Summary of Contango Ore (NYSEAM:CTGO) Update / Briefing on September 26, 2025 Company Overview - **Company**: Contango Ore (CTGO) - **Industry**: Mining, specifically gold production Key Points and Arguments Financing and Strategic Rationale - Contango Ore successfully closed a **$50 million** financing round at **$20 per share** aimed at institutional investors, marking a significant cash injection for the company [4][6] - The financing is described as **transformational**, intended to support the advancement of two projects: **Lucky Shot** and **Johnson Track** [6][11] - The cash flow from the **Monchola** mine is primarily directed towards paying down debt and hedging commitments, necessitating this new financing to avoid delays in project development [6][7] Project Development Plans - The company aims to **triple production** from the current **60,000 ounces** to **200,000 ounces** annually across the Lucky Shot and Johnson Track projects [11][79] - The all-in sustaining costs are projected to be around **$1,500 per ounce**, which is expected to generate strong cash flows [11][70] - The drilling operations for Lucky Shot are set to commence shortly, with a focus on resource definition and feasibility studies [20][30] Risk Management and Hedging - Contango is cautious about its hedge positions, with plans to deliver into existing contracts while monitoring gold prices [24][27] - The company anticipates that the hedges will be fully settled by the end of next year, allowing for increased cash flow to be directed towards project development [25][70] Permitting and Regulatory Environment - The permitting process for Johnson Track is ongoing, with expectations to secure necessary permits by **Q1 of next year** [35][37] - The company is leveraging the **FAST 41** program to streamline the permitting process, which is crucial for project advancement [66][67] Financial Outlook - Contango expects to generate over **$100 million** in cash flow this year, with sufficient internal funding to support the development of both Lucky Shot and Johnson Track without the need for additional financing [46][70] - The anticipated mine life for Monchola is **4.5 years**, Lucky Shot is projected at **5 years**, and Johnson Track at **7 years**, with potential for extensions based on further exploration [75][79] Future Growth and Opportunities - The company is actively seeking new opportunities that align with its **Direct Shipping Ore (DSO)** model, focusing on high-quality, high-margin projects [81][83] - Contango aims to maintain a margin of over **$2,000 per ounce** while keeping all-in sustaining costs around **$1,500** [82][83] Management Insights - The management expressed excitement about the upcoming drilling activities and the potential for significant growth, emphasizing a strong five-year plan to increase production [85][87] - The CEO highlighted the importance of executing the company's growth strategy while managing operational risks, including litigation and permitting challenges [47][49] Additional Important Information - The company is positioned strategically in Alaska, benefiting from federal support for resource development, which is seen as advantageous for future operations [60][62] - Recent legal challenges have been addressed positively, with a lawsuit against the company being dropped, which may alleviate some operational risks [48][50] This summary encapsulates the key discussions and insights from the Contango Ore briefing, highlighting the company's strategic direction, financial health, and project development plans.