Contango ORE - Q2 Update

0:08 Okay, as folks start coming into the room, I'll say good morning, good afternoon, good evening, depending on where in the world you're signing in from. I saw today 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 Van Doornhuyzen, CEO of Contango Or, and the company's CFO, Mike Clark. Gentlemen, how are you today? Good morning, Rami. How are you doing? Good, good. So here's how today's going to work for everybody that's in the room. First, I'm going to throw it to Rick just to 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 Rick just to 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 questions that you have. So this is an interactive

0:39 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 that you might have. I'll try to get to as many as possible. If for whatever reason I don't get to your question, I'll make sure the Contango team gets to it and they'll get back to you as soon as possible. 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. So I will throw it, start off, get the protein of today's event with Rick. 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 and those being well under guidance.

1:25 Cash costs for the quarter were 14.16. For the year 13.75, our all in sustaining costs 15.48 for the quarter and 1462 year to date.

1:44 We'll talk about JT, We're focused on permitting there. This is a Johnson Track project. That's going well. Very pleased with the progress we're making there. Lucky shot still on hold, but we are looking at getting a drill program going there. We'll talk more about that with some of the Q&A, I think.

2:05 And again, we're kind of on a steady path here, focused, paying down debt, delivering to the hedges. And Today, actually, our third campaign of batch processing ore at the Fort Knox mill starts. There's about 250,000 tonnes, a quarter million tonnes on the pad at Fort Knox, and it grades about

2:37 0.23 ounces per ton, which is about 7 grams. So just with that sort of overview, happy to just jump into the question program. Awesome. Well, I got a bunch, so bear with me while I grill you guys for a little bit. I do want to start with the numbers that kind of jump right off the page for me. So obviously, you went from $3.1 million operating loss in Q2 of last year to $23 million operating income this quarter. Always nice to see Most mining companies I talk to don't see money, so it's always nice to see that. In addition, the company had a net loss in Q2 of last year of $18.5M. Now net income of $15.9M. So beyond, obviously, increased Gold production, what initiatives are contributing here? What's making that big change?

3:16 Well, as you say, it's not common to see a junior company, even a junior producing company, making more money than it's spending. And so it's definitely a sea change in terms of how we're viewed by the market. I was actually wearing a shirt the other day from the groundbreaking ceremony from August 29th, 2023. We've been mining now at Manchol for 2 years, close to, and been in production. We started production of course in July of last year. So we're kind of up on step in terms of if you drive a boat, the ultimate way to get a boat operating smoothly is to get up on step. And that's kind of the way I feel the project is now.

4:06 The mining has been very smooth and on plan, on schedule, on budget. The transport has has gone I think better than planned in terms of not as many shutdown days due to weather and things like that. The lawsuit

4:29 has gone away. The last piece of the puzzle is running the ore through the mill and they just continue to make nice improvements. We're averaging 92-93% recovery, which is very respectable. We're maintaining that mix of oxide-sulfide ore 2 to 1 ratio and that keeps the recoveries in the plus 90%, which is very respectable. That means you're pouring gold and you're making money. It's nice to see the all-in sustaining costs coming in well under guidance.

5:02 Obviously, the lower the all-in sustaining costs are, the higher the margin on the realized price of Gold. Mike, maybe you want to comment from your perspective. That was a good explanation. On the income from operations, they weren't in production in the first half of 2024, whereas we were in production here. So that's purely driven by production. I think the net income has increased for 2 reasons.

5:29 Last year, we were in a continually increasing Gold price environment. So you kind of always had these unrealized losses on your hedges. So your derivative contracts, which kept increasing our losses during the period. In addition, we also, and that's stabilized during this quarter. So you didn't really see that happen. We just kind of recognize the recognized portion from delivering the hedges. So no real unrealized portion. In addition to that, we did have a $6.4 million gain on our Onyx shares that we recognized in the quarter. So those 5 million shares we acquired as part of the high-gold acquisition. So those kind of hit the net income this quarter. Great. I want to, while I'm on with you, Mike, actually, I know earnings per share jump from a loss of $1.90 to profit of $1.24 per diluted share. And it looks like $3,274 per ounce realized spot price versus that blended carry trade of $24.41.

