Q1 2025 Contango Ore Inc Earnings Call

Unknown Executive: Today's event is being recorded. It'll probably be in your inbox mid-afternoon Eastern time. It'll also be available on events.six.com and on our YouTube channel.

Your inbox mid.

Mike: Mid afternoon, Eastern time, and will also be available on events that six dot com and on our Youtube channel. Although further do I'm going to go off screen and hand, it over to Mike just to summarize yesterday's press release.

Unknown Executive: Without further ado, I'm going to go off screen and hand it over to Mike just to summarize yesterday's press release. Thanks Romeo, and good morning and good afternoon.

Mike: Thanks, Ron.

Mike: And good afternoon.

Mike: I'm just going to spend a few minutes just highlighting the quarter ended March 31st, 2025, and just talk on the Statement of Operations and Balance Sheet. On the Statement of Operations, we recorded $19 million in income from operations, which includes $22.3 million in equity income from the Peak Gold JV, which is our 30% ownership in Moncho. We recorded a net loss of $22.5 million for the quarter, which includes an unrealized loss of $40.5 million related to the head contracts. Now this is primarily driven because Gold started the year at $2,600 and ended the quarter around $3,100.

Mike: I'm just going to spend a few minutes just highlighting.

Speaker Change: Quarter ended March 31, 2025 and.

Speaker Change: Just talk on the statement of operations and balance sheet and the statement of operations. We recorded a $19 million in income from operations, which includes $22 3 million in equity income from the peak gold JV, which is our 30% ownership in Montreal.

Speaker Change: We recorded a net loss of $22 5 million for the quarter, which includes an unrealized loss of $45 million related to the Ed contracts. Now. This is primarily driven because Gulf started the year at 2600 and ended the quarter around 3100.

Mike: We also recorded $2.7 million in interest and finance charges related to debt. At the Manchot operations, we sold a little over 17,000 oz of gold with another 3,800 oz in recoverable inventory. Our cash costs were $1,334 per oz of gold sold and our ASIC was $1,374 per oz of gold sold. Our 2025 guidance remains at 60,000 oz of gold with an ASIC of about $1,625 as we do expect.

Speaker Change: We also recorded $2 7 million in interest and finance charges related to debt at the Manto operations, we sold a little over 17000 ounces of gold with another 3800 ounces and recoverable inventory our cash costs were $13 34 per ounce sold and our <unk> was $13 74 per ounce of gold sold are too.

Speaker Change: 25 guidance remains at 60000 ounces of gold with an ASIC of about <unk> 25, as we do expect it will increase in later quarters due to sustaining capital going up related to replacing tractors on the oral route as well as a $5 $7 million exploration drill drill program on.

Mike: The ASIC will increase in later quarters due to sustaining capital going up related to replacing tractors on the Orr Hall route as well as a $5.7 million exploration drill program.

Mike: On the balance sheet, we completed the quarter with $35 million in cash. We have marketable securities of about $900,000. Those subsequent to quarter end have increased to about $4 million US and that's on our Onyx Gold Corp investment. Our trade payables were $9 million at the end of the quarter, and this really related to a gold shipment that happened on March 31st, as we had to pay the peak gold subsequent to quarter end. During the quarter, we made principal repayments of $13.8 million on the facility, and then subsequent to quarter end, we paid another $8.2 million, bringing the facility balance down to $30 million as of today.

Speaker Change: On the balance sheet, we completed the quarter with $35 million in cash and marketable securities of about $900000. Those subsequent to quarter end have increased to <unk> 4 million U S and that's on our Onyx Goldcorp investment our.

Trade payables were $9 million at the end of the quarter and this really related to our gold shipments that happened on March 31.

Speaker Change: As we had to pay the peak gold subsequent to quarter end.

Speaker Change: During the quarter, we made principal repayments of $13 $8 million on the facility and then subsequent to quarter end, we paid another $8 two bringing the facility balance down to $30 million as of today on the derivative liability.

Mike: On the derivative liability, the hedge balance technically didn't change during the quarter. We had 86,000 ounces to start the quarter, and we also finished with that as a balance at the end of the quarter. Because gold went up, the liability did increase, but I will highlight that we did do what's called a carry trade, and so we effectively locked in the April hedge price during the So, we ended up settling that April 30th. And then finally, we have started delivering into the July hedges, and we have about 2,800 ounces delivered onto those so far.

Speaker Change: The hedge balanced technically didn't changed during the quarter, we had 86000 ounces to start the quarter and we finished with that is the balance at the end of the quarter.

Speaker Change: Global it up.

Speaker Change: Liability did increase.

Speaker Change: But I will highlight that we did do what's called a carry trade and so we expect this effectively locked in.

Speaker Change: April hedge price during the quarter. So we ended up settling that April 30th.

Speaker Change: And then finally.

Speaker Change: We have started delivery into the July hedges and we have about 2800 ounces delivered onto those so far now I'll just hand, it over to Rick.

Unknown Executive: Now, I'll just hand it over. Yeah, thanks, Mike. I think it's been a good quarter.

Rick: Yes, Thanks, Mike.

Rick: Been a good quarter.

Unknown Executive: And we'll actually start the second campaign actually started yesterday. So that'll be our May campaign, it'll run roughly 30 days. And so we'll be looking to report on the total anticipated production from that once the campaign ends towards probably mid-June is roughly when it'll end. And we'll have a bit of an update at that time on our, won't be the gold sales, but it'll be an estimate of gold produced.

Rick: And we will actually start.

Rick: The second campaign actually started yesterday.

Rick: So that'll be our May campaign, it'll run roughly 30 days.

Rick: And so we'll be looking to report on the on the total.

Rick: Anticipated production from that once.

Rick: The campaign ends towards probably mid June.

Rick: It's roughly when it will end.

Rick: And we'll have a bit of an update at that time on our on our.

Rick: When we the gold sales, but it'll be and thats been of gold produced.

Rick Nieuwenhuyse: And then our Q2 results will probably be what in, Mike, I'll let you comment on that, probably what, in July or August? Yep, yep, in the early August. So things are going well, I think, basically, I can safely say that things are going a little better than planned. I think our the total amount of gold produced was was more than planned, roughly 30% through Q1. We do have that gold held in inventory. So, you know, we, they campaign process the gold basically in the middle month of a quarter. It's not exactly in the middle month, so it'll run over and then the gold sales obviously, trail that by about 30 days, roughly.

Rick: And then.

Rick: Our Q2 results will probably be what and.

Rick: Mike I'll, let you comment on that probably wasn't July or August.

Rick: Early August.

Rick: So things are going well I think basically I can.

Rick: Safely say that things are going.

Rick: Better than plan.

Rick: I think our.

Rick: The total amount of gold produced was worth more than planned roughly 30% for Q1.

Rick: We do have that gold held in inventory so.

Rick: We did the campaign process the gold basically in the middle month of a quarter.

Rick: It's not exactly in the middle months.

Rick: Run over and then the gold sales obviously.

Rick: Rail that by about 30 days roughly so.

Rick Nieuwenhuyse: So you'll have to just kind of keep, keep that in mind when you're reading our financials, you'll see there's always probably a golden inventory that's been produced, but not sold necessarily.

Rick: You'll have to just kind of keep keep that in mind. When you are reading our financials, you'll see there's always probably a.

Rick: Our Golden inventory, that's been produced but not sold necessarily so.

Unknown Executive: So with that, maybe Romeo, I'll turn it back to you and we can start with Q&A. Awesome. I do have a number of questions, some of them already reflected in the chat, so I'll meld them together where possible.

Romeo: With that maybe Romeo I'll turn it back to you and we can start with Q&A.

Rick: Awesome.

Speaker Change: A number of questions some of them already reflected in the <unk> melt them together where possible.

Rick Nieuwenhuyse: Mike, I'm going to start with you. I was curious if you could give me a little more color around the carry trade and hedge delivery schedule. This reflects a comment in the chat, Wesley asks, hedges remaining, when are you liberated to the box? Yeah, it's a good question, and I get it a lot. It's really, it's quite complicated, but, you know, and we've kind of changed our approach.

