Contango Ore reports Peak Gold JV production and $33M cash distribution

Contango Ore (CTGO) announced that the Peak Gold JV has completed its third production campaign for 2025, with Contango’s share of production equal to approximately 17,000 ounces of gold. The company also reported that the Peak Gold JV made a cash distribution to Contango in the amount of $33M, bringing the total cash distributions from the Peak Gold JV to $87 M for Contango’s share received year to-date. Additionally, the Peak Gold JV is currently running a test campaign of blended Manh Choh and Fort Knox ores at approximately a 1:10 ratio to test the viability of blending the low-grade oxide Manh Choh ore with standard mill feed grade Fort Knox ore to see how the material flows through the circuit. The test is ongoing and is expected to be completed in early October. As of October 1, the company has delivered into the October 31st, 2025 hedge contracts using a Carry-Trade, resulting in a net hedge contract balance of 49,300 ounces of gold. In addition, the company repaid early $8.5 M on the Credit Facility, reducing the outstanding principle balance by 37% to $14.6 M. The company’s objective is to triple production from current 60K oz. annually to 200K gold equivalent oz. over the next five years. Contango now expects cash distributions for 2025 from the Peak Gold JV to be in excess of $100M, assuming a $3,500 per ounce spot gold price for the remainder of 2025. This higher-than-expected cash flow will be used to strengthen cash position and reduce debt.