CTGO

This article first appeared on GuruFocus. Q2 Financials: The company recently released its Q2 financial results, which were the primary topic of discussion during the call. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Contango Silver & Gold Inc (CTGO) is now fully unhedged, providing shareholders with direct exposure to rising gold prices. The company maintains its 2026 production guidance of 40,000-45,000 ounces, with a stronger second half expected as higher-grade South pit ore is processed. Cash flow is set to improve significantly, with projected JV distributions of about $36 million in the second half of 2026, potentially exceeding $60 million for the year at current gold prices. The acquisition of Lucky Shot's mineral claims and royalty reduces future costs and consolidates district control, supporting the feasibility study and 2027 production decision. Exploration drilling at Kitsault Valley is exceeding efficiency targets, with 5,000-10,000 additional meters expected within budget, and a new resource estimate is due this quarter. The company holds a strong balance sheet with $89 million in cash, sufficient to fund all three projects (Manh Choh, Lucky Shot, and Johnson Tract) over the next 12 months. First-half 2026 production was lower than expected due to mining lower-grade material from the North pit, leading to higher cash costs of $2,665/oz and AISC of $2,830/oz. Full-year cash cost guidance of $1,900-$2,000/oz implies a significant cost reduction in the second half, which may be challenging to achieve if grade improvements underperform. The company's cash balance is expected to decline to around $45 million by year-end and dip further in Q1 2027, indicating near-term liquidity pressure. The feasibility study for Lucky Shot is not expected until 2027, leaving uncertainty about the project's timeline and potential delays. Johnson Tract is still in the permitting phase, with construction and development progressing slowly, and it remains a longer-term project with no near-term production contribution. The company's reliance on gold price strength is a risk; if gold prices fall below $4,000, margins could compress, despite the $3,100 put floor. Warning! GuruFocus has detected 3 Warning Signs with CTGO. Is CTGO fairly valued? Test your thesis with our free DCF calculator. Q: How would you frame where the company sits today compared to where it was at this point last year, especially with the Kitsault Valley asset and the hedge book fully behind you?A: Rick Nieuwenhuyse (CEO): The addition of the Dolly Varden asset to Kitsault creates a world-class asset, and the teams are fully integrated. The most exciting news is that the company is out from underneath its hedges, providing shareholders with clear exposure to the upside in the gold price. The company is generating strong cash flows, with the better half of the year ahead for production from Manh Choh. They are well-positioned for 2027, which is expected to be the best year at Manh Choh with high grades and low costs, all while maintaining only 33 million shares outstanding. Q: Can you walk us through the production cadence for the back half of the year and why the 40,000 to 45,000 ounce guidance is still intact?A: Michael Clark (CFO): The lower grade in the first half was due to mining the outside of the resource model in the North pit. The second half of the year is fully into the South pit, which has more tonnes and higher grades. They expect about 12,000 ounces produced in both campaigns 3 and 4, which should get them to just slightly above 41,000 ounces of gold production for the year, remaining within guidance. Q: Cash costs for the first half came in at $2,665 an ounce, with all-in sustaining costs at $2,830, versus full-year guidance of $1,900 to $2,000. Can you bridge that gap for investors?A: Michael Clark (CFO): The higher first-half costs were largely driven by pre-stripping in the South pit, which consumed capital while mining lower grades. As the second half begins, pre-stripping is complete, leading to higher tonnes mined and processed as well as significantly higher grades. These factors combined should allow the company to come close to its full-year guidance. Q: With gold sitting about $4,400 and puts at $3,100 providing a floor, what does the margin picture look like on each ounce delivered, and how does that change the cash flow story for the rest of 2026?A: Michael Clark (CFO): The puts are viewed as an insurance policy, with budgeting done at $3,700 gold. At $4,400 gold, the margin would be about $2,400 per ounce after subtracting $2,000 cash costs. They expect to receive about $36 million in distributions in the back half of the year, which could increase by another $7 million if the $4,400 gold price holds, bringing total cash distributions for the year to slightly above $60 million. Q: Why was it important to close the purchase from Alaska Hardrock, bringing in the mineral claims around Lucky Shot and the 2% net smelter royalty, ahead of the feasibility study?A: Rick Nieuwenhuyse (CEO): The transaction was opportunistic, as the underlying landowner was motivated to sell after gold prices ran up. The company now owns the underlying patented mining claims and controls the district effectively, having bought out the royalty. This underscores their belief that they have a real mine at Lucky Shot, and the deal was a good outcome for both parties. Q: What are the programs at Lucky Shot designed to prove ahead of the feasibility study and the 2027 production decision?A: Rick Nieuwenhuyse (CEO): The programs are gathering geologic, geotechnical, and assay data to support a direct shipping ore (DSO) based feasibility study. The target is a resource of 400,000 to 500,000 ounces of gold grading in the 10- to 14-gram range. They are evaluating modern ore sorting technology to reduce transportation costs, a significant factor in a DSO model. Drilling will continue until about March of next year, with the feasibility study expected in 2027. Q: What should investors be watching for in the new resource estimate at Kitsault Valley, and how has the integration of the Dolly Varden team gone?A: Rick Nieuwenhuyse (CEO): The integration has been excellent, with the team performing efficiently. Five rigs are turning, averaging high-470 to 480 meters per day. The drilling is being done cost-effectively, allowing for an additional 5,000 to 10,000 meters within the same budget. Drill results are expected within a month, likely in early September, with subsequent results every two to three weeks. Q: How does the silver exposure at Kitsault change the way investors should think about the story, given silver's strong performance?A: Rick Nieuwenhuyse (CEO): Kitsault is a silver-centric deposit, with silver making up 90% of the value for Torbrit, Wolf Vein, Dolly Varden, and North Star. This is rare, as most silver producers generate more value from gold. The company's five-year objective is to produce 200,000 ounces of gold and 5 million ounces of silver, with the silver coming from this district. Exciting drilling results are expected within a month. Q: What does the 2026 field season look like at Johnson Tract, and where does it fit in the queue behind Lucky Shot and Kitsault?A: Rick Nieuwenhuyse (CEO): The permitting process is moving along according to schedule under FAST-41, which is transparent. While permitting, the team has been building roads and bridges, with the work coming in under budget. The CEO is heading out to inspect the progress and will share photos and video. Johnson Tract remains a key asset in the development queue. Q: With $89 million in cash