Rick: To start with you.

Speaker Change: I was curious if you could give me a little more color around the carry trade and hedge delivery schedule and it reflects the comment on the chat wasn't asks hedges remaining why don't you elaborate its Bob.

Yes, it's a good question.

Speaker Change: And I get it a lot it's really it's quite complicated but.

Speaker Change: We've kind of changed our approach we have been changing our approach since since starting and then I guess just kind of start from the beginning but the main chan.

Mike: We have been changing our approach since starting, and I guess I'll kind of start from the beginning, but the main challenge we have is, you know, you have your hedge delivery schedule, which is kind of once a quarter, we have a maturity date, and that was kind of designed off the feasibility plan or study, and so what actually happens, though, is you end up having shipments every week, pretty much for the whole year, but chunkier ones in the middle of campaigns, and so to better manage cash, what we ended up moving towards is called a carry trade, so that we could effectively sell the gold at spot price as the shipments occur and use those proceeds to basically pay the JOAB for the gold, and then wait for the distribution, you know, a month or so later, and then use those extra proceeds to settle that hedge in cash with our lenders.

Speaker Change: Challenge. We have is you have your hedge delivery schedule, which is kind of once a quarter maturity dates and that was kind of designed off the feasibility plan our study and so what kind of what actually happens, though is you end up having shipments every week pretty much for the whole year chunkier ones in the middle of campaigns and so to manage.

Speaker Change: To better manage cash what we ended up moving towards its called the carry trade. So that we can effectively sell the gold at spot price.

Speaker Change: As the shipments occur and use those proceeds to basically pay the <unk> <unk> fourth for the gold and then wait for the distribution.

Speaker Change: Month, or so later and then use those extra proceeds to settle that hedge in cash with our lenders. So it's a better cash management tool for us with a relatively low cost and it's basically a cheap form of financing. So so what actually happened in the quarter is as you may recall, we ended up cash settling our January 31 hedge in December.

Mike: So it's a better cash management tool for us with a relatively low cost, and it's basically a cheap form of financing. So what actually happened in the quarter is, you know, as you may recall, we ended up cash settling our January 31st hedge in December, so we effectively had no hedges matured during the quarter, but we did start producing in February. So what we did is we ended up delivering, we basically set, delivered 100% of the April hedge into these carry trades during the quarter, so that was about 12,000oz of gold. So you know, we started the quarter at 86,000oz of hedges, we finished the quarter with technically 86,000, but when you consider the carry trade, the hedge balance is just below 75,000, and then as of today, we're probably closer to 71,000.

Speaker Change: So we effectively had no hedges matured during the quarter.

Speaker Change: But we did start producing in.

Speaker Change: In February so what we did is we ended up delivering we basically set delivered 100% of the April hedge into these carry trades during the quarter. So that was about 12000 ounces of gold.

Speaker Change: We started the quarter at 86000 ounces of hedges, we finished the quarter with technical 86000, but when you consider the carry trade.

Speaker Change: Hedge balances just below 75000, and then as of today, we are probably closer to 71000 as we continued to deliver in July.

Rick Nieuwenhuyse: to deliver in July. Does that kind of answer your question? Yeah, no, it's great. I think that's useful extra color, so I appreciate it.

Speaker Change: I cannot answer your question.

Speaker Change: Yeah, that's great I think thats useful extra color. So I appreciate it.

Mike: One question that I got just for folks who don't know, and it's popped up in the chat a bit too, where did the Onyx shares come from that are now worth that $5 million? Yeah, so when we acquired Highgold, they owned 5 million shares of Onyx, which was spun out of Highgold. maybe a year and a half ago. So we had those on the books. I think when we acquired them, they were probably valued around 5 or $600,000. We finished a quarter at 900,000 and as of today the shares are about 1.05 Canadian. So those shares are now worth about 5 million Canadian.

Speaker Change: One question I got just for folks, who don't know and it's popped up in the chat a bit to where the onyx shares come from I don't know, where it's at $5 million. Yes. So when we acquired high gold. They one 5 million shares of Onyx, which was spun out of high gold.

Speaker Change: Okay.

Speaker Change: Maybe a year and a half ago and so we had those on the books I think when we acquired them. They were probably valued around five or $600000. We finished the quarter at 900000 as of today that the shares are at about a buck five Canadian so those shares are now worth about 5 million Canadian So we thought we would just put it in the press release.

Mike: So we just thought we would put it in the press release to highlight that there's another source of capital. I'll just add in Romeo, I think, you know, Darwin and, and the team over at Onyx or, you know, they've got an interesting project. So we'll keep an eye on that there. They just raised some more money to do some more drilling. So I think it's a definitely, definitely an asset on the books for us. Yeah, there you go.

Speaker Change: To highlight that this is another source of capital for us.

Speaker Change: Chad.

Romeo: I'll just add in Romeo I think.

Speaker Change: <unk>.

Speaker Change: And the team over at Onyx or we've got an interesting project. So we'll keep an eye on that.

Speaker Change: The interest rates more money to do some more drilling so.

Speaker Change: Definitely definitely an asset on the books for us.

Rick Nieuwenhuyse: Some of the chat asks just for clarity, is that stake now and available for sales security for Contango? There's some hooks on it with lockups, so, you know, it's, but... I think anything is possible.

Speaker Change: Yes.

Speaker Change: Some of the chatter ask just for clarity is that stake now in available for sale security for contango.

Speaker Change: There is some hooks on it with Lockups so.

Speaker Change: But.

Speaker Change: I think anything is possible if it really didn't.

Speaker Change: Wanted to.

Rick Nieuwenhuyse: I think I should consider it in friendly hands. Yeah. I appreciate that.

Speaker Change: I think on it should consider it in Framingham.

Speaker Change: Okay I appreciate that.

Rick Nieuwenhuyse: One question I got is, so the PR, can you discuss that dismiss lawsuit and what it means for both Moncho but generally for Contango? Yeah, I'll weigh in here. So yeah, we've had, as you may have known, or we've certainly reported on the Citizens for Safe Communities, a local anti-development group, anti-mining group in Fairbanks, launched a lawsuit to try and shut down the truck haul program. And this has been pending for, I think, well over a year, it's been almost two years now. And they had originally four arguments that were before the court, the court dismissed three of the four.

Speaker Change: One question I've got is on the.

Speaker Change: Peer can you discuss that dismiss lawsuit and what it means for both Montreal that generally for contango.

Speaker Change: Yeah I'll weigh in here so.

Speaker Change: Yes, we've had a as you may have known or.

Speaker Change: Certainly recorded on the citizens received communities.

Speaker Change: Local.

Speaker Change: Anti development group anti mining group in Fairbanks.

Speaker Change: Launched a lawsuit.

Ryan shutdown.

Speaker Change: The truck hauled.

Speaker Change: Program.

Speaker Change: And this has been pending for well over a year almost two years now.

Speaker Change: And.

Speaker Change: They had originally for.

Speaker Change:

Speaker Change: For arguments that were before the court the court dismissed the three of the four.

Rick Nieuwenhuyse: And this was the last one that the court had not dismissed. But there'd been not really any sort of follow through on the side of Citizens for Safe Communities. So we learned a little bit ago that they were considering dropping the lawsuit. And apparently you can't just drop a lawsuit, you have to come to a settlement. And so that took, I don't know, a little over a month, maybe two months, somewhere in that timeframe for them to settle without prejudice. So it's gone. I think this is obviously, it's a good thing for the project and for the Montreal project.

Speaker Change: And this was the last one the court had not dismissed.

Speaker Change: But there had been not really any sort of follow through on on the side of the same.

Speaker Change: Muni so.

Speaker Change: We learned a lot.

Speaker Change: Little bit ago that.

Speaker Change: They were considering dropping the lawsuit and apparently you can't just dropped the lawsuit you have to come to a settlement.

Speaker Change: And so that took a little over a month, maybe two months somewhere in that timeframe for them to settle without prejudice. So.

Speaker Change: It's gone I think this is obviously, it's a good.

Speaker Change: Good thing for for the project and for the Montreal project.

