Contango Ore, Inc. (CTGO): PESTLE Analysis [Nov-2025 Updated]

Contango Ore, Inc. (CTGO) is making the tough pivot from a risky explorer to a cash-generating gold producer, but its success hinges entirely on navigating the unique Alaskan landscape. The Manh Choh project is the powerhouse, projected to deliver over $95 million in cash distributions for the 2025 fiscal year, but getting that gold out involves a complex web of political stability, rising costs, and crucial tribal partnerships. You need to know exactly where the risks-like the $1,625 per ounce All-in Sustaining Cost-and opportunities lie to make an informed decision. Let's dig into the PESTLE analysis.

Alaska is defintely a pro-mining state, which is a massive structural advantage for Contango Ore, Inc. This stable jurisdiction supports long-term capital investment. Plus, the partnership with Kinross Gold Corporation, a major operator, acts as a political risk hedge; a larger entity smooths the path. The successful dismissal of the ore trucking lawsuit in May 2025 removed a key logistical risk, so that's one less headache. Still, federal regulatory changes, especially under the Environmental Protection Agency (EPA), pose a constant, present risk that requires continuous monitoring.

Stable state politics don't eliminate federal headaches.

The economics are a mixed bag. The good news is the cash flow: Contango Ore, Inc. projects cash distributions from the Manh Choh joint venture will exceed $95 million in 2025. This is the lifeblood for their next projects. But, the 2025 production guidance of approximately 60,000 ounces of gold for Contango's share comes with a higher price tag. The All-in Sustaining Cost (AISC)-the full cost of getting the gold out-is guided at approximately $1,625 per ounce, which is higher than original estimates. Here's the quick math: higher AISC means lower margins if the gold price dips. Also, bridge weight restrictions on the Chena Flood Plain Bridge have limited ore transport by approximately 20%, increasing trucking costs and impacting efficiency.

Cash flow is strong, but costs are creeping up.

Operating in remote Alaska means your social license to operate is non-negotiable. Contango Ore, Inc.'s strategic partnership with the Tetlin Alaska Native Tribe is absolutely crucial for land access and operational stability. To maintain this, they need extensive community engagement-they've already logged over 2,500 engagements. Local employment and providing economic benefits are essential for long-term project acceptance. Plus, they must conduct ongoing subsistence mapping and harvest studies to address community concerns, so this is a permanent operational cost, not a one-off.

Tribal partnership is the real bedrock of the operation.

Contango Ore, Inc. uses a smart technological shortcut: the Direct Ship Ore (DSO) model. This uses Kinross Gold's existing Fort Knox mill, eliminating the need for Contango to build a new, multi-billion-dollar mill, which saves huge capital costs. They aren't standing still, though. A new 18,000-meter drill program started in November 2025 at Lucky Shot to upgrade the resource model to Proven and Probable categories. But, to be fair, they've hit a snag: ore moisture content issues have negatively impacted transport efficiency, requiring operational adjustments and slowing down the haul route.

Existing technology saves money, but the ore itself causes transport friction.

The good news is the Manh Choh project permits were secured, allowing for the full ramp-up of trucking operations in 2024-2025. That's a major de-risking event. Now, the focus shifts. Contango Ore, Inc. is actively working with lenders to restructure its credit facility and hedge contracts to match the actual production schedules. This is crucial for financial stability. The next major legal hurdle is permitting for the Johnson Tract project, specifically the tunnel and the Alaska mine operating permit, which is expected to take about a year. What this estimate hides: the company faced non-cash unrealized losses on derivative contracts, totaling $40.5 million in Q1 2025, tied to gold price fluctuations. That's a huge number, even if it's non-cash.

Permits are secured for now, but financial hedging is the current legal tightrope.

The environmental profile is complex because of the Direct Ship Ore model. Using the Fort Knox mill significantly reduces the Manh Choh project's environmental footprint compared to building a new facility, which is a huge win for permitting. Still, Contango Ore, Inc. must manage the environmental risks associated with a 400 km ore haul route between the mine and the processing facility. This is a constant, high-visibility risk. All extraction requires strict compliance with state and federal regulations, specifically the United States Environmental Protection Agency (EPA) standards. Their commitment to construct an elder home when the mine ends demonstrates a long-term reclamation and community investment strategy, which helps build trust.

