In a report released on March 18, Tate Sullivan from Maxim Group reiterated a Buy rating on Contango ORE (CTGO – Research Report), with a price target of $30.00.
Tate Sullivan has given his Buy rating due to a combination of factors including Contango ORE’s stronger-than-expected gold sales and EBITDA performance in the fourth quarter of 2024. The company reported gold sales of 13,648 ounces, significantly surpassing the forecast of 8,800 ounces, and achieved a realized gold price higher than anticipated. Additionally, the Manh Choh gold mine in Alaska, a joint venture with Kinross Gold, contributed positively to the company’s income, reversing previous losses.
Despite a cash burn in the fourth quarter due to derivative contract losses, Contango ORE has maintained its 2025 production guidance and has reduced its debt balance significantly. The company’s strategic management of its financials, including a favorable agreement to defer principal repayments, supports the optimistic outlook. Trading at a multiple of 5.7 times the 2025 EBITDA forecast, the stock is seen as undervalued, justifying the Buy rating and a price target of $30.
CTGO’s price has also changed dramatically for the past six months – from $19.120 to $10.380, which is a -45.71% drop .