Rick Nieuwenhuyse: But it's also, I think it's a good thing for mining in general, because if you can't, you know, if you have people who are anti-mining groups that don't want trucking of ore, that means you can't truck concentrates. And maybe you can't truck this or that that's, you know, servicing the mine. So I think it's a good, it's good that this has gone away. And I think it's good, not just for our project, but also for mining in general in Great, I appreciate that extra flavor.

Speaker Change: But it's also I think a good thing for.

Speaker Change: Mining in general because.

Speaker Change: If you can't.

Speaker Change: People, who are anti mining.

Speaker Change: Groups that are that don't want trucking of war that means you can't truck concentrates and maybe you can't truck this or that.

Speaker Change: That's.

Speaker Change: Listening to mine so.

Speaker Change: It's a good it's good that this has gone away and I think it is good not just for our project, but also for mining in general at Alaska.

Speaker Change: Great I appreciate that extra flavor. One question I had is what will the balance beyond the facility by the end of the year.

Rick Nieuwenhuyse: One question I had is, what will the balance be on the facility by the end of the year? The facility will finish the year around $15 million. Great, I appreciate that.

Speaker Change: The facility will finish the year around $15 million just under.

Speaker Change: Okay I appreciate that.

Unknown Executive: One thing I want to say, obviously, congratulations on beating quarterly guidance. I think that's really impressive.

Speaker Change: That was obviously congratulations on beating quarterly guidance, that's really impressive.

Mike: You mentioned the PR, incremental improvements in ore transportation and processing at Fort Knox. And I know, Mike, you alluded to it for sure, but what helped get that significantly lower ASIC of 1374 versus the target of 1625? I'll let you talk about the incremental improvements.

Speaker Change: Mentioned in the PR incremental improvements in our transportation and processing at Fort Knox and I know, Mike you alluded to it for sure, but what helps get that significantly lower ASIC of $30 74.

Speaker Change: Versus the target of $6 25.

Mike: You want me to start on this and then Rick you can yes.

Rick: Go ahead Mike.

Speaker Change: I'll weigh in with my Board.

Mike: I'll just comment on our guidance remaining at $1625 for ASIC. The main driver is that there is going to be more sustaining capital during the quarter. There wasn't a lot in Q1 and there's also going to be an exploration drill program. The cost of ASIC will go up as a result of that. That's what's driving the increase. We did produce more Gold in Q1 and I do expect you'll have strong Q1, Q2 and Q3. In Q4, I think there's a little less production in that period. When you smash those all together, you're going to end up with around $1600.

Speaker Change: I'll, let you talk about the incremental improvements I'll just comment on our guidance remaining at <unk> 25.

Speaker Change: For ASIC.

Speaker Change: The main driver is that is there is going to be more sustaining capital during the quarter. There wasn't a lot in Q1 and Theres also been exploration drill program. So that the cost will go up as a result of that and so that's what's kind of driving the increase in <unk>.

Speaker Change: Did produce more more gold in Q1, and I do expect you'll have strong strong Q1, and Q2 Q3, and Q4, I think theres a little less production in that period and so when you smashes altogether, you're going to end up with around $600 and we still hope to beat that but we still think that's a reasonable estimate.

Mike: We still hope to beat that, but we still think that's a reasonable estimate. Yeah, it's all the incremental improvements. I think, you know, starting with the bridgeway restrictions are still in place. So that's that that's still part of, you know, the day to day truck haul, truck hauling. The improvements are really all about water and whether it's frozen, frozen water in the wintertime. And obviously Q1 reflects wintertime operations. And they were basically just knocking the snow and ice off the trucks. When they come down the hill from where the Montreux mine is, Montreux is up on top of a hill.

Speaker Change: Great.

Speaker Change: So on the incremental improvements I think.

Speaker Change: Starting with <unk>.

Speaker Change: The bridge waiting restrictions are still in place. So that's that's still part of <unk>.

Speaker Change: The day to day.

Speaker Change: Coal truck hauling.

Speaker Change: The improvements are really all about water and whether it's frozen frozen water in the wintertime and obviously Q1 reflects wintertime operations.

Speaker Change: And they were basically just knocking the snow and ice off the trucks.

Speaker Change: When they come down the hill from where the Montreal mine is onshore is off of top of the Hill and then basically Theres a 20 mile Road that connects it to the Alaska Highway and.

Mike: And then basically, there's a 20 mile road that connects it to the Alaska Highway. And that's where most of the snow and ice is picked up is along that, you know, it's a mine access road, basically, not a paved highway. So at the end of that, they had some cattle guards put in there that was knocking some of the ice and snow off. And then they literally just run around with a big sledgehammer and knock it off before they got onto the highway. Once you're on the highway, you don't pick up a lot of ice and snow unless it happens to be snowing.

Speaker Change: And that's where most of the snow and ice.

Speaker Change: He says it's picked up is along that.

Speaker Change: It's a mine access road basically not a paved highway.

Speaker Change: So at the end of that they had some cattle guards put in put in there that was knocking some of the ice and snow off and then they are literally just run around whether big sledgehammer and knock it off before they got onto the highway once you're on the highway you don't pick up a lot of ice and snow unless.

Speaker Change: As it happens to be snowing, but.

Mike: But you know, it's interior Alaska, so you just really don't get a lot of So that's been one incremental improvement. The moisture content of the ore is another one. Obviously in the wintertime, things are frozen, so you don't pick up a lot of moisture. And in the summertime, which we're obviously operating now, it's mud that you pick up. And so they've established some wash plants, truck wash stations, basically, just before they get on the highway as well. So those are all the incremental things. I guess the other one that'll come into effect for the summertime is that in the pit, I think there's just more water management in the pit to keep the water away from where you're mining and to keep the water away from where you're stockpiling.

Speaker Change: Its interior Alaska. So you just really don't get a lot of snow.

Speaker Change: So that was one that's been one incremental improvement the <unk>.

Speaker Change: Moisture content of the ore is another one obviously in the wintertime. It's things are frozen. So you don't you don't pick up a lot of moisture.

Speaker Change: In the Summertime, which were you know, we're obviously operating now.

Speaker Change: A mud that you pick up and so.

Speaker Change: They've established a mosh plants.

Speaker Change: Truck wash stations basically just before they get on the highway as well. So those are all the incremental things I guess one was little.

Speaker Change: Come into effect for the summertime is that.

Speaker Change: We are in the in the pit I think Theres just more water management in.

Speaker Change: In the pit to keep the water away from the where you're mining and keep the water away from where you are stockpiling.

Mike: Last year was a startup year, and I think people sometimes forget that this was not your normal mine sequencing of feeding stuff right into the mill right away. It goes into a stockpile and then it gets transported and stockpiled at the Fort Knox facility. And so it was kind of a long, in that sense, it was a bit of a long startup from sort of turning on a mill and figuring out how that works. But even a mill typically has a three to six month startup plan. So anyways, long story short is you learn from as you're operating, you learn where things are going right, you learn where things are going wrong, and then you.

Speaker Change: Last year was a startup year.

Speaker Change: People, sometimes forget that.

Speaker Change: This was not your normal mine sequencing.

Speaker Change: Feelings to operate into the mill right away. It goes into the stockpile and then it gets transported and stockpile of it at the Fort Knox facility and so.

It was can we be in that sense. It was a bit of a launch startup.

Speaker Change: <unk>.

Speaker Change: Turning on our mill and figure out how that works, but even the mill typically has a three to six months startup plan. So.

Speaker Change: Anyway long story short as you'll learn from as you're operating you learn where things are going right you learned where things are going wrong in your view.

Mike: put in, make changes to make incremental improvements. And so that's exactly what's happened. and, you know, it obviously reflects in producing more gold and net lower cost and guidance. So I think it's all been very, very positive.

Speaker Change: Put in.

Speaker Change: <unk> made changes to make incremental improvements and so that's exactly what's happened.

Speaker Change: And.

Speaker Change: Obviously reflects in.

Speaker Change: Producing more gold than net lower cost in guidance. So I think it's it's all been very very positive.

Unknown Executive: Great.

Unknown Executive: I got one more on just general strategy before I jump into a quick Johnson Track question.