Less impact at the mine site means more risk on the road.

Finance/Investor Relations: Draft a detailed sensitivity analysis showing the impact of a $100/ounce increase or decrease in AISC on the 2025 projected $95 million cash distribution by next Tuesday.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Political factors

Stable, pro-mining jurisdiction in Alaska supports long-term investment.

You need to know that the political climate in Alaska is defintely favorable for resource development, which strongly backs Contango Ore, Inc.'s long-term investment thesis. The state and federal governments are actively prioritizing domestic mineral production, especially for critical minerals, which reduces permitting uncertainty and helps project timelines. This is industrial strategy by design, not accident.

The current federal doctrine views Alaskan mining as a linchpin of America's industrial resilience and mineral independence strategy. For example, the Defense Production Act is now functioning as a financing and fast-track mechanism for critical mineral projects, uniting the Pentagon, Department of Energy, and the Federal Permitting Council.

Successful dismissal of the ore trucking lawsuit in May 2025 removed a key logistical risk.

A major political-legal overhang was successfully resolved in your favor this year. The lawsuit concerning the ore haul plan for the Manh Choh project, which was filed against the State of Alaska, Department of Transportation and Public Facilities (DOT), was dismissed.

Specifically, on May 6, 2025, Contango Ore, Inc. announced the dismissal of all claims in the matter, vacating the trial that was set for August 11, 2025. This dismissal secures the critical logistics chain for the Manh Choh operation, which transports ore to the Kinross Gold Corporation's Fort Knox facility for processing. The removal of this risk is a clear win for operational stability and predictability.

Here's the quick math on the importance of this stability:

Partnership with Kinross Gold Corporation mitigates political risk through a major operator's presence.

The structure of the Peak Gold Joint Venture (JV) provides a significant political buffer. Contango Ore, Inc. holds a 30% interest in the Peak Gold JV, but Kinross Gold Corporation, through its subsidiary KG Mining (Alaska), Inc., holds the remaining 70% and acts as the operator. This is a crucial point.

Kinross Gold Corporation is a global, senior gold producer with deep experience navigating complex international and domestic regulatory environments. Their operational control and financial weight lend credibility and resilience to the Manh Choh project, making it a more politically entrenched operation in the state. Simply put, a major operator like Kinross Gold Corporation carries more weight with regulators and government bodies. The JV's expected life-of-mine (LOM) average annual production is 58,750 ounces of gold per year through 2029, a long-term commitment that governments respect.

Federal regulatory changes, especially under the Environmental Protection Agency (EPA), pose a constant, defintely present, risk.

While the current political wind in 2025 favors mining expansion, the overarching risk is regulatory volatility. The pendulum swing of federal policy is a constant threat in the US.

The current administration has actively sought to roll back environmental protection decisions that previously slowed mining and infrastructure construction. This creates an immediate opportunity but a long-term risk. Environmental organizations like Earthjustice are prepared to challenge these rollbacks legally, as they have successfully done in the past. For any mining project, the Environmental Protection Agency (EPA) and other federal agencies, like the Department of the Interior, are the ultimate gatekeepers for permits, so any change in the administration's stance on the balance between resource extraction and environmental protection could delay or halt future project development, such as the Johnson Tract or Lucky Shot projects.

Your action item here is to monitor the following political-regulatory signals:

• Track litigation filed by environmental groups against federal agencies regarding Alaskan mining permits.
• Monitor the rhetoric and appointments related to the EPA and Department of the Interior.
• Watch the progress of the $50 million financing closed in September 2025, which is earmarked for advancing exploration at Lucky Shot and Johnson Tract-projects that will require new permits.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Economic factors

As a seasoned analyst, I look at the economic factors affecting Contango Ore, Inc. (CTGO) and see a story of strong gold prices boosting cash flow, but still having to contend with rising operational costs and logistical hurdles in Alaska. The near-term outlook for the Manh Choh joint venture is defintely positive on the revenue side, but you need to watch the cost creep.

2025 Production and Cost Guidance

The core of Contango Ore's economic picture for 2025 revolves around the Manh Choh mine, where the company holds a 30% interest in the Peak Gold Joint Venture (JV). For the 2025 fiscal year, the company's share of gold production is firmly guided at approximately 60,000 ounces of gold.

