FAIRBANKS, Alaska, June 16, 2025 /PRNewswire/ - Contango ORE, Inc. ("Contango" or the "Company") (NYSE American: CTGO) is pleased to announce that the Peak Gold JV has completed its second production campaign in 2025 ("Campaign #2-2025"), with Contango's share of production equal to approximately 15,700 ounces ("oz") of gold. The Company anticipates that the Peak Gold JV will make a cash distribution to Contango in excess of $20 million ("M") in late June 2025. During Campaign #2-2025, which includes ore pr ...

Core Points - Contango ORE, Inc. held its annual meeting of stockholders on June 10, 2025, where directors were elected to serve until the 2026 annual meeting [1] - Stockholders approved the ratification of Moss Adams LLP as independent auditors for the fiscal year ending December 31, 2025, and the non-binding advisory approval of executive compensation [3] Company Overview - Contango ORE, Inc. is listed on NYSE American and focuses on gold and associated minerals exploration in Alaska [1] - The company holds a 30% interest in the Peak Gold Joint Venture (JV), which leases approximately 675,000 acres for exploration and development on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [1] - Contango also has leases on the Johnson Tract and Lucky Shot projects, along with 100% ownership of approximately 8,600 acres of peripheral mining claims and a 100% interest in about 145,000 acres of State of Alaska mining claims [1]

Core Viewpoint - Contango ORE, Inc. (CTGO) is showing strong technical indicators, particularly a "golden cross," which suggests a potential bullish breakout for investors [1][2]. Technical Analysis - CTGO's 50-day simple moving average has recently crossed above its 200-day moving average, indicating a bullish trend [1]. - A golden cross typically follows a downtrend, signaling a trend reversal and potential for continued price increases [2]. Performance Metrics - CTGO has experienced a significant price increase of 47.4% over the last four weeks, indicating strong momentum [3]. - The company holds a 1 (Strong Buy) rating on the Zacks Rank, reflecting positive investor sentiment [3]. Earnings Outlook - There has been one upward revision in earnings estimates for CTGO in the past 60 days, with no downward revisions, suggesting a positive earnings outlook for the current quarter [3]. - The Zacks Consensus Estimate for CTGO has also increased, further supporting the bullish case for the company [4].

Group 1 - Contango ORE, Inc. (CTGO) closed at $20.27, with a 45.4% gain over the past four weeks, and a mean price target of $29.33 suggests a 44.7% upside potential [1] - The average price target ranges from a low of $26 to a high of $32, with a standard deviation of $3.06, indicating a potential increase of 28.3% to 57.9% from the current price [2] - Analysts show strong agreement on CTGO's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for CTGO's current year earnings has increased by 176.9% over the last 30 days, with no negative revisions [12] - CTGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement, which appears to be a good guide for potential upside [13]

Financial Data and Key Metrics Changes - The company reported $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, reflecting a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts [3][4] - Cash costs were approximately $13.34 per ounce of gold sold, with an all-in sustaining cost (AISC) of $13.74 per ounce [4] - The company ended the quarter with $35 million in cash and marketable securities valued at about $900,000, which increased to approximately $4 million post-quarter [5] Business Line Data and Key Metrics Changes - At the Mancho operations, over 17,000 ounces of gold were sold, with an additional 3,800 ounces in recoverable inventory [4] - The company maintained its guidance for 2025 at 60,000 ounces of gold with an AISC of about $16.25, anticipating an increase in AISC due to rising sustaining capital and an exploration drill program costing $5.7 million [4][28] Market Data and Key Metrics Changes - Gold prices increased from $2,600 at the beginning of the year to around $3,100 by the end of the quarter, impacting the company's hedge liabilities [3] Company Strategy and Development Direction - The company is focused on managing its hedge obligations while balancing the benefits of spot prices, with a current strategy of selling 30% of gold at spot prices and 70% into hedges [34][36] - The company plans to continue paying down debt and delivering into hedges, with expectations of being unhedged in the near future [36][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced in Q1 compared to plans [9] - The dismissal of a lawsuit against the company was viewed positively, as it supports the project and the mining industry in Alaska [20][23] - The company anticipates a strong cash flow from Mancho for the next four years, contingent on stable gold prices [66] Other Important Information - The company is in the process of permitting an underground access tunnel for the Johnson Track project, which is expected to take about a year [40][41] - The company is exploring potential drilling at the Lucky Shot site and evaluating other projects to extend mine life and improve resource grades [47][49] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted to a carry trade approach to better manage cash flow, allowing them to sell gold at spot prices while managing hedge obligations [11][12] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million Canadian, providing an additional source of capital [15][16] Question: What are the capital allocation priorities for the remainder of the year? - The focus will be on paying down debt, delivering into hedges, and potentially funding a drill program at Lucky Shot [45][46] Question: What is the expected balance on the facility by the end of the year? - The facility is expected to be around $15 million by year-end [24] Question: Are there any active takeover bids for Contango? - Management is not aware of any active takeover bids at this time [80]

Financial Data and Key Metrics Changes - The company recorded $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, resulting in a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts [3][4] - Cash costs were approximately $13.34 per ounce of gold sold, with an all-in sustaining cost (AISC) of $13.74 per ounce [4] - The company ended the quarter with $35 million in cash and marketable securities valued at about $900,000, which increased to approximately $4 million post-quarter [5] Business Line Data and Key Metrics Changes - At the Mancho operations, over 17,000 ounces of gold were sold, with an additional 3,800 ounces in recoverable inventory [4] - The company maintained its guidance for 2025 at 60,000 ounces of gold with an AISC of about $1,625, expecting AISC to increase in later quarters due to rising sustaining capital [4][29] Market Data and Key Metrics Changes - Gold prices increased from $2,600 at the beginning of the year to around $3,100 by the end of the quarter, impacting the company's hedge liabilities [3][6] Company Strategy and Development Direction - The company is focused on managing cash flow through a carry trade strategy, allowing it to sell gold at spot prices while managing hedge obligations [15][36] - The management emphasized the importance of continuing to deliver into hedges and paying down debt, with a target to finish the year with approximately $15 million in facility balance [25][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced compared to plans for Q1 [11][12] - The dismissal of a lawsuit against the company was viewed positively, as it supports the Mancho project and mining operations in Alaska [21][24] - The company plans to focus on permitting the Johnson Track project, with expectations of a year-long process for the tunnel permit [42][43] Other Important Information - The company is currently selling 30% of its gold at spot prices and 70% into hedges, with plans to manage this ratio effectively [36] - The management highlighted the potential for a significant balance sheet transformation as debt is reduced and production increases [90] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted its approach to better manage cash flow through carry trades, allowing for gold sales at spot prices while settling hedges in cash [15][16] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million, providing an additional source of capital [18][19] Question: What is the impact of the dismissed lawsuit? - The dismissal of the lawsuit is seen as beneficial for the Mancho project and for mining in Alaska, reducing regulatory hurdles [21][24] Question: What are the capital allocation priorities for the remainder of the year? - The focus will be on paying down debt, delivering into hedges, and potentially reviewing budgets for exploration programs [47][48] Question: What are the next key milestones for the Johnson Track project? - The next stage involves permitting the underground access tunnel, expected to take about a year [42][43] Question: Will the derivative liability decline significantly? - The hedge liability is expected to decrease significantly, potentially halving by the end of the year if gold prices remain stable [90]

