Contango Announces Results for the Quarter Ended June 30, 2026
Rhea-AI Summary
Contango (NYSE American: CTGO) reported Q2-2026 results, highlighting Manh Choh ramp-up, balance sheet changes and portfolio advancement. Contango’s share of Manh Choh sales was 8,627 oz of gold and 10,319 oz of silver, with cash costs of $2,641/oz and AISC of $2,877/oz. The Peak Gold JV distributed $9 M, bringing total returns from Manh Choh to $160 M against an initial $105 M investment, and quarter-end cash rose to $89.0 M from $64.8 M at year-end 2025.
The company reported a Q2-2026 operating loss of $8.5 M, net income of $4.8 M and adjusted net loss of $5.5 M. Contango amended its credit facility, replacing 15,000 oz of 2027 hedges with $33.7 M of additional debt and gold put options, raising facility principal to $46.3 M and fully eliminating its hedge book. It also secured 100% ownership of Lucky Shot by purchasing the underlying lease and 2% NSR for $16.1 M and settling $18.75 M of milestones for $6.6 M. Drilling and permitting advanced across Lucky Shot, Kitsault Valley and Johnson Tract, and the company reaffirmed 2026 production guidance of 40,000–45,000 oz and 2027 guidance of 75,000–80,000 oz of gold.
Positive
- Manh Choh returns exceed investment: $160 M vs $105 M initial capital
- Q2-2026 cash balance increased to $89.0 M from $64.8 M at 2025 year-end
- Peak Gold JV cash distributions reached $18.0 M YTD-2026, including $9.0 M in Q2
- Hedge book fully eliminated, providing 100% exposure to future gold prices
- Lucky Shot ownership consolidated via $16.1 M lease and 2% NSR purchase
- Lucky Shot milestones of $18.75 M settled for $6.6 M cash and shares
Negative
- Q2-2026 operating loss of $8.5 M vs prior-year operating income
- Q2-2026 adjusted net loss of $5.5 M vs $28.8 M adjusted income in Q2-2025
- YTD-2026 operating cash outflow of $50.3 M vs $36.9 M inflow in YTD-2025
- Manh Choh cash costs of $2,641/oz and AISC of $2,877/oz gold sold
- Secured credit facility principal increased to $46.3 M after July 1 amendment
- Equity financing drove $54.8 M cash inflow, implying shareholder dilution risk
News Explained
The disclosure adds a 100,000-share ownership effect and specifies $46.3 million of secured debt with repayments through June 2027.
The August 13 release reports that Contango filed its Q2 Form 10-Q; it also confirms the July 1 Lucky Shot lease purchase closed and that the June 26 milestone settlement issued
That share issuance increases the total share count and reduces existing holders’ percentage ownership absent offsetting changes. The release calls the hedge book fully liquidated and says this provides
The amended credit facility sets principal repayments of
The Kitsault Valley updated Mineral Resource Estimate, which took longer than expected, is now due later in
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 06 | Hedge restructuring | Negative | -0.2% | Remaining gold hedges converted into debt, increasing secured facility principal. |
| Jun 29 | Lucky Shot settlement | Positive | +0.8% | Milestone obligations settled alongside a Peak Gold JV cash distribution. |
| Jun 23 | Project updates | Positive | -2.1% | Drilling, permitting, and hedge-delivery progress were reported across development projects. |
| Jun 18 | Annual meeting | Neutral | -6.0% | Shareholders elected directors and approved the presented annual meeting proposals. |
| Jun 16 | Lucky Shot assay | Positive | -0.6% | Underground drilling reported a 972.10 g/t gold intercept at Lucky Shot. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive operational and project announcements were followed by negative 24-hour reactions in 3 of 4 comparable historical events.
Key Terms
form 10-q regulatory
aisc financial
nsr royalty financial
fast-41 regulatory
mineral resource estimate technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Fairbanks, Arkansas--(Newsfile Corp. - August 13, 2026) - Contango Silver and Gold Inc. (NYSE American: CTGO) (TSX: CTGO) ("Contango" or the "Company") announced today that it filed with the Securities and Exchange Commission its Form 10-Q for the quarter ended June 30, 2026 ("Q2-2026").
