Contango Announces Results for the Quarter Ended September 30, 2026

Rhea-AI Summary

Contango Silver & Gold (CTGO) reported a $23.0 million net loss for the quarter ended September 30, 2026, primarily reflecting exploration spending. Operating results swung to a $24.2 million loss from $25.0 million income a year earlier; exploration expenses rose to $26.9 million from $2.1 million. Cash was $56.6 million versus $64.8 million at December 31, 2025.

Contango's share of Manh Choh production was 7,657 gold-equivalent ounces. Rain and mill downtime reduced output below budget. The company expects fourth-campaign production of 13,000–15,000 gold-equivalent ounces and production toward the lower end of 2026 guidance of 40,000 ounces. It received a $6 million joint-venture distribution on October 7 and expects another $16 million in the fourth quarter. Kitsault Valley and Lucky Shot resource updates are planned for the first half of 2027; Johnson Tract's access road and portal laydown area were completed.

23 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 21 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point$6 million distribution received October 7 brought 2026 Peak Gold JV distributions to $24 million. 1.4% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.$16 million final distribution expected in the fourth quarter, bringing expected 2026 distributions to $40 million. 3.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth campaign expected to produce 13,000–15,000 gold-equivalent ounces, scheduled to commence in mid-November.
• Moderate pointKitsault Valley indicated resources contain 58.70 million silver ounces and 394.70 thousand gold ounces in 7.66 million tonnes.
• Moderate pointJohnson Tract's Section 404 permit remains in place following final judgment favoring JT Mining on September 15.
• Moderate point15,000 ounces of 2027 hedge obligations eliminated through the credit-facility amendment.
• Moderate pointLucky Shot mineral claims and underlying royalty acquisition closed July 1 for $16,074,000. 3.7% of market cap

16 minor points

• Minor pointManh Choh gold recovery improved to 86.5% in Q3 from 80.4% in Q2.
• Minor pointManh Choh ore mined increased approximately 16% from Q2 to approximately 304,000 tons.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional mining equipment addressed reduced availability; mill improvements were completed, with further upgrades planned.
• Minor pointKitsault Valley completed 56,000 meters of drilling, roughly 40% above plan while remaining on budget.
• Minor pointKitsault Valley inferred resources contain 22.80 million silver ounces and 620.82 thousand gold ounces in approximately 6.31 million tonnes.
• Minor pointKitsault Valley drilling included 13.90 meters at 506 g/t silver equivalent and 4.96 meters at 807 g/t.
• Minor point. Forward-looking: it has not happened yet and may not happen.Kitsault Valley plans a first-half 2027 resource update and targets an initial mine-development assessment in late 2027.
• Minor pointLucky Shot completed over 11,000 meters of drilling and 536 meters of underground tunnel development.
• Minor pointLucky Shot drilling included 2.45 meters at 86.05 g/t gold, 0.63 meters at 140.23 g/t, and 3.65 meters at 18.16 g/t.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lucky Shot's next drilling and tunnel-development phase is expected to finish by February 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lucky Shot plans a first-half 2027 resource update and targets a feasibility study in late 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lucky Shot targets a direct-shipping ore operation producing 40,000–50,000 gold ounces annually, subject to stated conditions.
• Minor pointJohnson Tract completed its 2.6-mile access road and portal laydown area, and expanded its camp footprint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Johnson Tract underground exploration tunnel construction remains scheduled for 2027.
• Minor point$1.0 million credit-facility repayment reduced outstanding principal to $45.3 million in Q3.
• Minor point15,000 ounces of put options carry a $3,100-per-ounce strike and mature in March and June 2027.

Negative

• Moderate point$23.0 million net loss reported for Q3, primarily related to expensed exploration across projects.
• Moderate pointPeak Gold JV income declined to $6.9 million from $29.5 million in Q3-2025.
• Moderate pointCash declined to $56.6 million at September 30 from $64.8 million at December 31, 2025.
• Moderate pointContango's gold production fell to 7,595 ounces in Q3 from 8,885 ounces in Q2.
• Moderate pointContango's gold sales fell to $31,349,035 from $36,444,202 in Q2.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 production is guided toward the lower end of 40,000 gold-equivalent ounces.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 cash costs and all-in sustaining costs are guided at $2,700 and $2,900 per gold ounce sold, respectively.
• Moderate pointHedge elimination required a $33,732,426 increase in secured credit-facility debt and purchase of put options. 7.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Credit-facility repayments due are $1.0 million December 2026, $15.5 million March 2027 and $28.8 million June 2027.