Company Profile & Strategy - Contango Ore Inc's (CTGO) market capitalization is $163 million[12] - The company's corporate strategy is to become a mid-tier gold producer, targeting 200,000 GEO/year in Alaska using a Direct Ship Ore (DSO) approach[125, 126] - Contango's portfolio is focused on Alaskan projects, including the Manh Choh Mine (30% ownership), Lucky Shot Mine (100% ownership), and Johnson Tract Project (100% ownership)[17, 18, 19] Manh Choh Mine - Manh Choh Mine started commercial production in July 2024[22] - The mine is projected to produce approximately 60,000 GEO in 2025, with a mix of hedged (70%) and spot (30%) sales[21] - The Life of Mine (LOM) free cash flow is estimated at ~$320 million at a gold price of $2,800/oz[21] - Contango received $24 million in cash distributions from the Peak Gold JV in Q1 2025[33] Lucky Shot Mine - Lucky Shot Mine has a current resource of 110,000 GEO at 14.5 g/t[21] - The company plans to drill and develop 400,000-500,000 GEO at Lucky Shot, targeting 30,000 – 40,000 GEO annual production[21] - Combined segments of Lucky Shot Vein Resources Indicated: 226,963 tonnes, Au Grade 14.5 g/t, Au Ounces 105,620[65] Johnson Tract Project - Johnson Tract Project has a current resource of 1.1 Moz at 9.4 g/t GEO[21] - An Initial Assessment released in May 2025 shows a Post-Tax NPV5 of $224.5 million and a 30.2% IRR, with a 7-year LOM and a 1.3-year discounted payback period[21] - The project is targeting 100,000 GEO annual production[21]

[Company Announcement & Q1-2025 Highlights](index=1&type=section&id=Company%20Announcement%20%26%20Q1-2025%20Highlights) [Q1-2025 Financial and Operational Overview](index=1&type=section&id=Q1-2025%20Financial%20and%20Operational%20Overview) The company achieved significant operating income growth in Q1-2025, shifting from a loss to a profit, driven by substantial gold sales at low all-in sustaining costs Q1-2025 Financial and Operational Overview | Metric | Q1-2025 | Q1-2024 | | :----------------------- | :--------------- | :--------------- | | Operating Income | $19.3 M | ($2.9 M) | | Net Loss | ($22.3 M) | ($20.5 M) | | Non-cash Loss on Derivative Contracts | $40.5 M | $15.6 M | | Gold Sold | 17,382 oz | - | | Cash Costs (By-Product Basis) | $1,334/oz | - | | All-in Sustaining Costs (AISC) | $1,374/oz | - | | Unrestricted Cash Position (as of Mar 31) | $35.0 M | - | | Unrestricted Cash Position (as of Dec 31) | - | $20.1 M | [CEO's Strategic Commentary](index=1&type=section&id=CEO's%20Strategic%20Commentary) The CEO highlights a successful Q1-2025 with Manh Choh's gold production exceeding guidance, progress on hedge contracts, and a positive technical report for the Johnson Tract project - Manh Choh project's gold production exceeded quarterly guidance, with **17,382 ounces sold** at an AISC of **$1,374/oz**, well below the 2025 target of $1,625/oz[3](index=3&type=chunk) - Nearly **12,000 ounces of gold** were delivered against hedge contracts via a Carry Trade, effectively reducing the hedge balance to **74,800 ounces**[3](index=3&type=chunk) - Manh Choh mining operations are proceeding as planned, with continuous improvements in ore transportation and processing at Fort Knox[4](index=4&type=chunk) - The 2025 gold production guidance for Peak Gold JV's 30% share remains at **60,000 ounces**, with a life-of-mine average annual production of **58,750 ounces** through 2029 at an estimated AISC of **$1,400/oz**[4](index=4&type=chunk) - Received **$24 M in cash distributions** in Q1-2025, with an additional **$9 M** received on April 24[4](index=4&type=chunk) - The Johnson Tract project's technical report summary was completed, showing robust economics with a net present value exceeding **$400M** at current gold prices[7](index=7&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Statement of Operations Analysis](index=2&type=section&id=Statement%20of%20Operations%20Analysis) The company reported a net loss in Q1-2025, primarily driven by unrealized losses on derivative contracts, partially offset by income from its Peak Gold equity investment Statement of Operations | Metric | Q1-2025 | Q1-2024 | | :----------------------- | :--------------- | :--------------- | | Net Loss | ($22.3 M) | ($20.5 M) | | Basic and Diluted Loss Per Share | ($1.86) | - | | Income from Equity Investment in Peak Gold, LLC | $22.3 M | - | | Unrealized Loss on Derivative Contracts | ($40.5 M) | ($15.6 M) | | Interest and Finance Expense | ($2.7 M) | - | [Statement of Cash Flows Analysis](index=2&type=section&id=Statement%20of%20Cash%20Flows%20Analysis) Operating cash flow improved