Summary of Contango Ore (NYSEAM:CTGO) 2025 Conference Call Company Overview - Contango Ore is an NYSE American-listed company involved in gold mining projects in Alaska, specifically the Montreal, Lucky Shot, and Johnson Track projects [1][2][3] Key Projects and Production Plans - **Montreal Project**: - Currently in production through a joint venture with Kinross, where Contango owns 30% - Produces approximately 60,000 ounces of gold annually, generating about $100 million in free cash flow at a gold price of $3,500 per ounce [1][2] - The project utilizes a direct shipping ore (DSO) model, avoiding the need for building a mill and tailings facilities [4][5] - **Lucky Shot Project**: - Fully permitted underground mine, currently undergoing a feasibility study - Expected to produce about 40,000 ounces of gold per year [2][3] - Plans to invest around $50 million to bring this project into production within two years [3][4] - **Johnson Track Project**: - Currently in the permitting stage, with a robust ore body containing gold, silver, copper, lead, and zinc - Expected to double production capacity to 200,000 ounces of gold annually once operational [4][16] Financial Performance and Shareholder Value - Contango has a tight share structure with 15.5 million shares outstanding and management owning about 20% of the company [2][4] - The company has reduced its debt from $60 million to approximately $15 million [2] - Free cash flow generation is strong, with projections of $3 per share under hedged conditions, potentially increasing to $8 when unhedged, and up to $15 with the five-year production growth plan [10][20] Direct Shipping Ore (DSO) Model - The DSO model allows for quicker production without extensive permitting challenges, as it involves mining at the site and transporting ore directly to existing processing facilities [5][11] - This model significantly reduces capital expenditure and environmental impact [5][11] Permitting and Infrastructure - The Montreal project is located on land owned by the Tetlan Tribe, which has a 3% royalty agreement [6] - The Johnson Track project benefits from existing land easements and is expected to receive necessary permits by Q1 2026 [17][18] Market Outlook and Strategic Positioning - The company is optimistic about the gold market, expecting prices to continue rising [10] - Contango focuses on high-grade deposits, avoiding lower-grade resources to ensure profitability [11] Additional Considerations - The company is exploring alternative processing options, including potential partnerships for processing in Taiwan [15] - The Johnson Track project is positioned to take advantage of the current administration's interest in critical metals, enhancing its permitting prospects [17] This summary encapsulates the key points discussed during the conference call, highlighting Contango Ore's strategic initiatives, financial health, and market positioning.

Summary of Contango Ore (NYSEAM:CTGO) 2025 Conference Call Company Overview - Contango Ore is an American company based in Alaska, trading on the New York Stock Exchange and part of the Russell 2000 and JDX index [1] - The company has three projects: Manh Choh (in production), Lucky Shot (fully permitted), and Johnson Tract (pending further permitting) [1][2] Production and Growth Plans - Manh Choh is currently producing gold, with an annual output of 60,000 ounces from a total mine production of 200,000 ounces [3] - Lucky Shot is expected to produce 30,000 to 40,000 ounces of gold annually within two years, with a growth target of 50,000 to 60,000 ounces [1][2] - Johnson Tract has a potential production profile of about 100,000 ounces annually [1] - The company aims to triple its production over the next five years, a goal that is internally financed through cash flow from existing operations [2][15] Financial Health - The company has approximately 15.5 million shares outstanding, with management owning about 20% [2] - Debt has been reduced from $60 million to under $15 million [2] - The company generated about $87 million in cash distributions from the joint venture and is on track to exceed $100 million in free cash flow this year [5] Operational Efficiency - The company utilizes a Direct Shipping Ore (DSO) model, allowing it to avoid extensive permitting and capital expenditures associated with building new mills [20] - The DSO model enables quick production ramp-up by shipping ore directly to existing mills, such as the Kinross Gold Corporation Fort Knox Mill [4][20] - The all-in sustaining cost for the Manh Choh project is projected at $1,400 per ounce, while the Johnson Tract project is estimated at $860 per ounce [17][18] Market Position and Strategy - The company focuses on high-grade deposits, with the Lucky Shot project having a resource grade of 14.5 grams per ton [9][10] - Johnson Tract has a favorable mining condition with an average grade of 9.4 grams per ton and a thickness of about 40 meters [11][12] - The company is actively engaging with federal permitting programs to expedite the permitting process for Johnson Tract [14] Future Outlook - The company anticipates generating significant free cash flow, potentially reaching $400 million at a gold price of $3,000 per ounce with an all-in sustaining cost of around $1,500 [16] - The management is optimistic about the company's growth trajectory and the support from federal and state agencies [15] Additional Insights - The company emphasizes the importance of maintaining relationships with Alaska Native corporations, which own land where mining operations occur [3][9] - The management has noted that fuel prices have remained stable, which helps control operational costs [19]

