tango ORE(US:CTGO)2025-05-15 18:02Financial Data and Key Metrics Changes - The company reported $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, reflecting 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 $16.25, anticipating an increase in AISC due to rising sustaining capital and an exploration drill program costing $5.7 million [4][28] 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] Company Strategy and Development Direction - The company is focused on managing its hedge obligations while balancing the benefits of spot prices, with a current strategy of selling 30% of gold at spot prices and 70% into hedges [34][36] - The company plans to continue paying down debt and delivering into hedges, with expectations of being unhedged in the near future [36][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production exceeding expectations, with a 30% increase in gold produced in Q1 compared to plans [9] - The dismissal of a lawsuit against the company was viewed positively, as it supports the project and the mining industry in Alaska [20][23] - The company anticipates a strong cash flow from Mancho for the next four years, contingent on stable gold prices [66] Other Important Information - The company is in the process of permitting an underground access tunnel for the Johnson Track project, which is expected to take about a year [40][41] - The company is exploring potential drilling at the Lucky Shot site and evaluating other projects to extend mine life and improve resource grades [47][49] Q&A Session Summary Question: Can you provide more details on the carry trade and hedge delivery schedule? - The company has shifted to a carry trade approach to better manage cash flow, allowing them to sell gold at spot prices while managing hedge obligations [11][12] Question: What is the status of the Onyx shares? - The Onyx shares, acquired through HIGOLD, are now valued at approximately $5 million Canadian, providing an additional source of capital [15][16] 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 funding a drill program at Lucky Shot [45][46] Question: What is the expected balance on the facility by the end of the year? - The facility is expected to be around $15 million by year-end [24] Question: Are there any active takeover bids for Contango? - Management is not aware of any active takeover bids at this time [80]