tango ORE(US:CTGO)2025-05-14 20:30Financial 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].