6:16 So I'm curious if you can just look for some color on your pricing strategy and how that contributed to the bottom line this quarter. Yeah. Well, the hedging strategy, for the most part, is just delivering to the hedges. And so if you deliver effectively about 70% of our Gold goes into the hedges, 30% goes into the spot price during the year. And so when you look at the average Gold price during the quarter, let's just say it was $3,300 and our hedge price is $2,000, you kind of end up with a blended price of about $24,000 or $50,000. The carry trade we brought in this year, which just helps us manage our cash flows so that when we receive our deliveries of Gold from the peak Gold JV, we can turn around and sell it at spot price at 100% of the spot price, pay the peak Gold for that Gold, which comes at a slight discount, which is why you see about a million dollar gain on metal sales each quarter. That's that slight gain we make. So we sell that Gold at spot price.

7:06 The banks effectively fund that difference between the US$3,300 and the US$2,000. And then when the hedge delivery date comes up in the next quarter, we then can deliver into that. We basically settle that hedge right then. It allows us to conserve our cash. In Q1, we made a rising Gold price. We actually saved a couple of million dollars by doing that carry trade. I think in this quarter it cost us a couple of hundred thousand dollars, but it basically ensures we

7:33 take no risk on the gold price moving in either direction or with it limits any exposure. Because what we don't want to have is, you know, the gold price, we sell it at, say, 3000 dollars and that when we have to deliver or sell that hedge, it's at 3500. We're at 500 dollars an ounce and that could put us in a really tricky position. So this just manages risk. And that slight difference gives us about a million dollar gain per quarter. It makes sense. I want to get into operational details real quick. So Rick, I'll throw it to you. I know this third campaign is processing 250,000 tons at 0.23 ounces per ton, which for the metric folks in the audience, 7 grams per ton grade. So I'm curious, how does this compare to your Q2 performance of 255,000 tons at 0.22? And what's driving that grade consistency at Moncho? Where does that come from?

8:17 Yeah, so, and it really is, I think I mentioned it earlier, the mill likes to run with this two-thirds, one-third ratio of oxide to sulfide.

8:33 Oxide ores are easier to process. They just consume less consumables and things like that. As you get deeper in the ore body, you're adding more and more sulfide. But we've got a big low-grade stockpile of oxide that we can keep feeding in there. That's what's driving the grade. We are in the process, and I'm using the Royal Weed here, Ken Ross again is the manager and it's their mill, but they're in the process of adding an oxygen sparging circuit to the cyanide bleach tanks. And what oxygen is just kind of, it acts as a bit of a catalyst to help the reactions go. The sulphide ore is a very good performing sulphide ore in terms of extracting the Gold from the cyanide solutions. It's not the least bit refractory.

9:19 But Sulfides do consume more consumables. And so the Oxygen just helps get that going. And so they're putting an Oxygen and Spargene in place, which I think should be up and running by the end of the year, and I think they're ready to go into performance. As we get deeper and deeper, we have more and more Sulphide. At some point, we're not going to maintain that 2 to 1 ratio and deplete the oxide. That's kind of operationally what's going on. There's a bit of capital, obviously, to put the oxygen system in place. And some of that is showing up in the capital expenditures. And then the other part of the operational thing is these trucks, the trucks hauling the ore have over a million miles on them now.

10:07 So we have to start replacing them. And it's amazing after a couple of years of mining operation, you're starting to replace your trucks. But those are things that show up in the all in sustaining costs because they're capital that are spent on operations. So I don't know, Mike, if you have anything to add to that. No, that's how I would explain it. Perfect. I want to get into cash flow and capital allocation for a second. So I know generating $36.9 million in operating cash flow for the first half versus $6.9 million last year. But with $30 million in Q2 distributions from Peak Gold, $54 million year-to-date, how are you guys balancing debt reduction? I know you've paid down $29M so far, but what's the plan on debt reduction versus reinvestment and growth projects? Just looking to get your head on that.

