Contango Ore (NYSEAM:CTGO) 2025 Conference Transcript

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]