024, an important development in comparison to web coins old of $9.4 M for 6ME12-2023 and $14.7 M for FY2023. The rise in web coins supplied by means of working actions used to be essentially pushed by means of the graduation of gold manufacturing at Manh Choh and the receipt of $40.5 M in coins distributions from the Height Gold JV, in part offset by means of $19.9 M in learned losses on by-product hedge pledges. Money old in making an investment actions totaled $32.1 M for FY2024 in comparison to $34.4 M for 6ME12-2023 and $21.2 M for FY2023, with all duration outflows essentially in the case of coins invested within the Height Gold JV. Money flows from financing actions amounted to $36.0 M for FY2024, together with $30 M drawn from the Facility, offset by means of $7.9 M in debt repayments, and $15.5 M in fairness issuance proceeds. This compares to $47.7 M for 6ME12-2023 and $24.4 M for FY2023, which used to be made out of debt drawdowns and fairness issuances.

Commentary of Operations for FY2024 in comparison to 6ME12-2023 and FY2023:
The Corporate reported a web lack of $38.0 M, or a lack of $3.49 consistent with unsophisticated and diluted proportion, for FY2024. This features a non-cash expense of $34.3 M from an unrealized loss on by-product pledges, in accordance with ahead gold costs and shriveled hedge value. The Corporate additionally incurred $4.1 M in exploration expenditures, essentially indistinguishable to the Johnson Tract drilling program. Source of revenue from the Height Gold JV fairness funding totaled $41.7 M, offset by means of $11.7 M in passion expense and a $54.2 M loss on by-product pledges. This compares to a web lack of $40.8 M, or $4.44 consistent with proportion, for 6ME12-2023, and $39.7 M, or $5.61 consistent with proportion, for FY2023.

All over FY2024 and next to duration finish, the Corporate has refer to updates:

• Manh Choh Venture:
  • Manufacturing effects for 2024:

• • The Manh Choh venture, operated by means of a subsidiary of Kinross Gold Company (“Kinross”), commenced generating gold and silver with its first gold pour on July 8, 2024;
  • Ore transportation ramped as much as deliberate tonnages, complete commissioning of the adjustments on the Kinross Castle Knox mill had been finished, and Contango’s proportion of the Manh Choh manufacturing used to be 41,325 oz of gold in comparison to steering of 30,000 to 35,000 oz of gold manufacturing;
  • Money prices on a derivative foundation consistent with ounce had been $1,209, plus an alternative $250,000 for maintaining capital and reclamation expenditures for FY2024; and
  • All over FY2024, the Height Gold JV paid coins distributions to the Corporate within the quantity of $40.5 M.
• Johnson Tract Venture:
  • On July 10, 2024, the Corporate finished its acquisition of 100% of the fairness pursuits of HighGold Mining Inc. (“HighGold”), as pondered by means of the definitive association contract, issuing an mixture of one,698,887 stocks of Contango ordinary conserve at a deemed value of $19.66 consistent with Contango Percentage, with a price of roughly $33.4 M, to HighGold shareholders;
  • On the Johnson Tract Venture the Corporate finished a three,000 meter (9,842 ft) floor drilling marketing campaign on price range, with 18 holes drilled to infill the higher one-third of the useful resource and 3 holes drilled for hydrogeological trying out and tracking to represent the whole hydrology and aqua feature across the Johnson Tract reserve (the “JT Deposit”). A number of of the holes can be old for additional metallurgical take a look at paintings and geometallurgical characterization. Contango persisted advancing garden research to help allowing and engineering of an exploration float to get admission to the deeper, high-grade portion of the JT Warehouse for infill and exploration drilling; and
  • The Corporate gained the 404 allow for development of a 2.6 mile (4 km) get admission to highway between the camp and the proposed portal and laydown web site.
• Repayments on Debt and Aid of Hedge Commitments:
  • Contango repaid $7.9 M at the Facility, lowering the phenomenal foremost steadiness by means of 13% to $52.1 M;
  • On January 31, 2025, Contango repaid $13.8 M at the Facility, lowering the phenomenal foremost steadiness to $38.3 M; and
  • Contango delivered 21,661 oz of gold into the hedge pledges and coins settled an additional 16,200 oz of gold hedges that had been scheduled to mature on January 31, 2025, lowering the hedge guarantee steadiness by means of 30% to 86,739 oz of gold as of December 31, 2024; and
  • On February 18, 2025, the Corporate introduced that it amended the Facility to defer $10.6 M of foremost repayments and supply of 15,000 hedged gold oz into the primary part of 2027 (the “New Repayment Schedule”) and prolonged the adulthood generation of the Facility from December 31, 2026 to June 30, 2027. All alternative key phrases of the Facility, together with the rate of interest, stay the similar.

