Contango Ore, Inc. (CTGO): Business Model Canvas [Dec-2025 Updated]

You're sifting through the junior gold space, trying to find the one that actually pays the bills instead of just burning cash, right? Well, Contango Ore, Inc. has defintely made that pivot; their Business Model Canvas shows a company that's now a producer, not just an explorer, thanks to the Kinross Gold-operated Manh Choh Mine. Honestly, seeing $\mathbf{\$170.18}$ million in revenue year-to-date through Q3 2025, while keeping All-in-Sustaining Costs (AISC) at just $\mathbf{\$1,597}$ per ounce, is the kind of shift I look for. Still, the next chapter hinges on how they fund the high-grade exploration at Johnson Tract while servicing their $\mathbf{\$34.6}$ million debt; below, we map out the nine building blocks of this newly cash-generating machine.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Contango Ore, Inc. (CTGO) relies on to move its key assets-Manh Choh and Johnson Tract-toward production and permitting. These aren't just vendors; they are foundational partners in the Alaskan mining landscape.

The Manh Choh Mine is a joint venture, the Peak Gold JV, where Kinross Gold Corporation acts as the majority owner and the operator. Kinross holds a 70% operating interest, while Contango Ore maintains a 30% interest. This partnership is crucial because Kinross brings the operational expertise and access to its existing Fort Knox mill for processing ore, which was trucked approximately 400 kilometers southeast. The mine began pouring first gold on July 8, 2024. For 2025, Contango Ore's guidance for its 30% share of production was 60,000 ounces of gold.

The land tenure for the flagship Manh Choh project is secured through a lease with the Native Village of Tetlin. This lease covers approximately 675,000 acres of fee-simple land. This relationship is deep, involving community support agreements and a commitment to local economic benefits, including generating 400-600 well-paying, year-round jobs.

For the Johnson Tract Critical Metals Project, the land lease is with CIRI (Cook Inlet Region, Inc.). Contango Ore holds exploration and development rights over approximately 145,000 acres of State of Alaska mining claims associated with this project. A major recent development for Johnson Tract is its acceptance as a covered project into the Federal Permitting Improvement Steering Council's FAST-41 program on December 1, 2025. This was preceded by a Memorandum of Understanding between the Permitting Council and the State of Alaska on August 27, 2025, to provide federal permitting assistance.

Financing for Contango Ore's obligations, particularly for Manh Choh pre-production, involves key financial institutions. Contango entered into a Credit and Guaranty Agreement with ING Capital LLC and Macquarie Bank Limited for a senior secured loan facility of up to \$70 million, with \$65 million committed. This facility is set to mature on December 31, 2026. You should note the debt reduction progress: as of Q2-2025, Contango repaid \$8.2 M, bringing the balance to \$30.1 M. By October 1, 2025, a further early repayment of \$8.5 M reduced the outstanding principal balance to \$14.6 M. The \$34.6 million figure you mentioned is close to the Q2-2025 balance, but the latest reported figure is lower.

Here is a quick look at the primary project relationships:

The operational performance of the Manh Choh JV directly impacts Contango Ore's cash flow through distributions. For instance, in the first half of 2025, Contango received \$54 million in cash distributions, and total expected distributions for 2025 were guided to be in excess of \$95 million (assuming a \$3,100 per ounce spot gold price). The third campaign of 2025 resulted in a \$33 million distribution in early October, bringing the year-to-date total to \$87 M.

The FAST-41 acceptance for Johnson Tract is a significant procedural milestone, aiming to streamline federal permitting. This program is led by the Permitting Council and is designed to improve transparency and coordination among agencies.

You should track the debt repayment schedule closely, as the latest outstanding balance as of October 1, 2025, was \$14.6 M. Finance: draft a sensitivity analysis on the impact of a \$1,400 per ounce AISC estimate versus actual Q4 2025 costs by next Tuesday.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Key Activities

You're looking at the core engine of Contango Ore, Inc., the day-to-day work that turns claims into cash. It's all about moving rock and managing financial risk, especially given the current market dynamics as of late 2025.

