Financial Data and Key Metrics Changes - The company produced more gold than initially planned, with a total production of just shy of 42,000 ounces in 2024, exceeding guidance by over 25% [8][16] - Cash costs for 2024 came in slightly over guidance at $1,209 per ounce, with expectations for 2025 cash costs to be between $1,200 and $1,600 per ounce [35][36] - The company started 2024 with $60 million in debt, paid down just under $8 million, and finished the year with approximately $52 million in debt, projecting to end 2025 with about $15 million remaining [26][27] Business Line Data and Key Metrics Changes - The Manh Choh project began production in July 2023, with a ramp-up period that allowed for more ore to be delivered than anticipated, leading to higher production levels [13][15] - The company plans to produce approximately 60,000 ounces of gold in 2025, with three more batches planned for the year [9] Market Data and Key Metrics Changes - The hedge delivery schedule mirrors the principal repayment schedule, with expectations to finish the year with around 43,000 ounces of hedges remaining [24] - The average hedge price per ounce is $2,025 for 2025 and 2026, with a slight decrease for 2027 due to underwater hedges [74] Company Strategy and Development Direction - The company is focused on a direct shipping ore model, which minimizes environmental impact and capital costs associated with building a mill and tailings facility [50][52] - The company aims to be debt-free and hedge-free by the end of 2026, with a focus on delivering hedges and paying down debt [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial health, stating that they are not facing bankruptcy and are making money [88][92] - The company believes there is significant upside potential in junior stocks, and they are optimistic about future performance as gold prices increase [91][92] Other Important Information - The company is working on a Preliminary Economic Assessment (PEA) for the Johnson Tract project, expected to be released in April, which will evaluate the project as a DSO model [59][60] - Exploration efforts are ongoing to identify potential drill sites around the Manh Choh property, with a focus on closer to the mine site [82][84] Q&A Session Summary Question: What factors led to Manh Choh exceeding production guidance? - Management indicated that more ore was delivered to the stockpile than anticipated, allowing for higher-grade ore to be processed [15][16] Question: What is the cash flow projection for 2025 and beyond? - Positive cash flow is expected, with plans to use excess cash to pay down debt and deliver hedges [19] Question: How much debt did Contango have at the start and end of 2024? - The company started with $60 million in debt and finished with approximately $52 million, projecting to end the year with about $15 million remaining [25][26] Question: What percentage of the mine life is unhedged? - Currently, about 65% of the mine life is unhedged, with plans to deliver into hedges mostly by the end of 2026 [30] Question: What is the timeline for eliminating the remaining credit facility balance? - The credit facility balance is scheduled to be paid down to $15 million by the end of this year, with the remaining amount to be paid off between 2026 and mid-2027 [40] Question: What drove the decision to defer some debt payments into 2027? - The decision was based on revised mine plans and the delivery schedule of hedges, aiming to better align repayments with production [42] Question: What are the economic advantages of direct shipping ore? - Direct shipping ore reduces environmental impact and capital costs, avoiding the lengthy permitting process associated with building a mill [50][52] Question: What metrics should investors watch for in the upcoming PEA for Johnson Tract? - Investors should look for standard metrics such as NPV and rate of return, as well as the project's capital cost savings from not building a mill [60] Question: How does management view the market value gap for the company? - Management believes the company is undervalued and that there is potential for the market to recognize this as gold prices increase [91][92]