12 minor points

• Minor pointOperating results fell to a $24.2 million loss from $25.0 million income in Q3-2025.
• Minor pointExploration expenditures rose to $26.9 million from $2.1 million in Q3-2025.
• Minor pointContango's silver sales fell to $334,646 from $1,055,011 in Q2.
• Minor pointBelow-budget Q3 gold production reflected rain-related curtailment, mine sequencing and mill maintenance; remaining planned ounces were deferred.
• Minor pointQ3 cash costs rose to $2,699 per ounce sold from $2,641 in Q2.
• Minor pointQ3 all-in sustaining costs rose to $2,909 per ounce sold from $2,877 in Q2.
• Minor pointHigher pre-stripping, diesel, reagent and consumable costs accompanied the south-pit transition and changed ore characteristics.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lucky Shot's production target depends on technical results, permitting and a future production decision.
• Minor pointKitsault Valley's possible Torbrit–North Star connection has unestablished grade continuity; assays were pending.
• Minor pointJohnson Tract continues through the FAST-41 permitting timetable.
• Minor point. Forward-looking: it has not happened yet and may not happen.A remaining 7,000-ounce carry trade matures December 31, 2026.
• Minor pointLucky Shot acquisition includes a $10 million secured note at 5%, compounded monthly, payable annually, maturing four years after closing.

News Explained

The hedge change removed 15,000 ounces of deliveries in exchange for added secured borrowing and put options, while a separate 7,000-ounce carry trade remained outstanding.

Contango says it filed its Form 10-Q for the quarter ended September 30, 2026; at quarter-end, secured-facility principal was $45.3 million after a $1.0 million Q3 repayment.

A July 1, 2026 credit-facility amendment increased borrowing by $33,732,426 and eliminated March and June 2027 hedge contracts for 15,000 ounces, while the company purchased 15,000 put options with a $3,100-per-ounce strike price. At quarter-end, a 7,000-ounce carry trade remained outstanding, maturing December 31, 2026.

As of September 30, 2026, cash and long-term investments equaled 96.1 days of the last reported quarterly operating cash use at that rate.

The company lists principal repayments of $1.0 million on December 31, 2026, $15.5 million on March 31, 2027, and $28.8 million on June 30, 2027.

Sources and calculations

• Contango Announces Results for the Quarter Ended September 30, 2026 (2026-11-13)
• Contango Q3 2026 fundamentals (2026Q3)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate ($56,643,971 + $4,764,069) / ($58,805,791 / 92) = 96.1 days

Key Figures

Loss from operations: $24.2 M Net loss: $23.0 M Adjusted net loss: $20.9 M +5 more

Loss from operations

$24.2 M

Q3-2026, compared with income from operations of $25.0 M in Q3-2025

Net loss

$23.0 M

Q3-2026, compared with $5.4 M in Q3-2025

Adjusted net loss

$20.9 M

Q3-2026, compared with adjusted net income of $24.9 M in Q3-2025

Exploration expenditures

$26.9 M

Q3-2026, compared with $2.1 M in Q3-2025

Net cash used in operating activities

$109.1 M

YTD-2026, compared with $60.2 M provided by operating activities in YTD-2025

Gold equivalent ounces sold

decreased by 56%

Q3-2026 compared with Q3-2025

Fourth campaign production

13,000 to 15,000 ounces of gold equivalent

Expected for the fourth and final 2026 campaign

2026 production guidance

40,000 gold equivalent ounces

Company guiding toward the lower end

Historical Context

1 past event · Latest: Oct 28

1 event

1. Oct 28

   operations update

   24h Move

   +2.3%

   Rain ended Manh Choh's third campaign early; company guided to the lower end of 2026 output.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

aisc, net smelter return royalty, put option contracts

3 terms

aisc financial

"The cash costs and AISC for Q3-2026 were $2,699 and $2,909 per ounce"

All-in Sustaining Cost (AISC) is a comprehensive measure of how much it costs a mining company to produce one unit of metal when ongoing operating expenses, long-term maintenance and sustaining capital, and share of corporate overhead are included. Investors use AISC to compare profitability and cash generation across producers—think of it as the full household cost to keep a business running divided by how many items it makes, which helps assess margins and resilience to price swings.

net smelter return royalty financial

"including a 2% net smelter return royalty"

