Summary of Contango Ore (CTGO) Update / Briefing May 08, 2025 Company Overview - **Company**: Contango Ore (CTGO) - **Project Focus**: Johnson Track project located in Lower Cook Inlet, Alaska Key Points and Arguments Project Economics - The Johnson Track project has a **Net Present Value (NPV)** of **$225 million** and an **Internal Rate of Return (IRR)** of **30%** [9][20] - The project is expected to produce approximately **60,000 ounces of gold** in the current year [7] - The average gold equivalent grade is **7.58 grams per ton**, with a resource grade of **9.4 grams per ton** [21][55] - Initial capital costs are estimated at **$214 million**, including **$36 million** for contingencies [22][24] - The project has a **payback period** of just over **one year** [24][32] Mining and Development Strategy - The mining method will primarily utilize **long hole stoping**, which is cost-effective for the underground mine [33][34] - The project will involve a **one-kilometer tunnel** for access, which is designed to facilitate efficient ore extraction [16][41] - The mine plan includes a **seven-year mine life**, with production ramping up in the first year [52][71] - The project is designed to minimize environmental impact, with all development work planned in an unmineralized area to avoid acid rock drainage [19][92] Market Sensitivity and Pricing - The project is sensitive to gold prices, with projections showing an NPV of **$400 million** at **$3,000 gold** and **$600 million** at **$4,000 gold** [26] - The base case gold price used for projections is **$2,200** [38] Capital Allocation and Funding - The company plans to use cash flow from the **Montchaux project** to fund the development of Johnson Track [44][100] - Future funding may involve a combination of **equity and debt**, with a focus on maintaining financial flexibility [61][62] Community Engagement and Permitting - Community engagement is prioritized, particularly with the **Cook Inlet Regional Corporation (Siri)**, which owns the land [85][88] - The permitting process is ongoing, with a focus on ensuring compliance with mining operation standards [41][45] Exploration Potential - There is significant upside potential for increasing the size of the ore body, as the deposit is open at depth and along strike [66][70] - The mineralization style is related to a **porphyry system**, indicating potential for further discoveries [68] Operational Adjustments - The company is considering **ore sorting** as a method to enhance operational efficiency and reduce costs [58][59] - The project is robust even at lower gold prices, maintaining a positive NPV at **$1,800 gold** [60] Environmental Considerations - Environmental management is a key focus, with plans to address water quality and contamination risks during the feasibility study [93][94] Additional Important Content - The company is cautious about using **streaming financing**, preferring traditional debt options due to improved cash flow from operations [95][98] - The **average all-in sustaining cost (ASIC)** is projected at **$860 per gold equivalent ounce**, which includes operational and sustaining capital expenditures [48][49] This summary encapsulates the critical insights from the conference call regarding the Johnson Track project and the strategic direction of Contango Ore.

Romeo Maione Good afternoon, or good morning, depending on where you’re logging in from. Today, I saw some early rising Australians on the list. So thank you very much for joining us. Appreciate particularly everybody joining us on St. Patrick's Day for a corporate update and Q&A session from Contango related to this morning's press release regarding 2024 earnings. I'm joined today by the company's President and CEO, Rick Van Nieuwenhuyse; and CFO, Mike Clark. Gentlemen, thank you for joining me. Rick Van N ...

Financial Data and Key Metrics Changes - The company produced more gold than initially planned, with cash costs slightly above guidance at $1,200 per ounce [8][9] - Total gold production for 2024 was just shy of 42,000 ounces, exceeding guidance by over 25% [11][16] - The company started 2024 with $60 million in debt, finished with approximately $52 million, and projected to end the year with about $15 million remaining [25][26][27] Business Line Data and Key Metrics Changes - The Manh Choh project began production in July 2023, with a total projected gold production of about 60,000 ounces for 2025 [9] - The feasibility study originally planned for five batches in 2025, but adjustments were made to align with production capabilities [17] Market Data and Key Metrics Changes - The average hedge price per ounce is $2,025 for 2025 and 2026, with some hedges rolled into 2027 at mid-$1,900 [74] - The company experienced a realized loss on derivative contracts of $20 million in 2024, contributing to a total of $54 million in losses [38] Company Strategy and Development Direction - The company is focused on minimizing capital costs and permitting timelines by utilizing a direct shipping ore model instead of traditional milling [50][52] - Future plans include permitting access roads and a barge landing site for the Johnson Tract project [61] Management's Comments on Operating Environment and Future Outlook - Management believes the company is undervalued and has been oversold, with a focus on paying down debt and delivering hedges [88][91] - The company aims to be debt-free and hedge-free by the end of 2026, with significant cash flow expected from operations [19][30] Other Important Information - The exploration program for 2024 did not yield significant results, with a focus on evaluating land positions [56] - The company is not planning any drilling or road construction at the Lucky Shot project at this time [72] Q&A Session Summary Question: What factors led to Manh Choh exceeding production guidance? - Management attributed the excess production to effective ore transportation and higher-grade ore availability [11][15] Question: What is the cash flow projection for 2025 and beyond? - Positive cash flow is expected, with plans to use excess cash for debt repayment and hedge deliveries [18][19] Question: How much debt did Contango have at the start and end of 2024? - The company started with $60 million in debt and finished with approximately $52 million [25][26] Question: What percentage of the mine life is unhedged overall? - Currently, about 65% of the mine life is unhedged, with plans to deliver into hedges until the end of 2026 [30] Question: What is the timeline for eliminating the remaining credit facility balance? - The remaining balance is scheduled to be paid down to $15 million by the end of this year, with full repayment by mid-2027 [40] Question: What drove the decision to defer debt payments into 2027? - The decision was based on revised mine plans and the need to align repayment schedules with production capabilities [42] Question: What metrics should investors watch for in the upcoming PEA for Johnson Tract? - Investors should focus on NPV, rate of return, and the project's capital cost savings from not building a mill [58][60] Question: How does management feel about the acquisition of HighGold? - Management is pleased with the acquisition, particularly the Johnson Tract asset, and sees it fitting well with their operational model [64][66] Question: Are there plans for exploring other assets beyond Johnson Tract? - Currently, there are no plans for drilling at Lucky Shot, but strategic discussions are ongoing regarding processing options [94][96]