Contango ORE Inc. Receives $21M from Joint Venture

Contango Ore, Inc. (NYSE:CTGO) is one of the 10 most undervalued gold stocks to buy, according to analysts. On June 25, the company confirmed it had received a cash distribution of $21 million from the Peak Gold Joint Venture. Year to date, it has received $54 million in cash distribution.

A modern and brightly lit gold mine with miners on the surface, illuminated by the setting sun.

The significant cash distribution is from the joint venture, which produces approximately 36,000 ounces of gold while maintaining a guidance of 60,000 ounces. Contango plans to use $7 million of the new payment to settle its debt under a credit facility. The payment should reduce the balance to $23 million.

Management has already revised its expected 2025 cash distribution to above $95 million. The upward revision is in response to gold prices averaging more than $3,100 for the year. The higher-than-expected cash flow is to be used to strengthen the cash position, fulfill hedge contracts, and advance permitting activities at the Johnson Tract project.

Contango Ore, Inc. (NYSE:CTGO) is a company that explores and develops gold and associated mineral properties in Alaska. It is a partner in the Peak Gold joint venture, which includes the Manh Choh gold mine, and also holds other leases and claims for exploration.

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