Gold production and mining operations at the Manh Choh Mine are central. This operation is run through the Peak Gold Joint Venture, where Contango Ore, Inc. holds a 30% interest. During the third quarter of 2025, the mine processed 287,000 tons of ore on a 100% basis, with an average grade of 0.214 ounces (oz) per ton. This resulted in approximately 56,800 oz of recovered gold (100% basis), with Contango Ore, Inc.'s share amounting to approximately 17,000 oz of gold for the quarter. For the nine months year-to-date 2025, production reached 52,020 ounces. Contango Ore, Inc. sold 16,669 ounces of gold in Q3 2025. The operational efficiency is clear when looking at costs: All-in-sustaining costs (AISC) on a by-product basis were $1,597 per ounce sold, which was below the 2025 target of $1,625 per ounce.

The Direct Shipping Ore (DSO) logistics and transport to the Fort Knox mill is essentially the Manh Choh operation itself, as the DSO approach avoids onsite processing facilities. To enhance near-term output, a test campaign blended Manh Choh ore with Fort Knox ore. This involved 44,447 tons of 'low grade oxide' Manh Choh ore grading 0.104 oz/ton. This test achieved a 94% recovery, which is expected to yield approximately 1,300 additional gold ounces for Contango Ore, Inc.'s 30% production share, added to the regular Q4 Campaign. For the final campaign of the year, Contango Ore, Inc. is guiding to between 6,000 and 8,000 gold ounces for its 30% share.

Aggressive exploration and development drilling at Lucky Shot and Johnson Tract is a major focus for future growth, aiming to triple annual production to 200,000 gold equivalent ounces over the next five years. The Lucky Shot drill program has started to support the Feasibility Study completion. This program involves a combination of drilling from underground drifts and surface exploration. The underground exploration drilling targets approximately 18,000 meters across 210 drill holes, designed to in-fill the Lucky Shot vein resource to Proven and Probable categories. Assay results from this work are expected to start being reported in the first quarter of 2026.

Here's a quick look at the near-term operational targets versus actuals for the Manh Choh production:

Managing the gold hedge book is a constant financial activity. As of Q3 2025, the hedge book stood at 62,900 ounces. Contango Ore, Inc. is actively working to reduce this, expecting it to decrease to approximately 42,800 ounces by year-end 2025. A specific transaction, the Carry Trade involving 13,600 ounces, was settled on October 31, 2025, requiring a net payment of $22.4 M from Contango Ore, Inc.. Following this, the remaining hedge agreement balance as of October 31, 2025, was 49,300 ounces. The company has a stated objective to be debt and hedge free under its credit facility in 2026.

Securing and advancing critical federal and state permitting is crucial for the Johnson Tract project, which is the next development-stage asset targeted for a production decision. A significant step here is the acceptance of the Johnson Tract Critical Metals Project into the Federal Permitting Improvement Steering Council's FAST-41 program on December 1, 2025. Funds from a recent $50-million public offering are earmarked to support feasibility-level mine planning at Johnson Tract, subject to permitting.

The core activities can be summarized by the focus areas for resource conversion and financial de-risking:

• Sustaining production from the Peak Gold JV at Manh Choh.
• Processing 287,000 tons in Q3 2025 at 0.214 oz/ton grade.
• Advancing Lucky Shot with a 15,000-meter in-fill drilling program.
• Reducing the hedge book from 62,900 ounces (Q3 2025) toward zero by 2026.
• Utilizing the FAST-41 program to streamline Johnson Tract permitting.

Finance: draft the cash flow impact of the Q4 production guidance by Monday.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Key Resources

You're looking at the core assets Contango Ore, Inc. (CTGO) relies on as of late 2025. These aren't abstract concepts; they are hard numbers and physical properties driving the business.

The most immediate resource is the capital base. As of September 30, 2025, Contango Ore, Inc. held an unrestricted cash position of $107 million. That's a significant jump from the $20.1 million on hand at the end of 2024. This liquidity supports ongoing development, even after repaying debt; the credit facility balance was down to $14.6 million by early October 2025.