Financial Data and Key Metrics Changes - The company produced more gold than initially planned, with cash costs slightly above guidance at $1,200 per ounce [8][9] - Total gold production for 2024 was just shy of 42,000 ounces, exceeding guidance by over 25% [11][16] - The company started 2024 with $60 million in debt, finished with approximately $52 million, and projected to end the year with about $15 million remaining [25][26][27] Business Line Data and Key Metrics Changes - The Manh Choh project began production in July 2023, with a total projected gold production of about 60,000 ounces for 2025 [9] - The feasibility study originally planned for five batches in 2025, but adjustments were made to align with production capabilities [17] Market Data and Key Metrics Changes - The average hedge price per ounce is $2,025 for 2025 and 2026, with some hedges rolled into 2027 at mid-$1,900 [74] - The company experienced a realized loss on derivative contracts of $20 million in 2024, contributing to a total of $54 million in losses [38] Company Strategy and Development Direction - The company is focused on minimizing capital costs and permitting timelines by utilizing a direct shipping ore model instead of traditional milling [50][52] - Future plans include permitting access roads and a barge landing site for the Johnson Tract project [61] Management's Comments on Operating Environment and Future Outlook - Management believes the company is undervalued and has been oversold, with a focus on paying down debt and delivering hedges [88][91] - The company aims to be debt-free and hedge-free by the end of 2026, with significant cash flow expected from operations [19][30] Other Important Information - The exploration program for 2024 did not yield significant results, with a focus on evaluating land positions [56] - The company is not planning any drilling or road construction at the Lucky Shot project at this time [72] Q&A Session Summary Question: What factors led to Manh Choh exceeding production guidance? - Management attributed the excess production to effective ore transportation and higher-grade ore availability [11][15] Question: What is the cash flow projection for 2025 and beyond? - Positive cash flow is expected, with plans to use excess cash for debt repayment and hedge deliveries [18][19] Question: How much debt did Contango have at the start and end of 2024? - The company started with $60 million in debt and finished with approximately $52 million [25][26] Question: What percentage of the mine life is unhedged overall? - Currently, about 65% of the mine life is unhedged, with plans to deliver into hedges until the end of 2026 [30] Question: What is the timeline for eliminating the remaining credit facility balance? - The remaining balance is scheduled to be paid down to $15 million by the end of this year, with full repayment by mid-2027 [40] Question: What drove the decision to defer debt payments into 2027? - The decision was based on revised mine plans and the need to align repayment schedules with production capabilities [42] Question: What metrics should investors watch for in the upcoming PEA for Johnson Tract? - Investors should focus on NPV, rate of return, and the project's capital cost savings from not building a mill [58][60] Question: How does management feel about the acquisition of HighGold? - Management is pleased with the acquisition, particularly the Johnson Tract asset, and sees it fitting well with their operational model [64][66] Question: Are there plans for exploring other assets beyond Johnson Tract? - Currently, there are no plans for drilling at Lucky Shot, but strategic discussions are ongoing regarding processing options [94][96]

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) Contango ORE, Inc. reported increased unrestricted cash and total income from operations for FY2024, with the CEO emphasizing strong gold production and significant debt reduction [FY2024 Key Financial Figures](index=1&type=section&id=FY2024%20Key%20Financial%20Figures) Contango ORE, Inc. reported an increase in unrestricted cash for FY2024, alongside total income from operations and a net loss primarily due to a significant non-cash expense from unrealized losses on derivative contracts Unrestricted Cash Balances | Metric | As of Dec 31, 2024 | As of Dec 31, 2023 | | :----------------------- | :----------------- | :----------------- | | Unrestricted Cash | $20.1 million | $15.5 million | FY2024 Financial Performance | Metric | FY2024 Amount | | :--------------------------- | :------------ | | Total Income for Operations | $26.3 million | | Net Loss | $38.0 million | | Non-cash expense (unrealized loss on derivative contracts) | $34.3 million | [CEO's Strategic Overview](index=1&type=section&id=CEO%27s%20Strategic%20Overview) The CEO highlighted that gold production at the Manh Choh mine surpassed 2024 guidance, achieving a strong blended gold price and making significant progress in debt and hedge obligation reduction. The company is well-positioned financially for 2025 and 2026, supporting