and distributions from the JV expected to build, how do you prioritize where the dollars go over the next 12 months?A: Michael Clark (CFO): The company forecasts out three to four years and has sufficient capital to advance all three projects as planned. Cash is expected to end the year around $45 million, dipping to its lowest in Q1 of next year before steadily increasing as Manh Choh ramps up in 2027. Each project's budget is managed to stay within current estimates. Q: What do you think about the macro setup for gold, given its recent comeback? For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Contango ORE, Inc.? Here are five stocks we like better. Manh Choh production is expected to accelerate in the second half of 2026 as mining shifts to higher-grade South Pit ore, supporting full-year production of just over 41,000 ounces and lower cash costs of approximately $1,900–$2,000 per ounce. Contango eliminated its gold hedges in July, giving shareholders direct exposure to spot prices. Management projects roughly $36 million in joint-venture cash distributions during the second half of 2026 at a $3,700 gold price, with total 2026 distributions potentially exceeding $60 million at higher prices. The company is advancing growth projects, including drilling at Lucky Shot toward a 2027 feasibility study and completing a major Kitsault Valley drill program focused on its silver-rich assets; it also reported $89 million in cash and sufficient funding for planned work over the next 12 months. Do Bank Failures Mean It's Time To Invest In Precious Metals? Contango ORE (NYSEAMERICAN:CTGO), which management referred to during its quarterly update as Contango Silver & Gold, said it expects stronger production, lower costs and increased cash distributions in the second half of 2026 as mining advances into higher-grade material at the Manh Choh joint venture. Chief Executive Officer Rick Van Nieuwenhuyse said the company has expanded its portfolio through the addition of the Kitsault Valley assets, including the Dolly Varden project, while also eliminating its gold hedges as of July. He said the company is now positioned to provide shareholders with direct exposure to gold-price movements. → Lumentum Just Delivered the AI Growth Investors Wanted “We’re generating strong cash flows,” Van Nieuwenhuyse said, adding that the company expects its better production periods at Manh Choh to occur in the second half of 2026 and in 2027. Chief Financial Officer Mike Clark said Contango’s 30% share of Manh Choh production was about 8,900 ounces during the reported quarter, while 8,627 ounces were sold at an average spot price of $4,328 per ounce. The operation had been processing lower-grade material from the North Pit while completing pre-stripping work at the South Pit. → Ryman Checks Into a $1.38B Hospitality Upgrade Clark said the company expects to produce roughly 12,000 ounces in each of the third and fourth mining campaigns, which would bring full-year production to slightly more than 41,000 ounces. That outlook remains within Contango’s 2026 guidance range of 40,000 to 45,000 ounces. First-half cash costs were $2,665 per ounce and all-in sustaining costs were $2,830 per ounce. However, Clark said full-year cash-cost guidance of approximately $1,900 to $2,000 per ounce remains intact. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal The expected second-half cost improvement is primarily tied to the completion of South Pit pre-stripping and the transition to higher-grade ore and higher processing volumes, Clark said. “The pre-strip is behind us,” he said. With hedges no longer in place, Clark said the company’s gold sales will be priced at spot beginning in the third quarter. The company retains put options at $3,100 per ounce, which he characterized as insurance rather than a core part of the company’s price outlook. Contango budgets at $3,700 gold, he said. At a hypothetical $4,400 gold price and $2,000 cash cost, Clark said the implied margin would be about $2,400 per ounce. He projected approximately $36 million in joint-venture cash distributions during the second half of the year using a $3,700 gold price. If gold were to average $4,400, he said distributions could increase by an additional $7 million, bringing total 2026 distributions to slightly more than $60 million. Contango completed the purchase of mineral claims, a 2% net smelter royalty, property and equipment associated with the Lucky Shot project from Alaska Hardrock Mining & Blasting on July 1. Van Nieuwenhuyse said the transaction gives the company ownership of the underlying patented mining claims and reduces royalty exposure at the project. The company is conducting underground and surface drilling at Lucky Shot as it compiles geological, geotechnical and assay data for a direct-shipping-ore feasibility study. Van Nieuwenhuyse said Contango is targeting a resource of 400,000 to 500,000 ounces of gold with grades in the range of approximately 10 to 15 grams per ton. Management is evaluating ore sorting as part of the development concept, which could reduce the amount of non-mineralized material transported from the site. The company is also assessing potential processing options, including the Fort Knox mill, while noting that other alternatives are under review. Drilling is expected to continue through approximately March 2027, with the feasibility study anticipated in 2027. Van Nieuwenhuyse said final underground drilling assays included an intercept grading 972 grams per ton gold with visible gold in the core. At Kitsault Valley, the company had completed more than 35,000 meters of a planned 40,000-meter drill program by the end of June. Five rigs are operating at the project, and Van Nieuwenhuyse said drilling efficiency could allow Contango to complete an additional 5,000 to 10,000 meters within the existing flow-through financing budget. A new resource estimate is being prepared, while initial drill results were expected within about a month of the call, followed by additional results every two to three weeks. Van Nieuwenhuyse said the integration of the Dolly Varden team had proceeded well. He described Kitsault as a silver-centric district, saying silver accounts for about 90% of value at the Torbrit, Wolf, Dolly Varden and North Star areas. The company’s five-year objective is to produce 200,000 ounces of gold and 5 million ounces of silver annually, with the targeted silver production expected to come from the silver-focused portion of the Kitsault district. Clark said Contango ended the quarter with $89 million in cash and has only $2 million of facility repayments remaining for 2026. He said available cash and expected Manh Choh distributions are sufficient to fund planned work at Kitsault, Lucky Shot and Johnson Tract over the next 12 months. The company expects cash to finish 2026 at approximately $45 million and to reach its lowest level in the first quarter of 2027 before increasing as Manh Choh production ramps up, according to Clark. At Johnson Tract, Van Nieuwenhuyse said permitting under the FAST-41 process is progressing according to schedule. The company has been building roads and bridges to support development activity, and Clark said the work is currently under budget. Van Nieuwenhuyse said the company expects continuing news flow from drill results at Lucky Shot and Kitsault, as well as infrastructure updates from Johnson Tract, in the coming weeks. Contango ORE Royalty Trust (NYSE American: CTGO) is a grantor royalty trust that holds net overriding royalty interests in oil and gas properties. As a non‐operating entity, the trust itself does not