However, the All-in Sustaining Cost (AISC)-which is the true cost of producing an ounce of gold, including all operational and sustaining capital expenses-has been a point of pressure. The AISC for 2025 is guided at approximately $1,625 per ounce of gold equivalent (AuEq) sold. To be fair, this is higher than the original life-of-mine estimate, but the actual costs in the first half of 2025 have sometimes come in lower, with Q2-2025 AISC, for example, reported at $1,548 per ounce. The higher guidance acts as a necessary buffer against unforeseen operational issues.

Cash Distributions from the Manh Choh Joint Venture

The cash flow from the Manh Choh joint venture has been a major upside for Contango Ore. The company initially projected 2025 cash distributions to be around $50 million, but due to strong production and a favorable gold price environment (with an average realized price of $3,647 per ounce in Q3 2025), this projection has been significantly revised upward.

Here's the quick math on the improvement: the company received $54 million in cash distributions in the first half of 2025 alone. Following the completion of the third production campaign, the year-to-date total distributions reached $87 million as of October 2, 2025. Consequently, the latest forecast for total 2025 cash distributions from the Peak Gold JV is now expected to be in excess of $100 million, definitely exceeding the $95 million threshold you were tracking. This strong cash generation is critical for debt reduction, which management has prioritized to a target of $15 million by year-end.

Logistical Constraints and Cost Impact

The economic model faces a tangible headwind from logistical constraints. Specifically, new weight restrictions imposed by the State of Alaska on the Chena Flood Plain Bridge, a key structure along the ore haul route to the Fort Knox mill, have directly impacted operational efficiency.

This single bridge restriction, combined with higher-than-anticipated ore moisture content, has limited the overall amount of ore that can be transported annually by approximately 20% compared to the original projections in the Technical Report Summary. This reduction in haul volume is a primary factor driving the higher AISC guidance, as fixed costs are spread over fewer tons of ore.

• Bridge restrictions limit annual ore transport by approximately 20%.
• This constraint is a main factor for the higher $1,625 per ounce AISC.
• Ore moisture content also contributes to the haul volume limitation.
• The reduced hauling rate shortens the mine's expected life-of-mine to four to five years.

You need to factor this 20% reduction into your long-term model; it's a non-negotiable reality of the current operating environment.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Social factors

You're looking at Contango Ore, Inc. (CTGO) and its Manh Choh Project in Alaska, and honestly, the social license to operate (SLO) is as critical as the gold grade. This isn't a simple permitting issue; it's a deep, long-term partnership with a sovereign Native community. The project's stability hinges on delivering tangible, quantifiable benefits to the local population, especially in the remote Southeast Fairbanks Census Area.

The key takeaway is that the project's success is intrinsically tied to its social contributions. Contango Ore, Inc.'s share of cash distributions from the Peak Gold Joint Venture (JV) is expected to exceed $100 million in 2025, which is a massive financial lever for local economic stability, but it must be managed with extreme care to maintain the trust earned through years of engagement. You need to focus on where that value lands locally.

Strategic partnership with the Tetlin Alaska Native Tribe is crucial for land access and operational stability

The Manh Choh Project operates on land leased from the Native Village of Tetlin, an Upper Tanana Athabascan community. This isn't state or federal land; it's a fee-simple title held by the Tribe, which means the relationship is a true sovereign-to-business partnership. The lease for the approximately 675,000 acres held by the Peak Gold JV is currently secured until July 15, 2028.

The project's very name, 'Manh Choh' (meaning 'Big Lake'), was chosen in consultation with the Tetlin Tribal Council to honor the nearby Tetlin Lake, a site of high cultural and subsistence significance. This level of cultural integration is defintely a core risk mitigator. The JV supports the Tetlin Village, including contributing to the maintenance of the Village Access Road.

Extensive community engagement is required to maintain the social license to operate

Maintaining the social license to operate (SLO) requires continuous, transparent dialogue, especially given the ore haulage route along the Alaska Highway. The permitting process alone involved over 90 public meetings and thousands of small group presentations and individual engagements with stakeholders along the transportation corridor.

