Contango ORE reported record‑high operating income of $25 million and adjusted net income of $24.9 million for the third quarter of 2025, a sharp improvement over the $19.1 million adjusted net income reported for the same period in 2024. The company sold 16,669 ounces of gold, with cash costs of $1,402 per ounce and an all‑in sustaining cost of $1,597 per ounce—both below the 2025 target of $1,625 per ounce. Net loss for the quarter was $5.4 million, a significant narrowing from the $9.7 million loss recorded in Q3 2024, reflecting stronger production and tighter cost control.
Contango’s cash position surged to $107 million at quarter‑end, up from $20.1 million at the close of 2024. The cash influx enabled the company to repay $7 million of its credit facility during the quarter and an additional $8.5 million after the period, reducing overall debt and lowering its gold‑hedge obligations. The hedge balance stood at 49,300 ounces as of October 31, 2025.
Production activity continued to accelerate. Contango’s 30 % interest in the Manh Choh mine produced 17,057 ounces of gold in Q3 2025, and the company launched its fourth production campaign on November 19. A drill rig has been mobilized to the Lucky Shot mine for a 15,000‑meter underground infill program, with assay results expected in early 2026. The Johnson Tract project remains in the initial assessment phase, with a post‑tax NPV5 of $225 million and an IRR of 30 % at a $2,200 per ounce gold price.
President and CEO Rick Van Nieuwenhuyse highlighted that production exceeded quarterly guidance and praised the company’s progress on the Lucky Shot drilling program. He noted that the strong cash flow will accelerate debt repayment and reduce hedge exposure, positioning Contango for continued growth in its core projects.
The results underscore Contango’s successful transition from exploration to production. Lower-than‑target costs and higher-than‑expected production have bolstered cash flow, enabling the company to pay down debt and reduce hedging costs. The Direct Shipping Ore model, already proven at Manh Choh, is being extended to Lucky Shot and Johnson Tract, offering a cost advantage and faster development timelines. While the fourth production campaign may see reduced output due to shorter run time and winter conditions, the company’s focus on cost discipline and strategic drilling is expected to sustain momentum in the coming quarters.
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