QUALIFIED PERSONS
John Sims, CPG, Sims Sources LLC, a certified individual beneath S-Ok 1300, reviewed and licensed the technical data indistinguishable to the confirmed and possible hold updates on this shed.

CONFERENCE CALL AND WEBCAST
Contango will host a convention yelp and webcast to speak about the quarterly effects on Monday, March 17, 2025, at 4:30pm EST / 1:30pm PST. Contributors might connect the webcast the usage of refer to call-in main points: https://6ix.com/event/contango-market-update.

ABOUT CONTANGO
Contango is a NYSE American indexed corporate that engages in exploration for gold and related minerals in Alaska. Contango holds a 30% passion within the Height Gold JV, which rentals roughly 675,000 acres of land for exploration and construction at the Manh Choh venture, with the excess 70% owned by means of KG Mining (Alaska), Inc., an oblique subsidiary of Kinross Gold Company, operator of the Height Gold JV. The Corporate and its subsidiaries even have (i) a hire at the Johnson Tract venture from the underlying proprietor, CIRI Local Company, (ii) a hire at the Fortunate Shot venture from the underlying proprietor, Alaska Hardrock Inc., (iii) 100% possession of roughly 8,600 acres of peripheral Environment of Alaska mining claims, and (iv) a 100% passion in roughly 145,000 acres of Environment of Alaska mining claims that give Contango the unique proper to discover and create minerals on those lands. Extra data can also be discovered on our internet web page at www.contangoore.com.  

FORWARD-LOOKING STATEMENTS
This press shed comprises forward-looking statements referring to Contango which are meant to be coated by means of the safeguard harbor for “forward-looking statements” supplied by means of the Non-public Securities Litigation Reform Occupation of 1995, in accordance with Contango’s tide expectancies and comprises statements referring to pace result of operations, feature and nature of the asset bottom, the suppositions upon which estimates are primarily based and alternative expectancies, ideals, plans, goals, suppositions, methods or statements about pace occasions or efficiency (continuously, however no longer at all times, the usage of phrases comparable to “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or mentioning that positive movements, occasions or effects “may”, “will”, “should”, or “could” be taken, happen or be completed). Ahead-looking statements are in accordance with tide expectancies, estimates and projections that contain plenty of dangers and uncertainties, which might motive original effects to fluctuate materially from the ones mirrored within the statements. Those dangers come with, however don’t seem to be restricted to: the hazards of the exploration and the mining trade (as an example, operational dangers in exploring for and creating mineral reserves; dangers and uncertainties involving geology; the speculative nature of the mining trade; the hesitancy of estimates and projections in the case of pace manufacturing, prices and bills; the volatility of herbal assets costs, together with costs of gold and related minerals; the life and extent of commercially exploitable minerals in homes obtained by means of Contango or the Height Gold JV; talent to understand the predicted advantages of the Height Gold JV; doable delays or adjustments in plans with appreciate to exploration or construction tasks or capital expenditures; the translation of exploration effects and the estimation of mineral assets; the lack of key staff or specialists; fitness, protection and environmental dangers and dangers indistinguishable to climate and alternative herbal failures); uncertainties as to the supply and value of financing; Contango’s incapability to stock or uphold its relative possession passion within the Height Gold JV; incapability to understand anticipated price from acquisitions; incapability of our control workforce to explode its plans to fulfill its objectives; the level of disruptions led to by means of an epidemic of sickness, such because the COVID-19 pandemic; and the likelihood that govt insurance policies might trade, political traits might happen or governmental approvals could also be behind schedule or withheld, together with on account of presidential and congressional elections within the U.S. or the lack to procure mining allows. Extra data on those and alternative components which might have an effect on Contango’s exploration program or monetary effects are incorporated in Contango’s alternative studies on document with the U.S. Securities and Change Fee. Buyers are cautioned that any forward-looking statements don’t seem to be promises of pace efficiency and original effects or traits might fluctuate materially from the projections within the forward-looking statements. Ahead-looking statements are in accordance with the estimates and evaluations of control on the age the statements are made. Contango does no longer think any legal responsibility to replace forward-looking statements must instances or control’s estimates or evaluations trade.

SOURCE Contango Ore