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tango ORE(CTGO) - 2024 Q4 - Annual Report
CTGOtango ORE(CTGO)2025-03-17 12:30
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Financial Performance - The Company received 40.5millionincashdistributionsfromthePeakGoldJVduring2024,relatingtothreecampaignsofproductionattheManhChohProject[237].−TheManhChohProjectproduced41,325ouncesofgoldforContango′ssharein2024,withcashcostsonaby−productbasisperounceat40.5 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 41.7million,comparedtoalossof41.7 million, compared to a loss of 6.3 million for the six months ended December 31, 2023 [255]. - The Company invested 31.3millioninthePeakGoldJVduringfiscalyearendedDecember31,2024,andthePeakGoldJVissuedcashdistributionsof31.3 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 2,281perouncesoldin2024[240].−ThegainonmetalsalesforthefiscalyearendedDecember31,2024was2,281 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 1,209forthefiscalyearendedDecember31,2024,withtotalcostofsalesamountingto1,209 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 4.1million,primarilyrelatedtothe3,000metersurfacedrillingexplorationprogramattheJohnsonTractProperty[252].−GeneralandadministrativeexpenseforthefiscalyearendedDecember31,2024was4.1 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 6.8millionforthesixmonthsendedDecember31,2023[253].−InterestexpenseforthefiscalyearendedDecember31,2024was6.8 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 60.0milliondraw−downontheFacilityandtheQueen′sRoadCapitalInvestment,Ltd.Debenture[256].−TheCompanyrecognizedclaimrentalexpenseof60.0 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 0.3millionforthesixmonthsendedDecember31,2023[251].−TheCompanyrecordedanunrealizedlossonderivativecontractsof0.3 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 19.9millionduringthefiscalyearendedDecember31,2024[258].AcquisitionsandAgreements−TheCompanycompletedtheacquisitionofHighGold,issuing1,698,887sharesvaluedatapproximately19.9 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 2.4million,withacontingentpaymentofupto2.4 million, with a contingent payment of up to 1 million [245]. Cash Flow and Liquidity - As of December 31, 2024, the Company had approximately 20.3millionofcashavailable[265].−TheCompanyreceivedatotalof20.3 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 19.5millioninSeptemberand19.5 million in September and 21.0 million in the fourth quarter [268]. - The Company made a repayment of 13.8millionontheFacilityinJanuary2025,withtotalrepaymentobligationsofapproximately13.8 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 248.1million,withtheCompany′ssharebeingapproximately248.1 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].