A net smelter return (NSR) royalty is a contractual right to receive a percentage of the revenue from minerals sold after they are processed and refined, with common deductions for transportation and refining fees. Investors care because an NSR provides a predictable slice of mining project income without owning the mine, so it affects expected cash flow, risk exposure to commodity prices, and the valuation of both the royalty and the operating project—similar to collecting a portion of rent after paying building maintenance costs.

put option contracts financial

"the purchase of 15,000 put option contracts"

A put option contract gives its buyer the right, but not the obligation, to sell a specified quantity of an underlying asset at a pre-agreed price (the strike) on or before a set expiration date, in exchange for a premium paid to the seller. It matters to investors because it can serve like insurance against a drop in an asset’s price or as a way to profit if the asset falls in value, similar to locking in a resale price or placing a bet against a declining market.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Fairbanks, Alaska--(Newsfile Corp. - November 13, 2026) - Contango Silver & 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 September 30, 2026 ("Q3-2026").

Rick Van Nieuwenhuyse, the Company's Chief Executive Officer said, "The focus for the third quarter was to continue to advance and de-risk our portfolio of advanced-stage exploration projects. On the mining front at Manh Choh, the Peak Gold JV completed the transition from the north pit to the south pit while significant improvements were also made to the milling facility to accommodate the higher copper and total sulfur content of the high-grade sulfide ore. Operational enhancements continue to be made ahead of our fourth 2026 campaign, scheduled to commence in mid-November with anticipated production of 13,000 to 15,000 gold equivalent ounces net to Contango, keeping us on track to meet the lower end of 2026 production guidance of 40,000 gold equivalent ounces. The Company expects to provide 2027 production and cost guidance later in December."

Mr. Van Nieuwenhuyse continued, "At Kitsault Valley we have now completed 56,000 meters of drilling, roughly 40% more meters than planned, while remaining on budget. We will continue to release assay results in batches as they are received. We expect to have all assays received and QAQC's by January 2027 and then complete an updated mineral resource estimate ("MRE") in the first half of 2027. The updated MRE will form the basis of an Initial Assessment ("IA") targeted for release in late 2027. The IA will outline a mine development plan for the silver rich Dolly Varden and gold-silver rich Homestake areas located in the Kitsault Valley. At Johnson Tract, we completed construction of the 2.6-mile access road connecting the existing camp to the proposed portal site, along with the portal laydown area, and expanded the camp footprint to ready the site for expansion and year-round operations. Meanwhile we are continuing to advance permitting through the FAST-41 program — please monitor our progress on the FAST-41 dashboard at the following link: Permitting Dashboard. At Lucky Shot we completed our surface and underground drilling programs, totaling over 11,000 meters in addition to 536 meters of underground tunnel development. In mid-September we commenced the next phase of underground drilling with two rigs operating 24-7 as well as additional tunnel development for exploration. We expect to complete this work by February 2027. Once all assays are received and QAQC'd, the Company plans to provide an updated MRE, scheduled for first half of 2027, which will form the basis of a feasibility study targeted for release in late 2027."

Q3-2026 Results

In Q3-2026, Contango's share of production sold from the Manh Choh mine, jointly held by Kinross and Contango, totaled 7,333 ounces of gold and 5,349 ounces of silver. Contango received a cash distribution of $6 million ("M") from the Peak Gold JV on October 7, 2026 relating to Q3-2026 production. On a consolidated basis in Q3, the Company reported a total loss from operations of $24.2 M, net loss of $23.0 M and an adjusted net loss¹ of $20.9 M, primarily related to expensed exploration across all projects. The Company's cash and cash equivalents as of September 30, 2026 was $56.6 M compared to $64.8 M as of December 31, 2025.

