Contango Ore (NYSEAM:CTGO) Update / briefing Transcript

Summary of Contango ORE (NYSEAM:CTGO) Update Call Company Overview - Company: Contango ORE (CTGO) - Date of Call: February 12, 2026 - Key Speakers: CEO Rick Van Nieuwenhuyse, CFO Mike Clark Key Points Financing and Hedges - Contango ORE announced a $50 million financing, primarily aimed at buying back gold hedge contracts [3][9] - The decision to remove hedges was influenced by recent volatility in gold prices and operational risks highlighted by a conveyor belt fire at Fort Knox [4][6] - The financing will allow the company to unwind 15,000 ounces of hedges, reducing the total hedge book from 42,000 ounces to approximately 27,000 ounces by the end of 2026 [10][11] - The company aims to be debt-free and hedge-free by the end of 2026 [10] Operational Insights - The company is currently drilling at Lucky Shot and plans to conduct a feasibility study based on drill results [32][36] - Permitting for the Johnson Tract tunnel is expected to be completed by Q2 2026 [34] - The company is also pursuing a $30 million exploration program for the Kitsault assets [50] Market Position and Growth Strategy - Contango ORE is positioned to generate over $100 million in free cash flow at current metal prices, with a market cap projected between $800 million and $1 billion post-merger with Dolly Varden [38][39] - The company has a five-year growth plan to produce 200,000 ounces of gold and 5-6 million ounces of silver [30][39] - The merger with Dolly Varden is seen as accretive, with strong support from major shareholders [51] Risk Management - The company is implementing downside protection through $700,000 in gold put contracts to mitigate risks associated with fluctuating gold prices [31] - The operational risks in mining are acknowledged, and the company is taking steps to manage these risks effectively [6][28] Shareholder Engagement - The financing was supported by two existing institutional investors who believe in the company's business model and the future of gold prices [9][24] - The management emphasized the importance of developing strong relationships with shareholders to ensure confidence in the company's direction [46] Regulatory Environment - There is a belief that the midterm elections will have no impact on permitting processes in Alaska, with ongoing discussions about permitting reform [52][53] Future Outlook - The company is optimistic about its growth trajectory and the potential for exploration in its districts, which are considered safe jurisdictions for mining [39][40] - The management is focused on maintaining a strong operational and financial position while navigating market conditions [28][30] Additional Notes - The call included discussions about the structure of the financing, including pre-funded warrants that will convert to shares in the future [18][21] - The management is committed to transparency and will provide further updates on drilling results and permitting processes [56][57]