Why did CTGO's operating expenses surge in Q4 2024?

Contango ORE Inc. (CTGO) experienced a significant increase in operating expenses in Q4 2024, primarily due to **non-cash expenses related to derivative contracts**.

The company reported a net loss of $38.0 million for the fiscal year ended December 31, 2024, including a non-cash expense of $34.3 million from an unrealized loss on derivative contracts. This indicates that the surge in operating expenses was largely attributable to the financial impact of these derivative contracts.

Contango's involvement with derivative contracts appears to be a strategic decision likely tied to its operational and financial risk management. The company's focus on managing hedge obligations under its credit facility and the restructuring of this facility to reduce debt might have led to significant one-time or recurring costs reflected in the Q4 2024 financials.