engage in exploration, drilling or production activities but instead receives a percentage of revenues generated by producing wells. This structure offers investors exposure to commodity price movements and production volumes without the direct capital expenditure or operational risks associated with upstream oil and gas companies. The trust's assets consist primarily of royalty interests in offshore leases located on the continental shelf of the Gulf of Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Contango ORE Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management successfully eliminated the company's hedge book in July, providing shareholders with full exposure to gold price upside as the market finds a floor above $4,000. Performance at the Manh Choh JV was characterized by lower grades and higher costs in the first half due to mining the periphery of the North pit and significant pre-stripping in the South pit. The acquisition of the Dolly Varden asset at Kitsault Valley is framed as a world-class addition, establishing a silver-centric district where silver represents 90% of the value for core veins. Strategic consolidation at Lucky Shot through the purchase of mineral claims and a 2% royalty buyout was opportunistic, aimed at reducing long-term costs ahead of a production decision. Operational efficiency at Kitsault Valley is exceeding expectations, with drilling rates reaching 500 meters per day, allowing for an additional 5,000 to 10,000 meters within the existing budget. The company maintains a tight capital structure with only 33 million shares outstanding, emphasizing per-share leverage to rising precious metal prices. Full-year production guidance of 40,000 to 45,000 ounces remains intact, supported by a shift to higher-grade South pit ore and increased mining volumes in the second half. Cash costs are expected to improve significantly from $2,665 in the first half to a full-year average of $1,900 to $2,000 as pre-stripping activities conclude. Management targets a 5-year production objective of 200,000 ounces of gold and 5 million ounces of silver, driven by the silver-centric Kitsault Valley district. A feasibility study for a Direct Shipping Ore (DSO) model at Lucky Shot is slated for completion in 2027, focusing on high-grade resources between 10 and 14 grams per tonne. Cash distributions from the Manh Choh JV are projected to reach approximately $60 million for the year if gold prices hold at $4,400, providing liquidity for concurrent project advancement. The company is utilizing the FAST-41 federal permitting process for Johnson Tract to ensure schedule transparency and mitigate regulatory delays. Transportation costs represent a significant variable in the Lucky Shot DSO model, prompting management to evaluate high-speed ore sorting to upgrade mine grades. While cash is expected to dip to its lowest point in Q1 2027, management anticipates a steady increase thereafter as Manh Choh enters its highest-grade production year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that 12,000 ounces are expected in each of the next two campaigns as mining moves fully into the South pit. The transition involves higher tonnes and significantly higher grades, which bridges the gap from the lower-performing first half. The transaction was opportunistic, taking advantage of the underlying landowner's desire to exit as gold prices rose. Securing 100% control and reducing royalties underscores management's confidence in the project's viability as a future mine. The metallurgy is described as simple quartz and gold with minimal sulfides, making it suitable for various processing options. Management is actively evaluating the Kinross Fort Knox mill, which has excess capacity, alongside other potential processing solutions. Road and bridge construction is currently proceeding under budget, which management highlighted as a key achievement for remote Alaska operations. The project remains in the 'boring part of the Lassonde Curve' (permitting), but is following the transparent FAST-41 federal timeline.

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 $1,200 to $1,300 per ounce and AISC of $1,300 to $1,400 per ounce sold. "Crucially, we hit a major milestone with Manh Choh this quarter: against our initial capital investment of $105 million ("M"), total returns to date have now reached $160 M-meaning our initial investment is fully repaid, and all future cash flows from the asset represent pure upside and clear profit. Supported by a $9.0 M distribution from the Peak Gold JV during the quarter, we ended Q2 with $89.0 M in cash, up from $64.8 M at year-end 2025. We leveraged this balance sheet strength to systematically simplify our capital structure and de-risk our growth assets. On July 1, 2026, we amended our credit facility and converted the remaining 15,000 ounces of 2027 gold hedges into debt. Combined with the early delivery of our 2026 hedge obligations in June, our hedge book is now fully liquidated, giving us 100% unhedged upside to gold prices. In parallel, we extinguished long-term liabilities by buying out the underlying Lucky Shot lease and 2% NSR royalty to secure 100% ownership, while also settling outstanding milestone payment obligations." 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 $9 M from the Peak Gold JV. The Company reported a total loss from operations of $8.5 M, net income of $4.8 M and an adjusted net loss1 of $5.5 M. The Company's unrestricted cash position as of June 30, 2026 was $89.0 M compared to $64.8 M as of December 31, 2025. Manh Choh Production Results 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 $9 M cash distribution to Contango during the second quarter. Operational momentum continues on schedule, with the third mining campaign of 2026 set to commence in late August. Production for this campaign is guided at 11,000 to 12,000 gold equivalent ounces to Contango's account. 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 $25 M surface drilling program launched in late May, with over 20,000 meters completed by the end of Q2. The program is infilling known resources across Homestake, Wolf, Dolly Varden, North Star, and Torbrit, while testing exploration targets across the company's wider holdings in the southern corner of B.C.'s Golden Triangle. 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 $33.7 M 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 M. 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 2% net smelter return royalty, property, equipment and improvements for a total consideration of $16,074,000 comprised of: (i) $300,000 advance (paid); (ii) $1,709,250 deposit payable upon signing of the agreement (paid); (iii) $4,064,750 payable at closing; and (iv) $10,000,000 secured promissory note bearing 5% per annum, compounded monthly, and maturing four years after closing date. The transaction closed on July 1, 2026 with a payment of $4,064,750. Settlement of Milestone Payments for Lucky Shot Project: On June 26, 2026, the Company settled $18.75 M of milestone payments on the Lucky Shot project with a payment of $5.0 M and the issuance of 100,000 shares of common stock for total consideration of $6.6 M. Statement of Operations for Q2-2026 compared to Q2-2025: The Company reported total loss from operations of $8.5 M in Q2-2026 compared to income of $23.0 M for Q2-2025. In Q2-2026, the Company reported adjusted net loss of $5.5 M compared to net income of $28.8 M for Q2-2025. The Company reported net income of $4.8 M or $0.14 income per fully diluted share. This compares to a net income of $15.9 M for Q2-2025 or $1.24 income per fully diluted share. The net income for Q2-2026 and Q2-2025 includes a gain/(loss) on derivative contracts related to the hedges in the amounts of $10.3 M and ($12.8) M, respectively. Statement of Cash Flows for YTD-2026 compared to YTD-2025: Net cash used in operating activities was $50.3 M for YTD-2026 compared to $36.9 M provided by operating activities in YTD-2025. The reduction in net cash provided by operating activities was primarily driven by the settlement of hedge contracts and lower cash distributions received from the Peak Gold JV recognized during YTD-2026. Cash provided by investing activities was $20.4 M for YTD-2026 compared to $nil M in YTD-2025. Cash provided by financing activities in YTD-2026 was $54.8 M, primarily related to cash proceeds from an equity offering offset by principal repayments of $2.0 M on the credit facility. This compares to cash outflows of $20.5 M in YTD-2025, primarily related to principal repayments of $22.0 M on the credit facility. The Company's cash and cash equivalents position as of June 30, 2026 was $89.0 M compared to $64.8 M as of December 31, 2025. 