Q3 2024 Contango ORE Inc Earnings Call Transcript
Key Points
- Contango Ore Inc (CTGO) reported a significant increase in cash, ending Q3 with $36.2 million, up from $24 million in June and $15.5 million in December of the previous year.
- The company produced nearly 28,000 ounces of gold in Q3, generating over $62 million in sales, with a realized gold price of $2,250 per ounce.
- Contango Ore Inc (CTGO) received a $19.5 million distribution from the Peak Gold joint venture, contributing positively to its financial position.
- The company is on track to meet the higher end of its annual production guidance of 30,000 to 40,000 ounces of gold.
- Contango Ore Inc (CTGO) plans to increase production to approximately 60,000 ounces in 2025, indicating growth potential and increased revenue expectations.
- Contango Ore Inc (CTGO) reported a Q3 net loss of $9.7 million, including a significant non-cash expense of $22.9 million related to unrealized losses on derivative contracts.
- The company faces a high debt burden, with a current balance of $52 million, which it aims to reduce to $10 million by the end of 2025.
- There is uncertainty regarding future cash calls from the joint venture, which could impact financial stability if unforeseen expenses arise.
- The company's financials are complex due to its minority interest in the Manh Choh project, leading to non-traditional reporting of gold sales and costs.
- Contango Ore Inc (CTGO) is exposed to gold price volatility, which could affect its margins and financial performance, especially with existing hedge agreements.
As folks are actually coming pretty fast, I'm going to say good morning, good afternoon, depending on where in the world you're signing in from today. I'm very fortunate today to be joined by Rick Van Nieuwenhuyse, Contango Ore's President and CEO; and Mike Clark, company CFO.
Gentlemen, how are you doing today?
Doing well, Romeo, thanks for hosting us.
No, I appreciate it. You're live from Zurich. So thanks for joining us all the way in Europe.
I wanted to just let you guys know in the audience, here's the format for today's event. We're going to start with a really quick presentation from Rick and Mike about some additional context for this week's news release. Then I've got some questions of my own to go through, but then we'll jump into audience questions. I'm going to start with the ones that were sent in advance over e-mail and then
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