The primary income-generating resource is the stake in the Manh Choh Gold Mine. Contango Ore, Inc. maintains a 30% interest in the Peak Gold Joint Venture, which operates the mine. The operational success is clear in the Q3-2025 figures. The company sold 16,669 ounces of gold that quarter, with All-in-Sustaining Costs (AISC) at $1,597 per ounce sold, which was under the 2025 target of $1,625 per ounce.

Contango Ore, Inc.'s Alaskan mineral property portfolio represents future value. The company is actively advancing its 100% owned projects using a Direct Ship Ore (DSO) approach. You can see the key metrics for these resources laid out here:

The operational backbone is the processing agreement. Contango Ore, Inc. has access to Kinross Gold's Fort Knox processing facility, which allows for the accelerated development of Manh Choh and reduces capital costs. This access proved valuable in Q3-2025 when a test batch blended 44,447 tons of Manh Choh low-grade oxide ore (grading 0.104 oz/ton) with Fort Knox ore, yielding an estimated 1,300 additional gold ounces for Contango's share in Q4.

Finally, the human capital is critical. The proven management team, led by President and CEO Rick Van Nieuwenhuyse, possesses deep Alaskan mining experience, which is essential for navigating permitting and operations in the region. This team is executing on a strategy that aims to define 400,000 to 500,000 Gold Equivalent Ounces (GEO) across the portfolio over the next two years.

• Unrestricted Cash (as of September 30, 2025): $107 million.
• Manh Choh Production Share (Q3-2025): Approximately 17,000 ounces.
• Lucky Shot Drilling Program: 15,000-meter underground in-fill program underway.
• Johnson Tract Project NPV: $224.5 million (post-tax NPV5).
• Credit Facility Balance (October 2, 2025): $14.6 million.

Finance: draft 13-week cash view by Friday.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Contango Ore, Inc. (CTGO) is structured the way it is, especially how they plan to grow from their current cash-flowing asset to two new projects. The value proposition centers on speed and capital efficiency, which is what the Direct Ship Ore (DSO) model is all about.

Immediate cash flow generation from the Manh Choh Mine.

The Manh Choh mine, where Contango Ore, Inc. (CTGO) holds a 30% interest in the Peak Gold JV, is the engine right now. This operation delivered a record high income from operations of $25 million in the third quarter of 2025. By the end of that quarter, the Company's cash position stood at $107 million. For Q3-2025, the cash costs per ounce sold were $1,402, with an all-in-sustaining cost (AISC) of $1,597 per ounce sold, which was below the 2025 target of $1,625 per ounce. Contango Ore, Inc. (CTGO) is projecting operating cash flow per share of approximately $3.00 for 2025, and management aims to reduce debt to under $15 million by year-end.

The cash flow metrics from Manh Choh are substantial:

• 2025 production guidance: approximately 60,000 gold equivalent ounces (GEO).
• YTD-2025 production (through Q3-2025): 52,020 ounces.
• Cash distributions received in Q3-2025: $33 million, bringing year-to-date distributions to $87 million.

Reduced capital expenditure and environmental footprint via the Direct Ship Ore (DSO) model.

The DSO model is the common thread linking Manh Choh, Lucky Shot, and Johnson Tract. For Manh Choh, this meant hauling ore approximately 400 km to the Fort Knox Mill, with the hauling cost being about one gram per ounce of head grade. This approach has demonstrably resulted in reduced capital costs and a smaller environmental footprint compared to building a standalone mill. The Johnson Tract project is also planned to use DSO, which avoids the need to pay for a mill, a tailings facility, and a large power plant, thereby significantly lowering capital needs.

Here's how the DSO economics look for the next project, Johnson Tract:

High-grade gold resources, like the 15 g/t gold equivalent at Lucky Shot.

The Lucky Shot project is a fully permitted, high-grade asset that Contango Ore, Inc. (CTGO) is advancing toward production using the same DSO strategy. The indicated resources from the S-K 1300 Technical Report Summary average 15 g/t gold equivalent. The company is targeting annual production of 40,000 to 50,000 ounces of gold from Lucky Shot. Drilling is underway to support the Feasibility Study, which is expected to be completed in 2027.