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: 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 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 11,700 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 ("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) 388-7770www.contangoore.com 1 See non-GAAP measures at end of this press release for calculation of Adjusted Net Income To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309501

FAIRBANKS, Alaska, June 18, 2026 /CNW/ - Contango Silver & Gold Inc. ("Contango" or the "Company") (NYSE American: CTGO) (TSX: CTGO) is pleased to announce that at the Company's annual meeting of stockholders held on June 18, 2026 the following directors were elected to serve until the 2027 annual meeting of stockholders: Clynton Nauman Rick Van Nieuwenhuyse Shawn Khunkhun Michael Cinnamond Tim Clark Darren Devine Brad Juneau The following proposals were also approved by the stockholders: The ratification of the appointment of Baker Tilly US, LLP as the independent auditors of the Company for the fiscal year ending December 31, 2026; The approval, on a non-binding advisory basis, of the compensation of the Company's named executive officers; and The approval, on a non-binding advisory basis, of one-year (annual basis) as the frequency of the advisory vote on the compensation of the Company's named executive officers. ABOUT CONTANGO Contango is an NYSE American and TSX listed company that engages in the exploration for and development and production of gold and associated minerals in Alaska and the Golden Triangle in British Columbia. 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, 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) a lease on 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, from the underlying owner, Alaska Hardrock Inc., (iii) mineral rights to approximately 145,000 acres of State of Alaska mining claims, (iv) mineral rights to approximately 11,700 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, and (v) mineral tenures of approximately 247,000 acres (100,000 ha) located in and around the Kitsault Valley in the Golden Triangle of northwest British Columbia. 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 that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. 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. Such statements are based on Contango's current expectations and include 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; 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/contango-announces-results-of-the-2026-virtual-annual-meeting-of-stockholders-302804876.html

This article first appeared on GuruFocus. Q1 Gold Production: Just over 8,000 ounces. Guidance for Annual Gold Production: 40,000 to 45,000 ounces. Reported Cash Cost: $2,692 per ounce. All-in Sustaining Cost (ASIC): $2,778 per ounce. Net Loss: $14.3 million, including a $19 million noncash derivative loss. Adjusted Net Income: $4.7 million. Exploration Expenses: $3.8 million, mainly from the Lucky Shot exploration drill program. Derivative Loss: $51 million recognized loss from early settling of 15,500 ounces of hedges. Equity Income from Peak Gold JV: $12 million, compared to $22 million in Q1 2025. Hedge Contracts: Reduced to 22,000 ounces, with plans to fully deliver and pay off debt by year-end. Warning! GuruFocus has detected 3 Warning Signs with CTGO. Is CTGO fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Contango Silver & Gold Inc (CTGO) is confident in meeting its annual gold production guidance of 40,000 to 45,000 ounces, despite a lower-than-expected Q1 output. The company has successfully reduced its hedge book to 22,000 ounces and aims to be debt-free and hedge-free by the end of the year. A significant increase in cash reserves from $64.8 million to $97.5 million was achieved, partly due to the Dolly Varden merger. The company anticipates a strong 2027 with projected gold production of 75,000 to 80,000 ounces and substantial free cash flow. Contango Silver & Gold Inc (CTGO) is actively investing in exploration projects, with a 60,000-meter drilling program planned for 2026, which could lead to significant resource discoveries. Q1 production was lower than expected at 8,000 ounces due to winter conditions and operational challenges, including a belt fire. Reported cash costs and all-in sustaining costs (ASIC) were significantly above full-year guidance, at $2,692 and $2,778 per ounce, respectively. The company reported a net loss of $14.3 million, primarily due to a $19 million non-cash derivative loss. Fuel price increases in Alaska could impact operational costs, with diesel prices rising from $4.50 to $6 per gallon. The transition year of 2026 is expected to be the lowest production year under the current mine plan, impacting overall financial performance. Q: Can you remind investors how the 2026 mine sequencing was designed and why Q1 was always going to look the way it was relative to what's coming in the back half of the year? A: Rick Nieuwenhuyse, CEO, explained that 2026 was planned as a low production and high-cost year due to the transition from mining the North pit to the South pit. The first half of the year was expected to have lower gold production and higher costs, but this will improve as the year progresses. The mine plan is playing out as described in the feasibility study, with some positive modifications like finding more ore in the North pit. Q: What changes as you move into the South pit, both on the grade and on tonnage, and how confident are you in landing inside that 40,000 to 45,000 ounce annual range? A: Rick Nieuwenhuyse expressed confidence in meeting the guidance of 40,000 to 45,000 ounces. The transition to the South pit will result in higher-grade material and larger tonnages of ore. The first quarter was lower than expected due to winter conditions and operational challenges, but they plan to make up for it in the remaining quarters. Q: How should investors think about the relationship between Q1 unit costs and the annual ranges, and what mechanically brings those numbers down as this year progresses? A: Rick Nieuwenhuyse explained that as the year progresses, more tons of ore will be moved at higher grades, reducing costs. The mine plan involves pre-stripping early in the year, and as they move into higher-grade material, costs will decrease. By Q4, they expect to be in high-grade material, leading to lower costs. Q: Can you take investors through how you'd encourage them to read this quarter's P&L, particularly