Speaker Change: Alright.

Speaker Change: Got one more on just general strategy before I jump into quick Johnson Jack question, I'm curious adult prices, obviously significantly increasing during Q1, how does contango balance the benefits of spot prices against such obligations are there any potential adjustments to the hedging strategy you wearing a headset.

Rick Nieuwenhuyse: I'm curious with gold prices obviously significantly increasing during Q1, how does Contango balance the benefits of spot prices against hedge obligations? Are there any potential adjustments to the hedging strategy or where your head's at? That's definitely the Mike question.

Speaker Change: Well my question.

Mike: It's not one I really want to, you know, we we look at this obviously a lot. We're spot price for the year, 70 into the hedges. You can try to get cute and look at swapping out hedges for, you know, Gold prepays and you know, at the end of the day, you kind of you're kind of getting to the same result, but just a different look, you know, so I guess my focus right now and I won't speak for Rick, but I think just continuing to deliver into these hedges, get ahead of them as much as we can, you know, try to just manage, you know, the carry trades and just We're trying to keep that 70-30 ratio as we deliver this year and make sure that we're ahead of schedule by the time we get to the end of the year.

Speaker Change: I really want to.

Speaker Change: Sure.

Speaker Change: We look at this obviously a lot.

Speaker Change: Currently selling.

Speaker Change: 30% of the goal effectively spot price for the year 70 into the hedges you can try to get cute and looking at swapping out hedges for <unk>.

Speaker Change: Gold Prepays at the end of the day, you're kind of you're kind of getting to the same result, but just a different look.

Speaker Change: So I guess my focus right now.

Speaker Change: I won't speak for Rick, but I think just continuing to delivering these hedges get ahead of them as much as we can.

Speaker Change: Try to just manage the carry trades in gist.

Speaker Change: Just trying to keep that 70 30 that.

Speaker Change: Ratio as we delivered this year and make sure that we're ahead of schedule by the time, we get to the end of the year and we will finish the year with about 43000 ounces in the hedges our debt will be down $50 million.

Mike: We'll finish the year with about 43,000 ounces in the hedges. Our debt will be down to $15 million.

Rick Nieuwenhuyse: I think this will be less of a concern by the time we get to the end of the year and demonstrate another solid year of production, and they just won't be as significant on our balance sheet.

Speaker Change: This will be less of a concern by the time, we get to the end of the year and demonstrate another solid year of production and they won't they won't just won't be as significant on our balance sheet. Rick anything you want to add to that yes, I'll just say you don't.

Rick Nieuwenhuyse: Rick, anything you want to add to that? Yeah, I'll just say we're a junior producer. I don't think we want to get cute with betting on Gold. I don't think that would be good for our shareholders. I don't think that's what our shareholders want us to do. I think they want us to look, the hedges are in place because that's the only way you could raise money two or three years ago when equity markets were pretty much dead. It's part of the DNA of the company and as Mike says, we'll just keep paying down the and keep delivering to the hedges.

Speaker Change: As a junior producer I don't think we want to get cute with betting on gold I don't think that's I don't think that's would be good for our shareholders. I don't think that's what our shareholders want us to do.

Speaker Change: They want us to.

Speaker Change: Look the hedges are in place because that's the only way you could raise money at two or three years ago and equity markets were pretty much dead. So.

Speaker Change: It is it's it's part of the part of the DNA of the company and as Mike says, we'll just keep paying down the debt and keep delivering into the hedges, let's not.

Rick Nieuwenhuyse: Let's not be cute here and make a big bet on Gold going up and it goes down. and then you're in a worse spot. So just, you know, kind of business as usual. And I think we'll be in a good spot. I think we're already a good spot. But I think we'll be obviously in a better spot when we're unhedged. That'll come soon enough. Liberated, as they say in the comments. Liberated.

Speaker Change: Be cute here and make a big bet on gold going up and it goes down.

Speaker Change: You're in a worst spot.

Speaker Change: Just.

Speaker Change: Kind of.

Speaker Change: Businesses as usual and I.

Speaker Change: It will be in a good spot I think we're already good spot, but I think it will be obviously in a better spot when were unhedged. So.

Speaker Change: That'll that'll come soon enough.

Speaker Change: As they say in the comments I elaborated liberated.

Rick Nieuwenhuyse: I'm a little liberated today. Yeah.

Speaker Change: Yeah.

Unknown Executive: So I want to pivot to Johnson Track for a quick second because I know we talked about it recently, but I really do want to emphasize really impressive NPV of over 400 million, the current gold prices.

Speaker Change: So I want to pivot to Johnson track for quick as I can because I know we've talked about recently, but I really do want to emphasize really unprecedented NPV of over $400 million correct gold prices. So I'm curious as you folks in the room what are the next key milestones and developing Johnson track then more specifically, what's the timeline for permitting that underground access tunnel.

Rick Nieuwenhuyse: So I'm curious, as you're folks in the room, what are the next key milestones in developing Johnson Track? And more specifically, what's the timeline for permitting that underground access? Yeah, so you know, permitting is not the sexy part of the story for sure. But that is the next stage for for Johnson track. That's why we wanted to put the get the the initial assessment out. I keep want I still keep wanting to call it a PEA but to let people know that this is a pretty valuable asset. But as you said, the next stage is permitting the tunnel.

Speaker Change: Yes, so permitting is not the sexy part of the story for sure but that is the next stage four for Johnson practice, where we wanted to put the gift.

Speaker Change: Get the.

Speaker Change: The initial assessment out I keep want I still keep wanting to call it a PPA, but.

Speaker Change: Total assessment out.

Speaker Change: Let people know that this is a this is a pretty valuable asset but.

Speaker Change: As he said that the next stage is permitting the tunnel.

Rick Nieuwenhuyse: And that's a state of Alaska, mine operating permit is technically a mine when you're starting to drive the tunnel. You're not producing ore necessarily, but you are mining, you're under OSHA and MSHA and all those things. So we think that'll take about a year. It's a state permit. There's no specific federal permitting involved. We already have the access road between camp and the proposed tunnel site permitted. So we could build that anytime, but it doesn't really make sense to spend money that building a road unless having it sit there. So we'll get the permits. We think that'll take about a year.

Speaker Change: And that's a sustainable Africa mine operating permit is technically a mine when youre starting to when you were starting to drive tunnel, you're not producing or necessarily but your you are mining you under Osha and <unk> all of those things so.

Speaker Change: We think that will take about a year.

Speaker Change: It's a state permit there's a there's no specific federal permitting involved we already have the access road.

Speaker Change: <unk> camp and the proposed tunnel site permitted. So we can we could build that any time, but it doesn't really make sense to spend money that building a roadmap.

Speaker Change: Having it sit there so we'll get the permits we think that will take about a year at the same time, we're permitting.

Rick Nieuwenhuyse: At the same time, we're permitting the easement and a barge landing site that have been granted to CERI by the federal government. So when you grant an easement, typically that means you're already permitted. So it's just the special arrangement that CERI has with the federal government that they were granted the easements. We have to figure out exactly what the road alignment is. And so you go through sort of the normal permitting parameters, in this case, one of the driving ones is wetlands for your wetlands 404 permit. And the edict there is to minimize impacts to wetlands.

Speaker Change: Permitting.

Speaker Change: The.

Speaker Change: The easement and barge landing site that have been granted to Siri.

Speaker Change: By the federal government so it's.

Speaker Change: When you when you grant an easement typically that means you're already permanent so.

Speaker Change: It's a it's just a special arrangement that theory has with the federal government that they were granted the easements, we have to figure out exactly what the road alignment is.

Speaker Change: And so you go through sort of the normal permitting parameters are in this case, one of the driving ones as wetlands.

Speaker Change: For your wetlands 404 permit.

Speaker Change: There is to minimize impacts to wetlands.

Rick Nieuwenhuyse: The other things that you're paying attention to just as a responsible miner and constructing roads is to minimize the impact to models and fish specifically, so fish passages and making sure that any stream that has fish-bearing fish or fish-bearing stream that the fish can go back and forth across the river or across the water underneath the road. Barge landing site, I think in general, we've selected the best area for that. We've got to do more work specifically on where that's going to go and the specific design there. We'll be doing work in Tuxedo Channel specifically to study where the beluga whales are, where they hang out, and do they use the channel, are they north of it, are they south of it.

Speaker Change: The other things that you are paying attention to just as a responsible miner minor in constructing roes is to minimize the impact to marvell and fish specifically.

Speaker Change: So fish passages and making sure that all the new stream that has fish bearing fish or fish billing extreme that the fish can go back and forth across the river or across the water underneath the road.

Speaker Change: Barge landing site.

Speaker Change: I think in general we've selected the best area for that we've got to do more work specifically on the on where that's going to go into specific design there will be doing.

Speaker Change: Work in Texas handle specifically to study.

Speaker Change: Where the beluga whales are where they hang out and they use the channel are they north of it or the south of it.

Rick Nieuwenhuyse: We know they're generally in the area and they are an endangered species, so that's obviously a very important thing for us to understand more. We'll be doing work on that this summer as well. This year's focus in terms of the road access down to the barge landing site, just to cover off, it's about a 20-mile road length, which is almost exactly what Moncho is, so it's a very similar scale.

Speaker Change: We know that generally in the area and they arent endangered species. So that's obviously a very important thing for us to understand more so it will be doing work on that this summer as well.

Speaker Change: And so.

Speaker Change: So this years.

Speaker Change: Focus in terms of the road access down to the bar.

Speaker Change: Our site and that's just to cover off it's about a 20 mile Road.

Speaker Change: Length, which is almost exactly what Montreal with.

Speaker Change: Very similar scale.

Rick Nieuwenhuyse: We'll gather all the information this year and then we can start permitting those formally next year.

Speaker Change: So we'll gather all the information this year and then we can start permitting those formally next year.

Unknown Executive: Awesome, I appreciate the JT update of course.

Speaker Change: Awesome I appreciate the GTI update of course I got one last question that I know you've kind of answered, but I just want to keep it clear before we jump into the millions questions from the audience.

Rick Nieuwenhuyse: I got one last question that I know you kind of answered but I just want to keep it clear before we jump into the million questions from the audience. With, you got strengthened cash position, reduced debt, what are the capital allocation priorities for the remainder of this year? I think Mike kind of covered it. Keep paying the debt down, keep delivering into the hedges. We're going to review our budget here shortly. Next week, Mike and I'll be sitting across the room from each other and we can take a look at do we have money enough to look at drill program at LuckyShot this year.

Speaker Change: You've got sanctioned strengthened cash position reduce debt what are the capital allocation priorities for the remainder of this year.

Speaker Change: I think Mike kind of covered it keep paying that debt down and keep delivering into the hedges.

Speaker Change: We're going to review our budget here shortly.

Speaker Change: Next week, Mike and I'll be sitting across the room from each other and we can.

Speaker Change: Take a look at do we have money enough to look at the drill program at Lucky shot this year.

Rick Nieuwenhuyse: I'd like to, but I also want to be prudent and make sure we've got plenty cash in the bank to do what the main business is here, get Johnson Track permitted and deliver into the hedges and pay the debt down. There's a few other things that we can look at, but I think those are the main business for right now.

Speaker Change: I'd like to but I also want to be prudent.

Speaker Change: Make sure we've got plenty of cash in the bank to do with the main main businesses here get Johnson track permitted and.

Speaker Change: And deliver into the hedges and pay the debt down.

Speaker Change: Down.

Speaker Change: There's a few other things that we can look at.

Speaker Change: But I think those are those are the main order of business for right now.

Unknown Executive: Awesome.

Unknown Executive: Going to jump into the chat. We've covered some of it, but there's a lot of questions, so bear with me. I'm going to run through as many as I can.

Speaker Change: Awesome.

Speaker Change: And have a chat and we covered some of it but there's a lot of questions. So bear with me I'm going to run through as many as I can.

Rick Nieuwenhuyse: We've covered this a bit, but Jan asks, where is the next likely drilling for Contango? I'd say probably, definitely lucky shot. I think, you know, if we don't get a drill program going this year, I'm very confident we'll be drilling next year. We're all set up, you know, the underground's permitted there. So it is technically a mine. We have it currently on care and maintenance, but we are caring and maintaining it.

Speaker Change: We've covered this a bit but Jan asks whereas the next likely drilling for contango going to be.

Speaker Change: I'd say, probably a definitely a lucky shot I think.

Speaker Change: If we don't get a drill program growing this year I'm very confident we will be drilling next year.

Speaker Change: We're all set up.

Speaker Change: Undergrounds permitted there so.

Speaker Change: So it is technically a mine we are we have.

Speaker Change: It currently on care and maintenance, but we are.

Speaker Change: We are tearing and maintaining it.

Rick Nieuwenhuyse: So that's my best guess. I mean, I'm saying this separate from Moncho, we've got a, I think it's a $5.7 million joint venture program at Moncho. And the focus of that drilling is to, is to evaluate targets in and around the current pit. They'll be doing a bit of work further afield, but I think the lion's share of the exploration program is in and around the pit there. Obviously the pit, Feasibility level pit was done at, I think, $1,450 Gold. Gold is, you know, almost $2,000 more. So it won't, I don't think it, I mean, it'll be very unusual to me to see that that pit doesn't get a little bit bigger.

Speaker Change: So that's that's my best guess.

Speaker Change: Im saying thats separate from Montreal, We've got a fight I think it's a <unk>.

$5 $7 million joint venture program at.

Speaker Change: At Montreal, and the focus of that drilling is too.

Speaker Change: As to evaluate.

Speaker Change: <unk> in and around the current pit.

There'll be doing a bit of work further afield, but I think the lion's share of the exploration program is in and around the pit there obviously the pit.

Speaker Change: Feasibility level pit was done at I think four or $14 50 gold.

Speaker Change: Gold is.

Speaker Change: Almost $2000 more so.

Speaker Change: I don't think.

Speaker Change: I mean, it would be very unusual to me to see that that pit doesn't get a little bit bigger.

Rick Nieuwenhuyse: Go a little deeper and a little bit more, you know, just go after some of the stuff that obviously didn't make it into the pit at a $1400 gold price.

Speaker Change: Go a little deeper and a little bit more.

Speaker Change: Just go after some of the stuff that obviously.

Speaker Change: Didn't make it into the pit at a 1400 dollar gold price so.

Rick Nieuwenhuyse: So I think we'll, you know, we won't have results in that until later in the year. And I don't believe we'll be in a position with that $5.7 million budget to upgrade our resource. But if we find some interesting things, I think we'll, we'll, you know, more more than likely continue to focus the effort there going forward.

Speaker Change: I think we will we won't have results on them.

Speaker Change: Until a.

Speaker Change: Later in the year.

Speaker Change: And I don't believe we'll be in a position.

Speaker Change: With that $5 7 million dollar budget too.

Speaker Change: Upgrade or a resource, but if we find some interesting things I think we will.

Speaker Change: More more than likely continue to focus the effort there going forward.

Mike: Great, on that exact syntactic from the chat, Kate from the Maxim group asks, of that 5.7 million, is it taken out of your share of sales in the JV or do you write a separate? I'll have Mike answer too, but it's all part of an annual budget that's approved. And then so the cash sweeps, basically, that's included in, before we get a dividend, I guess is the way I would put it. Yeah. And so right now, we're guided to getting about $80 million in cash distributions from the JV this year for our 30%. That's done at about $2,800 goal.

Speaker Change: Great on that exact synthetic from the chat take from the Maxim Group asks.

Speaker Change: Of that $5 7 million. It was taken out of your share of sales in the JV or the rate of separate checks.

Speaker Change: I'll, let Mike answer do but it's it's all part of an annual budget. That's approved and then the cash sweeps basically.

Speaker Change: That's included in before we get a dividend I guess is the way I would put it.

Speaker Change: So right now we're.

Speaker Change: <unk> guided to getting about $80 million in cash distributions from the JV this year for our 30%.

Speaker Change: That's done at about $2800 gold. So that includes kind of our 30% that $5 $7 million program.

Mike: So that includes kind of our 30%, that $5.7 million. Great, thanks.

Speaker Change: Great. Thanks.

Rick Nieuwenhuyse: T. Decker from the chat asks, eternal question, why is the increase in shorts? Who are these guys? It's an interesting question. The shorts, we love the shorts. We wanna see them hang, but that's another topic.

Speaker Change: <unk> from the chat US internal question why is the increase in shorts, who are these guys. It's an interesting question.

Speaker Change: Yes.

Speaker Change: The shorts, we love the shorts.

Speaker Change: We want to see him hang but that's another.

Okay.

Rick Nieuwenhuyse: Short answer is, I mean, they're, look, I mean, the, the, the, I think this is all speculation on my part, and Mike, if you're ever across from me, you might be kicking me, but, um... Yeah, look, we were We got hammered last November with the reduced amount of gold production and the increased cost from what Feasibility said. Again, the Feasibility is three years old now. So, I think that's where these things started. I think there was an effort to, once we were down lower, I think there was an effort to boot us off the Russell.

Speaker Change: <unk>.

Speaker Change: Short answer is I mean look I mean, the I think.

Speaker Change: This is all speculation on my part in my power across from me might be kicking me, but.

Speaker Change: Yes look we were.

Speaker Change: We got hammered last November with the reduced.

Speaker Change: Amount of gold production and the increased costs from from what the feasibility said again the feasibility three years old now so.

Speaker Change: I think that's where these things started.

Speaker Change: There was an effort to once we were down.

Speaker Change: Down lower I think there is an effort to put us off the.

Rick Nieuwenhuyse: So, I think that's been some continued shorting the stock to boot us off the Russell and then then that's a million shares that the Russell has to sell. I think that's gone away from them in the sense that our share price has gone up because we've performed better than guidance and, you know, we've continued to deliver more gold than planned and at lower costs. And I think the other direction is I think the Trump tariff discussions have gone against the Russell valuation and the Russell's gone down. So while the Russell's gone down, we've gone up on a relative basis.

Speaker Change: Russell, So I think thats been some downward.

Speaker Change: <unk> short shorting the stock to boot us off of Russell and then then that's 1 million shares of the Russell has to sell.

Speaker Change: I think that's gone away from them in the sense that our share price has gone up because we performed better than than guidance.

Speaker Change: We continued to deliver more gold and then plan in that lower costs.

Speaker Change: <unk>.

Speaker Change: I think the other direction as I think the Trump tariff discussions.

Speaker Change: Have gone against the Russell evaluation, then neurosis is gone down so while the Russell has gone down we've gone up on a relative basis.

Rick Nieuwenhuyse: which means that lower threshold on the Russell is lower.

Speaker Change: Which means that lower threshold on the Russell is lower.

Speaker Change: Then us be on the cost sort of thing so.

Rick Nieuwenhuyse: I think the shorts are in trouble and I think today is a good demonstration of that. There you go. Somebody in the chat says short squeeze would be lovely. Wouldn't we all agree? There you go.

Speaker Change: I think the shorts are in trouble and.

Speaker Change: Today's a good demonstration of that.

Speaker Change: Somebody in the chat said short squeeze at the lovely and we all agree.

Adam: Adam Hey.

Rick Nieuwenhuyse: Bevan in the chat says, congratulations on a fantastic quarter. Looking for a small bit of clarification on something from the last call. I suggested that you'd finance Johnson Tract with bank debt and free cash flow so long as gold prices remain robust. Just making sure that that's accurate. I'm sorry, you just came in a bit broken there, Romeo. Can you repeat that? All good. They're just curious, on Johnson Tract, you mentioned that last event you suggested you'd finance the project with bank debt and free cash flow so long as gold prices remained high. Just making sure that that's accurate.

Adam: Hey, guys, Kevin in the chat says congratulations on a fantastic quarter looking for a small bit of clarification on something from the last call.

Adam: Adjusted that you'd finance Johnson tracked with bank debt and free cash flow. So long as gold prices remain robust just making sure that that's accurate.

Speaker Change: I saw you just came in a bit broken there Rami can you repeat that all get there just curious on Johnson attract mentioned that last event you suggested you'd finance the project with bank debt and free cash flow, so long as gold prices remain high.

Adam: Sure that that's accurate.

Rick Nieuwenhuyse: Yeah, I think so. I mean, look, we're a couple of years away from that decision. So, and just to go through it. So, you know, this year, permitting the tunnel, hopefully next year starting to think about building the tunnel. And then it's a year to build a tunnel, a year to get the underground drilling in place and completed and a mine plan around. So just, you know, straight up, it's at least three years away. So we've got time. When I sort of fast forward three years from now, we will no longer be hedged, we will have we will have zero debt.

Speaker Change: Yes, I think so I mean look we're.

Speaker Change: Couple of years away from from that decision, so and just to go through it this year.

Speaker Change: Permitting the tunnel.

Speaker Change: Hopefully next year, starting to think about building the tunnel.

And then it's a year to build the tunnel a year to get to the underground drilling in place and completed in a mine plan around so just straight up it's at least three years away. So we've got time.

When I sort of fast forward three years from now we will no longer be hedged we will have.

Speaker Change: We will have zero debt.

Rick Nieuwenhuyse: So, which means we could take on more debt and we'll be producing, you know, in the neighborhood of 60, continue to be producing in the neighborhood of 62,000 ounces of gold a year out of Moncho. So with that sort of as a leader and an assumption, we'd be in a good place to debt finance the balance of building the road and the barge landing facility in that. And again, using the DSO model, you're not building a mill in a tailings facility and all that. Now, as I mentioned, we may go buy one, and that's something we'll continue to take a look at.

Speaker Change: So which means we could take on more debt and we will be producing in the neighborhood of 60 continue to be producing neighborhood of 60000 ounces of gold a year out of Montreal.

Speaker Change: So with that sort of as a leader and an assumption.

Speaker Change: We we'd be in a good place to debt finance the balance of the.

Speaker Change: Building the road in the barge barge loading facility in that.

Speaker Change: And again using the DSO model, you're not building a mill in the tailings facility and all of that now as I mentioned, we may go buy one and that's something we'll continue to take a look at.

Rick Nieuwenhuyse: We'll look at opportunities to do a DSO direct shipping or model to Asia, that might be an alternative. It is an alternative for us to evaluate. But there are at least three or four other mills to have discussions with, and those discussions are taking place. We're not in a hurry here. We want to make the right decisions. I kind of like the idea of owning a mill and applying the DSO model with sort of a hub and spoke twist, if you will. Delivering our own ore to that mill, but maybe finding some other advanced stage projects that might supplement that and extend the mine life.

Speaker Change: We'll look at opportunities to do with DSO direct shipping ore model to Asia that might that might be an alternative it is an alternative for us to evaluate.

Speaker Change: But there are at least.

Speaker Change: Three at least three or four other mills.

To have discussions with them and those discussions are taking place where we're not in a hurry here, we want to we want to make the right decisions.

Speaker Change: I kind of like the idea of owning your mill and applying the DSO model without sort of a hub and spoke twist if you will.

Speaker Change: Delivering our own or to that mill, but maybe finding some other.

Speaker Change: Advanced stage projects that might supplement that and extend the mine life or.

Rick Nieuwenhuyse: Grade always will displace grade, so if we can find something better out there, we'll certainly go with that. But I don't expect to find a lot of things that are much better than Johnson Track. It's an awesomely good project from a mining standpoint, simple, and good grade.

Speaker Change: <unk> will displace great. So if we can find something better out there, we'll certainly go with it but I don't I don't expect despite a lot of things that are much better than Johnson track.

Speaker Change: Awesomely good.

Speaker Change: Project from a mining standpoint simple.

Speaker Change: And good great. So.

Rick Nieuwenhuyse: One question from the chat, what gives you personally confidence that Man Chau, Life of Mine, can be extended beyond 2029? Yeah, I think just kind of repeating what I said before, but again, the feasibility study, and I can't remember it was 14 or 1450, but it was one of those two numbers that, you know, that the bottom of the was run on and our costs have not gone up dramatically. I think our life of mine costs is going to remain 1400. This year is going to be a bit of a high year. As Mike said, we're buying some more tractors, the trucks, they call them tractors, is a pulling part of the truck and trailer assemblage.

Speaker Change: Okay.

Speaker Change: One question from the Chad what gives you personally confidence that <unk> life of mine can be extended beyond 2029.

Speaker Change: Yes, I think it just kind of repeating what I said before but again, the feasibility study pit and I.

Speaker Change: Can't remember it was 14 or $14 50, but it was one of those two numbers.

Speaker Change: The bottom of the.

Speaker Change: Was run on and.

Speaker Change: Our costs have not gone up dramatically.

Speaker Change: I think our life of mine costs that support is going to remain 1400.

This year, it's going to be a bit of a high years, Mike said, we're buying some more.

Speaker Change: Tractors trucks or they call on tractors.

Speaker Change: Pulling part of the of the trucking.

Rick Nieuwenhuyse: So we'll be buying some more of those this year. And, and we also have a, this is a higher stripping year than, than average. And this year and next year are much higher than average. And then they go down. So I, you know, I think we'll continue to see very strong cash flows out of Moncho for the next four years. And, and, you know, if gold prices are in the neighborhood of where they are, we're going to make a hell of a lot of free cash flow. So we're in a very strong position. Great. And again, we only have million shares outstanding.

Speaker Change: Truck and trailer assemblage, so we'll be buying some more of those this year and and.

Speaker Change: And we also have a this is a higher stripping year than than average this year and next year.

Speaker Change: Higher than average and then they go down so.

Speaker Change: I think we will continue to see very strong cash flows out of macho for the next four years.

Speaker Change: And.

Speaker Change: If gold prices are in the neighborhood of where they are we're going to make a hell of a lot of free cash flow. So we're in a very strong position.

Speaker Change: Great and again, we only have 12 million shares outstanding. So when you do this on a cash flow per share basis.

Rick Nieuwenhuyse: So when you do this on a cash flow per share basis, it's I don't, I don't see anybody else that's our near neighbor. That's healthy.

Speaker Change: I don't I don't see anybody else, that's our near neighbor.

Speaker Change: That's healthy.

Rick Nieuwenhuyse: Now, as I promised, I'm only going to do one bridge question for webinar. So I'm going to combine a few bridge questions into one. Because you mentioned that it's already, there is still the restriction. But is there any chance the weight restriction will be resolved with the states in a time frame? You can comment that. Yeah, I think what I can say is that the current plan, now that the Department of Transportation budget has been approved by the federal government with the matching funds and all that, as I understand it, it's scheduled to be repaired, I shouldn't say repaired, it's not really broken, but just updated.

Speaker Change: Now as I promised I wondered the one bridge question for Webinars, So I'm going to combine a few bids questions into one because you mentioned that it's already there is still the restriction, but is there any chance the weight restriction will be resolved with the states.

Speaker Change: Timeframe you can comment on.

Speaker Change: Yes, I think.

Speaker Change: What I can say is that the current plan.

Speaker Change: Now that the.

Speaker Change: Annual.

Speaker Change: The department of Transportation budget has been approved by the federal government with the matching funds and all that.

Speaker Change: As I understand it it's scheduled to be repaired.

Speaker Change: Shouldn't they repairing celebrity broker, but just updated.

Rick Nieuwenhuyse: The bridge updates that were planned can now be taking place, they take place a year later than the original plan, but that would be in 2022. Great.

Speaker Change: The bridge the bridge updates that were planned or can now be taken place there that take place a year later than the original plan.

Speaker Change: That would be in 2026.

Rick Nieuwenhuyse: One question is when the bank debts paid off, is Contango able to authorize a small, let's say $10 million dollar repurchase? Yep. He's talking about the buyback program, Rick. Oh, yeah, sorry.

Speaker Change: Great.

Speaker Change: One question is when the bank debts paid off as contango able to authorize a small let's say $10 million repurchase.

Speaker Change: Yes.

Speaker Change: Great.

Speaker Change: On a buyback program.

Speaker Change: Yes, sorry.

Speaker Change: Yes.

Rick Nieuwenhuyse: One question just about company marketing. Is there anything to look forward to in regards to sell-side coverage, roadshows, etc., in the near future? Yeah, so we're next week, we're actually headed to Las Vegas for the Canaccord Genuity Conference. I think we've got over 20 meetings already set up. So and that's largely an institutional investors are attending that. So that'll be that's a that'll be a good one. It goes quiet in, you know, most of June and July are quiet and then on August, and then we'll start with Beaver Creek. That's sort of the start of the roadshow.

Speaker Change: One question just about company marketing is there anything to look forward to in regards to the sell side coverage road shows et cetera in the near future.

Speaker Change: Yes.

Speaker Change: Next week were actually headed to Las Vegas for the Canaccord Genuity conference.

Speaker Change: I think we've got over 20 meetings already set up.

Speaker Change: So and that's largely in institutional.

Speaker Change: And investors are attending that.

Speaker Change: So that'll be that'll be a good one it goes quiet in most.

Speaker Change: Most of our June and July are quiet and then and on August.

Speaker Change: And they will start with Beaver Creek.

Speaker Change: Part of the.

Speaker Change: The road show.

Rick Nieuwenhuyse: if you will, for between now and the end of the year. It starts with the Beavercreek Conference. We'll be at the Denver Gold Show in Colorado City, or Colorado Springs, sorry. And then I think we've got a few other things. And I think we end the year, we've got some marketing in Europe that we're doing. And then we end the year, I think, with the New Orleans Conference.

Speaker Change: Season, if you will for between now and the end of the year. It starts with the Beavercreek conference.

Speaker Change: We'll be at the Denver Gold show in Colorado City.

Speaker Change: Colorado Springs, sorry.

Speaker Change: And then I think we've got a few other things.

Speaker Change: You think we end the year, we've got some marketing in Europe, where we're doing and then we ended the year I think with the New Orleans conference. So yes, it will be on the road quite a bit this.

Rick Nieuwenhuyse: So yeah, we'll be on the road quite a bit starting in September. There'll be definitely the summer hiatus, for sure. And racking up miles from Beaver Creek through the end of the year. Yeah, exactly. Yeah, road warriors. Jared Brovines from the chat.

Speaker Change: Starting in September there'll be definitely the summer hiatus for sure.

Speaker Change: And racking up miles from Beaver Creek through to the end of the year.

Speaker Change: <unk>.

Sure Robert.

Speaker Change: Yes.

Rick Nieuwenhuyse: Any plans to initiate a dividend? Not right now. Again, the main order of business is paying back, paying off the debt and delivering the hedges. I think that's got to be our, got to stick to that, stick to our knitting and that basic plan.

Speaker Change: Jeb Rafinesque chat any plans initiated dividend.

Speaker Change: No not right now no again, the main rotor business is paying back paying off the debt and delivering the hedges.

Speaker Change: I think that's got to be are going to stick to that particular knitting and basic plan.

Rick Nieuwenhuyse: You know, share buybacks are interesting. It's another form of compensating shareholders. So those are the things that we'll be thinking about.

Speaker Change: Sure Bob share buybacks are interesting, it's another form of compensating.

Speaker Change: <unk> shareholders. So those are the things that we'll be thinking about.

Rick Nieuwenhuyse: I've got two tough questions to answer, so answer to the best of your ability. One is, The Eternal, what do you think the stock is worth? I don't think we're supposed to say that, can we? I don't either. You're going to do what you want to do, so. more than $15. How's that? There you go. Good answer.

Speaker Change: I've got two tough questions to answer the answer to the best of your ability one is that the internal what do you think the stock is worth.

Speaker Change: I don't think were supposed to say that.

Speaker Change: Right.

Speaker Change: Youre going to do what you want to do so.

Speaker Change: Yes.

Speaker Change: More than $15 how is that good.

Rick Nieuwenhuyse: And Jan asked another I think impossible to answer question.

Speaker Change: Good answer.

Speaker Change: Jan ask another I think impossible to answer your question are there any active takeover bids for contango right now.