The high-grade nature is further supported by recent sampling data:

• Channel samples from the West Drift structure included grades of 26.1 g/t gold, 379 g/t gold, and 9.1 g/t gold.
• These samples, taken over 0.5 meters in length, averaged approximately 139 g/t gold over 1.5 meters.

Exposure to critical metals (copper, zinc, silver) at the Johnson Tract project.

The Johnson Tract project is a polymetallic deposit where base metals are a significant component of the value proposition. The Indicated Resource is estimated at 3.489 Mt grading 9.39 g/t gold equivalent (AuEq).

The value breakdown for the resource is clear:

• Gold and silver make up about 75% of the value.
• Critical metals-copper, lead, and zinc-make up the other 25-30% of the value.

The Indicated Resource composition includes:

Metallurgical tests show strong recovery potential for these metals, with zinc recovery at 92.3% to a concentrate grading 52.6% zinc, and copper recovery at 84.5% to a concentrate grading 30.6% copper.

Accelerated path to production by leveraging a major partner's existing infrastructure.

The success at Manh Choh was heavily dependent on partnering with Kinross Gold Corporation, the operator of the Peak Gold JV. This partnership allowed Contango Ore, Inc. (CTGO) to use the existing Fort Knox Mill. This infrastructure leverage meant that Contango Ore, Inc. (CTGO) was able to get into a mining operation in just about two years after the JV started at the end of 2020. The use of the Fort Knox mill directly contributed to a shorter permitting/development timeline for Manh Choh. The Johnson Tract project is also being assessed for direct shipping ore via barge to an existing mill facility, mirroring the successful Manh Choh approach.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Customer Relationships

You're looking at how Contango Ore, Inc. manages its key external relationships, which are pretty specialized given their focus on Alaskan mineral exploration and development. These aren't typical B2C or simple supplier deals; they are deep, structured partnerships essential for moving projects forward.

Highly structured, formal Joint Venture relationship with Kinross Gold.

The relationship with Kinross Gold Corporation, specifically through the Peak Gold, LLC joint venture (JV) for the Manh Choh project, is the cornerstone of Contango Ore, Inc.'s current operational success. This is a highly formal arrangement where Contango Ore, Inc. holds a 30% membership interest, while Kinross's indirect subsidiary, KG Mining (Alaska), Inc., holds the remaining 70% and acts as the operator. This structure means Contango Ore, Inc. relies heavily on Kinross for the day-to-day management of the mine. The JV leases approximately 675,000 acres of land for exploration and development on the Manh Choh project. The success of this partnership is directly reflected in the cash flow Contango Ore, Inc. receives; for instance, the Q3 2025 cash distribution from the Peak Gold JV amounted to $87 million. The operational output from this JV is significant, with Contango Ore, Inc.'s 30% share of Q3 2025 recovered gold being approximately 17,000 oz, keeping the company on track to meet its 2025 production guidance of approximately 60,000 oz of gold for its share.

The key metrics defining this relationship are best summarized like this:

Investor relations and public reporting to maintain shareholder confidence.

Maintaining confidence requires transparent reporting, especially when dealing with non-GAAP metrics like adjusted net income. Contango Ore, Inc. actively communicates its financial health through required filings and investor updates. For example, following a strong Q3 2025, the company reported record operating income of $25 million and saw its cash position jump to $107 million as of September 30, 2025, up from $20.1 million at the end of 2024. This operational strength translated to an EPS of $2.04 in Q3 2025, a 338.71% surprise over the forecast of $0.465. Despite market volatility, the stock gained over 111% in the six months leading up to November 2025. Insider reporting also plays a role; a Form 144 filing on August 18, 2025, detailed a proposed sale of 2,822 RSU Shares with an aggregate market value of $61,121.00, often related to tax obligations for vested equity.

Key investor data points as of late 2025 include:

• Cash position as of September 30, 2025: $107.0 M.
• Total debt balance as of late 2025: $34.6 million.
• Q3 2025 Adjusted Net Income (Non-GAAP): $24.9 million.
• All-In-Sustaining Costs (AISC) for Q3 2025: $1,597 per ounce sold.
• Hedge agreement balance as of October 31, 2025: 49,300 ounces.

Regulatory compliance and transparent engagement with federal and state agencies.

Engagement with regulatory bodies is critical for project advancement, particularly in Alaska. A major recent milestone was the acceptance of the Johnson Tract Project into the FAST-41 Program on December 2, 2025, which aims to streamline federal permitting. This process involves transparent collaboration with agencies like the USACE (U.S. Army Corps of Engineers). Furthermore, the company's operations are subject to ongoing environmental and permitting reviews, such as those related to the Lucky Shot drill program, which mobilized a rig for a 15,000-meter in-fill drilling program, with assay results expected to start in Q1 2026. The company also noted the dismissal of a lawsuit by the Village of Dot Lake against the USACOE regarding the Manh Choh project in October 2025, which favorably impacts project continuity.

Long-term, stable lease agreements with Native Alaskan corporations.

Contango Ore, Inc. secures its land access through long-term agreements with underlying owners, many of which are Native Corporations. These leases provide the stability needed for multi-year exploration and development plans. For instance, the lease on the Johnson Tract project is held directly from the underlying owner, CIRI Native Corporation. Separately, the lease for the Lucky Shot project is from Alaska Hardrock Inc. These agreements underpin Contango Ore, Inc.'s land position alongside its wholly-owned claims. The company also holds 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims and a 100% interest in approximately 145,000 acres of State of Alaska mining claims, giving it exclusive exploration and development rights on those tracts.

Details on key land agreements include:

• Johnson Tract Lease Owner: CIRI Native Corporation.
• Lucky Shot Project Lease Owner: Alaska Hardrock Inc..
• State of Alaska Claims Owned 100%: Approximately 8,600 acres.
• State of Alaska Claims with Exclusive Rights: Approximately 145,000 acres.

Finance: draft 13-week cash view by Friday.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Channels

You're looking at how Contango Ore, Inc. moves its value-the gold it helps produce-out to the market and how it funds its operations as of late 2025. It's a mix of physical product movement and financial market interaction.

Peak Gold JV (Kinross-operated) for physical gold ore extraction and processing

The primary physical channel is through the Peak Gold Joint Venture (JV), which Kinross Gold Corporation operates. Contango Ore, Inc. holds a 30% interest in this JV, which processes ore from the Manh Choh mine.

Here are the operational metrics from the third campaign of 2025 (Campaign #3-2025), which ran from August 12, 2025, through September 15, 2025:

The company is also testing ore blending:

• Test batch of Manh Choh ore blended with Fort Knox ore included 44,447 tons of low-grade oxide ore grading 0.104 oz/ton.
• This test yielded approximately 1,300 additional gold ounces for Contango's 30% share, to be added to the Q4 reporting period.
• Q4 2025 guidance for Contango's 30% share is between 6,000 and 8,000 gold ounces.

Direct gold sales to the global bullion market and commodity buyers

Contango Ore, Inc. sells its share of the physical gold produced through the JV directly into the market. The company sold gold at spot price during Q3 2025, while simultaneously managing forward contracts.

Key sales and cost metrics for Q3 2025:

• Ounces of gold sold: 16,669 ounces.
• Realized average gold price: $3,647 per ounce.
• Cash costs per ounce sold (by-product basis): $1,402.
• All-in-sustaining costs (AISC) per ounce sold (by-product basis): $1,597, which was below the 2025 target of $1,625 per ounce.

Financial results tied to sales for the quarter ended September 30, 2025:

The company also manages its hedge book through this channel, settling a Carry Trade on October 31, 2025, which involved a net payment of $22.4 M from Contango in exchange for reducing 13,600 ounces under the hedge agreement. The hedge agreement balance as of October 31, 2025, was 49,300 ounces.

Financial markets for equity and debt capital raises (NYSE American: CTGO)

Contango Ore, Inc. accesses capital markets via its listing on the NYSE American under the ticker CTGO to fund development projects like Lucky Shot and Johnson Tract.

Recent financing activity includes:

• Gross proceeds raised in a September 2025 public offering: Approximately $50 million.
• Offering structure: 1,975,000 shares of common stock at $20.00 per share and pre-funded warrants for up to 525,000 shares at $19.99 per warrant.
• Cash provided by financing activities for the nine months ended September 30, 2025: $26.9 million.
• Credit Facility principal balance as of October 2, 2025: $14.6 million, following a repayment of $8.5 million subsequent to September 30, 2025.