the bridge from your adjusted net income of $4.7 million back to the GAAP figure? A: J. Clark, Executive VP of Finance, explained that the net loss includes a significant derivative loss due to early settling of hedges. The adjusted net income reflects the impact of these hedges, and as they reduce the hedge book, these adjustments will diminish. The loss also includes exploration expenses and a comparison to a stronger Q1 in 2025. Q: What does an unhedged debt-free Contango look like from a free cash flow capacity perspective heading into 2027? A: J. Clark stated that 2027 is expected to be a significant year with 75,000 to 80,000 ounces of production. With a $3,700 gold price, they expect $165 million to $175 million in free cash flow, and with a $5,000 gold price, it could be closer to $225 million. They aim to be debt-free and hedge-free by the end of 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FAIRBANKS, Alaska, May 14, 2026 /CNW/ - Contango Silver and Gold Inc. ("Contango" or the "Company") (NYSE American: CTGO) (TSX: CTGO) announced today that it filed with the Securities and Exchange Commission its Form 10-Q for the quarter ended March 31, 2026 ("Q1-2026"). Rick Van Nieuwenhuyse, Chief Executive Officer of the Company, stated, "The first quarter of 2026 was a period of significant operational transition and strategic growth. At Manh Choh, while harsh winter conditions and operational challenges impacted Q1 throughput and costs, we are pleased to report that we are now entering a high-production phase; we expect ore tons processed and ore grade processed to increase for the remainder of the year, as we transition into the higher-grade portions of the South Pit. Manh Choh remains on track to meet our 2026 guidance of 40,000 to 45,000 ounces of gold production, which will set the stage for 2027, which we are guiding to 75,000 to 80,000 ounces of gold production with cash costs of $1,200 to $1,300 per ounce sold and all-in sustaining costs of $1,300 to $1,400 per ounce sold. With this momentum, our cost guidance for the year remains firm. During the quarter we received a US$9 million ("M") cash distribution from the Peak Gold JV. Our cash on hand for the end of the quarter was US$97.5 M an increase from US$64.8 M at December 31, 2025. For 2026, we anticipate cash costs between $1,900 to $2,000 and all-in sustaining costs of $2,200 to $2,300 per ounce of gold sold. Furthermore, we have strengthened our financial flexibility by reducing hedge contracts to 22,000 ounces and reduced our debt to $13.6 M, both of which we intend to fully settle by year-end." Mr. Van Nieuwenhuyse continued, "This has also been a transformative quarter for our corporate reach. Following the successful merger with Dolly Varden Silver, we have fully integrated our teams and are already seeing the benefits of our combined strengths. It was a true honor to ring the opening bell at the New York Stock Exchange on April 24th, and we look forward to the upcoming ceremony at the Toronto Stock Exchange on June 12th. Our exploration and development pipeline is equally robust. At Lucky Shot, our underground drilling has exceeded expectations, providing excellent clarity on the system's continuity. We are now accelerating underground development work and surface drilling in Q2-2026. Simultaneously, we are preparing for a 40,000-meter surface program at Kitsault Valley, with an updated mineral resource estimate expected by late June. Finally, at Johnson Tract, we are gaining significant ground with FAST-41 permitting and the mobilization of heavy equipment to support year-round operations. We are preparing for a very productive 2026." During Q1-2026, the Company had the following updates: In Q1-2026, Contango's share of production sold from the Manh Choh mine, jointly held by Kinross and Contango, totaled 8,012 ounces of gold and 15,042 ounces of silver, receiving a cash distribution of $9 million ("M"). The Company reported total income from operations of $4.8 M and adjusted net income1 of $4.7 M. The Company reported a net loss of $14.3 M, including a $19.0 M loss on derivative contracts for Q1-2026. The Company's unrestricted cash position as of March 31, 2026 was $97.5 M compared to $64.8 M as of December 31, 2025. Manh Choh Production Results Manh Choh Mine: During the quarter, the Company received a cash distribution of $9 M from the Peak Gold JV. On May 13, 2026, the Peak Gold JV started processing Manh Choh's second campaign of 2026 and are guiding to 10,000 ounces of production to Contango's account for this campaign, which includes ore in stockpiles at Fort Knox that were not processed during Q1-2026. Lucky Shot Project: In November 2025, the Company mobilized a drill rig at the Lucky Shot mine site to commence the first phase of a 18,000-meter underground and surface in-fill drilling program. The Company began reporting assay results from this program during the first quarter of 2026. This drilling program, along with detailed engineering, hydrology and geotechnical studies, is expected to support the preparation of a feasibility level mine and transportation plan for Lucky Shot, with the objective of targeting annual gold production of 40,000 to 50,000 using the Direct Shipping Ore (DSO) approach, assuming positive exploration results. The Company expects to complete the feasibility study in the first half of 2027 and make a production decision in 2027. Johnson Tract Project: Activities at the Johnson Tract Project focused on planning, resourcing, permitting coordination, and logistical preparations in support of the Company's planned 2026 field program. On December 1, 2025, the Johnson Tract Critical Metals Project was posted to the Federal Permitting Dashboard as a covered project under Title 41 of the Fixing America's Surface Transportation Act, commonly referred to as FAST-41. The Federal Permitting Improvement Steering Council announced the project's FAST-41 coverage on December 2, 2025. The U.S. Army Corps of Engineers is identified as the lead federal permitting agency for the project. The Company has advanced planning activities for the proposed 2026 field season, including solicitation and review of bids for road construction and helicopter support associated with planned access improvements between the Johnson Tract camp and the proposed portal site. These activities are intended to support the Company's operational timeline and continued advancement of the project through the permitting and development planning process. To date, the Company has completed three key steps of the overall permitting process through meeting various timelines as laid out in the FAST-41 permitting dashboard. The Company is also continuing to advance State of Alaska permits required to start construction of the exploration adit in 2027. Kitsault Valley Project: Following completion of a new mineral resource estimate ("MRE") expected by the end of the second quarter of 2026, a 40,000 meter surface drilling program is expected to begin in June. The planned $25 M campaign aims to infill known mineral resources at Homestake, Homestake Silver, Wolf, Dolly Varden, North Star and Torbrit, while testing high-priority exploration targets across the project's wider holdings in the southern corner of the Golden Triangle. Following this year's drill program, the Company is planning to prepare a preliminary development plan in the form of an Initial Assessment ("IA") for the Kitsault Valley assets. Repayments of Debt, Reduction of Hedge Contracts and Financing: The Company's cash and cash equivalents position as of March 31, 2026 was $97.5 M. In Q1-2026, Contango repaid $1.0 M on the credit facility, reducing the outstanding principal balance to $13.6 M. On February 12, 2026, the Company raised gross proceeds of $50 M by issuing 1,678,206 shares of common stock and pre-funded warrants to purchase up to 325,000 shares of common stock at an offering price of $24.96 per share and $24.95 per pre-funded warrant. On February 12, 2026, the Company paid $46.4 M 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 $0.4 M to purchase 15,446 puts with a strike price of $4,000 per ounce. On March 26, 2026, the Company sold 4,445 put contracts with a maturity date of March 31, 2026 for proceeds of $52,946. The cost of these put contracts were $41,023. 