significantly in Q1-2025 due to gold production and distributions from the Peak Gold JV, while financing activities reflected credit facility repayments Statement of Cash Flows | Cash Flow Type | Q1-2025 | Q1-2024 | | :------------------- | :--------------- | :--------------- | | Net Cash from Operating Activities | $28.6 M (Provided) | ($4.4 M) (Used) | | Net Cash from Investing Activities | $0 (Used) | ($15.5 M) (Used) | | Net Cash from Financing Activities | ($13.7 M) (Used) | $12.0 M (Inflow) | - The increase in operating cash flow was primarily driven by gold production from the Manh Choh project, a **$24.0 M cash distribution** from the Peak Gold JV, and a **$7.8 M increase** in accounts payable[8](index=8&type=chunk) - Cash outflow from financing activities was mainly for a **$13.8 M principal repayment** on the credit facility[8](index=8&type=chunk) [Project and Operational Updates](index=2&type=section&id=Project%20and%20Operational%20Updates) [Manh Choh Project](index=2&type=section&id=Manh%20Choh%20Project) The Manh Choh project demonstrated strong Q1-2025 performance with significant sales, substantial cash distributions, well-controlled costs, and successful litigation resolution [Production and Sales Metrics](index=2&type=section&id=Production%20and%20Sales%20Metrics) Production and Sales (Contango's 30% Share) | Metric | Quantity | | :----------------------- | :----- | | Gold Sold | 17,382 oz | | Silver Sold | 12,770 oz | | Recoverable Gold in Inventory | 3,810 oz | | Gross Gold Sales | $51,226,768 | | Gross Silver Sales | $412,864 | | Average Realized Spot Gold Price | $2,947/oz | | Average Realized Blended Carry Trade Gold Price | $2,314/oz | | 2025 Gold Production Guidance | 60,000 oz | - On a 100% basis, the Peak Gold JV processed **323,000 tons of ore** in Q1-2025 at an average grade of **0.215 oz/ton**, recovering approximately **65,000 ounces of gold**, with Contango's 30% share being **19,500 ounces**[11](index=11&type=chunk) [Financial Distributions and Costs](index=3&type=section&id=Financial%20Distributions%20and%20Costs) Financials and Costs | Metric | Amount | | :----------------------- | :----------- | | Peak Gold JV Cash Distribution (Q1-2025) | $24,000,000 | | Peak Gold JV Additional Cash Distribution (Post-Quarter) | $9,000,000 | | Cash Costs (By-Product Basis) | $1,334/oz | | All-in Sustaining Costs (AISC) | $1,374/oz | [Legal Resolution](index=3&type=section&id=Legal%20Resolution) - Litigation against the Alaska Department of Transportation (DOT) concerning the Manh Choh project's ore haulage program was dismissed by the "Community Safety Coalition" (CSC) on May 6, 2025[5](index=5&type=chunk)[6](index=6&type=chunk)[11](index=11&type=chunk) [Johnson Tract Project Development](index=2&type=section&id=Johnson%20Tract%20Project%20Development) The Johnson Tract project's completed technical report summary outlines strong economic potential as an underground mining operation utilizing a direct-shipping ore model - On May 6, 2025, the company announced the completion of a Technical Report Summary (TRS) for the Johnson Tract project, summarizing the results of an Initial Assessment (IA)[7](index=7&type=chunk)[14](index=14&type=chunk) - The IA indicates potential for a **7-year mine life** underground operation using the same direct-shipping ore (DSO) method as the Manh Choh mine[7](index=7&type=chunk)[14](index=14&type=chunk) Initial Assessment Highlights | IA Highlight | Value | | :----------------------- | :---------------- | | Pre-Tax Net Present Value (NPV5%) | $359.0 Million | | Pre-Tax Internal Rate of Return (IRR) | 37.4% | | After-Tax Net Present Value (NPV5%) | $224.5 Million | | After-Tax Internal Rate of Return (IRR) | 30.2% | | Life of Mine (LOM) | 7 Years | | LOM Average Annual Production | 102,258 GEO (7.58 g/t AuEq oz) | | Initial Capital Costs | $213.6 Million (incl $36 M contingency) | | Sustaining Capital Costs | $61.3 Million (incl $12.3 M contingency) | | AISC | $860/GEO Sold | | Undiscounted Payback Period | 1.3 Years | - The company will continue to focus on permitting for the underground access, road transport corridor, and port easements[7](index=7&type=chunk)[14](index=14&type=chunk) [Capital Structure and Investments](index=4&type=section&id=Capital%20Structure%20and%20Investments) The company actively managed its debt and hedge contracts through credit agreement amendments and a Carry Trade strategy, while its investment in Onyx Gold Corp saw significant appreciation [Debt Management and Credit Facility](index=4&type=section&id=Debt%20Management%20and%20Credit%20Facility) - On February 18, 2025, the