future project developments - Gold production at Manh Choh mine surpassed 2024 guidance, with **41,325 ounces** produced for Contango's 30% share[3](index=3&type=chunk) Manh Choh Gold Production Metrics | Metric | Value | | :-------------------------- | :------------ | | Cash Cost per Ounce Sold | $1,209 per ounce | | Average Blended Gold Price | $2,281 per ounce | - The company reduced its credit facility by **36% to $38.3 million** and settled **37,861 ounces** of gold hedge contracts, reducing the outstanding hedge to **86,739 ounces**[3](index=3&type=chunk) - **2025 gold production guidance** is **60,000 ounces** for Contango's account, with approximately **30% of net gold production** for FY2025 and FY2026 linked to spot gold prices[3](index=3&type=chunk) - The company expects to complete and release the preliminary economic assessment (PEA) for the Johnson Tract project in the next few weeks[3](index=3&type=chunk) [Detailed Financial Statements](index=2&type=section&id=Detailed%20Financial%20Statements) This section provides an in-depth analysis of the company's cash flows and operational results, highlighting key drivers of financial performance and losses [Statement of Cash Flows Analysis](index=2&type=section&id=Statement%20of%20Cash%20Flows%20Analysis) Contango ORE, Inc. saw a significant improvement in net cash provided by operating activities for FY2024, primarily driven by gold production and cash distributions from the Peak Gold JV, despite realized losses on derivative contracts. Investing activities remained focused on the Peak Gold JV, while financing activities included debt drawdowns, repayments, and equity issuance Cash Flow Summary | Cash Flow Activity | FY2024 | 6ME12-2023 | FY2023 | | :----------------- | :---------- | :---------- | :---------- | | Operating | $0.7 million | ($9.4 million) | ($14.7 million) | | Investing | ($32.1 million) | ($34.4 million) | ($21.2 million) | | Financing | $36.0 million | $47.7 million | $24.4 million | - Increase in net cash provided by operating activities was driven by commencement of gold production at Manh Choh and **$40.5 million** in cash distributions from Peak Gold JV, partially offset by **$19.9 million** in realized losses on derivative hedge contracts[4](index=4&type=chunk) - Financing activities for FY2024 included **$30 million** drawn from the Facility, offset by **$7.9 million** in debt repayments, and **$15.5 million** in equity issuance proceeds[4](index=4&type=chunk) [Statement of Operations Analysis](index=2&type=section&id=Statement%20of%20Operations%20Analysis) The company reported a net loss for FY2024, which included a substantial non-cash expense from unrealized losses on derivative contracts. Income from the Peak Gold JV equity investment helped offset interest expenses and derivative contract losses Net Loss and Loss per Share | Metric | FY2024 | 6ME12-2023 | FY2023 | | :------------------------- | :---------- | :---------- | :---------- | | Net Loss | $38.0 million | $40.8 million | $39.7 million | | Loss per Basic/Diluted Share | $3.49 | $4.44 | $5.61 | - FY2024 net loss included a non-cash expense of **$34.3 million** from an unrealized loss on derivative contracts[5](index=5&type=chunk) - Income from Peak Gold JV equity investment totaled **$41.7 million**, offset by **$11.7 million** in interest expense and a **$54.2 million** loss on derivative contracts[5](index=5&type=chunk) - The company incurred **$4.1 million** in exploration expenditures, primarily related to the Johnson Tract drilling program[5](index=5&type=chunk) [Project Operational Updates](index=2&type=section&id=Project%20Operational%20Updates) This section details the operational performance of the Manh Choh project, including production figures and financial contributions, and updates on the Johnson Tract project's development [Manh Choh Project Performance](index=2&type=section&id=Manh%20Choh%20Project%20Performance) The Manh Choh project commenced gold and silver production in July 2024, exceeding its 2024 gold production guidance for Contango's share. The project achieved favorable cash costs and provided significant cash distributions to the company - The Manh Choh project commenced producing gold and silver with its first gold pour on July 8, 2024[6](index=6&type=chunk) Manh Choh Production and Sales (Contango's 30% Share) | Metric (Contango's 30% Share) | 2024 Results | | :----------------------------- | :----------- | | Gold ounces sold | 41,325 ounces | | Silver ounces sold | 16,763 ounces | | Total gold sales | $94.3 million | | Total silver sales | $0.51 million | | Average blended realized gold price | $2,281 per ounce sold | | Cash costs on By-Product Basis, per Ounce | $1,209 per ounce sold | - Contango's share of Manh Choh production was **41,325 ounces of gold**, exceeding guidance of **30,000 to 35,000 ounces**[9](index=9&type=chunk) - The Peak Gold JV paid cash distributions to the Company in the amount of **$40.5 million** during FY2024[9](index=9&type=chunk) - **2025 gold production guidance** for Contango's 30% basis is **60,000 ounces**[6](index=6&type=chunk) [Johnson Tract Project Development](index=3&type=section&id=Johnson%20Tract%20Project%20Development) The Johnson Tract Project advanced significantly with the acquisition of HighGold Mining Inc., completion of a surface drilling campaign, and receipt of a key permit for access road construction, supporting future exploration and development - The Company completed its acquisition of **100% of HighGold Mining Inc.** on July 10, 2024, issuing **1,698,887 shares** of Contango common stock valued at approximately **$33.4 million**[9](index=9&type=chunk) - A **3,000-meter** surface drilling campaign was completed at the Johnson Tract Project, including **18 infill holes** and **three hydrogeological testing holes**[9](index=9&type=chunk) - The Company received the **404 permit** for construction of a **2.6-mile (4 km)** access road between the camp and the proposed portal and laydown site[9](index=9&type=chunk) [Debt and Hedge Management](index=3&type=section&id=Debt%20and%20Hedge%20Management) This section outlines the company's efforts in managing its debt obligations and gold hedge contracts, including repayments, facility amendments, and reductions in outstanding hedge balances [Debt Repayments and Facility Status](index=3&type=section&id=Debt%20Repayments%20and%20Facility%20Status) Contango made significant repayments on its credit facility, reducing the outstanding principal balance. The facility was also amended to defer principal repayments and extend its maturity date, improving financial flexibility - Contango repaid **$7.9 million** on the Facility, reducing the outstanding principal balance by **13% to $52.1 million**[9](index=9&type=chunk) - On January 31, 2025, an additional **$13.8 million** was repaid, reducing the outstanding principal balance to **$38.3 million**[9](index=9&type=chunk) - On February 18, 2025, the Facility was amended to defer **$10.6 million** of principal repayments and delivery of **15,000 hedged gold ounces** into the first half of 2027[9](index=9&type=chunk) - The maturity date of the Facility was extended from December 31, 2026, to June 30, 2027[10](index=10&type=chunk) [Hedge Contract Reductions](index=3&type=section&id=Hedge%20Contract%20Reductions) The company actively reduced its gold hedge contract obligations through deliveries and cash settlements, significantly decreasing the outstanding balance - Contango delivered **21,661 ounces of gold** into hedge contracts and cash settled a further **16,200 ounces of gold hedges**[9](index=9&type=chunk) - These actions reduced the hedge contract balance by **30% to 86,739 ounces of gold** as of December 31, 2024[9](index=9&type=chunk) [Additional Corporate Information](index=4&type=section&id=Additional%20Corporate%20Information) This section provides details on qualified persons, upcoming investor communications, company overview, forward-looking statements, and contact information [Qualified Persons](index=4&type=section&id=Qualified%20Persons) John Sims, CPG, of Sims Resources LLC, a qualified person under S-K 1300, reviewed and approved the technical information regarding proven and probable reserve updates - John Sims, CPG, Sims Resources LLC, a qualified person under S-K 1300, reviewed and approved technical information related to proven and probable reserve updates[11](index=11&type=chunk) [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Contango ORE, Inc. will host a conference call and webcast on March 17, 2025, to discuss the quarterly results - Contango will host a conference call and webcast on Monday, March 17, 2025, at **4:30pm EST / 1:30pm PST** to discuss quarterly results[12](index=12&type=chunk) [About Contango ORE, Inc.](index=4&type=section&id=About%20Contango%20ORE%2C%20Inc.) Contango ORE, Inc. is a NYSE American listed company focused on gold and associated minerals exploration in Alaska, holding significant interests in the Manh Choh, Johnson Tract, and Lucky Shot projects, along with other mining claims - Contango is a NYSE American listed company engaged in exploration for gold and associated minerals in Alaska[13](index=13&type=chunk) - The company holds a **30% interest** in the Peak