11,000 put contracts remain outstanding with maturity dates in June and September of 2026. As of the date of this release, the remaining gold hedge contracts total 7,000 ounces which mature on December 31, 2026 and 15,000 ounces that mature in the first half of 2027. Corporate Development – Dolly Varden Merger: On March 26, 2025, the Company completed its merger-of-equals with Dolly Varden Silver Corporation ("Dolly Varden"). Upon completing the acquisition, Dolly Varden shareholders owned approximately 48% of the combined company. The combined Company changed the name to Contango Silver & Gold and was successfully listed to the Toronto Stock Exchange ("TSX") where trading began on April 13, 2026 under the same trading symbol CTGO. Corporate Development – Acquisition of Lucky Shot Lease and Royalty Subsequent to quarter end, on May 4, 2026, the Company entered into a purchase and sale agreement (the "Purchase Agreement") with Alaska Hardrock Inc. (the "Seller" or "AHI") to acquire 100% ownership of its Lucky Shot project by purchasing from AHI the underlying real property, mining claims and mining equipment and extinguishing the outstanding 2% net smelter returns royalty (the "NSR Royalty") held by AHI. The consideration totaled $16,074,000, comprised of the following: Cash deposit of $300,000 (paid) Cash payment of $1,709,250 due on signing of the Purchase Agreement (paid) Cash payable of $4,064,750 due on closing, which is expected to occur no later than July 1, 2026 (the "Closing Date") Promissory note of $10 M: 5% annual interest rate compounding monthly, payable annually Principal repayments of $2,000,000 on the second and third anniversary dates of the Closing Date with the remaining principal balance due on the fourth anniversary of the Closing Date Secured by real property, mining claims, and other assets acquired Statement of Operations for Q1-2026 compared to Q1-2025: The Company reported total income from operations of $4.8 M in Q1-2026 compared to $19.3 M for Q1-2025. In Q1-2026, the Company reported adjusted net income of $4.7 M compared to $17.9 M for Q1-2025. The Company reported net loss of $14.3 M or $0.83 loss per fully diluted share. This compares to a net loss of $22.5 M for Q1-2025 or $1.88 loss per fully diluted share. The net loss for Q1-2026 and Q1-2025 includes a loss on derivative contracts related to the hedges in the amounts of $19.0 M and $40.5 M, respectively. Statement of Cash Flows for Q1-2026 compared to Q1-2025: Net cash used in operating activities was $49.6 M for Q1-2026 compared to $28.6 M provided by operating activities in Q1-2025. The reduction in net cash provided by operating activities was primarily driven by realized loss of hedge contracts recognized during Q1-2026. Cash provided by investing activities was $30.8 M for Q1-2026 compared to $nil M in Q1-2025. Cash provided by financing activities in Q1-2026 was $51.4 M, primarily related to cash proceeds from an equity offering offset by principal repayments of $1.0 M on the credit facility. This compares to cash outflows of $13.7 M in Q1-2025, primarily related to principal repayments of $13.8 M on the credit facility. The Company's cash and cash equivalents position as of March 31, 2026 was $97.5 M compared to $64.8 M as of December 31, 2025. Adjusted Net Income (Non-GAAP) Management uses Adjusted Net Income to evaluate the Company's operating performance, and to plan and forecast operations. The Company believes the use of Adjusted Net Income 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 is evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net loss (GAAP) is reconciled to Adjusted net income (Non-GAAP) adjusted for loss on derivative contracts in the following table: Conference Call and Webcast Contango will host a conference call and webcast to discuss the first quarter results on Thursday, May 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-q1-financials-2026 ABOUT CONTANGO Contango is a NYSE American and TSX listed company that engages in the exploration for and development and production of gold and associated minerals in Alaska and in the Golden Triangle in British Columbia. 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, manager of the Peak Gold JV. The Company and its subsidiaries also have (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) a lease on 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, from the underlying owner, Alaska Hardrock Inc., (iii) mineral rights to approximately 145,000 acres of State of Alaska mining claims, and (iv) mineral rights to approximately 11,700 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, (v) mineral tenures of approximately 247,000 acres (100,000 ha) located in and around the Kitsault Valley in the Golden Triangle of northwest British Columbia. 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; 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/contango-announces-results-for-the-quarter-ended-march-31-2026-302772288.html

FAIRBANKS, Alaska, May 5, 2026 /CNW/ - Contango Silver and Gold Inc. ("Contango" or the "Company") (NYSE American: CTGO) (TSX: CTGO) is pleased to announce the successful completion of the initial phase of the 2025/2026 underground diamond drilling program at the Lucky Shot Project in Alaska. This program represents the first phase of a multi-phase 18,000 meter underground and surface exploration campaign designed to support potential resource expansion, increase confidence in the geologic model, and advance technical studies in support of a mineral resource update and feasibility study targeted for H1 2027. The Company is also pleased to announce the acquisition of the underlying Lucky Shot lease and net smelter returns royalty. Select Highlights Include: LSU26057: 0.37 m averaging 10.53 g/t Au (L1c Vein) LSU26060: 1.34 m averaging 8.58 g/t Au (L1c Vein) LSU26062: 2.18 m averaging 7.98 g/t Au (L1c Vein) LSU26063: 1.15 m averaging 16.47 g/t Au (L2 Vein) LSU26064: 2.89 m averaging 16.06 g/t Au, including LSU26066: 0.31 m averaging 31.56 g/t Au (L1c Vein) LSU26067: 0.35 m averaging 13.61 g/t Au (L1d Vein) LSU26068: 0.30 m averaging 55.45 g/t Au (L1c Vein) LSU26072: 0.84 m averaging 10.28 g/t Au (L1d Vein) LSU26076: 2.71 m averaging 4.28 g/t Au, including LSU26077: 0.33 m averaging 9.37 g/t Au (CK Vein) Rick Van Nieuwenhuyse, Chief Executive Officer, stated: "Our latest drilling at Lucky Shot has exceeded expectations, providing a better understanding of the system's continuity and productivity. The presence of visible gold in multiple intervals is a powerful indicator of the high-grade nature of this deposit. By confirming these multiple vein structures, we have significantly expanded the underground footprint while continuing to de-risk the project. This is not just additional drill and assay data; it is a roadmap to expansion. These assays provide the critical momentum we need to accelerate our technical work and unlock the substantial scale we see inherent