Rick Van Nieuwenhuyse, Chief Executive Officer of the Company, stated, "The second quarter of 2026 was a transformative period of operational execution and financial restructuring for Contango across all four projects. At Manh Choh, having completed mining in the North Pit, we are entering a high-production phase as we transition into the higher-grade portions of the South Pit where we expect both processed ore tonnage and grades to increase through the remainder of the year. Operational enhancements are being implemented at the Fort Knox mill to optimize recoveries ahead of our third 2026 campaign later this month with anticipated production of 11,000 to 12,000 gold equivalent ounces net to Contango, keeping us firmly on track to meet our 2026 production guidance of 40,000 to 45,000 gold ounces. Looking ahead, this sets the stage for a dramatic step-up in 2027, where we are guiding to 75,000 to 80,000 ounces of gold production at cash costs of
"Crucially, we hit a major milestone with Manh Choh this quarter: against our initial capital investment of
Mr. Van Nieuwenhuyse continued, "Operationally, our expanded portfolio is advancing rapidly. Following our merger with Dolly Varden Silver, team integration is complete and yielding immediate results. At Kitsault Valley, an updated Mineral Resource estimate has taken longer to complete than expected and is now due later this quarter. Meanwhile, drilling this year has completed over 35,000 meters of our 40,000-meter campaign - well ahead of schedule and well under budget. Consequently, we are planning to drill an additional 5,000 to 10,000 meters on high-quality targets. At Lucky Shot, underground and surface drilling are on track and providing clear structural continuity of the Lucky Shot vein system. Finally, at Johnson Tract, earthworks are progressing on the access road between Camp and the proposed underground portal site, and permitting is progressing on schedule under the FAST-41 program. With the hedges extinguished and Manh Choh generating strong cash flows, the Company is well positioned to execute our plan to grow production from our current average of 60,000 gold equivalent ounces to over 200,000 ounces of gold and 5 M ounces of silver production annually."
During Q2-2026, the Company had the following updates:
In Q2-2026, Contango's share of production sold from the Manh Choh mine, jointly held by Kinross and Contango, totaled 8,627 ounces of gold and 10,319 ounces of silver. During the quarter, the Company also received a cash distribution of
Manh Choh Production Results
| Peak Gold JV (on a | Q2-2026 | YTD 2026 | ||||||||
| Total tons mined | 2.73 | 4.69 | M tons | |||||||
| Ore tons mined | 261,941 | 482,819 | tons | |||||||
| Gold oz mined | 45,341 | 83,756 | oz | |||||||
| Ore tons processed | 253,494 | 440,973 | tons | |||||||
| Gold grade processed | 0.145 | 0.139 | oz/t | |||||||
| Gold recovery | 80.4 | 83.6 | % | |||||||
| Gold oz produced | 29,618 | 56,508 | oz | |||||||
| Gold oz sold | 28,758 | 55,468 | oz | |||||||
| Silver oz sold | 34,397 | 84,539 | oz | |||||||
| Contango's Share (on a | ||||||||||
| Gold oz produced | 8,885 | 16,952 | oz | |||||||
| Gold oz sold | 8,627 | 16,639 | oz | |||||||
| Total gold equivalent oz produced2&3 | 9,015 | 17,393 | oz | |||||||
| Silver oz sold | 10,319 | 25,361 | oz | |||||||
| Total gold sales | $ | 36,750,118 | $ | 75,682,854 | ||||||
| Total silver sales | $ | 749,096 | $ | 2,007,485 | ||||||
| Cash costs on a by-product basis, per oz sold3 | $ | 2,641 | $ | 2,665 | per oz sold | |||||
| AISC on a by-product basis, per oz sold3 | $ | 2,877 | $ | 2,830 | per oz sold | |||||
| Principal debt repayments | $ | 1,000,000 | $ | 2,000,000 | ||||||
| Remaining debt balance | $ | 12,600,000 | $ | 12,600,000 | ||||||
| Average realized spot gold price | $ | 4,328 | $ | 4,621 | per oz sold | |||||
| Cash distributions received from Peak Gold JV | $ | 9,000,000 | $ | 18,000,000 |
Notes:
- Certain numbers have been rounded for presentation purposes.