Manh Choh Production Results

Peak Gold JV (on a 100% basis)1	Q1-2026	Q2-2026	Q3-2026	YTD 2026
Total tons mined	1.96	2.73	3.85	8.54	M tons
Ore tons mined	220,878	261,941	304,102	786,921	tons
Gold oz mined	38,415	45,341	45,369	129,125	oz
Ore tons processed	187,479	253,494	203,720	644,693	tons
Gold grade processed	0.131	0.145	0.145	0.142	oz/t
Gold recovery	88.6	80.4	86.5	84.6	%
Gold oz produced	26,890	29,618	25,315	81,823	oz
Gold oz sold	26,710	28,758	24,444	79,912	oz
Silver oz sold	50,142	34,397	17,830	102,369	oz
Contango's Share (on a 30% basis)1
Gold oz produced	8,067	8,885	7,595	24,547	oz
Gold oz sold	8,013	8,627	7,333	23,973	oz
Total gold equivalent oz produced2	8,244	9,007	7,657	24,908	oz
Silver oz sold	15,042	10,319	5,349	30,710	oz
Total gold sales	$38,932,736	$36,444,202	$31,349,035	$106,725,973
Total silver sales	$1,258,389	$1,055,011	$334,646	$2,648,046
Cash costs on a by-product basis, per oz sold3	$2,692	$2,641	$2,699	$2,676	per oz sold
AISC on a by-product basis, per oz sold3	$2,778	$2,877	$2,909	$2,854	per oz sold
Average realized spot gold price	$4,859	$4,224	$4,275	$4,452	per oz sold
Cash distributions received from Peak Gold JV4	$9,000,000	$9,000,000	$nil	$18,000,000

 

Notes:

1. Certain numbers have been rounded for presentation purposes.
2. Gold equivalent oz calculated using a factor of 85.1 to 1 for conversion of silver oz.
3. See non-GAAP measures disclosed in the Company's 10-Q for the period ended September 30, 2026.
4. On October 7, 2026 Contango received a cash distribution of $6 million. Distributions received in 2026 total $24 million.

Manh Choh Mine:

On October 7, 2026, Peak Gold JV delivered a $6 M cash distribution to Contango, bringing the total cash distributions to $24 M for the first three campaigns in 2026. In total, Contango has received $166.5 M in cash distributions from the Peak JV since mining operations commenced in July 2024. The focus for 2026 has been transitioning from the north pit to the south pit, resulting in higher mining costs associated with pre-stripping. In Q3 ore tons mined at Manh Choh increased approximately 16% to 304,000 tons vs Q2. Reduced mining equipment availability early in Q2 and Q3 has been addressed with additional drilling, loading and haulage equipment added on site.

Gold production for the quarter came in below budget due to several factors including:

• The third milling campaign of 2026 ended earlier than planned due to persistent above average rainy conditions in September, resulting in fewer gold ounces being processed during the quarter - the remaining planned ounces being deferred until the fourth campaign of 2026
• Tons processed at the Fort Knox mill were additionally reduced in Q3 due to mine sequencing and changes in ore characteristics at Manh Choh which resulted in increased downtime for mill maintenance and modifications to handle the higher copper and sulfide content

In Q3-2026 gold recovery at the mill was 86.5%, improving from 80.4% in Q2-2026, as the south pit contains much higher copper and sulfide content. During Q3-2026, improvements were made with the installation of a new oxygen sparging system, the restoration of a cement addition system and upgrades to the silo cone and screw. In addition, gravity projects were completed to stabilize the gravity recovery average. The focus continues on effective pre-aeration, sulfide binding with cement and cyanide destruction, which includes adding more air sparging to detox reactors. Further work is planned for oxygen generators and a bypass tails wash thickener to reduce cyanide reporting to the grind circuit.

Ore transportation from the Manh Choh mine to the Fort Knox milling facility continues to outperform and is expected to exceed our planned budget for 2026.

The cash costs and AISC for Q3-2026 were $2,699 and $2,909 per ounce, respectively. For the first nine months of 2026, the cash costs and AISC were $2,676 and $2,854, respectively, primarily driven by reduced gold ounces processed and sold. A slight increase in direct operating costs in 2026 is primarily driven by increased diesel costs related to ore transportation from Manh Choh to Fort Knox and increased reagents and consumables required in the mill to process the higher copper and sulfide content.

The fourth and final campaign for 2026 is expected to produce 13,000 to 15,000 ounces of gold equivalent ounces at cash costs and AISC of $2,700 and $2,900, respectively. The Company is guiding towards the lower end of its 2026 production guidance of 40,000 gold equivalent ounces attributable to its 30% interest in the Peak Gold JV with 2026 cash costs and AISC of $2,700 and $2,900 per ounce of gold sold², respectively. A final cash distribution in the amount of $16 M is expected in the fourth quarter for a total of $40 M in cash distributions to be received for 2026.

