Contango Provides Corporate Update on Johnson Tract Critical Metals Project, Manh Choh Mine and Hedge Settlements

Rhea-AI Summary

Contango ORE (NYSE American: CTGO) provided a corporate update on Johnson Tract permitting, Manh Choh operations and recent hedge settlements on Feb 17, 2026.

The Johnson Tract project was placed on the FAST-41 Dashboard on Jan 30, 2026 and the Company submitted its first Initial Application for a permit on Feb 2, 2026. Manh Choh commenced Campaign #1-2026 on Feb 5, 2026 with processing through the Kinross Fort Knox mill into early to mid-March. Contango paid $46,381,535 on Feb 12, 2026 to settle 15,446 ounces of gold hedges at an average strike of $2,025/oz, and paid $448,986 to buy matching puts at a $4,000/oz strike. Remaining hedges: 11,000 oz in 2026 and 15,000 oz in H1 2027.

Positive

• FAST-41 listing for Johnson Tract (placed Jan 30, 2026)
• First permit Initial Application submitted on Feb 2, 2026
• Manh Choh Campaign #1-2026 commenced Feb 5, 2026 via Fort Knox mill
• Hedge reduction: 15,446 oz settled, increasing exposure to higher gold prices

Negative

• Cash outflow of $46,381,535 to settle gold hedges on Feb 12, 2026
• Remaining hedge exposure of 11,000 oz in 2026 and 15,000 oz in H1 2027

Market Reaction

-7.75% $25.22

15m delay 15 alerts

-7.75% Since News

$25.22 Last Price

$24.75 $27.02 Day Range

-$32M Valuation Impact

$381M Market Cap

0.4x Rel. Volume

Following this news, CTGO has declined 7.75%, reflecting a notable negative market reaction. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $25.22. This price movement has removed approximately $32M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Hedge settlement payment: $46,381,535 Gold hedges settled: 15,446 oz Average hedge strike: $2,025 per oz +5 more

8 metrics

Hedge settlement payment $46,381,535 Paid Feb 12, 2026 to settle gold hedge contracts

Gold hedges settled 15,446 oz Gold hedge contracts settled with average strike $2,025/oz

Average hedge strike $2,025 per oz Strike price on 15,446 oz of settled hedges

Put purchase cost $448,986 Paid to buy 15,446 gold puts for price protection

Gold put size 15,446 puts Puts purchased with $4,000/oz strike, matching hedge periods

Put strike price $4,000 per oz Strike on purchased downside protection puts

Remaining 2026 hedges 11,000 oz Gold hedge contracts still outstanding in 2026

Remaining 1H 2027 hedges 15,000 oz Gold hedge contracts outstanding in first half of 2027

Market Reality Check

Price: $27.34 Vol: Volume 116,946 vs 20-day ...

low vol

$27.34 Last Close

Volume Volume 116,946 vs 20-day average 265,421 (relative volume 0.44x) shows subdued trading into this update. low

Technical Price 27.34 is trading above the 200-day MA at 22.74, reflecting a pre-existing uptrend.

Peers on Argus

CTGO was up 3.21% while momentum-screened peers PZG, HYMC, and TRX were all down...

3 Down

CTGO was up 3.21% while momentum-screened peers PZG, HYMC, and TRX were all down (median move about -4.4%), indicating stock-specific strength versus weaker gold peers.

Historical Context

5 past events · Latest: Feb 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Financing webinar	Positive	-9.1%	Webinar to discuss recent financing aimed at reducing the hedge book.
Feb 12	Equity offering close	Negative	-9.1%	Closed $50M stock and pre-funded warrant offering with hedge buyback use of proceeds.
Feb 11	Equity offering launch	Negative	+0.9%	Announced $50M underwritten offering to fund hedge buybacks and puts.
Dec 08	Merger announcement	Positive	-0.8%	Merger-of-equals with Dolly Varden to form a mid-tier silver and gold producer.
Dec 02	FAST-41 acceptance	Positive	+6.3%	Johnson Tract accepted as a covered project under the FAST-41 permitting program.

Pattern Detected

Recent financings tied to hedge reduction triggered mixed reactions, while permitting progress for Johnson Tract previously coincided with a positive move.

Recent Company History

Over the past few months, Contango has focused on financing, hedge management, and strategic growth. In December 2025, the Johnson Tract project’s acceptance into the FAST-41 program coincided with a 6.27% gain, highlighting permitting as a constructive catalyst. The announced merger with Dolly Varden in December 2025 saw a modest negative reaction. In February 2026, a $50 million equity and pre-funded warrant offering to fund hedge buybacks led to a roughly -9% move, underscoring dilution sensitivity even when proceeds target hedge reduction.

Market Pulse Summary

The stock is down -7.8% following this news. A negative reaction despite this update would fit a rec...

Analysis

The stock is down -7.8% following this news. A negative reaction despite this update would fit a recent pattern where capital markets actions around hedge management drew scrutiny. The company disclosed a $46,381,535 cash outlay to settle 15,446 oz of hedges and additional spending on 15,446 protective puts. While this increases leverage to gold, it also follows a recent equity and warrant financing, and investors have previously responded warily to dilution tied to hedge strategy shifts.

Key Terms

fast-41, gold hedge contracts, strike price

3 terms

fast-41 regulatory

"was officially placed onto the FAST-41 Dashboard on January 30, 2026."