- Gold equivalent oz calculated using a factor of 85.1 to 1 for conversion of silver oz.
- See non-GAAP measures disclosed in the Company's 10Q for the period ended June 30, 2026.
Manh Choh Mine:
Peak Gold JV delivered a
Lucky Shot Project:
Underground Drilling & Development: Underground infill drilling continued to support a Feasibility Study targeted for H1 2027, paving the way for a 2027 production decision focused on a high-grade Direct Shipping Ore (DSO) model targeting 40,000 to 50,000 gold ounces per year. Assays from the initial underground phase continue to yield high-grade intercepts, highlighted by 0.17 meters grading 972.10 g/t Au (including visible gold in hole LSU26091, previously released May 5, 2026 and June 16, 2026). Underground development has re-commenced with contractor GMS on site advancing access and drill platforms along the main Enserch tunnel, West drift, and new East drift.
Surface Drilling Underway: Surface drilling commenced on June 22, 2026, with two helicopter-supported rigs mobilized to site. A 26-hole, 6,000-meter campaign is currently underway to infill the Coleman resource and execute step-out drilling testing structural continuity toward the Lucky Shot vein system. The surface program has completed approximately 3,500 meters of a 6,000 meter drill program to date.
Kitsault Valley Project:
40,000-Meter Drill Campaign: A
Path to Development: An updated Mineral Resource Estimate ("MRE") is expected in Q3 2026, which will form the backbone of an Initial Assessment ("IA") preliminary development plan targeted for release in 2027.
Johnson Tract Project:
Road & Portal Access: Earthworks are actively advancing on the 2.6-mile access road linking camp to the proposed portal site. Equipment mobilization via barge and helicopter continued through July, with earthworks ongoing and planned to continue through October.
Permitting & Site Preparation: Environmental and baseline field programs are in full swing for the season. Several FAST-41 permitting milestones already completed and the project remains on schedule for underground exploration tunnel construction to begin in 2027.
Repayments of Debt, Reduction of Hedge Contracts and Financing:
- The Company's cash and cash equivalents position as of June 30, 2026 was
$89.0 M .
- In Q2-2026, Contango repaid
$1.0 M on the credit facility, reducing the outstanding principal balance to$12.6 M , before the amendment to its credit facility.
- As of the date of this release, the remaining carry trade contracts total 11,000 ounces which mature in September and December 2026.
Corporate Development Activities
Amendment to the Credit Facility:
On July 1, 2026, the Company amended its Credit Agreement pursuant to which the delivery of a total 15,000 hedge contracts maturing between March and June 2027 were eliminated in exchange for (i) an increase of
Principal repayments of the secured credit facility are amended as follows:
- September 30, 2026:
$1.0 M ; - December 31, 2026:
$1.0 M ; - March 31, 2027:
$15.5 M ; and - June 30, 2027:
$28.8 M .