company amended its credit facility, deferring a **$10.6 M principal repayment** and the delivery of **15,000 ounces of hedged gold** to the first half of 2027, and extending the maturity date to June 30, 2027[14](index=14&type=chunk) - In Q1-2025, the company repaid **$13.8 M** of its credit facility, reducing the outstanding principal balance by **26.5% to $38.3 M**[14](index=14&type=chunk) - Post-quarter, on April 4, 2025, an additional **$8.2 M was repaid**, further reducing the outstanding principal balance by **21% to $30.1 M**[14](index=14&type=chunk) [Hedge Contract Management](index=4&type=section&id=Hedge%20Contract%20Management) - During Q1-2025, the company sold **11,939 ounces of gold** through a "Carry Trade" strategy, simultaneously locking in a forward price to settle hedge contracts due April 30, 2025[14](index=14&type=chunk) - The Carry Trade generated a **$2.2 M derivative asset**, which offsets the derivative liability on the financial statements[14](index=14&type=chunk) - The Carry Trade was settled on April 30, 2025, with Contango paying **$11.0 M** in exchange for a reduction of **11,939 ounces of gold** under the hedge agreement[15](index=15&type=chunk) - As of April 30, 2025, the remaining balance on the hedge agreement was **74,800 ounces**[15](index=15&type=chunk) [Strategic Investments (Onyx Gold Corp.)](index=5&type=section&id=Strategic%20Investments%20(Onyx%20Gold%20Corp.)) - The company holds **5 million shares** of Onyx Gold Corp, valued at **Cdn$1.35 M** as of March 31, 2025[15](index=15&type=chunk) - As of the release date, the value of the Onyx shares had increased to approximately **Cdn$5.0 M**[15](index=15&type=chunk) - On April 10, 2025, Onyx announced drill results from its Munro-Croesus project and an option agreement to acquire a 100% interest in a key inlier property adjacent to the project[15](index=15&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) [About Contango ORE, Inc.](index=5&type=section&id=About%20Contango%20ORE,%20Inc.) Contango ORE, Inc is a NYSE American-listed company focused on gold and mineral exploration in Alaska, holding interests in the Manh Choh, Johnson Tract, and Lucky Shot projects - Contango holds a **30% interest** in the Peak Gold JV, which leases approximately **675,000 acres** for exploration and development of the Manh Choh project[17](index=17&type=chunk) - The company also holds lease rights to the Johnson Tract and Lucky Shot projects, as well as approximately **8,600 acres** of peripheral State of Alaska mining claims and **145,000 acres** of State of Alaska mining claims[17](index=17&type=chunk) [Conference Call & Webcast](index=5&type=section&id=Conference%20Call%20%26%20Webcast) Contango will host a conference call and webcast on May 15, 2025, to discuss its quarterly results - The conference call and webcast will be held on May 15, 2025, at **1:00 PM Eastern Time / 10:00 AM Pacific Time**[16](index=16&type=chunk) [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risks) This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected - Forward-looking statements are based on current expectations, estimates, and projections and involve risks inherent to the exploration and mining industry, including operational risks, geological uncertainties, and commodity price volatility[18](index=18&type=chunk) - Other risks include uncertainty of financing availability, ability to maintain ownership interest in the Peak Gold JV, failure to realize anticipated value from acquisitions, and changes in government policy or delays in approvals[19](index=19&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for Contango ORE, Inc is provided - Contact: Rick Van Nieuwenhuyse, Phone: (907) 888-4273, Website: www.contangoore.com[20](index=20&type=chunk)

Financial Performance - In the first quarter of 2025, the Peak Gold JV processed 323,000 tons of ore with an average grade of 0.215 ounces per ton, resulting in approximately 65,000 ounces of recovered gold, of which Contango's share was 19,500 ounces[119]. - The company received $24 million in cash distributions from the Peak Gold JV during the first quarter of 2025, following $40.5 million received in 2024[118]. - The income from the company's equity investment in the Peak Gold JV for the first quarter of 2025 was $22.3 million, compared to a loss of $0.1 million for the same period in 2024[136]. - Loss on derivative contracts for Q1 2025 was $40.5 million, up from $15.6 million in Q1 2024, representing a significant increase in non-cash unrealized losses[139]. - Total cost of sales for the Peak Gold JV operations in Q1 2025 was $91.6 