Lucky Shot Project:

Underground Drilling & Development: The initial underground drilling phase comprised 65 HQ diamond holes totaling approximately 6,020 meters. Further surface drilling, underground access and KM vein drilling are intended to support an updated resource estimate targeted for the first half of 2027, followed by feasibility evaluation in late 2027. Underground exploration-access work has resumed with contractor on site. The Company remains focused on advancing a high-grade Direct Shipping Ore (DSO) operation targeting 40,000 to 50,000 gold ounces per year, subject to technical results, permitting and a future production decision.

Surface Drilling Completed: The surface program comprised approximately 5,800 meters in 27 holes from five pads and was completed on August 31, 2026. Results announced on September 2, 2026 included LSS26016 with 2.45 meters grading 86.05 g/t Au. Subsequent to quarter end, results announced on October 6, 2026 included LSS26018 with 0.63 meters grading 140.23 g/t Au and LSS26021 with 3.65 meters grading 18.16 g/t Au. These are selected downhole intervals and true widths have not been established. Additional assays remain pending.

KM Vein Drilling: KM vein drilling began on September 16, 2026. As of the October 6, 2026 project update, the program comprised approximately 1,140 meters in 17 planned holes from five stations, with ten holes completed from the first two stations. The program is evaluating the geometry of the KM vein and its interpreted structural relationship to the Lucky Shot Fault and vein system. Assays are expected in the fourth quarter of 2026.

Kitsault Valley Project:

Expanded Drill Campaign: The 2026 drilling program was expanded from 40,000 meters to more than 56,000 meters. Results announced on September 15, 2026 included DV26-480 with 13.90 meters grading 506 g/t AgEq and DV26-494 with 4.96 meters grading 807 g/t AgEq. Intervening holes showed mineralization consistent with a possible geological connection between Torbrit and North Star; assays were pending and continuity of grade has not been established. Intervals are downhole lengths and true widths require further validation. Silver equivalent grades are calculated using the metal prices and recovery assumptions set out in the Company's September 15, 2026 news release.

Updated Mineral Resource Estimate: On September 11, 2026, the Company reported an updated MRE for the Kitsault Valley Project comprising 7.66 million tonnes of indicated resources containing 58.70 million ounces of silver and 394.70 thousand ounces of gold (89.55 million ounces AgEq), and approximately 6.31 million tonnes of inferred resources containing 22.80 million ounces of silver and 620.82 thousand ounces of gold (64.92 million ounces AgEq). The MRE is based on drilling completed through 2025 and excludes 2026 drilling. The MRE is supported by a technical report summary filed with the Company's Form 8-K on September 22, 2026. In H1-2027 the Company is planning to update the MRE with the drilling completed in 2026, which will form the basis of the IA targeted for release in late 2027.

Johnson Tract Project:

Road & Portal Access: During the third quarter, the Company completed construction of the 2.6-mile access road connecting the existing camp to the proposed portal site, along with the portal laydown area. This work supports construction of the underground exploration drift, which is scheduled to begin in 2027.

Permitting & Site Preparation: Environmental and cultural surveys within the Johnson Tract and project easements were largely completed during the season and the baseline program is substantially advanced. Geotechnical investigations within the foreshore have been completed and investigations along the proposed coastal road are substantially complete. The project continues to advance under the FAST-41 permitting timetable and remains on schedule for underground exploration tunnel construction to begin in 2027.

Section 404 Permit Upheld: On September 14, 2026, the U.S. District Court for the District of Alaska ruled in favor of JT Mining in the lawsuit challenging the Johnson Tract Section 404 permit. Final judgment in favor of JT Mining was entered on September 15, 2026, and the permit remains in place.

Repayments of Debt, Elimination of Hedge Contracts and Financing:

• The Company's cash and cash equivalents position as of September 30, 2026 was $56.6 M.

• In Q3-2026, Contango repaid $1.0 M on the amended credit facility, reducing the outstanding principal balance to $45.3 M.

• In Q3-2026, the Company delivered 4,000 gold ounces into its carry trade hedge contracts and cash settled the remaining 15,000 ounces of hedge contracts maturing in March and June 2027 as part of the credit facility amendment (see Corporate Development Activities), eliminating all remaining hedge delivery obligations, with the exception of the 7,000 ounces of carry trade noted below. For the first nine months of 2026, the Company delivered and cash settled a total of 43,000 gold ounces under the hedge contracts.

• As of September 30, 2026, the Company had a carry trade outstanding for 7,000 ounces maturing on December 31, 2026, and put options for 15,000 ounces with a strike price of $3,100 per ounce maturing in March and June 2027.