In 2025, the company continues to host quarterly meetings with Community Advisory Committees for both the Manh Choh and Fort Knox operations to provide updates and actively seek community input. This constant feedback loop helps manage concerns like road safety and environmental impact in real-time. Ignoring this communication channel would quickly erode the SLO.

Local employment and economic benefits are essential for long-term project acceptance in remote Alaska

The project is a significant economic engine for Interior Alaska, particularly for the remote Southeast Fairbanks Census Area, where the average household income for the Village of Tetlin was previously around $7,500.

The mine operations labor force is expected to average approximately 500 workers annually over the estimated 4-5 year life of mine. The average annual wage for these direct jobs is estimated to be over $128,000, which is a massive 70% higher than the average wage in the Southeast Fairbanks Census Bureau.

Here's the quick math on the economic impact:

• The project expects to provide a combined total of 950 direct, indirect, and induced jobs statewide over its life.
• The project is expected to contribute $425 million in goods and services and $600 million in operations payroll over its 4-5 year life.
• Cash distributions to Contango Ore, Inc. from the Peak Gold JV are projected to be in excess of $100 million for the 2025 fiscal year.
• The project is committed to community support, including training, education, scholarships, and sponsorships, totaling $5 million.

The high-paying jobs are a game-changer for the region.

The employment strategy is focused on local hire, though the remote location presents challenges. The Manh Choh mine itself is expected to have a 62% Alaska hire rate. Furthermore, the trucking partner, Black Gold Transport, reported an 81% Alaskan employment rate as of 2023, which is a strong proxy for local commitment in the 2025 operations.

Need for ongoing subsistence mapping and harvest studies to address community concerns

The traditional Upper Tanana Athabascan lifestyle is heavily reliant on subsistence activities like hunting, fishing, and harvesting. Any perceived or real impact on these resources poses a direct threat to the SLO.

The project has committed to and uses the data from a Subsistence Mapping and Harvest Study. This information is crucial for planning reclamation activities, ensuring that the land is restored to a condition conducive to the re-establishment of the ecosystem and traditional subsistence practices. This ongoing work is a non-negotiable part of the operating agreement and is a core component of the environmental baseline data collection. You must track the completion and public release of these studies.

The table below summarizes the key social and economic metrics that underpin the project's social foundation as of the 2025 fiscal year:

Finance: draft a quarterly report tracking local hire percentage and community investment spend against the $5 million commitment by the next board meeting.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Technological factors

Direct Ship Ore (DSO) Model and Kinross Gold's Fort Knox Mill

The technological core of Contango Ore, Inc.'s strategy, particularly for the Manh Choh project, is the Direct Ship Ore (DSO) model. This innovative approach sidesteps the massive capital expenditure and permitting time associated with building a new processing plant by instead using the existing, fully operational Fort Knox mill owned by Kinross Gold Corporation, the joint venture operator. Honestly, this is a brilliant piece of technological and logistical planning.

By leveraging Kinross Gold's infrastructure, the Peak Gold Joint Venture avoided the need to permit, capitalize, and construct a mill or tailings facility at the Manh Choh site itself. The original Feasibility Study estimated the aggregate capital expenditures for the joint venture to be approximately $182 million, with Contango Ore's 30% share amounting to approximately $54.5 million. A significant portion of this capital, $30 million, was allocated for the highway ore transport fleet, which is still a fraction of the cost of a new mill.

New 18,000-meter Drill Program at Lucky Shot

Contango Ore is applying advanced exploration technology to its next key project, Lucky Shot. On November 19, 2025, the company announced the start of an aggressive underground drill program to advance the project toward a Feasibility Study, expected in 2027. This is a clear, decisive action to de-risk the asset.

The program is substantial, targeting approximately 18,000 meters of drilling across 210 drill holes. The primary technological goal is in-fill drilling of the Lucky Shot vein resource to upgrade the classification to the higher-confidence Proven and Probable categories. Assays from this campaign are anticipated to start being reported in the first quarter of 2026.

Advanced Metallurgical and Geotechnical Testing

Building a robust reserve model-the blueprint for future mine economics-requires sophisticated testing, not just drilling. In parallel with the in-fill drilling at Lucky Shot, selected drill holes are undergoing detailed hydrological and geotechnical testing and monitoring to fully characterize the deposit.

