Spot gold just hit $3,980, set a new record high

Spot gold just hit $3,980, set a new record high

Contango ORE, Inc. (NYSE American: CTGO) has announced significant achievements in its gold production and cash distribution. The company's joint venture, the Peak Gold JV, completed its third production campaign of 2025, resulting in a 30% share of 17,000 ounces of gold for Contango . Additionally, the JV made a cash distribution of $33 million to Contango, bringing the total cash distributions from the Peak Gold JV to $87 million for Contango's share received year-to-date .

The campaign, which operated from August 12 to September 15, 2025, processed approximately 287,000 tons of ore at an average head grade of 0.214 ounces per ton, resulting in approximately 56,800 ounces of recovered gold. Contango's share of this production was 17,000 ounces, exceeding the company's original guidance of 15,000 ounces .

In a separate development, the Peak Gold JV is currently running a test campaign to blend low-grade oxide Manh Choh ore with standard mill feed grade Fort Knox ore to evaluate the viability of the process. This test is expected to be completed in early October .

Contango has also made progress in reducing its debt and hedge contracts. As of October 1, 2025, the company has a net hedge contract balance of 49,300 ounces of gold and has repaid early $8.5 million on its credit facility, reducing the outstanding principle balance by 37% to $14.6 million .

The company's President and CEO, Rick Van Nieuwenhuyse, stated, "We are pleased with the strong results from the third campaign and the progress we have made in reducing our debt and hedge contracts. We remain focused on delivering exceptional shareholder returns and advancing our development-stage assets to production decisions from internally generated cash flow" .

Contango's recent performance comes as spot gold hit a new record high of $3,980 on September 12, 2025, further underscoring the favorable market conditions for gold producers .