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 of 15,000 ounces of hedge contracts maturing in March and June 2027 were eliminated in exchange for (i) an increase of $33,732,426 on the Company's secured credit facility and (ii) the purchase of 15,000 put option contracts with a strike price of $3,100 per ounce and maturities in March and June 2027. As a result of the amendment, the aggregate principal amount outstanding under the secured credit facility increased to $46.3 million.

Remaining principal repayments of the secured credit facility are as follows:

• December 31, 2026: $1.0 million;
• March 31, 2027: $15.5 million; and
• June 30, 2027: $28.8 million.

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 2% net smelter return royalty, property, equipment and improvements for a total consideration of $16,074,000 comprising: (i) $300,000 advance (paid); (ii) $1,709,250 deposit payable upon signing of the agreement (paid); (iii) $4,064,750 payable at closing (paid); and (iv) a $10,000,000 secured promissory note. The transaction closed on July 1, 2026. The promissory note bears interest at 5% per annum, compounded monthly and payable annually, and matures four years after the closing date. During Q3-2026, the Company recorded an addition of approximately $10.0 M to mineral properties at the Lucky Shot Property, reflecting the purchase of the underlying lease and 2% net smelter return royalty.

Statement of Operations for Q3-2026 compared to Q3-2025:

The Company reported a loss from operations of $24.2 M in Q3-2026 compared to income from operations of $25.0 M in Q3-2025. The change was primarily due to increased exploration expenditures of $26.9 M (Q3-2025: $2.1 M) and lower income from the Peak Gold JV of $6.9 M (Q3-2025: $29.5 M) during the quarter. The higher exploration expense includes drilling at the Kitsault Valley Project, which was added through the Dolly Varden acquisition in Q1-2026 and therefore has no comparable costs in Q3-2025, as well as expanded drilling and underground development at Lucky Shot and permitting and road work at Johnson Tract.

The Company reported a net loss of $23.0 M, or $0.66 per fully diluted share, compared to a net loss of $5.4 M, or $0.44 per fully diluted share, in Q3-2025. The net loss includes losses on derivative contracts of $2.0 M in Q3-2026 and $30.3 M in Q3-2025. The increase in net loss was mainly due to higher exploration expense, including at the Kitsault Valley Project (acquired in Q1-2026), and lower income from the Peak Gold JV, partly offset by lower losses on derivative contracts. Excluding these losses, the Company reported an adjusted net loss of $20.9 M in Q3-2026 compared to adjusted net income of $24.9 M in Q3-2025.

Gold equivalent ounces produced and sold in the third quarter of 2026, both decreased by 56% compared to the third quarter of 2025, primarily due to the decrease in tons processed from Manh Choh as the project transitions from the north pit to the south pit.

Statement of Cash Flows for YTD-2026 compared to YTD-2025:

Net cash used in operating activities was $109.1 M for YTD-2026 compared to $60.2 M provided by operating activities in YTD-2025. The change was primarily driven by cash paid to settle hedge contracts ($97.7 M in 2026 compared to $26.7 M in 2025) and lower cash distributions received from the Peak Gold JV ($18.0 M in 2026 compared to $87.0 M in 2025) during YTD-2026. Cash provided by investing activities was $7.4 M for YTD-2026 compared to cash used of $0.4 M in YTD-2025, primarily reflecting $36.0 M of cash acquired in the Dolly Varden acquisition, partially offset by $21.4 M of property and equipment additions, which included the Johnson Tract access road and the purchase of the Lucky Shot underlying lease and 2% net smelter return royalty, and $7.2 M of acquisition transaction costs related to Dolly Varden. Cash provided by financing activities in YTD-2026 was $94.1 M, primarily related to net proceeds from equity issuances of $63.4 M and $33.7 M of proceeds from the credit facility amendment, partially offset by principal repayments of $3.0 M on the credit facility. This compares to cash provided by financing activities of $26.9 M in YTD-2025, primarily related to net proceeds from equity issuances of $56.6 M, partially offset by principal repayments of $29.0 M on the credit facility. The Company's cash and cash equivalents position as of September 30, 2026 was $56.6 M compared to $64.8 M as of December 31, 2025.

Gold equivalent ounces produced and sold in the first nine months of 2026 both decreased by 53% compared to the first nine months of 2025, primarily due to a decrease in tons processed and planned mill grades from Manh Choh as the project transitions from the north pit to the south pit.

