ctgo 18.88 bought some ctgo today. Price was knocked down last week due to announced raise of $30million at $19. $30 million will be used for exploration and cushion for CTGO 30% share of mine construction at Manh Choh where JV partner Kinross is building the mine to be producing late 2024. Contango's share should be around 67K oz gold/yr. The Manh Choh land package is huge at 675,000 acres. This is important because Manh Choh is only projected a 4.5yr mine life. Kinross will run the ore thru it's Fort Knox mill. I am assuming that Kinross expects exploration success will extend the life of Manh Choh to supplement the expected production of 1 million oz for the JV during it's first 4.5 years.
Contango should receive ~67K oz/yr from Manh Choh at AISC ~$1200 resulting in eps of $12 to $19/yr.
Contango has debt to fund it's 30% share of construction plus the just raised $30 million. They expect to explore their other project, Lucky Shot. Lucky Shot was a producing high grade mine closed during WWII. There is a resource of !00K+ oz that Contango expects to significiantly increase.
New mines are always risky but Kinross is a big partner to rely on to bring the mine into production. Lucky Shot appears to have exploration upside so that Contango could build a small mine/mill to process the high grade gold and add to the cashflow from Manh Choh.
Mgmt is excellent with Rick Van Niewenhyse as CEO. There are only about 10 million shares outstanding so market cap is around $180million.
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
AI
