Contango Ore, Inc.
Accretive Acquisition Bolsters Portfolio/Raising Our Fair Value Estimate
Published: 5/10/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Basic Materials | Industry: Gold
Ticker Symbols:
CTGO - AMEX 🔹
Rating and Key Data
Metrics | Value |
---|---|
Current Price | US $18.7 |
Fair Value | US $29.67 |
Risk | 4 |
Week Range | US $14.03-33.67 |
Shares O/S (M) | 9.4 |
Market Cap. (M) | US $176 |
Current Yield (%) | N/A |
P/E (forward) | N/A |
P/B | N/A |
- CTGO is acquiring HighGold Mining (TSXV: HIGH) in an all-share deal valued at $37M, representing a 59% premium over HIGH’s 20-day volume-weighted average price. HIGH is advancing the Johnson Tract (JT) project, which is an ultra high-grade gold project in coastal Alaska, with resources totaling 1.1 Moz AuEq at 9.4 gpt. As of December 31, 2023, HIGH had C$6M in working capital.
- We consider this acquisition highly accretive, as HIGH’s project can be advanced to production quickly at a relatively low cost. We estimate that CTGO is paying just $30/oz vs $75+/oz for comparable projects. The deal is expected to be completed by July 2024.
Rating and Key Data
Metrics | Value |
---|---|
Current Price | US $18.7 |
Fair Value | US $29.67 |
Risk | 4 |
Week Range | US $14.03-33.67 |
Shares O/S (M) | 9.4 |
Market Cap. (M) | US $176 |
Current Yield (%) | N/A |
P/E (forward) | N/A |
P/B | N/A |