tango ORE(US:CTGO)2025-11-14 17:30Financial Data and Key Metrics Changes - The company reported record operating income of $25 million for Q3 2025, with an all-in sustaining cost (ASIC) of $1,597 per ounce, below the $1,625 target [3][6] - Cash position increased significantly from $20 million at year-end 2024 to $107 million as of September 30, with $87 million received from the Peak Gold joint venture [6][8] - Adjusted net income was introduced to provide clarity on the business's performance, excluding unrealized derivative hedge losses that impacted the P&L by $30 million [9][10] Business Line Data and Key Metrics Changes - Q3 production exceeded plans by approximately 2,000 ounces, contributing to the record operating income [3] - The test batch blending of low-grade oxide ore from Manh Choh with Fort Knox ore achieved a 94% recovery rate, expected to add about 1,300 ounces in Q4 [13][14] Market Data and Key Metrics Changes - The company noted stable diesel prices in Alaska, which positively impacted transportation costs, a significant part of the overall cost structure [4][5] - The gold price environment remains high, with current prices above $4,000, influencing the economic viability of processing lower-grade materials [15][18] Company Strategy and Development Direction - The company aims to execute a solid five-year plan with potential for M&A opportunities in Alaska, BC, and Yukon, focusing on organic growth through Lucky Shot and Johnson Tract [33][34] - The strategy includes continuing exploration at existing projects while also considering additional opportunities that fit the direct shipping ore (DSO) model [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operational strategy and the ability to deliver on production targets, with expectations to fulfill hedges by September 2026 [36][37] - The permitting process for Johnson Tract is ongoing, with expectations to receive necessary permits by Q1 of next year, allowing for mobilization and construction to begin [30][31] Other Important Information - The company is focused on maintaining a low ASIC while optimizing transportation and operational efficiencies [20][21] - The Lucky Shot project is expected to produce 30,000-40,000 ounces annually, with a feasibility study anticipated in 12-18 months [23][24] Q&A Session Summary Question: What are the capital allocation priorities following the increase in cash position? - The company aims to pay down debt and fulfill hedges as quickly as possible, with a focus on maintaining production levels [6][8] Question: Can you provide insight into the adjusted net income? - Adjusted net income was introduced to clarify the business's performance excluding unrealized derivative losses, which significantly impacted the net income [9][10] Question: What is the status of the Lucky Shot project? - The drill rig has been mobilized for a 15,000-meter underground infill program, with results expected by mid-January [23][25] Question: How is the permitting process for Johnson Tract progressing? - The company is working on obtaining two fundamental permits, expected by Q1 of next year, to proceed with the underground exploration [29][30] Question: When do you expect to fulfill the old hedges? - The objective is to deliver into the hedges by September 2026, with the last ones maturing in mid-2027 [36][37] Question: How large is the net operating loss carry forward? - The company does not anticipate paying taxes in the near future due to the ability to offset costs incurred at Lucky Shot against profits [38][39]