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:

	Q3-2026 ($)	Q3-2025 ($)	YTD-2026 ($)	YTD-2025 ($)
Net income/(loss)	(22,958,311)	(5,392,948)	(32,476,914)	(12,016,408)
(Gain)/loss on derivative contracts	2,028,760	30,335,871	10,746,157	83,656,330
Adjusted net income/(loss)	(20,929,551)	24,942,923	(21,730,757)	71,639,922

 

Conference Call and Webcast

Contango will host a conference call and webcast to discuss the third quarter results on Monday, November 16, 2026, at 12:00pm EST / 10:00am PCT. Please note the updated time zone for BC residents. Participants may join the webcast using the following call-in details: Contango Silver & Gold: Q3 Financials.

At the Market Equity Program

On November 13, 2026, Contango entered into a Controlled Equity Offering^SM^ Sales Agreement with Cantor Fitzgerald & Co. ("Cantor"), Canaccord Genuity LLC, National Bank Financial Inc., ATB Capital Markets Inc., Haywood Securities Inc., BTIG, LLC, Maxim Group LLC, Research Capital USA Inc., and Prime Executions, Inc., doing business as Freedom Capital Markets, pursuant to which the Company may, from time to time and at its option, offer and sell shares of its common stock having an aggregate sales price of up to $75.0 million through Cantor, acting as the sales agent (the "ATM Program"). Sales of common stock under the ATM Program, if any, may be made in transactions deemed to be "at the market offerings" as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. The Company is not obligated to sell any shares under the ATM Program and may suspend or terminate sales under the program in accordance with the terms of the sales agreement.

The shares will be offered pursuant to the Company's effective automatic shelf registration statement on Form S-3 (File No. 333-297038) filed with the Securities and Exchange Commission on June 25, 2026 and the related prospectus supplement dated November 13, 2026.

In connection with the establishment of the new ATM Program, the Company terminated its prior Controlled Equity Offering^SM^ Sales Agreement with Cantor, dated June 8, 2023.

The Company intends to use the net proceeds from any sales under the ATM Program, if any, for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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 30% interest in the Peak Gold JV, which leases approximately 675,000 acres of land for production and exploration on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross Gold Corporation, operator of the Peak Gold JV. The Company and its subsidiaries also hold: (i) a lease on the Johnson Tract project, which consists of mineral rights to approximately 21,000 acres located near tidewater, 125 miles southwest of Anchorage, Alaska, from the underlying owner, CIRI; (ii) 100% ownership of the Lucky Shot project, which consists of mineral rights to approximately 8,600 acres of State of Alaska and patented mining claims located in the Willow Mining District about 75 miles north of Anchorage, Alaska; (iii) mineral rights to approximately 145,000 acres of State of Alaska mining claims; and (iv) mineral rights to approximately 15,260 acres of State of Alaska mining claims and upland mining leases, all of which give Contango the exclusive right to explore and develop minerals on these lands.

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 laws ("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

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¹ See non-GAAP measures in the Adjusted Net Income/(Loss) (Non-GAAP) section of this press release for calculation of Adjusted Net Income
² See non-GAAP measures disclosed in the Company's 10-Q for the period ended September 30, 2026.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323875

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Contango CTGO's financial results for the third quarter of 2026?

Contango reported a $23.0 million net loss and a $24.2 million operating loss for Q3-2026. Exploration expenditures were $26.9 million, compared with $2.1 million in Q3-2025, while income from the Peak Gold JV declined to $6.9 million from $29.5 million.

What is Contango CTGO's 2026 gold production outlook?

Contango is guiding toward the lower end of 40,000 gold-equivalent ounces attributable to its 30% Peak Gold JV interest. The fourth campaign is expected to produce 13,000 to 15,000 gold-equivalent ounces. Full-year cash costs and all-in sustaining costs are guided at $2,700 and $2,900 per ounce of gold sold, respectively.

When are Contango CTGO's remaining secured credit-facility repayments due?

Remaining repayments are $1.0 million on December 31, 2026, $15.5 million on March 31, 2027, and $28.8 million on June 30, 2027. Outstanding principal was $45.3 million after a $1.0 million repayment during Q3-2026.

Does Contango's Kitsault Valley resource estimate include 2026 drilling?

The Kitsault Valley resource estimate reported September 11, 2026, excludes 2026 drilling and uses drilling completed through 2025. Contango expects all assays from the expanded campaign to be received and quality-checked by January 2027.