in this project." Acquisition of Underlying Lucky Shot Lease and Royalty On May 4, 2026 the Company entered into a purchase and sale agreement (the "Purchase Agreement") with Alaska Hardrock Inc. (the "Seller" or "AHI") to acquire 100% ownership of its Lucky Shot project by purchasing from AHI the underlying real property, mining claims and mining equipment and extinguishing the outstanding 2% net smelter returns royalty (the "NSR Royalty") held by AHI. The consideration totaled $16,074,000, comprised of the following: Cash deposit of $300,000 (paid) Cash payment of $1,709,250 due on signing of the Purchase Agreement (paid) Cash payable of $4,064,750 due on closing, which is expected to occur no later than July 1, 2026 (the "Closing Date") Promissory note of $10 million: 5% annual interest rate compounding monthly, payable annually Principal repayments of $2,000,000 on the second and third anniversary dates of the Closing Date with the remaining principal balance due on the fourth anniversary of the Closing Date Secured by real property, mining claims, and other assets acquired Highlights of this transaction: Restores full value and control of the Lucky Shot project Optimizes financial structure Enhances project economics Reduces administrative burden "Contango has successfully consolidated the royalty interests at Lucky Shot, a move that significantly enhances the project's overall value," said Rick Van Nieuwenhuyse, CEO. "It is a rare and exciting milestone for an operator to acquire the surface and subsurface royalty interests, effectively streamlining our cost structure. This investment allows us to move into the feasibility stage with a highly efficient operating profile, keeping the project's full potential firmly in the hands of our investors." Closing of the transaction is subject to customary closing conditions. Detailed Discussion of Drill Results The Lucky Shot 2025/2026 underground drilling program began in November 2025. To date, the Company has completed 65 HQ diamond drill holes totaling 6,020 meters from ten underground drill stations located along the West Drift (Figure 1). Drilling was completed from existing underground infrastructure, allowing for accurate targeting of known vein structures and improved drill orientation control. The program is focused on the historically mined Lucky Shot Vein (L2 Vein) and the associated L1b, L1c, and L1d veins, which remain historically undeveloped. This release follows the Company's initial drill results announced on March 2, 2026, titled "Contango Ore Intersects 60.22 g/t Gold over 5.92 meters, including 294.77 g/t Gold over 1.16 meters from Underground Drilling Program at the Lucky Shot Project, Alaska, USA." This release includes the next group of assays received from four additional drill stations and 20 drill holes. Program Highlights Safe and successful continuation of underground drilling through Alaskan winter operating conditions. Completion of 6,020 meters in 65 HQ diamond drill holes from ten underground drill stations. Confirmation and extension of mineralization within the Lucky Shot vein system, including the L2, L1b, L1c, and L1d veins. Identification and drill confirmation of previously unmodeled mineralized structures now designated as the L1e and CK veins. Identification and interpretation of a post-mineralization structure, designated the Intersection Fault, that offsets portions of the Lucky Shot vein system. Drill Results Drilling continued eastward along the West Drift through successive underground drill stations (Figure 1). Drill fans were designed to test the down-dip and along-strike continuity of the historically mined L2 Vein (Lucky Shot Vein), while also testing the underlying L1b, L1c, and L1d veins. These underlying veins were included in the Company's May 2023 S-K 1300 Technical Report Summary but remained more loosely constrained by drilling and had not been demonstrated to be laterally continuous at resource-model confidence. This program was intended, in part, to test the continuity of these other subparallel veins. Drill stations 489, 514, 538, and 563 tested areas of the L2 Vein that were not previously modeled due to limited drill coverage. This portion of the program successfully intercepted the projected L2 Vein position down dip of historical workings and extended interpreted lateral continuity eastward along strike. Drill highlights from the L2 Vein include: LSU26069: 0.88 m averaging 6.69 g/t Au from 68.23 m depth LSU26063: 1.15 m averaging 16.47 g/t Au from 96.90 m depth LSU26064: 1.28 m averaging 27.86 g/t Au from 72.10 m depth In addition to testing the modeled L2 Vein, drilling evaluated the lateral continuity of subparallel and related vein structures previously identified as the L1b, L1c, and L1d veins. Current geologic modeling suggests that the L1c and L1d veins are subparallel to the primary L2 structure. The L1b vein and newly modeled L1e vein are interpreted as lower-angle relay or ramp structures developed between the L2 and L1c veins (Figure 2). Gold mineralization is persistent across several of these structures, and visible gold was observed during core logging in multiple intervals. Detailed underground mapping and core logging identified an additional gold-mineralized structure now designated as the CK Vein. The CK Vein was recognized near the intersection of the West Drift and the Enserch Tunnel and has a similar east-west strike and shallow northerly dip to the Lucky Shot system. Underground grab samples returned gold values including 6.5 g/t gold over 1.5 meters. The CK Vein was intercepted in most holes from these four drill stations, with visible gold observed in several logged intervals. The additional drilling materially improves the Company's understanding of the structural architecture and vein stacking within the Lucky Shot system. Detailed structural logging and underground mapping have identified a high-angle, post-mineralization structure designated as the Intersection Fault (Figure 2). This fault cuts the Lucky Shot vein system and is interpreted as a normal fault that down-drops the northwest block; the amount and sense of any lateral displacement remain under evaluation. The Intersection Fault was not encountered in the first four drill stations previously reported but was prevalent in the four drill stations reported in this release. The presence of multiple stacked and relay-oriented mineralized structures, together with the previously announced KM veins and the modeled Intersection Fault, supports additional exploration potential within the underground footprint. Future drilling (approximately 12,000 meters) will focus on refining structural orientations, continuity, and grade distribution across these emerging targets. Table 1. Significant Assay Intersections from 2026 Drill Program at the Lucky Shot Project Quality Assurance and Quality Control Contango's drilling and sampling programs are conducted in accordance with industry's best practices and applicable SEC S-K 1300 requirements. All drill core is systematically logged, photographed, and sampled under the supervision of the Company's Qualified Person. Quality assurance and quality control ("QA/QC") procedures include the regular insertion of certified reference materials, blanks, and duplicate samples into the analytical stream at a frequency of approximately one QA/QC sample per ten samples. Mineralized intervals are sampled as whole core, with half-core shoulder samples extending approximately 5 meters on either side of mineralized zones. Samples are sealed and transported under documented chain-of-custody procedures to the laboratory. Analytical