Mining Stock Daily Contango Ore's Pathway to 100K Ounce Production in Alaska
Nov 19, 2025
Rick Van Niewenhuyse, CEO of Contango Ore, shares exciting insights about gold production in Alaska. He highlights the company's record-high income of $25M and their strategic approach to managing debt and capital. The focus is on the Lucky Shot project, aiming to ramp up production to 100,000 ounces annually. Plans include a robust drilling program and a timeline for development in tandem with the Johnson Tract. Rick discusses innovative financing strategies to avoid dilution and ensure sustainable growth in the competitive gold market.
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Strong Margins From Low AISC
- Contango Ore is producing with AISC around $15.50 to $16.25 per ounce, creating huge margins at current gold prices.
- Management is focused on delivering against legacy hedges and paying down debt to fully capture those margins.
Clear Priority: Pay Down Hedges
- Prioritize delivering hedge obligations before expanding to fully benefit from spot gold prices.
- Use operating cash flow to pay down hedges and debt to unlock higher margins later.
Fast Track Lucky Shot With Direct Shipping
- Lucky Shot drilling aims for 15,000m of short underground holes to define a 400–500koz resource.
- The plan uses direct shipping to Fort Knox mill, avoiding new mill or tailings permits and large capital costs.