Contango Announces Results for the Quarter Ended June 30, 2026

Contango Silver & Gold Inc. (CTGO) reported net income of $4.8 million, or $0.14 per diluted share, for the quarter ended June 30, 2026, a decline from the $15.9 million, or $1.24 per diluted share, posted in the same period of 2025. The company recorded a total loss from operations of $8.5 million in Q2 2026, compared to an income from operations of $23.0 million in Q2 2025. This swing was driven largely by a $10.3 million loss on derivative contracts in Q2 2026, versus a $12.8 million gain in the prior year period. Adjusted net loss stood at $5.5 million in Q2 2026, versus adjusted net income of $28.8 million in Q2 2025.

Production from Contango’s 30% share in the Manh Choh project totaled 8,627 gold ounces in Q2, bringing year-to-date output to 16,639 ounces. Silver sales reached 10,319 ounces in the quarter and 25,361 ounces year-to-date. Cash costs by-product were $2,641 per ounce sold in Q2, with AISC by-product at $2,877 per ounce. Year-to-date figures for cash costs and AISC by-product were $2,665 per ounce and $2,830 per ounce, respectively.

The company ended Q2 with $89.0 million in unrestricted cash, up from $64.8 million at year-end 2025. This balance included a $9 million cash distribution from the Peak Gold JV received in the second quarter. The earnings release confirmed the July 1, 2026, credit facility amendment, which converted the remaining 15,000 ounces of 2027 gold hedges into debt. Consequently, the secured credit facility principal increased to $46.3 million, and the hedge book is now unhedged.

On July 1, 2026, Contango closed the acquisition of the Lucky Shot lease and a 2% NSR for total consideration of $16,074,000. The company also settled $18.75 million of Lucky Shot milestone payments for $5.0 million in cash plus 100,000 shares.

Looking ahead, 2026 Manh Choh production guidance remains unchanged at 40,000–45,000 gold ounces. The third 2026 campaign is guided at 11,000–12,000 gold equivalent ounces net to Contango. For 2027, guidance projects 75,000–80,000 gold ounces at cash costs of $1,200–$1,300 per ounce and AISC of $1,300–$1,400 per ounce.

Drilling at Kitsault Valley has accelerated, with over 35,000 meters completed as of the release date against the original 40,000-meter campaign. An additional 5,000–10,000 meters are now planned. The updated Mineral Resource Estimate for Kitsault Valley is expected in Q3 2026.

Contango Silver & Gold Inc. (CTGO) released its second-quarter financial and operating results, providing the first detailed look at production, realized costs, cash flow, and balance sheet position for the period. Most strategic items in the release had been disclosed previously: the hedge conversion was announced on July 6, 2026; the Lucky Shot lease and royalty acquisition on May 5, 2026; the milestone settlement on June 29, 2026; and project updates on June 23, 2026.

The company reported Q2 cash costs of $2,641/oz and an all-in sustaining cost (AISC) of $2,877/oz, figures that significantly exceed the 2026 guidance range of $1,900–$2,000/oz for cash costs and $2,200–$2,300/oz for AISC. Management attributed the cost miss partly to the transition from the lower-grade North Pit to the higher-grade South Pit and to lower Q2 volumes. Despite this deviation, the release did not update or lower the 2026 full-year cost guidance, leaving the outlook dependent on a sharp improvement in the second half of the year.

Adjusted net loss for the quarter was $5.5M, indicating that the underlying quarterly result was weaker than the $4.8M GAAP net income figure might suggest. Year-to-date operating cash flow was negative at -$50.3M, driven by hedge settlements and lower joint venture distributions. The cash balance increased primarily due to financing inflows of $54.8M rather than organic cash generation in the first half.

On the positive side, the balance sheet remains strong and the hedge book has been eliminated. Manh Choh’s initial $105M investment is stated to be fully repaid with $160M of total returns. The company maintained its Manh Choh production guidance of 40,000–45,000 ounces for 2026, with the third campaign guidance consistent with that full-year range. Additionally, 2027 production guidance points to materially higher production and lower costs.

Contango Silver & Gold Inc. is a NYSE American and TSX-listed gold and silver company focused on Alaska and British Columbia’s Golden Triangle. Its producing asset is the Manh Choh mine in Alaska, held through a 30% interest in the Peak Gold JV. Kinross’s KG Mining subsidiary owns 70% and operates the project, with ore processed at the Fort Knox mill. Manh Choh serves as Contango’s current cash-flow engine, with 2026 guidance of 40,000–45,000 gold ounces for Contango’s share and 2027 guidance of 75,000–80,000 ounces.

The company is advancing its 100%-owned Lucky Shot high-grade gold project in Alaska toward a Feasibility Study in H1 2027 and a production decision in 2027. In Alaska, Johnson Tract is an advanced exploration and permitting project. A May 2025 Initial Assessment showed a post-tax NPV of $615.4M at $4,000/oz gold and a post-tax IRR of about 60%.

In British Columbia, Kitsault Valley is the large 100%-owned silver-gold land package acquired through the Dolly Varden merger. The company has scheduled a 40,000-meter 2026 drill program and an updated Mineral Resource Estimate due in Q3 2026.