Also, selected drill core is being subjected to advanced metallurgical, geochemical, and specific gravity tests. This technological work is crucial because it determines the optimal processing method and the expected gold recovery rate, helping to build a precise, reliable reserve model for the deposit.

Here's a quick look at the key technological advancements and their 2025-era impact:

Ore Moisture Content and Transport Efficiency

Not all technological challenges are about high-tech solutions; sometimes, they're about basic material science. The Manh Choh operation has faced an operational headwind due to higher than anticipated ore moisture content. This is a real-world problem that directly impacts the logistics technology.

The excess moisture content limits the overall amount of ore that can be transported annually by approximately 20% compared to original projections in the Technical Report Summary (TRS). This reduction in transport efficiency, combined with other logistical factors like weight restrictions on the Chena Flood Plain Bridge, has significantly increased costs. Here's the quick math: the estimated All-in Sustaining Cost (AISC) for 2025 on a standalone basis is expected to be approximately $1,625 per oz of gold equivalent sold, which is a substantial increase from the original TRS estimate of $1,116 per oz of gold equivalent sold.

• Ore moisture content limits annual transport volume by about 20%.
• Higher moisture is a main factor driving the 2025 AISC to approx. $1,625 per oz.
• This cost is $509 per oz higher than the original TRS estimate of $1,116 per oz.

The company is defintely working on operational adjustments, but this issue maps a clear near-term risk to the Manh Choh project's profitability, even with strong gold prices.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Legal factors

Manh Choh Project Permits and Legal Stability

You need to see a stable permitting environment for a mine to deliver consistent production, and for the Manh Choh project, the legal groundwork is largely in place. The joint venture, Peak Gold LLC, has secured the critical state and federal authorizations needed to move ore. This includes the Reclamation Plan Approval and a Waste Management Permit from the Alaska Department of Environmental Conservation (DEC), which are essential for the full ramp-up of trucking operations that began in 2024 and continued through 2025. For example, the joint venture processed 323,000 tons of ore in Q1 2025 alone.

A major legal risk was recently mitigated: the Village of Dot Lake dismissed its lawsuit against the United States Army Corps of Engineers on September 25, 2025, which had challenged a key permit for the project. This dismissal removes a potential roadblock and provides greater legal certainty for the mine's continued operation and ore transportation. The project's financial assurance with the State of Alaska is set at $63,507,000.

Credit Facility Restructuring and Hedge Contracts

The company has been proactive in aligning its financial obligations with the Manh Choh project's production schedule, which is a smart move to manage liquidity. In February 2025, Contango Ore, Inc. amended its credit facility (the Facility) to defer $10.6 million of principal repayments and the delivery of 15,000 hedged gold ounces into the first half of 2027. This also extended the Facility's maturity date from December 31, 2026, to June 30, 2027.

This restructuring provides necessary flexibility. The company has been aggressively reducing its debt, repaying $13.8 million on the Facility in Q1 2025, which cut the outstanding principal balance to $38.3 million as of March 31, 2025. By October 31, 2025, the remaining hedge agreement balance was reduced to 49,300 ounces.

Here's the quick math on the debt reduction and hedge status in 2025:

Johnson Tract Permitting Timeline and Hurdles

The next major legal hurdle is advancing the Johnson Tract project, which involves permitting an underground exploration drift (tunnel) and the Alaska mine operating permit. The company is focused on the permitting process for the proposed tunnel and adjacent laydown site with the State of Alaska, which is expected to take about a year from the May 2025 announcement.

While the project received a Clean Water Act Section 404 permit from the US Army Corps of Engineers in September 2024 for a portal access road and expanded airstrip, the larger mine-related permits are still pending. The project is located within an inholding of the Lake Clark National Park, which means environmental and legal scrutiny from conservationists and local groups remains high, especially regarding the potential for a future haul road and port.

Derivative Contract Risk

A significant, non-operational legal/financial factor is the volatility in derivative contracts. Gold price fluctuations can create massive non-cash swings on the balance sheet, which you defintely need to be aware of. The company faced a substantial non-cash unrealized loss on derivative contracts, totaling $40.5 million in Q1 2025.

This loss was primarily driven by the rising gold price, which started the year around $2,600 per ounce and ended the quarter around $3,100 per ounce, increasing the value of the liability on the hedge contracts. What this estimate hides is that this is a non-cash accounting adjustment, not an immediate cash outflow, but it still resulted in a net loss of $22.3 million for the quarter.

