With the gold price rocketing - thanks in no small part to Donald Trump - one would expect gold miners to see their stock prices spiralling up too. This has not been the case with Contango Ore [NYSE:CTGO].
As we continue our search for high quality gold miners, it is surprising to see a company of this quality experiencing a drop in its stock price. Shares in Contango Ore are down a staggering 50% in 12 months leaving the miner with a market cap of around $120m.
Long-time consumers of our market intelligence will recall we first visited this miner in a 2022 note when it was still in recovery mode from Covid.
Investors seem happy with the shares at $10 although they had been trading at $20 last year. The drop came at the end of November when Contango Ore announced that the cost guidance for the production of ore from its Manh Choh gold mine in Alaska was going to increase.
By way of background, Contango Ore operates Manh Choh as part of the Peak Gold joint venture with Kinross Gold [TSX:K]. The all-in sustaining cost (ASIC) at Manh Choh was raised by 25% which did not impress investors. That said, the mine life for Manh Choh is less than five years.
The big question for new investors, the ASIC forecast at Manh Choh aside, is whether Contango Gold is worth a look at $10, especially with the gold price likely to rise rather than fall in 2025?
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