Yesterday Contango Ore stock fell 21% after the company issued a press release stating gold production costs in 2025 will rise from $1,100 to $1,600 per ounce. At a hastily organized investor webinar, the CEO and CFO of Contango Ore blamed the newly imposed weight restrictions on the northbound bridge at MP 346 Richardson Highway and higher-than-expected moisture content in the ore (which increases the weight). They said these factors, plus rising production costs, will cause them to miss their expected ore delivery to Ft. Knox by 20%.
At one point on Friday, the stock hit $13.56, the lowest it traded in nearly 4 years. Contango Ore is now forced to meet with lenders to renegotiate the payment schedule on their financing for the Manh Choh project.