Direct cash distributions from the Peak Gold JV to Contango Ore, Inc.

Cash flow from operations at the Manh Choh mine is distributed directly to Contango Ore, Inc. from the Peak Gold JV, serving as a major source of liquidity.

Distribution figures for 2025:

The company's unrestricted cash position as of September 30, 2025, was $107 million, up from $20.1 million at December 31, 2024, largely driven by these distributions. Management projected total 2025 cash distributions from the Peak Gold JV to be in excess of $100 million, assuming a $3,500 per ounce spot gold price for the remainder of 2025.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Customer Segments

You're looking at the people who actually fund Contango Ore, Inc.'s operations and buy the gold it produces. Honestly, it's a mix of sophisticated money and direct buyers of the physical metal.

Global institutional investors and fund managers seeking gold exposure

These are the big players. They look at Contango Ore, Inc. as a pure-play way to get Alaskan gold exposure, which is a safe jurisdiction. They track the production metrics closely, like the year-to-date production guidance for 2025, which is approximately 60,000 gold equivalent ounces (GEO). They care about the realized price, too; for instance, the average realized gold price in Q3 2025 hit $3,647 per ounce. The recent financing event in September 2025, raising $50 million, signals management's intent to grow production toward a target of 200,000 ounces annually using the direct ship ore (DSO) model, which is a key growth narrative for this segment.

Here's a snapshot of the financial context that drives their interest:

• YTD 2025 Gold Sales: $170.18 million.
• Q3 2025 Operating Income: A record $25 million.
• Cash Position (as of September 30, 2025): $107.0 million.
• Shares Outstanding: 15.5 million.

Commodity traders and refiners purchasing gold and associated minerals

This group is focused on the physical product and the efficiency of getting it out of the ground. They are the direct purchasers of the gold ounces Contango Ore, Inc. sells, often through its joint venture partner, Kinross Gold Corporation, which operates the Manh Choh Mine. The volume matters here; Contango Ore, Inc. sold 16,669 ounces of gold in Q3 2025. Traders check the costs to ensure profitability, noting that the Q3 2025 all-in-sustaining costs (AISC) were $1,597 per ounce sold, which was below the 2025 target of $1,625 per ounce. The Q1 2025 figures showed even tighter control, with AISC at $1,374 per ounce. They are buying the output from the Manh Choh project, which is on track to meet its 2025 guidance of approximately 60,000 GEO.

Retail investors interested in high-growth, pure-play Alaskan gold producers

Retail investors often look at the stock price movement and the company's story. They see a company with a strong operational base in Alaska and clear next steps with the Lucky Shot and Johnson Tract projects. The stock has shown volatility, for example, dropping 4.88% in regular trading after the Q3 2025 earnings release, despite a massive EPS beat. They are attracted by the potential upside from the Johnson Tract project, which an initial assessment indicated could have a post-tax Net Present Value (NPV5) of $224.5 million. The market capitalization has fluctuated, recently reported near $360 million or closer to $263 million, giving retail investors a specific entry point to track.

Debt and equity capital providers (banks, convertible debenture holders)

This segment is concerned with leverage and repayment capacity. Management has explicitly stated a priority to reduce debt, targeting a year-end debt level of around $15 million with ING & Macquarie. This focus is supported by strong operating cash flow generation, projected at approximately $3.00 per share for 2025, substantially higher than competitors. The company's balance sheet health is reflected in its Debt to Equity Ratio as of December 2025, which stood at -20.30, an improvement from the 12-month average of 4.39. The recent $50 million financing in September 2025 provides liquidity to fund growth while paying down obligations.

Here is a summary of the key financial figures relevant to capital providers:

Contango Ore, Inc. (CTGO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Contango Ore, Inc.'s (CTGO) operational efficiency and capital deployment right now. It's all about managing the costs associated with getting that Manh Choh ore processed while funding the next big steps at Lucky Shot and Johnson Tract. Here's the quick math on where the money is going.