Gold JV (Manh Choh project), a lease on the Johnson Tract project, a lease on the Lucky Shot project, and **100% ownership** of approximately **8,600 acres** of peripheral State of Alaska mining claims and **145,000 acres** of State of Alaska mining claims[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, outlining the inherent risks and uncertainties in the exploration and mining industry that could cause actual results to differ materially from projections - The press release contains forward-looking statements covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - Risks include operational risks in exploration and development, geological uncertainties, volatility of natural resources prices, financing availability, inability to realize expected value from acquisitions, and potential changes in government policies or approvals[15](index=15&type=chunk) - Investors are cautioned that forward-looking statements are not guarantees of future performance and actual results may differ materially[15](index=15&type=chunk) [Contacts](index=5&type=section&id=Contacts) Contact information for Contango ORE, Inc. is provided for inquiries - Contact: Rick Van Nieuwenhuyse, Contango ORE, Inc., **(907) 888-4273**, www.contangoore.com[16](index=16&type=chunk)

Financial Performance - The Company received $40.5 million in cash distributions from the Peak Gold JV during 2024, relating to three campaigns of production at the Manh Choh Project [237]. - The Manh Choh Project produced 41,325 ounces of gold for Contango's share in 2024, with cash costs on a by-product basis per ounce at $1,209 [237]. - The income from the Company's equity investment in the Peak Gold JV for the fiscal year ended December 31, 2024 was $41.7 million, compared to a loss of $6.3 million for the six months ended December 31, 2023 [255]. - The Company invested $31.3 million in the Peak Gold JV during fiscal year ended December 31, 2024, and the Peak Gold JV issued cash distributions of $40.5 million for the same period [255]. - The average blended realized gold price for the Company was $2,281 per ounce sold in 2024 [240]. - The gain on metal sales for the fiscal year ended December 31, 2024 was $1.2 million, with no metal sales reported in prior periods [257]. - Cash Cost on a By-Product Basis, per Ounce for the Peak Gold JV was $1,209 for the fiscal year ended December 31, 2024, with total cost of sales amounting to $195.4 million [264]. Expenses - Exploration expense for the fiscal year ended December 31, 2024 was $4.1 million, primarily related to the 3,000 meter surface drilling exploration program at the Johnson Tract Property [252]. - General and administrative expense for the fiscal year ended December 31, 2024 was $10.6 million, an increase from $6.8 million for the six months ended December 31, 2023 [253]. - Interest expense for the fiscal year ended December 31, 2024 was $11.7 million, an increase due to a cumulative $60.0 million draw-down on the Facility and the Queen's Road Capital Investment, Ltd. Debenture [256]. - The Company recognized claim rental expense of $0.6 million for the fiscal year ended December 31, 2024, compared to $0.3 million for the six months ended December 31, 2023 [251]. - The Company recorded an unrealized loss on derivative contracts of $34.3 million and a realized loss of $19.9 million during the fiscal year ended December 31, 2024 [258]. Acquisitions and Agreements - The Company completed the acquisition of HighGold, issuing 1,698,887 shares valued at approximately $33.4 million to HighGold shareholders [242]. - The Company entered into a stock purchase agreement with Avidian Gold Corp. for an initial consideration of $2.4 million, with a contingent payment of up to $1 million [245]. Cash Flow and Liquidity - As of December 31, 2024, the Company had approximately $20.3 million of cash available [265]. - The Company received a total of $40.5 million in cash distributions from the Peak Gold JV in 2024, including $19.5 million in September and $21.0 million in the fourth quarter [268]. - The Company made a repayment of $13.8 million on the Facility in January 2025, with total repayment obligations of approximately $24.7 million due within the next twelve months [268]. Project Development - The Peak Gold JV's cash calls for 2023 and 2024 totaled approximately $248.1 million, with the Company's share being approximately $74.5 million [238]. - The Peak Gold JV expects that the Manh Choh Project will be mined over approximately five years [237]. - The Peak Gold JV commenced production in July 2024, with operations on schedule and no future anticipated cash calls [267].

