Contango Ore (NYSEAM:CTGO) 2025 Conference Transcript

Financial Data and Key Metrics Changes - The company is producing approximately 60,000 ounces of gold annually at the Monchaux project, with all-in sustaining costs projected to be around $1,400 per ounce, although current costs are higher due to increased stripping activities [2][3][7] - The company generated about $54 million in cash last year, with a share of production amounting to approximately 35,000 ounces in the first half of the current year [6][7] - The company expects to end the year with around $20 million in cash [4] Business Line Data and Key Metrics Changes - The Monchaux project is currently in production, while the Lucky Shot mine and Johnson Track are in development stages [5][17] - The Lucky Shot mine has a historical production of 250,000 ounces of gold and is expected to produce around 40,000 ounces annually once operational [13][26] - Johnson Track is anticipated to contribute significantly to production, with projections indicating it will add approximately 100,000 gold equivalent ounces annually [26] Market Data and Key Metrics Changes - The company is currently operating under a direct shipping ore model, which allows for lower infrastructure costs and quicker production timelines compared to traditional mining methods [3][10] - The company is closely monitoring oil prices, which have been lower than projected, positively impacting all-in sustaining costs [9] Company Strategy and Development Direction - The growth strategy focuses on increasing production from 60,000 ounces to 200,000 ounces annually through the development of Lucky Shot and Johnson Track [26][27] - The company aims to clear its hedge book, which currently has about 42,000 ounces left, to maximize cash flow from gold sales at current prices [15][27] - The company is exploring strategic options for processing the ore from Johnson Track, including the possibility of owning a mill [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate over $100 million in free cash flow, which will support growth without significant dilutive financing [27] - The management highlighted the importance of maintaining a low-cost structure and avoiding large capital expenditures associated with traditional mining operations [10][27] Other Important Information - The company has a tight share structure with 12.7 million shares outstanding [4] - The company is in the permitting phase for the Johnson Track project, which is expected to progress in the coming year [19][24] Q&A Session Summary Question: Where do you plan to process the Lucky Shot ore? - The company plans to transport Lucky Shot ore to Kinross for processing, leveraging existing infrastructure [29] Question: What are the processing options for Johnson Track? - The company is evaluating multiple options for processing Johnson Track ore, including the potential ownership of a mill [30]