tango ORE(US:CTGO)2025-05-15 18:00Financial Data and Key Metrics Changes - The company recorded $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, resulting in a net loss of $22.5 million for the quarter, primarily due to an unrealized loss of $40.5 million related to hedge contracts [3][4] - Cash costs were approximately $13.34 per ounce of gold sold, with an all-in sustaining cost (AISC) of $13.74 per ounce [4] - The company ended the quarter with $35 million in cash and marketable securities valued at about $900,000, which increased to approximately $4 million post-quarter [5] Business Line Data and Key Metrics Changes - At the Mancho operations, over 17,000 ounces of gold were sold, with an additional 3,800 ounces in recoverable inventory [4] - The company maintained its guidance for 2025 at 60,000 ounces of gold with an AISC of about $1,625, expecting AISC to increase in later quarters due to rising sustaining capital [4][29] Market Data and Key Metrics Changes - Gold prices increased from $2,600 at the beginning of the year to around $3,100 by the end of the quarter, impacting the company's hedge liabilities [3][6] Company Strategy and Development Direction - The company is focused on managing cash flow through a carry trade strategy, allowing it to sell gold at spot prices while managing hedge obligations [15][36] - The management emphasized the importance of continuing to deliver into hedges and paying down debt, with a target to finish the year with approximately $15 million in facility balance [25][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced compared to plans for Q1 [11][12] - The dismissal of a lawsuit against the company was viewed positively, as it supports the Mancho project and mining operations in Alaska [21][24] - The company plans to focus on permitting the Johnson Track project, with expectations of a year-long process for the tunnel permit [42][43] Other Important Information - The company is currently selling 30% of its gold at spot prices and 70% into hedges, with plans to manage this ratio effectively [36] - The management highlighted the potential for a significant balance sheet transformation as debt is reduced and production increases [90] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted its approach to better manage cash flow through carry trades, allowing for gold sales at spot prices while settling hedges in cash [15][16] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million, providing an additional source of capital [18][19] Question: What is the impact of the dismissed lawsuit? - The dismissal of the lawsuit is seen as beneficial for the Mancho project and for mining in Alaska, reducing regulatory hurdles [21][24] Question: What are the capital allocation priorities for the remainder of the year? - The focus will be on paying down debt, delivering into hedges, and potentially reviewing budgets for exploration programs [47][48] Question: What are the next key milestones for the Johnson Track project? - The next stage involves permitting the underground access tunnel, expected to take about a year [42][43] Question: Will the derivative liability decline significantly? - The hedge liability is expected to decrease significantly, potentially halving by the end of the year if gold prices remain stable [90]