Contango ORE, Inc. Files Q2 2024 10-Q

TL;DR

Contango ORE Q2 10-Q filed. Shows derivative liabilities and recent stock offering.

AI Summary

Contango ORE, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial position, including derivative contract liabilities. Key dates mentioned include May 17, 2023, for a credit agreement and June 10, 2024, for an underwritten public offering.

Why It Matters

This filing provides investors with an update on Contango ORE's financial health and operational activities for the second quarter of 2024, including details on liabilities and recent financing events.

Risk Assessment

Risk Level: medium — The company's business involves commodity prices and potential derivative liabilities, which inherently carry market risks.

Key Numbers

• 2024-06-30 — Reporting Period End (Financial data pertains to this date.)
• 2024-08-13 — Filing Date (Date the 10-Q was submitted to the SEC.)

Key Players & Entities

• Contango ORE, Inc. (company) — Filer
• 2024-06-30 (date) — Reporting period end date
• 2024-08-13 (date) — Filing date
• 713-877-1311 (phone_number) — Business phone number
• 2023-05-17 (date) — Credit Agreement date
• 2024-06-10 (date) — Underwritten Public Offering date

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, Par Value $0.01 per share CTGO NYSE American Indi

Filing Documents

• ctgo-20240630.htm (10-Q) — 1895KB
• ctgo-ex10_1.htm (EX-10.1) — 102KB
• ctgo-ex10_2.htm (EX-10.2) — 61KB
• ctgo-ex31_1.htm (EX-31.1) — 24KB
• ctgo-ex31_2.htm (EX-31.2) — 24KB
• ctgo-ex32_1.htm (EX-32.1) — 13KB
• ctgo-ex32_2.htm (EX-32.2) — 13KB
• 0000950170-24-096321.txt ( ) — 8842KB
• ctgo-20240630.xsd (EX-101.SCH) — 1363KB
• ctgo-20240630_htm.xml (XML) — 1498KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statement of Stockholders' Equity (Deficit) for the Six Months Ended June 30, 2024 and 2023 (unaudited) 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 31 All references in this Form 10-Q to the " Company " , " CORE " , " we " , " us " or " our " are to Contango ORE, Inc. 2 Table of Contents CONTANGO ORE, INC. CONDENSED CONSO LIDATED BALANCE SHEETS (Unaudited)

- Financial Statements

Item 1 - Financial Statements June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash $ 24,118,918 $ 15,504,819 Restricted cash 234,433 232,572 Prepaid expenses and other 1,278,663 1,112,910 Total current assets 25,632,014 16,850,301 LONG-TERM ASSETS: Investment in Peak Gold, LLC 54,468,519 28,064,405 Property & equipment, net 13,279,522 13,326,347 Commitment fee 255,517 350,575 Total long-term assets 68,003,558 41,741,327 TOTAL ASSETS $ 93,635,572 $ 58,591,628 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable $ 790,613 $ 250,739 Accrued liabilities 1,976,353 2,241,087 Derivative contract liability 17,869,326 2,679,784 Debt, current portion 29,900,000 7,900,000 Total current liabilities 50,536,292 13,071,610 NON-CURRENT LIABILITIES: Advance royalty reimbursement 1,200,000 1,200,000 Asset retirement obligations 252,547 246,227 Contingent consideration liability 1,100,480 1,100,480 Derivative contract liability 33,727,276 20,737,997 Debt, net 44,698,449 36,779,859 Total non-current liabilities 80,978,752 60,064,563 TOTAL LIABILITIES 131,515,044 73,136,173 COMMITMENTS AND CONTINGENCIES (NOTE 11) STOCKHOLDERS' EQUITY/(DEFICIT): Preferred Stock, 15,000,000 shares authorized — — Common Stock, $ 0.01 par value, 45,000,000 shares authorized; 10,365,914 shares issued and 10,363,434 shares outstanding as of June 30, 2024; 9,454,233 shares issued and 9,451,753 shares outstanding as of December 31, 2023 103,658 94,542 Additional paid-in capital 140,150,016 124,451,067 Treasury stock at cost ( 2,480 at June 30, 2024; and 2,480 shares at December 31, 2023) ( 48,308 ) ( 48,308 ) Accumulated deficit ( 178,084,838 ) ( 139,041,846 ) TOTAL STOCKHOLDERS' EQUITY/(DEFICIT) ( 37,879,472 ) ( 14,544,545 ) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY