Q2 2025 Contango ORE Inc Earnings Call

In the room I'll say good morning, good afternoon, or good evening, depending on where in the World you are signing in from Saturday, We got all the way from Alaska to Australia. So I'm happy to say the Sun never sets on this webinar, which is always nice I've got with me today, Rick venue and I as the CEO of contango ore and the company's CFO, Mike Clark gentlemen, how are you today.

How are you doing.

Good good.

Here's that today is going to work for everybody. That's in the room first I'm going to throw it to Rick just a recap their recent news then I've got some questions that I'm going to ask both the executives, but then I'm going to throw it to the live audience today for our questions that you have so this is an interactive event that chat button in the bottom right of your screen you can use at any point during today's event.

To ask Rick and Mike any questions you might have all tried to get as many as possible that for whatever reason they don't get to your question and I'll make sure. The Katanga as you can get through it and look at.

Back to you as soon as possible and the only other piece of housekeeping is that today's event is being recorded and a replay will be available late this afternoon. Eastern time at you can write in your inbox will also be available on <unk>.

Youtube channel so I'll throw it start off get the protein of today's events with Rick.

Thanks, and thanks, everybody for joining us for a review of our Q2 financials.

Great quarter.

Operating earnings were $23 million net income by about $16 million.

I'm really proud of our gas crossing those are.

Be well under under guidance cash cost for the quarter were $14 16.

For the year of <unk> 75.

Yeah.

Okay.

Sure.

Okay.

Yes.

Okay.

Okay.

Okay.

Strategy and how that contributed to the bottom line this quarter yes.

The hedging strategy for the most part it's just deliver the hedges and so if you deliver effectively about 70% of our gold goes into the hedges, 30% goes we saw spot price during the year and so when you look at the average gold price during the quarter, Let's just say it was 3300 and our hedge prices 2000, and you kind of end up with a blended price of about 24.

Our 50.

The carry trade we brought in this year, which just helps us manage our cash flows so that when we received deliveries of gold from the peak gold JV, we can turnaround and sell it at spot price at 100% of spot price pay the peak gold for that goal, which comes at a slight discount which is why you see about $1 million gain on metal sales each quarter that sets like game we may.

So we sell that goal that spot price the banks effectively funded that that's that difference between the 3300 in 2000 and then when the hedge delivery date comes up.

Next quarter. We then can deliver into that we basically settle that hedge rate them. So it allows us to conserve our cash in Q1, we made a.

The rising gold price, we actually saved a couple of million dollars, but by doing that carry trade I think in this quarter. It cost us a couple of hundred thousand dollars, but it basically ensures we take no risk on the gold price moving in either direction, what limits any exposure because what we don't want to have is.

The gold price, we sell it at say $3000 in that when we have to deliver our settle that hedge is at 3500.

$500 in helping that could put us in there.

Romeo Maione: Okay, as folks start coming into the room, I will say good morning, good afternoon, or good evening, depending on where in the world you are signing in from. I saw today we got all the way from Alaska to Australia, so I am happy to say the sun never sets on this webinar, which is always nice. I have got with me today Rick Van Nieuwenhuyse, CEO of Contango ORE, and the company's CFO, Mike J. Clark. Gentlemen, how are you today?

Rick Van Nieuwenhuyse: Good morning, Romeo Maione. How are you doing?

Romeo Maione: Good, good. Here is how today is going to work for everybody that is in the room. First, I am going to throw it to Rick Van Nieuwenhuyse just to recap their recent news. Then I have got some questions that I am going to ask both the executives, but then I am going to throw it to the live audience today for questions that you have. This is an interactive event. That chat button in the bottom right of your screen, you can use at any point during today's event to ask Rick Van Nieuwenhuyse and Mike J. Clark any questions that you might have. I will try to get to as many as possible. If for whatever reason I do not get to your question, I will make sure the Contango ORE team gets to it, and they will get back to you as soon as possible.

Romeo Maione: The only other piece of housekeeping is that today's event is being recorded, and the replay will be available late this afternoon, Eastern Time. It should come right in your inbox, but also be available on Six's YouTube channel. I will throw it to start off, get the protein of today's event with Rick Van Nieuwenhuyse.

Rick Van Nieuwenhuyse: Romeo, thanks, and thanks everybody for joining us for a review of our Q2 financials. It was a great quarter. Operating earnings were $23 million, net income about $16 million. I'm really proud of our cash costs, seeing those be well under guidance. Cash costs for the quarter were $14,016 for the year and $1,375.