Core Viewpoint - Contango ORE, Inc. reported its financial results for FY2024, highlighting gold production exceeding guidance and a focus on debt reduction and cash flow management [1][3]. Financial Performance - The unrestricted cash position increased to $20.1 million as of December 31, 2024, up from $15.5 million a year earlier [2]. - Total income from operations was $26.3 million, with a net loss of $38.0 million for FY2024, which included a non-cash expense of $34.3 million from unrealized losses on derivative contracts [2][5]. - Net cash provided from operating activities improved to $0.7 million for FY2024, compared to net cash used of $9.4 million for the six-month transition period and $14.7 million for FY2023 [4]. Production and Operations - Gold production at the Manh Choh mine reached 41,325 ounces, surpassing the guidance of 30,000 to 35,000 ounces, with cash costs of $1,209 per ounce [3][11]. - The average blended gold price achieved was $2,281 per ounce [8]. - The company is on track to produce between 15,000 and 18,000 ounces of gold in the first campaign of 2025, with a total guidance of 60,000 ounces for the year [3][8]. Debt and Hedge Management - The company reduced its credit facility balance by 36% to $38.3 million and settled 37,861 ounces of gold hedge contracts, reducing the outstanding hedge contract to 86,739 ounces [3][11]. - Cash distributions received from the Peak Gold JV amounted to $40.5 million [8][11]. Project Developments - The Johnson Tract project is advancing with a preliminary economic assessment expected to be released soon [3]. - The company completed a 3,000-meter drilling campaign at the Johnson Tract, focusing on resource characterization and permitting efforts [11].

Group 1 - Contango Ore (NYSE: CTGO) is a gold mining company that employs the Direct Shipment of Ore (DSO) business model to reduce environmental impact, development costs, and time to production [1] - The company focuses on minimizing its environmental footprint while maintaining efficient production processes [1] - The author has been involved in precious metals investment since 2003 and has a background in real estate, indicating a diversified investment strategy [1] Group 2 - The author has shifted focus to writing about companies with market capitalizations exceeding $100 million, as many previously favored companies have grown in value [1] - The author primarily invests in nano-cap junior gold explorers with market caps under $20 million, highlighting a preference for smaller, potentially high-growth companies [1]

Core Viewpoint - Contango ORE, Inc. has amended its credit facility to defer $10.6 million in principal repayments and extend the maturity date to June 30, 2027, allowing for greater flexibility in managing debt and gold hedge contracts while maintaining exposure to rising gold prices [1][4]. Financial Summary - The revised delivery schedule for gold hedge contracts will expose the company to spot gold prices on approximately 30% of net production volumes for 2025 and 2026, 80% for 2027, and 100% thereafter [2]. - Based on a $2,500 spot gold price, the company's projected cash flows from its 30% share of the Peak Gold JV are expected to be approximately $80 million in 2027 and $70 million in 2028 [2]. - With current gold prices near $2,900 per ounce, the company anticipates generating significantly better free cash flows than the previously mentioned projections [4]. Production and Operations - The Peak Gold JV commenced its first gold production campaign of 2025 on February 7, with Contango estimating its share of production to be between 15,000 and 18,000 ounces [3]. - The PGJV is actively working on initiatives to reduce operational costs and improve performance, including reducing moisture content in ore and managing ice, snow, and mud during ore transport [4]. Project Development - Progress on the preliminary economic assessment (PEA) for the Johnson Tract project is ongoing, with completion expected in March 2025 [4]. - The company holds a 30% interest in the Peak Gold JV, which encompasses approximately 675,000 acres for exploration and development on the Manh Choh project [6].

