Business
Contango ORE Announces Transition Period Results
FAIRBANKS, Alaska / Mar 14, 2024 / Business Wire / Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American: CTGO) announced today it filed its Form 10-K
About this update from Contango Silver & Gold Inc.
[{"type":"text","content":"FAIRBANKS, Alaska / Mar 14, 2024 / Business Wire / Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American: CTGO) announced today it filed its Form 10-KT for the transition period ended December 31, 2023, with the Securities and Exchange Commission. On November 14, 2023, the Company’s board of directors approved a change in the Company’s fiscal year end from June 30th to December 31st, effective as of December 31, 2023. This decision was made to better align the Company’s reporting period with the Company’s 30% equity investment in Peak Gold LLC (the “Peak Gold JV”) and Contango’s peer companies. As a result, this Form 10-KT is a transition report and includes financial information for the transition period from July 1, 2023, through December 31, 2023. In this transition report on Form 10-KT, we include financial results for the six months ended December 31, 2023, which are audited, compared to the financial results for the six months ended December 31, 2022, which are unaudited. The Company reported a net loss of $40.8 million or a loss of $4.44 per basic and diluted share for the six-month period ended December 31, 2023, which includes a non-cash expense of $23.4 million related to a loss on mark-to-market derivative contracts that are calculated based on a forward gold price compared to the contracted hedge price. This compares to a net loss of $21.4 million or a loss of $3.15 per basic and diluted share for the six-month period ended December 31, 2022 (unaudited), which included non-cash costs totaling $2.0 million primarily related to share-based compensation expense. The primary reason for the increase in net loss in the 2023 period is due to the Company entering into derivative gold hedging contracts with its lenders in the 2023 period, resulting in an unrealized loss on derivative contracts in the amount of $23.4 million. Additionally, the Company incurred increased interest costs related to the funds drawn down on its secured credit facility in the 2023 period, as well as increased general and administrative costs related to increased retention and severance payments and insurance costs. These were offset by a reduction in exploration expenses at the Lucky Shot project and a reduction in the loss on the Peak Gold JV, which relates to pre-production costs for development and construction at Peak Gold JV’s Manh Ch...