The operational costs for the producing asset, Manh Choh, are coming in under budget for the third quarter of 2025. The All-in-Sustaining Costs (AISC) on a by-product basis for Q3 2025 were reported at $1,597/oz sold. This is definitely below the $1,625/oz target set for 2025. Management is aiming to keep AISC below $1,600/oz this year and next, so this is a strong indicator of cost discipline, even with some headwinds.

However, the reported net loss for Q3 2025, which was $5.4 M, gets muddied by non-cash accounting entries. Specifically, there was a non-cash unrealized loss on derivative contracts hitting the books for $14.4M in Q3 2025. To be fair, another report mentioned a $30,000,000 impact on the P&L from these unrealized derivative hedge losses due to the rising gold price in September, which turned what would have been a net income position into a net loss.

The cost structure is heavily influenced by logistics for the Manh Choh operation. You need to factor in the ore hauling and transportation costs from Manh Choh to the Fort Knox mill. These costs, along with higher processing costs and ore moisture content limiting annual transport volume by approximately 20% compared to the original Technical Report Summary projection, contributed to the 2025 standalone AISC guidance being set at approximately $1,625/oz AuEq sold, up from the original LOM estimate.

Capital deployment is focused on advancing the 100% owned projects. Contango Ore, Inc. recently closed a $50 million public offering to fund this work. This capital is earmarked for specific milestones:

• Advance Lucky Shot to a mine production decision within two years.
• Support underground and surface drilling at Lucky Shot, targeting approximately 18,000 meters across 210 drill holes in the first phase.
• Fund road construction and camp winterisation at Johnson Tract.
• Support an exploration tunnel and feasibility-level mine planning at Johnson Tract.

On the debt side, the company is actively reducing its liabilities. Management's objective has been to deliver into hedges and pay down debt on schedule. Here's a look at the recent debt servicing activity:

The company ended Q3 2025 with an unrestricted cash position of $107.0 M, up from $20.1 M at December 31, 2024, largely due to an $87 million distribution from the Peak Gold JV. Finance: draft 13-week cash view by Friday.

Contango Ore, Inc. (CTGO) - Canvas Business Model: Revenue Streams

Contango Ore, Inc.'s revenue streams as of late 2025 are heavily weighted toward its interest in the Manh Choh mine via the Peak Gold JV, supplemented by strategic cash distributions and future potential from its wholly-owned assets like Johnson Tract.

The primary cash inflow comes from gold sales revenue, which totaled $170.18 million year-to-date through the third quarter of 2025. This performance was supported by a strong realized gold price environment, with Contango Ore, Inc. realizing an average gold price of $3,647 per ounce during Q3 2025. The quarterly sales figures reflect the operational cadence of the joint venture.

A significant component of Contango Ore, Inc.'s cash position is derived from cash distributions from the Peak Gold JV. These distributions reached $87.0 million year-to-date through Q3 2025, providing substantial operating cash flow. The company's net cash provided from operating activities for the nine months ended September 30, 2025, was $60.2 M, significantly driven by these distributions.

• Q3 2025 cash distribution received: $33 M
• Total cash distributions received YTD Q3 2025: $87.0 M
• Management projection for full-year 2025 distributions: in excess of $100 million

Looking ahead, future revenue from silver and copper by-products, particularly from the wholly-owned Johnson Tract Project, represents a key diversification of the revenue base. The S-K 1300 Technical Report Summary for Johnson Tract outlines a seven-year life of mine (LOM) with an annual average production forecast of 102,258 GEO (Gold Equivalent Ounces), which includes gold, silver, copper, lead, and zinc. The estimated All-In-Sustaining Cost (AISC) for this project is notably low at $860 per GEO sold, based on the initial assessment.

• Johnson Tract Projected Annual Average Production: 102,258 GEO
• Johnson Tract Estimated AISC: $860 per GEO sold
• Johnson Tract Projected Life of Mine (LOM): 7 years

The company is actively advancing permitting and exploration at Johnson Tract, including a 15,000-meter underground in-fill drilling program, to support a feasibility study targeted for completion within 12 to 18 months to solidify these future revenue expectations.