10:54 Well, it might go first and that might throw in after. Well, my focus is ensuring I can always meet those delivery dates so that the debt comes every quarter, the hedge deliveries every quarter. The focus right now is we have sufficient capital to ensure that we can make all those payments through maturity. Currently for 2025, there's some extra cash we have this year and our focus has been on the permitting at JT. With what we're anticipating, which I expect we'll probably do slightly better, we're going to bring our debt down from where it currently is at about US$23M today. We'll finish the year around US$15M of debt with ING and Macquarie. And then our hedge position is currently at, as of today, it's just under 63,000oz and we should bring that down by another 20,000oz to about US$43M by the end of the year. That's the main focus of the proceeds we have, which is where the majority of cash goes, but we do keep a little bit aside for other projects. I'll pass it to Rick.

11:57 I'll just comment from an operational standpoint. We do want to advance our other projects. I think we've said very consistently that the next stage for JT is getting the permit to go underground, and that is not really anything to do. We want to spend exploration dollars on early-stage,

12:16 relatively early-stage projects to add more ounces. We know we have a high-quality deposit that makes a lot of money that has a very high NPV at today's Gold price. It's just not prudent to restart exploring the Ellis Zone or any of these other targets that are out there. We know we've got a very prospective piece of ground at JT. Next stage, get the permits. That's going very smoothly. We're having a good working relationship with the state of Alaska. These permits, the underground mining permit is at the state of Alaska, which is technically the 2 main permits we need

12:57 from the Department of Environmental Conservation. And that's a water discharge permit. And then the mine operating price. Technically, it's a mine. We're not producing anything, but you're still filling a big hole in the ground. So that's the focus at JT. And At Lucky Shot, we do want to get a program going and get back underground and start drilling again, but I don't want to do it in fits and spurts. That's why we keep saying that the focus is on delivering and reducing the debt. When we see a clear window of being able to start and then not stop going at Lucky Shot, that's what we're looking for.

13:42 Be patient. It's not steam. The Gold's not going anywhere. Gold price keeps going up. So once we get underground and get to it at Lucky Shot, we can advance things pretty quickly. So I'm not really too worried about the overall timeline here.

13:59 I got 2 quick questions on while we're on the topic of Johnson Tract and Lucky Shed. For Johnson Tract, thanks for going through the upcoming milestones. I think that's great. What tonnage potential are you targeting at Johnson Tract? So the initial assessment we did, which is the term that SK1300 uses, same as the 43101 SK1300 uses the same as the 43-101 in Canadian lingo. Targeted at 1500t a day operation.

14:28 J&T is a good grade deposit, but it's also just a nice geometry of the deposit from a mining standpoint. It's a pain in the butt to drill because you've got the mountain that's going straight up and the ore deposit that's going straight down. So your drill holes get long and the dip is such that you have to drill parallel to the mountain surface. That's not a good thing to do. So that's it. From an exploration standpoint, it's not the greatest geometry, but from a mining standpoint, once you're underground, it's great geometry. It's a big fat ore body and it's near vertical. So You have, from an underground mining perspective, relatively good long hole stoves that you can develop. And all of our infrastructure is in unmineralized material, what we call the basite porphyry.

15:15 It has like 0 sulfides in it. And so it's great rock to put all your underground development in, because the water stays clean. The big fault that separates the mineralized from the unmineralized is an aqua card or an aqua food. So the water, mineralized water that is tainted stays on one side and you just keep the water separate. You put a grout curtain up if you need to and you can develop the ore body from an environmental standpoint very cleanly and not have a lot of concerns about water contamination.