million, with a Cash Cost on a By-Product Basis per ounce of $1,334 and AISC on a By-Product Basis per ounce of $1,374[145]. Project Development - The pre-tax net present value (NPV5) of the Johnson Tract Project is estimated at $359 million, with a pre-tax internal rate of return (IRR) of 37.4%[124]. - The company anticipates a seven-year life of mine (LOM) for the Johnson Tract Project, with an annual average production of 102,258 gold equivalent ounces at 7.58 grams per tonne[129]. - The initial capital costs for the Johnson Tract Project are estimated at $213.6 million, including $36 million for contingency costs[129]. - The all-in sustaining costs (AISC) for the Johnson Tract Project are estimated at $860 per gold equivalent ounce sold[129]. - The Manh Choh Project began production in July 2024 and has allowed the Peak Gold JV to operate from generated cash flows, with no future anticipated cash calls[148][150]. - The Manh Choh Project remains on schedule, with ongoing ore mining and stockpiling activities[148]. Expenses and Cash Management - The company reported general and administrative expenses of $2.4 million for the first quarter of 2025, slightly down from $2.5 million in the same period of 2024[135]. - The company incurred exploration expenses of $0.5 million in the first quarter of 2025, compared to $0.1 million in the same period of 2024, primarily related to the Johnson Tract Project[134]. - The Company had approximately $35.2 million in cash as of March 31, 2025, with cash distributions from the Peak Gold JV totaling $24.0 million in Q1 2025[146][151]. - The Company made a repayment of $13.8 million on its Facility in January 2025, with total repayment obligations of approximately $24.7 million over the next twelve months[151]. - The Company’s primary cash requirements include general and administrative expenses, capital calls from the Peak Gold JV, and exploration expenditures[147]. Future Financing - The Company plans to explore further financing options, including equity issuances and convertible instruments, to support its operations[152]. - The Company believes that distributions from the Peak Gold JV are probable, ensuring sufficient liquidity for working capital needs[151]. Other Financial Information - The company has no off-balance sheet arrangements reported[132]. - Cash Cost on a By-Product Basis includes all direct and indirect operating cash costs related to gold production, providing a uniform standard for performance comparison[142][144].

Core Viewpoint - Contango ORE, Inc. reported significant improvements in its financial performance for Q1-2025 compared to Q1-2024, with total income from operations of $19.3 million and a net loss of $22.3 million, primarily due to non-cash expenses related to derivative contracts [2][8]. Financial Performance - Total income for operations in Q1-2025 was $19.3 million, a substantial increase from a loss of $2.9 million in Q1-2024 [2]. - The net loss for Q1-2025 was $22.3 million, which included a non-cash expense of $40.5 million from an unrealized loss on derivative contracts [2][8]. - The unrestricted cash position as of March 31, 2025, was $35.0 million, up from $20.1 million as of December 31, 2024 [2]. Gold Production and Costs - Contango sold 17,382 ounces of gold in Q1-2025, with cash costs on a by-product basis of $1,334 per ounce and all-in-sustaining costs (AISC) of $1,374 per ounce [2][11]. - The company’s share of gold production from the Peak Gold JV is expected to reach 60,000 ounces in 2025, with a life-of-mine average annual production estimated at 58,750 ounces per year until 2029 [4]. Cash Flow and Investments - Net cash provided from operating activities was $28.6 million for Q1-2025, a significant improvement from a net cash used of $4.4 million in Q1-2024 [7]. - Cash used in investing activities was zero for Q1-2025, compared to $15.5 million in Q1-2024, which was related to development costs for the Peak Gold JV [7]. Legal and Regulatory Developments - The Committee for Safe Communities dismissed their lawsuit against the State of Alaska DOT regarding trucking ore from Manh Choh to Fort Knox, which is expected to have favorable impacts on the project [5]. Project Updates - The Technical Report Summary on the Johnson Tract Project indicates robust economics with a net present value (NPV) exceeding $400 million at current gold prices, supporting the potential for a seven-year underground mining operation [6][14]. - The Peak Gold JV processed 323,000 tons of ore in Q1-2025, yielding approximately 65,000 ounces of recovered gold, of which Contango's share was 19,500 ounces [11].