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Contango ORE (CTGO)
:CTGO
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Contango ORE
(NYSE MKT:CTGO)
41Neutral
Positive Factors
Cash Flow
CTGO reported free cash flow above forecast due to working capital changes and less capital expenditures.
Debt Management
CTGO ended 2024 with a reduced debt balance from ING and Macquarie to $38.0M.
Financial Performance
CTGO reported more gold sales and higher EBITDA than expected.
Negative Factors
Derivative Losses
CTGO had a cash burn of $9.9M due to realized losses on derivative contracts.
Exploration Expenses
There are higher exploration expenses anticipated on other CTGO gold projects, which impact the EBITDA forecast negatively.
Production Costs
CTGO has reduced its forecasts due to new guidance for 2025 gold production and higher costs associated with processing and transporting ore.
Contango ORE (CTGO) vs. S&P 500 (SPY)
Market Cap
$123.46M
Dividend YieldN/A
Average Volume (3M)115.58K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue GrowthN/A
EPS Growth33.87%
CountryUS
Employees12
SectorBasic Materials
Sector Strength59
IndustryGold
Share Statistics
EPS (TTM)-3.97
Shares Outstanding12,248,487
10 Day Avg. Volume144,250
30 Day Avg. Volume115,575
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)1.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.00Price Target Upside197.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Contango ORE Business Overview & Revenue Model
Company DescriptionContango ORE, Inc. (CTGO) is a natural resource company focused on the exploration and development of gold and associated mineral properties in Alaska, United States. The company primarily operates through joint ventures and partnerships to advance its mining projects. Contango ORE is committed to identifying and developing high-quality mineral resources while working in conjunction with other industry participants to optimize project outcomes.
How the Company Makes MoneyContango ORE makes money through the exploration and development of mineral properties, primarily gold. The company's revenue model involves acquiring interests in mineral-rich properties and advancing these projects through exploration and development phases, often in partnership with other mining companies. Key revenue streams include the sale of mineral rights, royalties, joint venture arrangements, and potential future production from successfully developed mining operations. Significant partnerships, such as joint ventures with established mining companies, contribute to its earnings by providing the necessary capital, expertise, and infrastructure to advance exploration and development activities.
Contango ORE Financial Statement Overview
Summary
Contango ORE shows no revenue generation and continued losses, reflecting operational challenges. A high debt-to-equity ratio and reliance on financing activities highlight financial risks, though recent equity improvements are a positive sign.Income Statement
Contango ORE shows no revenue generation, with gross profit and net income remaining negative. The company experienced losses with negative EBIT and EBITDA margins. This indicates operational challenges and a lack of profitability, common in companies focused on exploration and development without current production.20
Very Negative
Balance Sheet
The company has a high debt-to-equity ratio due to significant liabilities compared to its equity. The negative equity in previous years signals potential risks, though recent improvements in equity have been noted. The equity ratio is low, pointing to a leveraged position, common in the mining industry during development stages.30
Negative
Cash Flow
Operating cash flow is marginally positive but insufficient to cover net losses. Free cash flow has been volatile, reflecting the company's ongoing cash burn in its development phase. The reliance on financing activities to support operations highlights operational cash flow challenges.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| -461.42K | -117.81K | -136.50K | -55.74K | 0.00 | 0.00 | EBIT |
| -1.37M | -17.65M | -9.62M | -23.20M | -10.66M | -5.59M | EBITDA |
| -26.25M | -76.70M | -17.50M | -23.23M | 35.83M | -3.65M | Net Income Common Stockholders |
| -38.03M | -81.53M | -39.74M | -23.51M | 23.87M | -9.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.23M | 15.50M | 11.65M | 23.10M | 35.22M | 3.01M | Total Assets |
| 4.44M | 58.59M | 25.66M | 37.29M | 35.97M | 3.08M | Total Debt |
| 0.00 | 44.68M | 25.46M | 19.24M | 0.00 | 0.00 | Net Debt |
| -3.23M | 29.18M | 13.81M | -3.86M | -35.22M | -3.01M | Total Liabilities |
| 6.86K | 73.14M | 30.44M | 24.02M | 1.42M | 1.09M | Stockholders Equity |
| 4.43M | -14.54M | -4.77M | 13.27M | 34.55M | 1.99M |
| Cash Flow | Free Cash Flow | ||||
| 698.99K | ― | -14.68M | -13.99M | -8.41M | -1.39M | Operating Cash Flow |
| 698.99K | -9.43M | -14.68M | -13.95M | -8.38M | -1.39M | Investing Cash Flow |
| -32.13M | -34.39M | -21.12M | -15.39M | 27.35M | -3.72M | Financing Cash Flow |
| 36.01M | 47.68M | 24.35M | 17.44M | 13.23M | -476.67K |
Contango ORE Technical Analysis
Positive
10.08
Price Trends
10.16
Negative
12.14
Negative
16.17
Negative
Market Momentum
-0.02
Negative
51.81
Neutral
31.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTGO, the sentiment is Positive. The current price of 10.08 is above the 20-day moving average (MA) of 9.77, below the 50-day MA of 10.16, and below the 200-day MA of 16.17, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTGO.