15:47 Mother Nature is doing that on her own right now. That's how we find these deposits. They're metal anomalies, which means there's metal going into the creeks. We just don't want to touch it, because once we touch it, it's our water. Fair enough, Fair enough. I got one question about Lucky Shot as well. I noticed you mentioned a royalty acquisition of an existing 0.5% NSR for $250,000. Just what does this mean for me and the folks in the room? Yeah. So, As we work towards

16:18 transitioning Lucky Shot from an exploration project to a mine, and that's getting the drilling done, but obviously we see that as all moving forward when we get the right time and that'll be, get the hedges out of the way and things like that. This is, you know, we can buy a royalty for a good value. That means we don't have to pay it to, you know, when we're in production, we don't have to pay that royalty to somebody. So, It's pretty valuable to have that. We'll basically just extinguish it because we'll own it. We'll pay it to ourselves. That's just paperwork. Mike's got plenty of that. Don't read it as we're becoming a royalty company sort of thing.

17:05 That's not the intent. If we can buy out the underlying royalty owners and pay them a good value, good value for them because they get the money up front. They don't have to worry about any of the ongoing risk, the operational risk and what have you. That just makes sense to us. Great. While we're on Mike's paperwork, actually, I do have a question for you. I'll talk about carry trade mechanics. So I know you reduced your hedge book from 74,800 to 62,900 ounces, somewhere around there. I'm curious, what's your philosophy on the optimal hedge ratio as production progresses?

17:42 Well, the optimal hedge ratio doesn't really change. It all mirrors what was in the original Feasibility Study and that's how the lenders structured it. And unfortunate for us is it got structured in a way that it does things in quarterly on a quarterly basis, but we don't deliver Gold on a quarterly basis. We deliver it on a weekly basis, if anything. Some weeks are bigger while we're in the middle of a campaign, whereas some are smaller, but there's a delivery every week.

18:10 The objective I try to do to again, limit risk, ensure that I have enough Gold by the time that delivery is due is when a campaign starts, you have a couple of weeks when it starts where you're waiting for the first big shipment. But when that first shipment comes, we deliver 100% of that Gold into the carry trade and that carry trade will finish, will fill that next hedge delivery up within the first 3 shipments usually. And then for the final 2 shipments, I'll just sell those at 100% of spot price with no carry trade. So we're always ahead of the hedge delivery and in the rising market it works well obviously, but if the Gold price kind of starts to dip, well there's a small hit. But this just ensures we're never going to be short delivering that Gold and forced to buy it in the open market a month later when Gold price could swing again. So that's kind of my approach, right or wrong, I guess, but it's worked so far.

19:02 Helpful. Appreciate it. The objective is to

19:06 get rid of the hedges and have full exposure to the Gold upside or downside. Obviously, What we don't want to do as a junior company is try to play or game the market on guessing where Gold's going. That's just not the role of a junior mining company. Equity owners of Contango shouldn't want us to make bets and then go to Vegas. When we have a stronger balance sheet, Romeo, we would take a more sophisticated approach to this. But, you know, while we're at these levels and managing the lenders, it's all about just removing risk and and try not to to take any big swings for the fences at the cost of being wrong. I appreciate your take on that. Rick, I'm hoping, and I know there's a lot of questions in the chat, I'll get to them just in

19:57 a second. I want to zoom out for a second. With $58.2 million in Q2 gold revenue, You've emerged as a mid-tier Gold producer. And I'm curious how you see Contango in that class compared to other mid-tier Gold producers, especially with potential rate cuts supporting higher Gold prices. Where do you see Contango fitting in with the club?

20:18 Well, we're a junior company. I'm not sure we're mid-tier yet. I would actually describe this as a junior producer. But again, we're making more money than we're spending. And That's unique. If you look at most other junior producers, that's not the case. That's delivering into our hedges. Once we get free of the hedges, this is a rocket ship. And That's where we're aiming to. We're going to do that prudently. Again, we're not going to, as Mike just said, we're not going to swing from the fences and make any big bets here. But we do believe in the Gold price. If you don't, you shouldn't be in the Gold business.

