tango ORE(CTGO) - 2025 Q1 - Quarterly Results

Gold Production and Sales - Contango reported a total gold production of 31,000 ounces to date in 2024, with a year-end guidance of 30,000 to 40,000 ounces[10]. - The average blended realized gold price for Q3 was $2,253 per ounce, with total gold sales amounting to$62.34 million[10]. - The Manh Choh Mine achieved a gold recovery average of 95% in Campaign 1 and 92% in Campaign 2, producing 55,000 ounces and 49,000 ounces of gold respectively[9]. - The estimated annual production from the Manh Choh Mine is projected to be 67,500 GEO, generating over $75 million at a blended gold price of$2,175[7]. - The first gold pour from the Manh Choh project is scheduled for July 8, 2024, with campaign 1 gold sales estimated at $36 million USD[41]. - Contango sold$36 million worth of gold during Campaign 1 and expects to generate over $60 million in free cash flow per year from the Manh Choh project[58]. Financial Position and Projections - Contango's cash position stands at$36 million, with a projected cash distribution of $19.5 million from the Peak Gold JV[4][10]. - The company aims to pay down its credit facility to$52 million in 2024 and eliminate debt by 2025[23]. - Contango's 2024 All-In Sustaining Cost (AISC) is projected at $1,116 per ounce, positioning it favorably compared to peers[12]. - At a gold price of$1,920 per ounce, Contango expects annual revenue exceeding $129 million and cash flow of over$54 million[65]. - Contango's ownership in the Manh Choh project is 30%, with projected revenue of $102.6 million at a gold price of$1,520 per ounce[65]. Project Development and Resources - The Lucky Shot and Johnson Tract projects are being advanced towards production, with a target of approximately 60,000 ounces in 2025[23]. - Lucky Shot Mine has a current resource of 110,000 GEO at a grade of 14.5 g/t, with a target annual production of 30,000 to 40,000 GEO over the next 2-3 years[30]. - Johnson Tract Project has a current resource of 1.1 million ounces at a grade of 9.4 g/t, aiming for an annual production target of 150,000 GEO within five years[30]. - The total inferred resource at Lucky Shot is 226,963 tonnes at an average grade of 14.5 g/t, equating to 105,620 ounces[26]. - Proven reserves at the Manh Choh project total 1,181,000 tonnes with an average gold grade of 7.9 g/t, equating to 299,000 ounces of gold[66]. - Measured and indicated resources at the Manh Choh project amount to 254,000 tonnes with an average gold grade of 2.4 g/t, totaling 20,000 ounces of gold[71]. - Inferred resources at the Johnson Tract project are 706,000 tonnes with a gold grade of 1.4 g/t, yielding 31,000 ounces of gold[71]. - The Johnson Tract deposit features a hybrid epithermal-VMS model, indicating a complex geological structure[61]. Exploration and Drilling Programs - The company plans to conduct a 15,000-meter in-fill drill program at Lucky Shot to define high-grade ore shoots and support resource definition[28]. - The Johnson Tract drill program includes a 3,000m oriented core program with 10 holes, targeting the upper third of the resource to upgrade its category[59]. - The 2024 infill drilling program aims to upgrade inferred resources to indicated resources and improve overall resource classification[38]. Environmental and Operational Strategy - Contango Ore is building its strategy around high-grade resources and responsible practices, aiming for minimal environmental impact and efficient permitting processes[44]. - The company is focused on minimizing environmental footprint and lowering permitting risk through its innovative business model[58]. - Future guidance includes a commitment to sustainable practices, aiming for a K% reduction in carbon footprint by 2025[10]. Market Position and Ownership - The company has a fully diluted share count of 13.1 million, with a market capitalization of $222 million[4]. - Contango's institutional ownership is at 21$X million for the quarter, representing a Y% growth year-over-year[1]. - User data indicates a growth in active users, reaching Z million, which is an increase of A% compared to the previous quarter[2]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% and an increase in user engagement metrics[3]. - New product launches are expected to contribute an additional C million in revenue, with anticipated market penetration of D%[4]. - The company is investing in new technology development, allocating E million towards R&D initiatives aimed at enhancing operational efficiency[5]. - Market expansion efforts are underway, with plans to enter F new regions by the end of the fiscal year, targeting a market share increase of G%[6]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could add H million in annual revenue[7]. - Other new strategies include enhancing customer service capabilities, which are projected to improve customer satisfaction scores by I%[8]. - The company has reported a decrease in operational costs by J%, contributing to improved profit margins[9].