Contango Updates Guidance, Shares Punished
Date
11/29/2024 10:10:04 AM
(MENAFN- Baystreet)
Contango ORE, Inc. (NYSE: CTGO) announced guidance today for its 30% interest in the Peak Gold JV, including reaffirmation of anticipated 2025 gold production and updated anticipated all-in sustaining costs for the mine and 2025 cash distributions from the Peak Gold JV. In addition, the Company provided an update on its credit facility and related hedge contracts.
The Company anticipates that its share of 2025 gold production from the Manh Choh mine will be approximately 60,000 ounces of gold. The estimated AISC for the life-of-mine is projected to increase to approximately $1,400 per oz of gold equivalent sold compared to $1,116 per oz of AuEq sold, as estimated in the Manh Choh Technical Report Summary, while the estimated AISC for 2025 on a standalone basis is expected to be approximately $1,625 per oz of AuEq sold.
A main factor leading to the AISC increase relates to recent weight restrictions on the Chena Flood Plain Bridge, a bridge along the Manh Choh ore haul route, as well as higher than anticipated moisture content in the Manh Choh ore, which limits the overall amount of ore being transported annually by approximately 20% compared to what was originally projected in the TRS.
Shares in CTGO lost $2.63, or 14.6%, to $15.33 first thing Friday.
MENAFN29112024000212011056ID1108939565
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.