21:03 And we're hedged because the bank made us hedge. It wasn't part of the strategy. And that's just the way it works for a junior company. I think in terms of where we fit in the gold space, I can't think of another junior company producing and making money selling gold that only has 12 million shares outstanding. So we're definitely a bit of a unique beast. Our model is unique. We see a few other wannabe copycats out there saying they're going to do a DSO thing. I think it's a great model. So hats off. And if they can make it work, that's great. We've made it work. So we know it works. And it's really all about the assets. I mean, the assets have to have those 3 criteria that we talked about.

21:55 They gotta have grade, they gotta be close to infrastructure so you don't have a huge amount of capital to get it done. And they've got to be relatively simple projects from a permitting standpoint so you can get them done quickly. Obviously, because of that, then the capital is not as high as if you were going to build your own mill and all that. When I look back at Moncho, and we had a study that said basically it was going to cost $500M to build our own mill and develop the project there. And The market just doesn't support that. It's just too small a deposit, even as high quality as it is. It's high quality, but it's just too small for the market to say, well, we're willing to risk $500M of ours, whether it's debt or equity, to let a junior startup make a try to get this into production. There's more belief if you have a 5 or 10Moz deposit that that will eventually work Because frankly, if it doesn't, one of the intermediates or majors will come along and fix it.

23:05 Yeah, sure. After it's gone down to the trash heap. That is usually how they operate. And I mean, the market's littered with junior wannabe startups that said, we're going to develop our 10Moz Gold deposit. And they don't. Maybe Newmont or Barrick does eventually or somebody else. But we don't want to be one of those. So we're going to just stay prudent. And We like our low share count. We've been told several times we should just roll it forward 10 to 1 or something like that and be happy with a $2 stock. And no, my objective is I'd like to have a 3 digit stock price someday. There you go. And somebody in the chat actually agrees with you. They're posted near the beginning of the hour.

23:52 They see the stock at a hundred bucks. So there you go. They say they're printing money. The model's brilliant. So somebody in the chat agrees with you. Curious as we jump, just before I get to those chat questions, When are you going to provide guidance on the 2026 production at Munshow? And just generally, what are the upcoming catalysts for Contango? Yeah, so guidance on 2026. Typically, the plan and budget is approved in November time frame. So we won't really see anything definitive other than the general life of mine kind of guidance that we also give out. But I think we're going to stick to the plan. This is Kinross. Kinross, they don't swing from the fences either. They're going to keep it on the straight and narrow. Look, I mean, the mining is going smoothly, the hauling is going smoothly and the mills dial in. So steady as they go, Fort Knox has never looked better as an operation from Kinross's perspective on their financial disclosures. So if they're happy, we're happy.

24:53 There you go. Perfect. Let me get into some of the questions in the chat. So Tate Sullivan, right at the beginning of the hour, asked how long will campaign 3 last and potential timing of the check from the JV? So Campaign is roughly 3 weeks. And Mike, you probably ought to comment on when that is. I would expect that distribution should come in late September is my best guess. It's usually kind of right near the end of the campaign when they're 80, 89 percent done. Great. C.W. Donahue from the chat asks, for Johnson Tract, Is there still a beluga whale lawsuit issue? Where is the status of that? Yes. So the Center for Biodiversity and Cook Inlet Keepers filed a lawsuit against the U.S. Army Corps of Engineers for granting our 404 permit last year.

25:49 And so it's basically, it's in federal court. We have 1 federal judge in Alaska. We're supposed to have 3. Congress hasn't appointed any of Trump's federal judge appointees. That's a DC, I can't say that on the air, but that's DC, that's a swamp issue. And so she has 550, our lone federal judge has 550 cases to hear. So basically, yeah, the lawsuit's filed and we've weighed in and adjoined the lawsuit, but then that's the status of it. So that's, I can't really comment much more than that.

