Contango ORE’s Robust Cash Generation Fuels Debt Reduction and Growth Ambitions

Contango ORE is experiencing a significant financial uplift, driven by its stake in the producing Manh Choh gold mine. The joint venture with Kinross Gold is delivering substantial cash returns, which management is aggressively deploying to strengthen the company's balance sheet. A key question for investors is whether the current favorable gold price environment provides enough capital to simultaneously fund ambitious expansion plans across Alaska and British Columbia.

• Substantial Gold Output: The company secured approximately 17,000 ounces of gold from its share of production in the third quarter of 2025.
• Significant Cash Returns: Total distributions from the joint venture for the full 2025 year are projected to exceed $100 million.
• Aggressive Debt Paydown: Outstanding credit obligations have been reduced from over $50 million earlier in the year to a recent figure of $14.6 million.

The cornerstone of Contango ORE's improved financial position is the Manh Choh mine, which commenced production in late 2024. The company's 30% interest is generating major cash inflows, particularly with gold prices around $3,500 per ounce. The third production campaign of 2025 alone resulted in a $33 million cash distribution to Contango ORE.

This influx of capital has been strategically directed toward debt reduction. Over the course of the fiscal year, the company systematically lowered its debt from an initial figure exceeding $50 million in Q1 2025 to $14.6 million by October. Management's stated goal was to end the year with a residual debt balance of approximately $15 million. Plans are in place to fully extinguish the remaining obligations between 2026 and mid-2027.

Should investors sell immediately? Or is it worth buying Contango ORE?

Advancing the Project Pipeline and a Transformative Merger

While benefiting from Manh Choh's cash flow, Contango ORE is actively advancing its owned project portfolio. The Lucky Shot project, which already holds the necessary mining permits, is targeting an estimated annual production rate of roughly 50,000 ounces of gold. A definitive feasibility study for this asset is expected within approximately two years.

Further momentum comes from the Johnson Tract project, which was accepted into the FAST-41 accelerated permitting program in December 2025. This inclusion establishes a structured timeline for permit issuance, with completion targeted by mid-2028.

Market attention will also focus on the company's upcoming quarterly results, scheduled for release on March 16, 2026. Analysts will be keenly assessing progress on the integration following the merger with Dolly Varden Silver, along with any identified synergy potentials. This combination is designed to position Contango ORE as a mid-tier precious metals producer in North America.