Contango ORE (CTGO) Will Become Largest Position of NIA’s President Within 12 Months
Contango ORE (CTGO) gained by 2.22% today to $26.22 per share and NIA's President plans to continue accumulating and make it his #1 largest position within the next twelve months.
After Lucky Shot and Johnson Tract launch production in the years ahead… CTGO projects annual free cash flow to reach $15 per share.
Even if you believe it is an optimistic projection, let's put it into perspective…
CTGO has 14.51 million shares outstanding so $15 per share in free cash flow equals $217.65 million in annual free cash flow.
Last quarter, CTGO earned $23.26 million in free cash flow or $93.04 million annualized, which is from its 30% share of Manh Choh's production. Simply from CTGO's hedges coming off in one year, CTGO's Manh Choh free cash flow will increase significantly… prior to Lucky Shot and Johnson Tract even coming online!
Lucky Shot and Johnson Tract once in production will rank among the highest-grade gold mines in the world… so CTGO is actually being very conservative with its projections!
CTGO's 70% JV partner at Manh Choh is Kinross Gold (KGC) and it closed today at a HIGHER price of $27.28 per share.
KGC has 1.2071 billion shares outstanding so for KGC to generate $15 per share in annual free cash flow, KGC would need to generate $18.11 billion in annual free cash flow, which is impossible! KGC only has $6.44 billion in total annual revenue! KGC doesn't have any new gold projects under development that will multiply revenue in the years ahead, but CTGO does!
CTGO is exactly like One Stop Systems (OSS) and Trio-Tech International (TRT), almost nobody knows it exists… except for NIA members!
Luckily, President Trump loves Contango ORE (CTGO)'s Johnson Tract!
Past performance is not an indicator of future returns. NIA is not an investment advisor. Always do your own research. NIA’s President has purchased 4,000 shares of CTGO in the open market and intends to buy more shares. NIA has received compensation from CTGO of US$80,000 cash for a ten-month marketing contract. This message is for informational and educational purposes only.
