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].
Contango Amends Repayment Schedule for Credit Facility, Announces Start of First Manh Choh Gold Campaign of 2025