A FAST-41 designation comes from a U.S. law that sets up a coordinated, time-lined review process for large federal infrastructure projects, aiming to reduce delays by having agencies work together and meet clear deadlines. For investors, it matters because projects with FAST-41 oversight are likelier to reach permits and construction on schedule, reducing the risk of costly hold-ups much like a traffic controller clearing lanes so a convoy can move without unexpected stops.

gold hedge contracts financial

"the Company paid $46,381,535 to settle gold hedge contracts for 15,446 ounces"

A gold hedge contract is a financial agreement that locks in a price or offsetting position tied to the value of gold so an investor, miner or business can reduce the risk of gold price swings. Think of it like insurance or a fixed-rate deal that smooths out unexpected gains or losses: it matters because it protects cash flow and investment returns from volatile metal prices, while introducing costs and counterparty obligations.

strike price financial

"with an average strike price of $2,025 per ounce"

The strike price is the fixed price at which an option gives its holder the right to buy or sell an underlying stock. Think of it like a coupon that lets you transact at a pre-agreed price regardless of the market; for investors it determines whether an option will be profitable, influences potential gains or losses, and is a key factor in the option’s market value and risk profile.

AI-generated analysis. Not financial advice.

FAIRBANKS, Alaska, Feb. 17, 2026 /PRNewswire/ - Contango ORE, Inc. ("Contango" or the "Company") (NYSE American: CTGO) is pleased to provide an update on Johnson Tract permitting, Manh Choh operations and hedge contract settlements.

Johnson Tract Permitting

The Johnson Tract Critical Metals Project Permitting Timetable was officially placed onto the FAST-41 Dashboard on January 30, 2026. The permitting timetable for Johnson Tract serves as a publicly visible contract between the federal government and the Company to ensure that development of the Johnson Tract Critical Metals Project stays on track and remains coordinated between all parties involved in the ongoing permitting process. Updates can be viewed at the following link: https://www.permits.performance.gov/permitting-project/fast-41-covered-projects/contango-ore-johnson-tract-critical-metals-project.

Rick Van Nieuwenhuyse, the Company's President & CEO said, "We are pleased that our Johnson Tract project is now up and running on the FAST 41 Dashboard, and posting progress in real time with our first Initial Application submitted for a Permit on February 2, 2026. We appreciate the efforts of Permitting Council, the US Army Corps of Engineers as the lead federal agency and all cooperating agencies and parties involved in the permitting process.  We believe this transparent process will enable all parties to remain coordinated and accountable throughout permitting. I encourage all interested parties to stay up to date on the Johnson Tract Critical Metals Project as it moves through the permitting process."

Manh Choh Operations

On February 5, 2026 the Peak Gold JV commenced the first production campaign for 2026 ("Campaign #1-2026") of Manh Choh ore through the Kinross Fort Knox mill located near Fairbanks, Alaska.  Processing of ore for Campaign #1-2026 is planned to continue into early to mid-March.

Rick Van Nieuwenhuyse continued, "At Manh Choh, we look forward to processing the first batch of ore for 2026 through the Fort Knox milling facility.  It has been a cold winter in Alaska with Spring still a few months away, but ore has continued to be delivered to the Manh Choh stockpile at Fort Knox. Despite the conveyor belt fire reported at Fort Knox late last month, there has been no interruption to processing Manh Choh ore. We will continue to report production parameters as those results become available.

Hedge Contract Settlement

On February 12, 2026, the Company paid $46,381,535 to settle gold hedge contracts for 15,446 ounces with an average strike price of $2,025 per ounce with maturities ranging between March and September 2026. In addition, as part of a price protection strategy to offset the hedge settlements, the Company paid $448,986 to purchase 15,446 puts with a strike price of $4,000 per ounce. The schedule of the puts match the periods of the hedge settlements. The remaining gold hedge contracts total 11,000 ounces in 2026 and 15,000 ounces in the first half of 2027.

Mike Clark, the Company's Chief Financial Officer said, "We are pleased to have substantially reduced our hedge book for 2026, resulting in more exposure to record high gold prices for the Company. We will continue to work with our lenders to eliminate the remainder of the hedges this year."

ABOUT CONTANGO

Contango is a NYSE American listed company that engages in exploration for gold and associated minerals in Alaska. Contango holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres of land for exploration and development 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 have (i) a lease on the Johnson Tract project from the underlying owner, CIRI, (ii) a lease on the Lucky Shot project from the underlying owner, Alaska Hardrock Inc., (iii) 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims, and (iv) a 100% interest in approximately 145,000 acres of State of Alaska mining claims that 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 statements regarding Contango that 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", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). 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 and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; 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 exploration program 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.

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SOURCE Contango Ore

FAQ

What does Contango (CTGO) placing Johnson Tract on FAST-41 mean for permitting?

It creates a publicly visible permitting timetable and coordination mechanism between agencies and the company. According to Contango, the FAST-41 listing (Jan 30, 2026) aims to keep development on track and improve transparency during the permitting process.

When did Contango start processing Manh Choh ore for 2026 and where is it processed?

Manh Choh began its first 2026 production campaign on Feb 5, 2026. According to Contango, ore for Campaign #1-2026 is being processed through the Kinross Fort Knox mill near Fairbanks and is expected to run into early to mid-March.

How much did Contango (CTGO) pay to settle gold hedge contracts in February 2026?

Contango paid $46,381,535 on Feb 12, 2026 to settle gold hedges totaling 15,446 ounces. According to Contango, the settled contracts had an average strike price of $2,025 per ounce across maturities from March to September 2026.

What price protection did Contango buy after settling hedges and how much did it cost?

The company purchased 15,446 put options with a $4,000/oz strike to offset hedge settlements. According to Contango, the puts cost $448,986 and their schedules match the periods of the settled hedge maturities.

How much hedge exposure does Contango (CTGO) still have after the Feb 2026 settlements?

After the Feb 12, 2026 settlements, Contango reports remaining hedges of 11,000 ounces in 2026 and 15,000 ounces in the first half of 2027. According to Contango, it plans to work with lenders to eliminate the remainder this year.