26:36 Perfect. One question in the chat and I'll throw on a little bit of an addition myself. I asked, what allowed, I know we've already touched on it, but just for clarity, what allowed the ASIC for second quarter to be lower than expected. And my addition, how are you tracking generally towards the sub-$1625 target? You want me to start this one, Rick? Yeah, go ahead, Mike. Yeah. So, well, as you know, in Alaska, the weather gets much nicer in the summer. So at the beginning of the year, you know, you didn't have much exploration going on and we just hadn't planned to be purchasing many of the trucks at that time. So, you know, Q1 was very low. Q2 came in lower than, I guess, internal guidance, you know, even though we kind of delivered on, you know, purchasing these trucks during the quarter and the expiration. So it obviously increased from Q1 to Q2, it went up.

27:24 And we expect Q3 to be consistent with Q2. It could actually be a little bit less just due to how much time we'll be doing our third campaign during the quarter. Because if we're not doing our campaign, that means Fort Knox is doing theirs. And the least amount of time we spend in a quarter on our campaign, it really impacts our processing costs and our admin costs that we have there. I expect the costs to be consistent because we still have exploration. We still have truck purchases happening during this quarter. I expect you're going to see ASIC stay consistent, but I do think we will come under, hopefully below the US$16.25 just based on how we're tracking. A fourth quarter will be slightly, should be slightly higher just due to the size of that plan campaign.

28:11 So you might see it creep up a little bit in Q4, but we do definitely hope and plan to come in below the 1600, 25. Rick, anything to add? Yeah, no, I think, yeah, I mean, in general, we get more, like I say, weather days, in both in terms of truck transportation, traffic in the wintertime, Obviously, you know, you get, you know, the blowing snow and things like that to slow things down. It's super cold, that slows things down. And then you can, you know, if it gets, if it's really cold and there's ice in the stockpile, that slows the mill down. So those are kind of the sensitive points. And they all occur in the wintertime, which is not too surprising. Summertime is a breeze, but we do have these capital expenditures that you do tend to do in the summertime, which is exploration and putting orders in for trucks and things like that. The other item I'll add is, this is always a function of your ounces sold during the year. And so far we were tracking slightly ahead of guided production of 60,000oz for the year. So for every ounce more than what we guided, that's going to bring down your cost, because it's a fixed cost-driven operation.

29:19 So all those factors, when you put them together, that's why we kind of expect will come in under. But we'll see how we get at the end of Q3. Ken Ross again, They're going to have guidance that they're going to meet or be. Great. Steady, reliable, good news. I don't get a lot of this in the mining industry. SK from the chat had 3 questions, so I'll throw them to you one at a time. Are there plans to monetize the Onyx shares? Short answer is yes. It's more about timing. We like what they're doing. And so we'll be patient. And obviously, we have a good working relationship with Onyx and the people at Onyx. So we're not going to torpedo them at all. Then the only thing I'd add to that is, you know, some of those shares are still under escrow from when they were originally issued to HighGold. And then we're also in kind of a lockup on what we can do with them. So It's not as easy as just saying we're going to sell them, but we are obviously going to consider what options are out there and watch closely. Great.

30:24 It also asks, as we go into conference season, what's the message for 2026? What will you be telling folks at the conferences in September and October? Basically, a lot of it's going to focus on drilling underground at Lucky Shot and getting underground started at JT. We're already working on the road. We've been doing some grubbing and just getting things ready to get underway in earnest next year. Obviously, the continuing steady as she goes in terms of delivering the hedges and reducing the debt and freeing up cash flow to advance or aggressively advance the other 2 projects.

31:11 Both projects, what we envisioned for Lucky shot is a resource in the 400,000oz to 500,000oz range once the drilling is completed, and a mine plan that can deliver on startup 30,000oz to 40,000oz at really good margins. Because again, the grade is, on a mine diluted grade, it's going to be above 10g. We've got the rail there. I just had a conversation with the head of the Alaska Railroad earlier this week. They're eager to look at transporting our ore in boxes. From a mining standpoint and a transportation standpoint, it's a very simple plan. We're not taking advantage of the railroad. It's a third of the cost of trucking.

