Roth Capital has increased its price target for Contango Ore (CTGO, Financial) from $22 to $26, while maintaining a Buy recommendation. This adjustment comes on the heels of the company's encouraging first-quarter performance, highlighted by enhanced gold output from the Manh Choh project. The company is leveraging its cash flow effectively to lower debt levels and manage hedge contracts.
Looking forward to 2025, Contango Ore is concentrating on exploration drilling at the Lucky Shot project. Additionally, the company remains committed to adhering to its timelines for obtaining permits and advancing the development of the Johnson Tract. These strategic moves underpin Roth Capital's optimistic outlook on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Contango Ore Inc (CTGO, Financial) is $25.90 with a high estimate of $32.00 and a low estimate of $14.50. The average target implies an upside of 34.34% from the current price of $19.28. More detailed estimate data can be found on the Contango Ore Inc (CTGO) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Contango Ore Inc's (CTGO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CTGO Key Business Developments
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Contango Ore Inc (CTGO, Financial) recorded $19 million in income from operations, including $22.3 million in equity income from the Peak Gold JV.
- The company sold over 17,000 ounces of gold with an additional 3,800 ounces in recoverable inventory.
- Contango Ore Inc (CTGO) completed the quarter with $35 million in cash and increased marketable securities to about $4 million.
- The company made significant principal repayments, reducing the facility balance to $30 million.
- Contango Ore Inc (CTGO) has started delivering into July hedges, with about 2,800 ounces delivered so far.
Negative Points
- Contango Ore Inc (CTGO) recorded a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts.
- The company's cash costs were $1,334 per ounce of gold sold, with an all-in sustaining cost (AISC) of $1,374 per ounce.
- The AISC is expected to increase in later quarters due to sustaining capital expenditures and a $5.7 million exploration drill program.
- The hedge liability increased due to rising gold prices, although the company has implemented a carry trade to manage this.
- The company is still facing weight restrictions on a bridge, affecting transportation logistics.
