The company amended its credit facility to shift the hedge obligations into a $33 million debt instrument, bringing the total principal to $46.3 million. To mitigate risk, management invested $715,000 in put contracts with a $3,100 strike price for 2027. This financial maneuver coincided with a reduction in the interest rate on the facility from 8.9% to approximately 7.40%.

CEO Rick Van Nieuwenhuyse described the move as an opportunistic response to recent market pullbacks. Contango is currently transitioning mining operations at its Manh Choh project from the North Pit to the South Pit. Management expects this shift, combined with the removal of hedge constraints, to set the stage for record-breaking production levels in 2027. The company retains the flexibility to repay the debt early and remains focused on aggressive deleveraging.