• Non-cash unrealized loss: $40.5 million in Q1 2025.
• Resulting Q1 2025 net loss: $22.3 million.
• Loss driven by gold price increase: $2,600 to $3,100 per ounce in Q1 2025.

Contango Ore, Inc. (CTGO) - PESTLE Analysis: Environmental factors

Using the Fort Knox mill significantly reduces the Manh Choh project's environmental footprint compared to building a new facility.

The Manh Choh project's core environmental strategy is built on capital efficiency: using existing infrastructure. By trucking the high-grade ore to Kinross Gold Corporation's established Fort Knox mill, the joint venture avoids the substantial environmental disturbance of building a new processing plant and tailings facility at the mine site near the Native Village of Tetlin. This 'direct ship ore' (DSO) approach reduces the overall project footprint and lowers the capital expenditure (capex) required for new construction.

This decision not only saves money-Contango Ore's share of initial capital costs was estimated at $64.6 million back in 2023-but also substantially reduces the need for new permitting. Plus, Kinross Gold Corporation, the operator, projects this strategy will result in lower overall Green House Gas (GHG) emissions compared to a full-scale, standalone mine and mill operation. It's a smart trade-off: centralizing the environmental impact at an already-developed site.

Strict state and federal regulations govern all extraction, requiring compliance with the United States Environmental Protection Agency (EPA) standards.

Mining in Alaska, especially a high-profile joint venture on tribal land, means navigating a complex web of environmental compliance. The project must adhere to stringent state and federal regulations, including those enforced by the United States Environmental Protection Agency (EPA).

A specific regulatory challenge is the air quality in the Fairbanks and North Pole areas, which are already non-compliant with EPA air quality standards. This situation puts intense scrutiny on the project's trucking operations, a major source of diesel emissions. The joint venture pays a state motor fuel surcharge, which is specifically appropriated to the Alaska Department of Environmental Conservation (ADEC) Spill Prevention and Response Division, demonstrating a direct financial link to state environmental oversight. Compliance isn't just a cost; it's a non-negotiable operating condition.

The company must manage environmental risks associated with a 400 km ore haul route between the mine and the processing facility.

The most significant environmental and logistical risk is the transport of ore over a haul route that stretches approximately 240 to 250 miles (nearly 400 km) of public highway to the Fort Knox mill. This involves hundreds of trips by 80-ton, 95-foot long double-trailer trucks, which creates several clear environmental and operational risks:

• Accelerated degradation of public infrastructure, increasing state maintenance costs.
• Impact on air quality from diesel emissions, especially in areas already facing EPA non-compliance.
• Risk of 'fugitive dust' from the Potentially Acid Generating (PAG) ore potentially contaminating waterways along the route.

This environmental risk has already translated into quantifiable operational costs and limitations. For example, recent weight restrictions on the Chena Flood Plain Bridge along the route have limited the annual amount of ore being transported by approximately 20% compared to original projections, directly increasing the All-in Sustaining Cost (AISC) for 2025 to an estimated $1,625 per ounce of gold equivalent sold. Here's the quick math on the key environmental and operational metrics for 2025:

Commitment to construct an elder home when the mine ends demonstrates a long-term reclamation and community investment strategy.

The joint venture's environmental commitment extends beyond regulatory compliance to include a significant social component with the Tetlin Village, on whose land the mine operates. This is a critical part of the long-term reclamation plan, which is technically known as 'concurrent reclamation' where work starts before the mine closes.

The total estimated cost for final reclamation work following the estimated 4.5 years of production is between $40 million and $60 million. This work involves demolishing infrastructure and returning the disturbed ground to natural contours. On the social side, a key commitment made to the Tetlin community by Kinross Gold Corporation's CEO is the construction of an elder care center (elder home). This commitment is a tangible, long-term community investment that was directed by the Tetlin Elders themselves, tying the project's legacy to local social well-being.

The Manh Choh Community Fund, established with a $1 million legacy gift from Kinross Gold Corporation to the Alaska Community Foundation, further ensures resources remain for community needs like elder care and environmental protection even after mining ends. That's a defintely solid post-mine strategy.