Contango ORE Announces Earnings for Quarter Ended December 31, 2021
February 14 2022 - 4:01PM
Business Wire
Contango ORE, Inc. (“CORE” or the “Company”) (NYSE American:
CTGO) announced that it had a net loss of $(4.9) million, or
$(0.72) per basic and diluted share, for the three months ended
December 31, 2021 compared to a net loss of ($3.2) million or
$(0.53) per basic and diluted share for the same period last year.
For the six months ended December 31, 2021, the Company reported a
net loss of ($9.4) million, or ($1.41) per basic and diluted share,
for the six months ended December 31, 2021 compared to a net income
of $30.2 million or $4.79 per basic and diluted share for the same
period last year. The decrease in income for the sixth month period
ended December 31, 2021 is due to gain on the sale of a portion of
the Company’s equity interest in Peak Gold, LLC to a subsidiary of
Kinross Gold Corporation on September 30, 2020. As of December 31,
2021, the Company reported cash of $21.9 million. The Company also
announced that it filed its Form 10-Q for the quarter ended
December 31, 2021 with the Securities and Exchange Commission.
Rick Van Nieuwenhuyse, the Company’s President and CEO
commented, “The Company accomplished a number of important
objectives during the last quarter of 2021, including: 1)
up-listing on the NYSE American Exchange; 2) completion of the Manh
Choh field program; 3) submission of the 404 permit application to
the US Army Corp of Engineers (USACE) and conducted extensive
public engagement on the activities and plans for developing the
Manh Choh project as well as the related transportation plan for
trucking ore to the Fort Knox facility; and 4) engaged underground
mine contractor Atkinson to refurbish and extend the Enserch tunnel
at the Lucky Shot project into the footwall of the Lucky Shot vein
so that the Company can conduct detailed drilling of the down-dip
extension of the vein from underground.
“Now in the first calendar quarter of 2022, the Company is well
positioned to accomplish some very important milestones that
management expect to add significant shareholder value: 1) on the
Manh Choh deposit, the Peak Gold JV has approved an approximately
$48 million program (Contango’s share is $14.4 million) to complete
a feasibility study, complete the US Army Corps of Engineers 404
federal permitting effort; and complete early-work construction on
the construction/operating camp, roads and laydown areas along with
establishing security and IT for the proposed mine site; 2)
Atkinson has mobilized all of its personnel and equipment to the
Lucky Shot site and is now underground and we are on schedule to
start drilling in July; and 3) continue early exploration on our
Triple Z, Shamrock and Eagle-Hona projects. It will be a busy year,
but one that advances the Company’s assets significantly along the
value chain and towards production.”
ABOUT CORE
CORE is a company that engages in the exploration in Alaska for
gold and associated minerals through a 30% interest in Peak Gold
LLC, which leases approximately 675,000 acres for exploration and
development and through Contango Minerals Alaska, LLC, its wholly
owned subsidiary which leases approximately 200,000 acres for
exploration. The Company also owns the rights to the Lucky Shot,
Coleman and War Baby mines, and approximately 16,600 acres of
surrounding mining claims located in Willow Mining District about
75 miles north of Anchorage, Alaska. Additional information can be
found on our web page at www.contangoore.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding
CORE that are intended to be covered by the safe harbor for
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995, based on CORE’s current expectations
and includes statements regarding future results of operations,
quality and nature of the asset base, the assumptions upon which
estimates are based and other expectations, beliefs, plans,
objectives, assumptions, strategies or statements about future
events or performance (often, but not always, using words such as
“expects”, “projects”, “anticipates”, “plans”, “estimates”,
“potential”, “possible”, “probable”, or “intends”, or stating that
certain actions, events or results “may”, “will”, “should”, or
“could” be taken, occur or be achieved). Forward-looking statements
are based on current expectations, estimates and projections that
involve a number of risks and uncertainties, which could cause
actual results to differ materially from those, reflected in the
statements. These risks include, but are not limited to: the risks
of the exploration and the mining industry (for example,
operational risks in exploring for, developing mineral reserves;
risks and uncertainties involving geology; the speculative nature
of the mining industry; the uncertainty of estimates and
projections relating to future production, costs and expenses; the
volatility of natural resources prices, including prices of gold
and associated minerals; the existence and extent of commercially
exploitable minerals in properties acquired by CORE or Peak Gold
LLC; ability to realize the anticipated benefits of the recent
transactions with an affiliate of Kinross; disruption from the
transactions and transition of the Peak Gold LLC’s management to an
affiliate of Kinross, including as it relates to maintenance of
business and operational relationships; potential delays or changes
in plans with respect to exploration or development projects or
capital expenditures; the interpretation of exploration results and
the estimation of mineral resources; the loss of key employees or
consultants; health, safety and environmental risks and risks
related to weather and other natural disasters); uncertainties as
to the availability and cost of financing; CORE’s inability to
retain or maintain its relative ownership interest in Peak Gold
LLC; inability to realize expected value from acquisitions;
inability of our management team to execute its plans to meet its
goals; the extent of disruptions caused by the COVID-19 outbreak;
and 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. Additional information on these and other factors
which could affect CORE’s exploration program or financial results
are included in CORE’s other reports on file with the U.S.
Securities and Exchange Commission. Investors are cautioned that
any forward-looking statements are not guarantees of future
performance and actual results or developments may differ
materially from the projections in the forward-looking statements.
Forward-looking statements are based on the estimates and opinions
of management at the time the statements are made. CORE does not
assume any obligation to update forward-looking statements should
circumstances or management’s estimates or opinions change.
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version on businesswire.com: https://www.businesswire.com/news/home/20220211005605/en/
Contango ORE, Inc. Rick Van Nieuwenhuyse (713) 877-1311
www.contangoore.com
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