Purchase of Underlying Lease and NSR for Lucky Shot Project:
On May 4, 2026, the Company entered into a purchase agreement (the "LSA Purchase Agreement") with Alaska Hardrock Inc. for the purchase of mineral claims, including a
Settlement of Milestone Payments for Lucky Shot Project:
On June 26, 2026, the Company settled
Statement of Operations for Q2-2026 compared to Q2-2025:
The Company reported total loss from operations of
Statement of Cash Flows for YTD-2026 compared to YTD-2025:
Net cash used in operating activities was
Adjusted Net Income/(Loss) (Non-GAAP)
Management uses Adjusted Net Income/(Loss) to evaluate the Company's operating performance, and to plan and forecast operations. The Company believes the use of Adjusted Net Income/(Loss) reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management's determination of the components of Adjusted Net Income/(Loss) is evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income/(loss) (GAAP) is reconciled to Adjusted net income/(loss) (Non-GAAP) adjusted for (gain)/loss on derivative contracts in the following table:
| Q2-2026 ($) | Q2-2025 ($) | YTD-2026 ($) | YTD-2025 ($) | ||||||||||
| Net income/(loss) | 4,786,987 | 15,924,865 | (9,518,603 | ) | (6,623,460 | ) | |||||||
| (Gain)/loss on derivative contracts | (10,308,985 | ) | 12,844,803 | 8,717,397 | 53,320,459 | ||||||||
| Adjusted net income/(loss) | (5,521,998 | ) | 28,769,668 | (801,206 | ) | 46,696,999 |
Conference Call and Webcast
Contango will host a conference call and webcast to discuss the first quarter results on Friday, August 14, 2026, at 12:00pm EST / 9:00am PST. Participants may join the webcast using the following call-in details: https://6ix.com/event/contango-silver-and-gold-q2-financials-2026.
ABOUT CONTANGO
Contango is an NYSE American and TSX-listed mining company that engages in the exploration for and development of silver, gold, and associated minerals with a growth strategy focused on district-scale silver and gold exploration in British Columbia's Golden Triangle funded by high-grade gold production in Alaska. The Company's flagship Canadian asset comprises approximately 247,000 acres (100,000 hectares) of prospective silver-gold mineral tenures in and around the Kitsault Valley, the southern cornerstone of the Golden Triangle. In Alaska, Contango holds a
Additional information can be found on our web page at www.contangoore.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities ("Forward-looking Statements"). These include statements regarding Contango's plans and expectations for its properties and operations, the content within future annual filings, operations in respect of Contango mineral properties and any benefits of investment in Contango. The Forward-looking Statements regarding Contango are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on Contango's current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", "projects", "anticipates", "plans", "estimates", "intends", "believes", "ensures", "forecasts", "predicts", "proposes", "contemplates", "aims", "seeks", "continues", "potential", "positioned", "strategy", "outlook", "future", "going forward", "designed to", and similar expressions or other words of similar meaning, and the negatives thereof, or stating that certain actions, events or results "may", "might", "will", "should", "would", or "could" be taken, or that they are "possible", "probable", or "likely" to occur or be achieved). However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking Statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for and developing mineral reserves); risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and associated minerals; the existence and extent of commercially exploitable minerals in properties acquired by Contango or the Peak Gold JV; ability to realize the anticipated benefits of the Peak Gold JV; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks; risks related to weather and other natural disasters; uncertainties as to the availability and cost of financing; risks relating to the Company's indebtedness under the Amended Credit Facility, including its ability to service or repay that debt on or ahead of schedule and the effect of changes in interest rates; the Company's unhedged exposure to gold prices and the effectiveness of its price protection strategy; and the Company's ability to achieve anticipated production and grades at Manh Choh, which depends in part on the operator of the Peak Gold JV; Contango's inability to retain or maintain its relative ownership interest in the Peak Gold JV; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; the extent of disruptions caused by an outbreak of disease, such as the COVID-19 pandemic; and the possibility that government policies may change, political developments may occur or governmental approvals may be delayed or withheld, including as a result of presidential and congressional elections in the U.S. or the inability to obtain mining permits. Additional information on these and other factors which could affect Contango's operations or financial results are included in Contango's other reports on file with the U.S. Securities and Exchange Commission. Investors are cautioned that any Forward-looking Statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the Forward-looking Statements. Forward-looking Statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update Forward-looking Statements should circumstances or management's estimates or opinions change.
CONTACTS:
Contango Silver & Gold Inc.
Rick Van Nieuwenhuyse
(907) 388-7770
www.contangoore.com
1 See non-GAAP measures at end of this press release for calculation of Adjusted Net Income
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