Summary of Contango ORE (NYSEAM:CTGO) Update Call Company Overview - **Company**: Contango ORE (CTGO) - **Date of Call**: February 12, 2026 - **Key Speakers**: CEO Rick Van Nieuwenhuyse, CFO Mike Clark Key Points Financing and Hedges - Contango ORE announced a **$50 million financing**, primarily aimed at buying back gold hedge contracts [3][9] - The decision to remove hedges was influenced by recent volatility in gold prices and operational risks highlighted by a **conveyor belt fire at Fort Knox** [4][6] - The financing will allow the company to unwind **15,000 ounces of hedges**, reducing the total hedge book from **42,000 ounces to approximately 27,000 ounces** by the end of 2026 [10][11] - The company aims to be **debt-free and hedge-free by the end of 2026** [10] Operational Insights - The company is currently drilling at **Lucky Shot** and plans to conduct a feasibility study based on drill results [32][36] - Permitting for the **Johnson Tract** tunnel is expected to be completed by **Q2 2026** [34] - The company is also pursuing a **$30 million exploration program** for the **Kitsault assets** [50] Market Position and Growth Strategy - Contango ORE is positioned to generate over **$100 million in free cash flow** at current metal prices, with a market cap projected between **$800 million and $1 billion** post-merger with Dolly Varden [38][39] - The company has a **five-year growth plan** to produce **200,000 ounces of gold and 5-6 million ounces of silver** [30][39] - The merger with Dolly Varden is seen as accretive, with strong support from major shareholders [51] Risk Management - The company is implementing **downside protection** through **$700,000 in gold put contracts** to mitigate risks associated with fluctuating gold prices [31] - The operational risks in mining are acknowledged, and the company is taking steps to manage these risks effectively [6][28] Shareholder Engagement - The financing was supported by two existing institutional investors who believe in the company's business model and the future of gold prices [9][24] - The management emphasized the importance of developing strong relationships with shareholders to ensure confidence in the company's direction [46] Regulatory Environment - There is a belief that the midterm elections will have **no impact on permitting** processes in Alaska, with ongoing discussions about permitting reform [52][53] Future Outlook - The company is optimistic about its growth trajectory and the potential for exploration in its districts, which are considered safe jurisdictions for mining [39][40] - The management is focused on maintaining a strong operational and financial position while navigating market conditions [28][30] Additional Notes - The call included discussions about the structure of the financing, including **pre-funded warrants** that will convert to shares in the future [18][21] - The management is committed to transparency and will provide further updates on drilling results and permitting processes [56][57]