31:58 Every mile or kilometre we can put on a rail car is just less. We're still evaluating where Lucky Shot Ore would go. Number of options there. Meanwhile, get started on getting the underground progressed at JT. Again, rough numbers. It's about a year to get the underground. It's a kilometre and a half of underground to get built, to get set up to do the drilling. The other thing about Johnson Track, It's already with a roughly million ounce gold equivalent resource there at 9.5g. That's a great deposit. It's open at depth and we just can't drill it at depth because of the geometry. Once we get underground, we can drill it at depth and we can see, is it 1.5 million ounces? Is it 2 million ounces?

32:51 It's more than a million ounces. So we know it's open. So I'm very excited about getting underground, getting the explorations work underway. Great. That's a good story for Beaver Creek in Denver. They also asked, is there any thought been given to getting into ETFs like the GDXJ? Mike, do you want to take that or I guess To be determined, I mean, I'm frankly surprised we're not on it. I guess that would be my response. We're part of the Russell 2000. That's a much bigger index. You know, so I shouldn't say bigger, broader. It's not gold specific, obviously. Probably something we ought to take a look at because I'm a bit surprised we're not in it.

33:38 Yeah, they said the same thing in the comments. It makes no sense that producing junior miner isn't in the largest past VTF. So something interesting. Somebody with a very Colorful Username asks, could we expect the same earnings for the next few quarters if gold stays in this range all year? I guess I could start. I think Q3 will be consistent with Q2. I think Q4 might drop off a little bit, but Q4 will basically summarize the whole year and keep us, we plan to have that kind of in line with our guidance that we had for the year. But I think Q3 for sure, if not better. Great. And I will ask you guys one last question, which will give everybody in the chat a chance to ask their last questions before we wrap. Just curious, what are you most excited for for the rest of the year? Rick, I'll start with you. I'd say it's just, you know, I hate to say, you know, steady as she goes, but it is kind of that. And what I really would like to figure out is to get underground at Lucky Shot and get the drill started.

34:39 Drilling is exciting. It is a great deposit and it is very simple. We like simple. So The sooner we can get underground and start growing, once we're underground, we can keep going. But I don't want to start and then have to stop because The hedges are, the Gold price has gone down and we're scrambling for money and stuff like that. We want to make sure we've got a clear path here. It's not steam, so it's not going anywhere. It still fits our five-year plan. Great. And Mike, what keeps you buzzing for the rest of the year? It's a pretty boring answer, but I guess my response is just to kind of continue to like steady as she goes delivering these ounces, delivering these hedges and pay the debt down. But to actually see our balance sheet deliver and come down and bring the liabilities down, like that's kind of what excites me, which is kind of a boring answer.

35:42 It's a very simple answer. But that's kind of what I think by the end of this year, it's going to be a very impressive balance sheet with strong earnings. Awesome. One last question from the chat. And I know you might be bored of this question because I've asked you, I think, on 6 webinars in the last year. But are there plans in the future to reward shareholders with a dividend? Yeah, again, love that thought. It's definitely not a this year and probably in all honesty not a next year thing. But yeah, I mean, that is definitely one of the things we're focused on is delivering shareholder value and having a low share count is part of that. Whether in the end it ends up being a dividend or share buyback, those are things that longer term, we definitely want to grow the company. We definitely believe in the Gold price.

36:33 We are looking at other opportunities. I think I mentioned before, we want to find a home for Lucky Shot and JT Oars, and we're looking at a number of options there. So, Stay tuned to that space. We are under CA with a number of groups, but that's a bit of a longer-range plan. If we can achieve our five-year plan of getting JT and Lucky Shot into production and getting up to a 200,000oz a year production profile and keep our share count low. I mean, again, that's a rocket ship. So that's what we want to build here. Awesome. Well, on that note, I'll wrap up for today. Rick, Mike, thanks so much for running through questions and talking about the last quarter. Everybody in the chat, thank you so much for participating. Everybody who's in the room, if you have any additional questions, you can always reach out to Info Contango or feel free to respond right to the email that got you to this room. I'll make sure that question gets to the Contango team. But thank you so much. Hope everybody has a great afternoon.

37:36 Thank you. Cheers.