John B. Juneau, a director at Contango ORE, Inc. (AMEX:CTGO), has recently acquired 8,300 shares of the company's common stock. The timing is notable as the stock trades near its 52-week low of $11.36, having declined about 39% over the past six months. According to InvestingPro data, technical indicators suggest the stock is currently in oversold territory. The shares were purchased on December 13, 2024, at a weighted average price of $11.83, with transaction prices ranging from $11.59 to $11.98. This acquisition amounts to a total value of $98,189.
Following this transaction, Juneau's direct ownership in Contango ORE stands at 319,411 shares. Additionally, he holds indirect ownership through various entities, including AuCuAg Holdings, LLC, Juneau Exploration, L.P., and J5D Enterprises, L.P., with holdings of 98,366 shares, 96,534 shares, and 158,491 shares, respectively.
In other recent news, Contango ORE announced significant earnings from its gold mining operations with the Peak Gold Joint Venture (JV), including a cash distribution of $12 million from its second campaign of processing Manh Choh ore, bringing the total cash distributions to $31.5 million for the year. In addition to these earnings, the company completed the acquisition of HighGold Mining Inc., which is expected to add over 1 million ounces of gold equivalent to Contango's resources. Analyst firm Roth/MKM adjusted Contango ORE's price target to $33.00, down from $38.00, but maintains a Buy rating for the stock.
Contango ORE also updated its financial guidance for the Manh Choh mine, part of the JV, indicating higher anticipated costs and confirming its 2025 gold production target. The all-in sustaining costs (AISC) for the life-of-mine have been revised upward from previous estimates, now projected at approximately $1,400 per ounce of gold equivalent sold. Despite these challenges, the company forecasts roughly $50 million in cash distributions from the JV in 2025, assuming a spot gold price of $2,500 per ounce.
These recent developments also include a public offering of Contango's common stock and warrants, managed by Canaccord Genuity and Cormark Securities. The company is progressing with its Manh Choh project, with the first gold production expected by the third quarter of 2024. Contango ORE remains focused on reducing its credit facility debt and progressing other projects like Lucky Shot and Johnson Tract to capitalize on the direct ship ore model.
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