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.

Financial Data and Key Metrics Changes - The company produced more gold than initially planned, with a total production of just shy of 42,000 ounces in 2024, exceeding guidance by over 25% [8][16] - Cash costs for 2024 came in slightly over guidance at $1,209 per ounce, with expectations for 2025 cash costs to be between $1,200 and $1,600 per ounce [35][36] - The company started 2024 with $60 million in debt, paid down just under $8 million, and finished the year with approximately $52 million in debt, projecting to end 2025 with about $15 million remaining [26][27] Business Line Data and Key Metrics Changes - The Manh Choh project began production in July 2023, with a ramp-up period that allowed for more ore to be delivered than anticipated, leading to higher production levels [13][15] - The company plans to produce approximately 60,000 ounces of gold in 2025, with three more batches planned for the year [9] Market Data and Key Metrics Changes - The hedge delivery schedule mirrors the principal repayment schedule, with expectations to finish the year with around 43,000 ounces of hedges remaining [24] - The average hedge price per ounce is $2,025 for 2025 and 2026, with a slight decrease for 2027 due to underwater hedges [74] Company Strategy and Development Direction - The company is focused on a direct shipping ore model, which minimizes environmental impact and capital costs associated with building a mill and tailings facility [50][52] - The company aims to be debt-free and hedge-free by the end of 2026, with a focus on delivering hedges and paying down debt [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial health, stating that they are not facing bankruptcy and are making money [88][92] - The company believes there is significant upside potential in junior stocks, and they are optimistic about future performance as gold prices increase [91][92] Other Important Information - The company is working on a Preliminary Economic Assessment (PEA) for the Johnson Tract project, expected to be released in April, which will evaluate the project as a DSO model [59][60] - Exploration efforts are ongoing to identify potential drill sites around the Manh Choh property, with a focus on closer to the mine site [82][84] Q&A Session Summary Question: What factors led to Manh Choh exceeding production guidance? - Management indicated that more ore was delivered to the stockpile than anticipated, allowing for higher-grade ore to be processed [15][16] Question: What is the cash flow projection for 2025 and beyond? - Positive cash flow is expected, with plans to use excess cash to pay down debt and deliver hedges [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, projecting to end the year with about $15 million remaining [25][26] Question: What percentage of the mine life is unhedged? - Currently, about 65% of the mine life is unhedged, with plans to deliver into hedges mostly by the end of 2026 [30] Question: What is the timeline for eliminating the remaining credit facility balance? - The credit facility balance is scheduled to be paid down to $15 million by the end of this year, with the remaining amount to be paid off between 2026 and mid-2027 [40] Question: What drove the decision to defer some debt payments into 2027? - The decision was based on revised mine plans and the delivery schedule of hedges, aiming to better align repayments with production [42] Question: What are the economic advantages of direct shipping ore? - Direct shipping ore reduces environmental impact and capital costs, avoiding the lengthy permitting process associated with building a mill [50][52] Question: What metrics should investors watch for in the upcoming PEA for Johnson Tract? - Investors should look for standard metrics such as NPV and rate of return, as well as the project's capital cost savings from not building a mill [60] Question: How does management view the market value gap for the company? - Management believes the company is undervalued and that there is potential for the market to recognize this as gold prices increase [91][92]

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]