Fatima Gulzar
1 min read
In This Article:
Roth Capital has reiterated its Buy rating on Contango Ore, Inc. (NYSE:CTGO) and increased its price objective from $22 to $26.
Aerial view of a gold mine in the mountains, trees reflecting the light from the sun.
According to the firm, Contango Ore, Inc. (NYSE:CTGO)’s key aim for 2025 is to manage hedging contracts and reduce debt through the strategic use of operating cash flow. It also highlighted the company's enhanced gold output in Q1 from the Manh Choh project.
Roth also mentioned the firm’s willingness to keep the Johnson Tract's development schedule intact and finance exploration drilling at its Lucky Shot project. Favorable exploration results and a lower cutoff grade at Manh Choh could enable a possible pit enlargement that would boost long-term cash flow and mine life.
Contango Ore, Inc. (NYSE:CTGO) sold more than 17,000 ounces of gold and generated operating profits of $19 million, which included $22.3 million from the Peak Gold JV. By the end of the quarter, its debt facility balance had dropped to $30 million, and it had $35 million in cash and $4 million in marketable securities.
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