Core Insights - Contango ORE, Inc. received a cash distribution of $9.0 million from the Peak Gold JV, bringing total cash distributions to $40.5 million since July 2024 [1] - In 2024, Contango's share of gold production was approximately 42,000 ounces, exceeding the original guidance of 30,000 to 35,000 ounces by about 30% [2] - The company expects to produce 60,000 ounces of gold in 2025, with an average of 58,750 ounces per year through 2028, and all-in sustaining costs estimated at approximately $1,400 per ounce [2] Company Overview - Contango ORE, Inc. is listed on NYSE American and focuses on gold exploration in Alaska, holding a 30% interest in the Peak Gold JV [3] - The Peak Gold JV operates on approximately 675,000 acres of land for the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [3] - The company also holds leases on the Johnson Tract and Lucky Shot projects, along with 100% ownership of additional mining claims in Alaska [3]

Core Viewpoint - Contango ORE, Inc. has provided guidance for its 30% interest in the Peak Gold JV, reaffirming anticipated gold production for 2025 and updating all-in sustaining costs (AISC) for the mine, along with cash distributions from the Peak Gold JV [1][2]. Production and Cost Estimates - The company expects its share of gold production from the Manh Choh mine in 2025 to be approximately 60,000 ounces [2][5]. - The estimated AISC for the life-of-mine (LOM) is projected to increase to about $1,400 per ounce of gold equivalent (AuEq) sold, up from $1,116 per ounce as per the Manh Choh Technical Report Summary [2][5]. - The estimated AISC for 2025 on a standalone basis is expected to be around $1,625 per ounce of AuEq sold [2][5]. - Factors contributing to the AISC increase include weight restrictions on the Chena Flood Plain Bridge and higher moisture content in the ore, limiting annual ore transport by approximately 20% [2][5]. Financial Projections - At current gold prices of $2,500 per ounce, the company projects cash distributions from the Peak Gold JV to be approximately $50 million in 2025 [2][5]. - The company anticipates producing 38,500 ounces of gold on its account for 2024 and 60,000 ounces for 2025 [5]. Credit Facility Update - The company is working with lenders to restructure a portion of the credit facility principal repayments and related hedge contracts to align better with the production schedule of the Manh Choh production campaigns [3]. Company Overview - Contango ORE, Inc. is engaged in gold exploration in Alaska and holds a 30% interest in the Peak Gold JV, which covers approximately 675,000 acres for exploration and development [8]. - The remaining 70% of the Peak Gold JV is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation [8]. - The company also has leases on the Johnson Tract and Lucky Shot projects, along with ownership of additional mining claims in Alaska [8].

Core Viewpoint - Contango ORE, Inc. has announced positive drill results from its 2024 surface drill campaign at the Johnson Tract polymetallic gold project, highlighting the high-grade nature of the JT Deposit with an Indicated Resource of 1.05 million ounces at 9.39 grams per tonne gold equivalent [1][14]. Exploration and Development Activities - The 2024 exploration program involved approximately 3,000 meters of drilling across 18 holes, focusing on infill drilling and hydrogeological testing to characterize the hydrology and water quality around the JT Deposit [2][4]. - A 404 Permit has been received for the construction of a 2.6-mile access road to the proposed portal and laydown site, facilitating further development [3][12]. - The infill drilling targeted the upper third of the deposit to upgrade the 2022 Mineral Resource Estimate to Measured and Indicated categories, with deeper drilling planned from underground following the development of an exploration drift [8][11]. Drill Results - The 2024 drill program yielded significant intercepts, including: - GT24-008: 223.5 meters at 11.5 g/t AuEq, with a notable 55.5 meters at 30.3 g/t AuEq [3][6]. - GT24-007: 93.0 meters at 9.1 g/t AuEq, including 22.1 meters at 20.7 g/t AuEq [3][7]. - JT24-159: 30.2 meters at 6.3 g/t AuEq, including 14.7 meters at 10.6 g/t AuEq [3][7]. - A total of 21 HQ diamond drill holes were completed, totaling 3,092.3 meters, with three dedicated to hydrogeological and geotechnical testing [6][12]. Future Plans - The company is focused on advancing the Johnson Tract Project towards feasibility and mine development, with ongoing geotechnical, hydrologic, and environmental studies [5][12]. - Planning is underway for a 2025 program to continue exploration and development efforts [5][12].