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Dec 31, 2022
Contango Ore Q2 2023 Earnings Report
Contango ORE reported a net loss for the quarter ended December 31, 2022.
Key Takeaways
Contango ORE reported a net loss of $14.3 million, or $2.10 per share, for the quarter ended December 31, 2022, compared to a net loss of $4.9 million, or $0.72 per share, for the same period last year. The increased loss was attributed to increased exploration and development expenses.
Net loss for the quarter was $14.3 million, or $2.10 per share.
Net loss increased compared to the same period last year.
The increase in net loss is due to increased exploration and development expenses on the Lucky Shot project.
Company anticipates first production in the second half of 2024.
Contango Ore
Contango Ore
Forward Guidance
The company expects to experience additional losses until the Manh Choh project comes into commercial production in the second half of 2024. They expect to produce 225,000 GEO (Gold Equivalent Ounces) per year (Contango’s 30% = 67,500 GEO).
Positive Outlook
- Completed construction of a 176-person camp near the mine site in the town of Tok.
- Continue to advance road construction.
- On track to complete an initial resource on their Lucky Shot project by the end of March.
- Expect to announce shortly the selection of a well-established contract miner who will be responsible for mine site preparatory work in advance of actual mining activities.
- Site activities will continue through the year with the objective of achieving our goal of first production in the second half of 2024.
Challenges Ahead
- The company expects to experience additional losses until the Manh Choh project comes into commercial production in second half of 2024.
- Risks of the exploration and the mining industry.
- Uncertainties as to the availability and cost of financing.
- Inability to realize expected value from acquisitions.
- The possibility that government policies may change, political developments may occur or governmental approvals may be delayed or withheld, including as a result of the recent presidential and congressional elections in the U.S. or the inability to obtain mining permits.