Rick Nieuwenhuyse: Are there any active takeover bids for Contango right now? Yeah, short answers, not aware of any. Great.

Speaker Change: Yes short answer is not aware of any great.

Rick Nieuwenhuyse: What's Siri's stake in JohnsonTrack?

Speaker Change: Sirius stake in Johnson tracts.

Rick Nieuwenhuyse: I'm sorry, I didn't understand the question. What's CERI's stake in the project? So CERI, they are the landowner. So they own the mineral and the surface rights on the track that the deposit is located, the current resource is located on. And they have these special rights with the federal government with regards to access, which is why they've already been granted the easement for the road access to the coast and for a barge facility or port facility is actually technically what it's described as. So those are the basic arrangement that we have with Siri. They do have a right to participate as an equity owner in the project.

I didn't starting to understand the question what series stay theory.

Speaker Change: So sorry.

Speaker Change: They are the landowner.

Speaker Change: So they are they own the mineral and surface rights.

Speaker Change: The track that.

Speaker Change: Deposit is look at the current resources located on.

And they have these special rights with the federal government.

Speaker Change: With regards to access which is why they have already been granted the easement for the road access to the coast and four a barge barge facility or port facilities actually technically what is described as.

Speaker Change: So.

Speaker Change: Those are there they are the basic arrangement that we have with Siri.

Speaker Change: They do have a right to participate as a as an equity owner in the project.

Rick Nieuwenhuyse: And I'm sure we'll be having that discussion at some point, but I think that's probably a year away probably. And they have royalties. Yes, sorry, the royalties. As a landowner, they have royalties, yep.

Speaker Change: And I'm sure, we'll be having that discussion at some point, but.

Speaker Change: That's probably it.

Speaker Change: A year away probably.

Speaker Change: They have royalties yes.

Speaker Change: Yes, sorry, the royalty says as a landlord or they have royalties yep.

Rick Nieuwenhuyse: Great.

Rick Nieuwenhuyse: One really specific question about Johnson Tract. What happens if you come across archaeological sites while you're exploring the project? It's actually a big part of what I'll call permitting. It is an assessment of the archaeological or cultural sites. And obviously that's something that we work closely with CIRI on. Again, it's their land. It's their traditional land. But basically there's a set protocol for evaluating the access route, the easement, if you will. And it's managed, overseen by what we refer to as SHPO, which is a State Historical Office. So that's the group that sort of manages historical and cultural things of importance.

Speaker Change: Great I wasn't really specific question, Matt Johnson, Jack what happens if you come across archaeological sites, while youre exploring the project.

Speaker Change: Yes.

Speaker Change: It's actually a big part of.

Speaker Change: Called permitting.

Speaker Change: It is an assessment.

Of the archeological or cultural sites and obviously, that's something that we work closely with Syriana again, it's their land it's their traditional lands so.

Speaker Change: But basically there's a set protocol for.

Speaker Change: Four.

Speaker Change: Evaluating.

Speaker Change: The access route the Eastman if you will.

Speaker Change: And it's managed overseen by.

What we referred to as ship, which has stayed historical.

Speaker Change: Remember with the Pea and Neo standpoint office.

Speaker Change: But there.

Speaker Change: The group debt.

Speaker Change: Sort of manages historical and cultural.

Speaker Change: Things are of importance, but more important the shipping frankly as theory.

Rick Nieuwenhuyse: But more important than SHPO, frankly, is CIRI. It's their land and it's their traditional and cultural heritage. So that's the driver for us and that'll be the driver for the evaluation of where the best place to put that road is. Short answer is if you find it, you have to kind of realize where this area is. It's not on a main trading route or anything. And CIRI's told us this. So the coastal areas are probably where most people would have been. But certainly up at the mine site, it's definitely out of the way and you're right up next to the very, very steep mountains.

Speaker Change: It's their land, that's there and that's their traditional and cultural.

Speaker Change: Heritage So.

Speaker Change: That's the driver for us and those that will be the driver for the.

Speaker Change: For the evaluation of where the best place to put that road is.

Speaker Change: Short answer is if you find.

Speaker Change: And the other kind of realize where this area is it's not on our main.

Speaker Change: Trading route or anything for <unk>.

Speaker Change: Series told us there so.

Speaker Change: It's.

Speaker Change: The coastal areas are probably where most people would have would have been but certainly up at the mine site.

Speaker Change: Definitely out of the way Youre right up next to the.

Speaker Change: Very very steep mountains.

Rick Nieuwenhuyse: So you're not going to find an old village up there or something like that. But that's a big part of the permitting effort for sure.

Speaker Change: So.

Speaker Change: Youre not going to find an old.

Speaker Change: Village up there for that.

Speaker Change: Something like that so.

Speaker Change: But that's a big part of the big part of the permitting effort for sure.

Rick Nieuwenhuyse: I appreciate that. That's useful, useful info.

Speaker Change: I appreciate that the seasonal influenza I know we are not just over time, but coming up on a hard stops I got two more questions and I'll try to one.

Mike: I know we're not just over time, but coming up on our hard stop. So I got two more questions that I'll throw at you. One person in the chat asked, will the derivative liability be declining by approximately $20 million a quarter for the rest of the year? I think that's a little higher. I think, you know, when I looked at the April 30th hedge, I think that represents about $13 million. And that was about $12,000. So, I think if gold stays where it is, our hedge liability should be cut in half by the end of the year, so that's about $50 million for the year, and then it'll gradually go down.

Speaker Change: One first of all the challenges with the derivative liability be declining by approximately $20 million a quarter for the rest of the year.

Speaker Change: I think thats.

Speaker Change: A little higher I think.

Speaker Change: When I looked at the April 30th hedged I think that that's represents about $13 million.

Speaker Change: It was.

Speaker Change: At about 12000 ounces.

Speaker Change: So I think I think I think if gold stays where it is our hedge liabilities should be cut in half by the end of the year. So that's about $50 million for the year.

Speaker Change: And then it will gradually go down from there.

Mike: Great, thanks.

Speaker Change: Great. Thanks.

Rick Nieuwenhuyse: One last one from Roger. He notes no public options are available for Contango. Do you expect to have options available in the near term? We don't I mean, the the option markets, it's an independent thing, right? It's not something we control. And we don't issue options to employees. So yeah, that's why there aren't any options. There's we have some warrants, but they and I don't know, do you know, Mike, that they trade? No, I'm not. I don't believe they do. Yeah, there aren't that many of them. So probably one reason why they don't. There's about 700,000 of them and they're all pretty far out of the money.

Speaker Change: One from Roger No public options are available for contango do you expect to have options available in the near term.

Speaker Change: We don't I mean, the option market, it's an independent thing right, it's not something we control.

Speaker Change: And we don't issue options to employees so.

Speaker Change: That's why there aren't any options, there's some warrants that they.

Speaker Change: I don't know, Mike if they trade now.

Speaker Change: I'm not I don't want to do at what they do.

Speaker Change: Yes.

Speaker Change: There aren't that many of them so.

Speaker Change: But the pumps, probably one of the reasons why they don't 700 non ops.

Speaker Change: There's about 700000, and they're all pretty far out of the money.

Rick Nieuwenhuyse: and they have about two years.

Speaker Change: And they have about two years left.

Unknown Executive: Great. I'm just going to point to a couple of comments in the chat. People said, what a balanced sheet transformation. Keep up the good work.

Speaker Change: Great I'm, just going to point to a couple of comments on the chat people said when our balance sheet transformation gives us a good work as I appreciate your time, Rick and Mike. Thanks, So much for joining us.

Unknown Executive: So appreciate your time. Rick and Mike, thanks so much for joining us and talking to folks and answering our questions. So really appreciate it very much and hope to talk to you soon as we have more updates. Thank you. Thank you, Romeo. Good to talk to you. Take care. Have a great afternoon, guys.

Speaker Change: Talking to folks.

Speaker Change: Answering a question so really appreciate very much and hope to talk to you soon as we have Martha.

Speaker Change: Thanks, Rami I'll talk to you take care. Thank you good afternoon guys.