Contango Ore Gears Up to Report Q2 Earnings: What to Expect?

Contango Ore, Inc. CTGO is anticipated to witness a loss when it reports second-quarter 2025 results. The Zacks Consensus Estimate is at a loss of one cent per share. The consensus mark has remained unchanged in the past 60 days. 

The projected loss, however, suggests an improvement from the $1.90 loss per share reported in the prior-year quarter.

Contango Ore’s Earnings Surprise History

CTGO’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed in one. The company has a trailing four-quarter earnings surprise of 276.02%, on average. The trend is shown in the chart below.

What the Zacks Model Unveils for CTGO Stock

Our proven model does not conclusively predict an earnings beat for Contango Ore this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: CTGO has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped Contango Ore’s Q2 Performance

In June, Contango Ore provided its second-quarter production update, which may show how it is likely to fare in the to-be-reported quarter. 

The company owns a 30% stake in Peak Gold Joint Venture (JV) in Alaska, which includes the Manh Choh Project. In July 2024, the Peak Gold JV commenced processing ore at the Fort Knox facility and on July 8, 2024, the Manh Choh Project achieved a significant milestone and poured its first gold bar. Notably, this is Contango Ore’s sole project in the production stage, while all other projects are in the exploration stage. 

During the second quarter, the Peak Gold JV processed 255,000 tons of ore at an average grade of 0.220 ounces per ton, containing approximately 56,000 ounces of gold.  Gold recovery averaged 93%, resulting in approximately 52,000 ounces of recovered gold. Of this, Contango Ore’s 30% share was at 15,700 ounces of gold.

During the quarter, 17,764 ounces of gold were delivered to Contango Ore. The company sold all the gold at the spot price of $3,274 per ounce, resulting in gold sales of $58.16 million. 

Silver ounces sold were 15,472 ounces, resulting in sales of $0.5 million. 

Cash costs were $1,416 per ounce of gold sold and all-in-sustaining costs (AISC) were at $1,548 of gold sold, well below the 2025 target of $1,625 per ounce

However, AISC increased sequentially as a result of sustaining capital expenditures on the planned tractor (truck) replacements and the exploration drilling program at Manh Choh.

General and administrative expenses are expected to have been higher in the quarter due to legal fees, regulatory fees and payroll expenses. Exploration spending also remained high, given the company’s project pipeline, contributing to the anticipated quarterly loss.

Contango Ore Stock’s Price Performance

Shares of Contango Ore have gained 122.8% year to date compared with the industry’s 17.8% growth.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat this quarter. 

Home Depot HD, slated to release second-quarter 2025 earnings on Aug. 19, has an Earnings ESP of +0.34% and a Zacks Rank of 3. 

The Zacks Consensus Estimate for Home Depot’s earnings for the quarter is currently pegged at $4.71 per share. The estimate indicates a 0.9% increase from the year-ago quarter. Home Depot has a trailing four-quarter average earnings surprise of 2.21%. 

Viking Holdings Ltd. VIK, scheduled to release second-quarter 2025 earnings on Aug. 19, presently has an Earnings ESP of +3.40% and a Zacks Rank of 2. 

Viking Holdings’ earnings for the second quarter are currently pegged at 98 cents per share, indicating year-over-year growth of 29%. Viking Holdings has a trailing four-quarter average earnings surprise of 12.5%. 

Analog Devices ADI, scheduled to release third-quarter fiscal 2025 earnings on Aug. 20, has an Earnings ESP of +0.72% and a Zacks Rank of 1. 

The Zacks Consensus Estimate for Analog Devices’ earnings for the second quarter of 2025 is pegged at $1.93 per share, indicating an increase of 22.2% from the year-ago quarter’s reported figure. Analog Devices has a trailing four-quarter average earnings surprise of 5.6%. 

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This article originally published on Zacks Investment Research (zacks.com).

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