Contango ORE (CTGO) AI Stock Analysis

• Market Cap: $170.50M
• Dividend Yield: N/A
• Average Volume (3M): 154.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: N/A
• EPS Growth: 18.69%
• Country: US
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): -3.97
• Shares Outstanding: 12,248,487
• 10 Day Avg. Volume: 181,989
• 30 Day Avg. Volume: 154,910
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.45K
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.00
• Price Target Upside: 86.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Contango ORE's stock score reflects the company's challenging financial performance, characterized by high leverage and ongoing losses typical of its development stage in the mining industry. However, strong technical momentum and positive outcomes from recent earnings calls and corporate events suggest potential for future growth and stabilization. Valuation concerns persist due to the lack of profitability.

Positive Factors

Debt Management

CTGO ended 3Q24 with an increase in unrestricted cash, indicating strong financial management.

Financial Performance

CTGO reported more gold sales and higher EBITDA than expected.

Production Growth

CTGO maintained 2025 gold production guidance for its share of production from the Manh Choh gold mine in Alaska of 60,000 ounces, up 36% year-over-year.

Negative Factors

Cost Management

CTGO has reduced its forecasts due to new guidance for 2025 gold production and higher costs associated with processing and transporting ore.

Exploration Costs

There are higher exploration expenses anticipated on other CTGO gold projects, which impact the EBITDA forecast negatively.

Hedging Losses

CTGO realizes a loss on the gold price hedges in its credit facility after receiving cash distributions.

Contango ORE Business Overview & Revenue Model

Company Description

Contango Ore, Inc., an exploration stage company, engages in the exploration of gold and associated minerals in the United States. It also explores for copper and silver deposits. The company, through its subsidiaries, leases approximately 675,000 acres from the Tetlin Tribal Council and approximately 13,000 State of Alaska mining claims for exploration and development; and owns 100% interest in the mineral rights to approximately 200,000 acres of State of Alaska mining claims located north and northwest of the Tetlin Lease. The company also holds interest in the Shamrock property that consists of 361 Alaska state mining claims covering approximately 52,640 acres. Contango Ore, Inc. was founded in 2009 and is based in Houston, Texas.

How the Company Makes Money

Contango ORE makes money through its exploration and development activities in the mineral sector, primarily focusing on gold. The company's revenue model involves acquiring promising mineral properties, conducting exploration activities to assess and prove the viability of mineral deposits, and then developing these properties to increase their value. The company may also enter into joint ventures or partnerships to share the risks and costs associated with exploration and development. Key revenue streams include the potential sale of mineral resources, royalties from developed properties, and potential partnerships with larger mining companies that provide capital and operational expertise in exchange for a stake in the project.

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.

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.

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.

Breakdown
Dec 2023	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-117.81K	-136.50K	-55.74K	0.00	0.00
	EBIT
-17.65M	-9.62M	-23.20M	-10.66M	-5.59M
	EBITDA
-76.70M	-17.50M	-23.23M	35.83M	-3.65M
	Net Income Common Stockholders
-81.53M	-39.74M	-23.51M	23.87M	-9.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.50M	11.65M	23.10M	35.22M	3.01M
	Total Assets
58.59M	25.66M	37.29M	35.97M	3.08M
	Total Debt
44.68M	25.46M	19.24M	0.00	0.00
	Net Debt
29.18M	13.81M	-3.86M	-35.22M	-3.01M
	Total Liabilities
73.14M	30.44M	24.02M	1.42M	1.09M
	Stockholders Equity
-14.54M	-4.77M	13.27M	34.55M	1.99M
Cash Flow		Free Cash Flow
―	-14.68M	-13.99M	-8.41M	-1.39M
	Operating Cash Flow
-9.43M	-14.68M	-13.95M	-8.38M	-1.39M
	Investing Cash Flow
-34.39M	-21.12M	-15.39M	27.35M	-3.72M
	Financing Cash Flow
47.68M	24.35M	17.44M	13.23M	-476.67K

Contango ORE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.92 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 10.64, and below the 200-day MA of 15.56, indicating a neutral trend. The MACD of 1.11 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTGO.

Contango ORE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTGO	51 Neutral	$170.50M	―	-9999.00%	―	―	18.69%
Sector *	49 Neutral	$1.95B	-1.61	-21.88%	3.78%	0.55%	-26.94%
IDR	45 Neutral	$230.26M	25.12	31.88%	―	88.66%	619.17%
PZG	45 Neutral	$28.28M	―	-20.99%	―	―	0.16%
HYMC	39 Underperform	$87.44M	―		―	―	1.67%
GORO	36 Underperform	$42.91M	―	-91.15%	―	-34.57%	-238.18%

Contango ORE Corporate Events

Contango ORE Announces $9 Million Cash Distribution

On April 24, 2025, Contango ORE, Inc. announced a $9 million cash distribution from the Peak Gold JV, marking a total of $33 million in distributions from gold sales in 2025. The company completed its first production campaign, yielding approximately 20,000 ounces of gold, and plans to start the second campaign in mid-May. Contango’s operations at Manh Choh are on track, with an expected production of 60,000 ounces of gold for 2025 at an all-in-sustaining cost of $1,625 per ounce. The company has also reduced its credit facility balance and hedge contract obligations, and anticipates releasing its Q1-2025 financial results on May 14, 2025.

Spark’s Take on CTGO Stock

According to Spark, TipRanks’ AI Analyst, CTGO is a Neutral.

Contango ORE’s stock score reflects a challenging financial performance characteristic of its development stage, with high leverage and operational losses. However, strong technical momentum, positive earnings call outcomes, and favorable corporate events suggest potential for future growth and stabilization. Valuation remains a concern due to the lack of profitability.

To see Spark’s full report on CTGO stock, click here.

Contango ORE Reports $24 Million Cash Distribution

On March 31, 2025, Contango ORE, Inc. announced that it received $24 million in cash distributions from the Peak Gold JV in the first quarter of 2025. This includes $9 million from 2024 production profits and $15 million from the first half of Campaign #1 for 2025. The company reported that the Peak Gold JV processed 323,000 tons of ore, recovering approximately 65,000 ounces of gold, with Contango’s share being 19,500 ounces, surpassing initial guidance. The company expects further cash distributions and continues to advance its projects and improve operations.

Contango ORE Reports 2024 Financial Results and Progress

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.

Contango ORE Highlights Strong Manh Choh Project Performance

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.

Contango ORE Amends Credit Facility for Flexibility

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.