Contango ORE, Inc. (NYSE: CTGO)

Sector: Basic Materials Industry: Gold CIK: 0001502377
Market Cap 318.55 Mn
P/B 6.66
P/E -246.69
P/S 0.00
ROIC (Qtr) 19.03
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 42.10 Mn
Debt/Equity (Qtr) 0.88

About

Contango ORE, Inc., often recognized by its ticker symbol CTGO, operates in the mining industry with a focus on the exploration and development of gold ore and associated minerals in Alaska. Contango ORE's primary business activities encompass exploration, development, and mining of gold ore and associated minerals. The company's operations span across Alaska, where it manages its interests through three key entities: Peak Gold, LLC, Alaska Gold Torrent, LLC, and Contango Minerals Alaska, LLC. Each of these subsidiaries plays a unique role in the...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 50.26M provides robust 1.19x coverage of total debt 42.10M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 107.08M provide 9.31x coverage of short-term debt 11.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 217.66M provides 5.17x coverage of total debt 42.10M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 50.26M provides strong 18.06x coverage of stock compensation 2.78M, indicating sustainable incentive practices.
  • Strong operating cash flow of 50.26M provides 4.41x coverage of SG&A expenses 11.39M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 50.26M barely covers its investment activities of (576519), with a coverage ratio of -87.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (576519) provide weak support for R&D spending of 4.46M, which is -0.13x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 107.08M provide limited coverage of acquisition spending of (606866), which is -176.45x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 50.29M provides weak coverage of capital expenditures of (30347), with a -1657.21 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 50.26M provides minimal -71.37x coverage of tax expenses of (704200), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.52 3.17
EV to Cash from Ops. EV/CFO 6.58 -11.55
EV to Debt EV to Debt 7.85 548.67
EV to EBIT EV/EBIT 43.45 12.24
EV to EBITDA EV/EBITDA 24.94 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 6.57 12.17
EV to Market Cap EV to Market Cap 1.04 1.72
EV to Revenue EV to Revenue 0.00 7.50
Price to Book Value [P/B] P/B 6.66 5.26
Price to Earnings [P/E] P/E -246.69 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) 0.79 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 185.85 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 194.18 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 107.44 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.93 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 111.61 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 97.36 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 101.53 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 964.71 171.65
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.12 3.14
Current Ratio Curr Ratio (Qtr) 1.14 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.88 0.27
Interest Cover Ratio Int Coverage (Qtr) 0.79 406.21
Times Interest Earned Times Interest Earned (Qtr) 0.79 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -19.19
EBIT Margin % EBIT Margin % 0.00 -44.57
EBT Margin % EBT Margin % 0.00 -34.79
Gross Margin % Gross Margin % 0.00 30.59
Net Profit Margin % Net Profit Margin % 0.00 -40.44