Contango ORE Risk Analysis
Contango ORE disclosed 29 risk factors in its most recent earnings report. Contango ORE reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Contango ORE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.18B | 4.46 | 29.57% | ― | 71.21% | 667.30% | |
66 Neutral | $4.10B | 29.45 | 11.14% | ― | 18.32% | ― | |
59 Neutral | $139.39M | 9.23 | 98.42% | ― | ― | ― | |
47 Neutral | $2.66B | -3.14 | -22.17% | 3.33% | 3.73% | -29.29% | |
46 Neutral | $51.55M | ― | -57.78% | ― | -33.14% | -170.75% | |
41 Neutral | $123.46M | ― | -9999.00% | ― | ― | 33.87% | |
38 Underperform | $1.69B | ― | -3.92% | ― | ― | 63.45% |
* Basic Materials Sector Average
Performance Comparison
CTGO
Contango ORE
10.08
-9.58
-48.73%
GORO
Gold Resource
0.54
0.05
10.20%
TSE:SEA
Seabridge Gold
16.75
-4.77
-22.17%
TSE:NGD
New Gold
5.32
3.02
131.30%
TSE:IMG
IAMGOLD
8.98
4.04
81.78%
TSE:VGZ
Vista Gold
1.12
0.32
40.00%
Contango ORE Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 6.22% | Next Earnings Date: Mar 17, 2025
Earnings Call Sentiment Neutral
The earnings call provided a balanced view of Contango's performance in 2024. The company experienced significant successes, such as exceeding gold production guidance and achieving positive cash flow, which allowed for substantial debt reduction. However, challenges remained, including slightly higher cash costs and significant losses from hedge contracts. The sentiment is mixed with both positive achievements and operational challenges.Highlights
Exceeding Gold Production Guidance
Manh Choh exceeded production guidance by over 25% in 2024, producing just shy of 42,000 ounces of gold, surpassing the initial guidance of 30,000 to 35,000 ounces.
Positive Operating Cash Flow
The company reported positive operating cash flow for 2024, with plans to use the excess cash to pay down debt and deliver hedges, aiming to be debt-free and hedge-free by the end of 2026.
Debt Reduction Progress
The debt was reduced from $60 million at the start of 2024 to $38 million by the time of the call, with a projection to further reduce it to $15 million by the end of the year.
Improvement in Hedge Status
The company started with 124,000 ounces of gold hedges and reduced it to 86,000 ounces by the end of 2024, with plans to cut it in half by the end of 2025.
Successful Integration of Johnson Tract
The acquisition of Johnson Tract was deemed successful with no buyer's remorse, integrating well with Contango's business model.
Lowlights
Cash Costs Slightly Above Guidance
Cash costs came in slightly over the guidance of $1,200 per ounce due to operational factors.
Hedge Loss Impact
In 2024, the company realized a $20 million loss on derivative contracts, contributing to a total of $54 million when combined with mark-to-market adjustments.
Debt Payments Deferred
A decision was made to defer $10.6 million in debt payments into 2027 due to bridge weight restrictions and revised mine plans, indicating some operational adjustments.
Limited Exploration Results at Manh Choh
Exploration results for 2024 at Manh Choh did not yield significant findings, focusing instead on evaluating a large land position.
Company Guidance
During the call, Contango provided an overview of their fiscal year 2024 performance and offered guidance for 2025. The company exceeded its gold production guidance by over 25%, producing nearly 42,000 ounces at a cash cost slightly above the $1,200 per ounce guidance. For 2025, Contango projects a gold production of about 60,000 ounces. The company reported positive operating cash flow in 2024, with a focus on using excess cash to pay down debt and deliver hedges, aiming to be debt and hedge-free by the end of 2026, though they have the flexibility to extend into mid-2027. The hedge delivery is planned to be reduced from 86,000 ounces to 43,000 ounces by the end of 2025. Contango started 2024 with $60 million in debt, reduced to $38 million by early 2025, and expects to end the year with $15 million remaining. The company also aims to maintain an all-in sustaining cost (AISC) between $1,200 and $1,600 per ounce for 2025.Contango ORE Corporate Events
Business Operations and StrategyFinancial Disclosures
Contango ORE Reports 2024 Financial Results and Progress
Neutral
Mar 17, 2025
On March 17, 2025, Contango ORE, Inc. announced its financial results for the fiscal year ended December 31, 2024, reporting a net loss of $38.0 million despite achieving gold production that exceeded guidance at the Manh Choh mine. The company’s financial position improved with a cash position of $20.1 million, and significant progress was made in debt reduction and hedge contract settlements. The company is focused on furthering its Johnson Tract project with ongoing drilling and permitting efforts, while maintaining strong cash flow through linked gold production to spot prices.
Business Operations and StrategyFinancial Disclosures
Contango ORE Highlights Strong Manh Choh Project Performance
Positive
Mar 3, 2025
On February 28, 2025, Contango ORE released a corporate presentation detailing its financial measures and operations, including its joint venture with Kinross Gold Corporation. The presentation highlighted the company’s progress in its Manh Choh project, which began commercial production in July 2024, exceeding production guidance by 30% and generating strong cash flows. The company also outlined its future production targets and financial expectations, positioning itself well within the industry.
Private Placements and FinancingBusiness Operations and Strategy
Contango ORE Amends Credit Facility for Flexibility
Positive
Feb 18, 2025
On February 18, 2025, Contango ORE, Inc. announced amendments to its credit facility to defer $10.6 million in principal repayments and extend the maturity date to mid-2027. This adjustment is expected to align better with their extended ore haul plan, allowing for more flexibility in debt repayment and exposure to potential gold price increases. Contango also commenced its first gold production campaign of the year on February 7, 2025, with anticipated production of 15,000 to 18,000 ounces of gold. These developments are poised to strengthen the company’s financial standing and operational efficiency, potentially increasing cash flows significantly if gold prices remain high.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.