testing was performed by Bureau Veritas North America, with sample preparation conducted in Fairbanks, Alaska. Gold analyses for mineralized intervals were completed using a two-cycle PhotonAssay™ method by Paragon Geochemical in Vancouver, British Columbia. The published lower limit of detection for the two-cycle PhotonAssay method is 0.015 g/t Au. All samples also undergo multi-element ICP-MS analysis (Bureau Veritas analytical code MA200) to quantify minor and trace element associations. Upcoming Underground Exploration Development Work at Lucky Shot With the successful completion of the initial phase of underground drilling at the Lucky Shot Project, Contango is now preparing to advance the next major phase of work: additional underground development. This development program represents an important operational step in advancing Lucky Shot, as it will provide the underground access and drill platforms required to continue testing and expanding the known mineralized system. The planned development program consists of approximately 800 linear meters of underground excavation. Contango has selected GMS Mine Repair & Maintenance, Inc. ("GMS") as the mining contractor for this work. GMS is a leading mining and tunneling contractor with more than 40 years of experience serving underground mining operations across North America. The underground exploration development program is expected to commence in mid-May 2026 and is currently anticipated to take approximately five months to complete. As shown in Figure 3, the development has been designed to provide strategic underground access for the next phase of approximately 12,000 meters of drilling. This work is considered critical to the Company's ongoing exploration and technical-study strategy to support completion of a Feasibility Study at Lucky Shot in H1 2027, as it will allow Contango to follow up on encouraging initial drill results, test additional priority targets, and continue advancing the geological model of the Lucky Shot mineralized system. Conference Call and Webcast Contango will host a conference call and webcast to discuss the Lucky Shot drill results and acquisition released in this report with VP Exploration Dave Larimer and CFO Mike Clark on Tuesday, May 5, 2026, at 2:00pm EST / 11:00am PST. Participants may join the webcast using the following call-in details: https://6ix.com/event/lucky-shot-high-grade-drill-results-and-project-update. QUALIFIED PERSON The scientific and technical information contained in this news release has been reviewed and approved by Dave Larimer, CPG, Vice President, Exploration for Contango, who is a Qualified Person as defined by SEC Regulation S-K 1300. Mr. Larimer is not independent of the Company. ABOUT CONTANGO Contango is a NYSE American and TSX listed company that engages in the exploration for and development and production of gold and associated minerals in Alaska and in the Golden Triangle in British Columbia. 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, 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) a lease on 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, from the underlying owner, Alaska Hardrock Inc., (iii) mineral rights to approximately 145,000 acres of State of Alaska mining claims, and (iv) mineral rights to approximately 11,700 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, and (v) mineral tenures of approximately 247,000 acres (100,000 ha) located in and around the Kitsault Valley in the Golden Triangle of northwest British Columbia. 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; 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. www.contangoore.com View original content to download multimedia:https://www.prnewswire.com/news-releases/contango-enhances-economics-with-high-grade-drill-results-and-strategic-acquisition-of-the-lucky-shot-lease-and-royalty-302761993.html

This article first appeared on GuruFocus. Release Date: March 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Contango Ore Inc (CTGO) reported cash distributions from the Peak Gold JV of $102 million for 2025, significantly boosting their cash position. The company's cash increased from $20 million at the start of the year to $65 million by year-end, driven by an equity raise in September. Contango Ore Inc (CTGO) is on track to be debt-free and hedge-free by early 2027, enhancing its financial flexibility. The merger with Dolly Varden is expected to significantly increase cash reserves to over $100 million, providing a strong financial foundation. The company anticipates a substantial increase in free cash flow from the Manh Choh project in 2027, with gold production guidance of 75,000 to 80,000 ounces at lower cash costs. The all-in sustaining cost (ASIC) for 2026 is projected to rise to $2,200 to $2,300 per ounce due to increased pre-stripping activities. Potential inflationary pressures, particularly in wages and diesel prices, could impact future costs. There is a four-month lag between mining and processing at the Fort Knox facility, affecting cash flow timing. The current geopolitical situation, such as the Iran war, poses potential risks to cost structures and market conditions. The feasibility study for the Manh Choh project was based on a $1,400 gold price, which may not reflect current market conditions. Warning! GuruFocus has detected 2 Warning Sign with CTGO. Is CTGO fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain how the cash distributions from the Peak Gold JV impact Contango's balance sheet and current cash position? A: Michael Clark, CFO, explained that Contango accounts for the Peak Gold JV using equity accounting, recognizing 30% of the net income. The $102 million distributions increased cash directly, reducing the investment in Peak Gold. The cash position rose from $20 million to $65 million by year-end, mainly due to an equity raise in September. Q: Why is the all-in sustaining cost (AISC) expected to increase in 2026 compared to 2025? A: Rick Nieuwenhuyse, CEO, noted that the increase in AISC to $2,200-$2,300 per ounce is due to more pre-stripping activities as the mine transitions from the North pit to the South pit. This results in higher costs, but costs are expected to decrease in 2027 as mining focuses more on ore extraction. Q: How should investors view the capital structure and cash flow going into 2027? A: Michael Clark, CFO, stated that debt is expected to be reduced to $10 million by year-end, with plans to extinguish debt and hedges by early 2027. Cash should remain stable around $60 million, with significant free cash flow expected from Manh Choh in 2027 and 2028. Q: Can you explain the batch processing arrangement at Fort Knox and its impact on production timing? A: Rick Nieuwenhuyse, CEO, explained that batch processing occurs in the middle month of each quarter, leading to a four-month lag between mining and receiving payment. This affects the timing of when mined ounces are processed and sold. Q: What are the exploration plans for the Kitsault project following the merger with Dolly Varden? A: Rick Nieuwenhuyse, CEO, mentioned plans for an updated mineral resource estimate by Q2 2026, with $25 million allocated for exploration, including 50,000 meters of drilling. The focus will be on infill drilling and developing a preliminary economic assessment for the Kitsault assets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Operating Income: Record operating income of $25 million for Q3. All-In Sustaining Cost (AISC): Maintained below target at $1,597 per ounce. Cash Position: Increased from $20 million at year-end 2024 to $107 million as of September 30, 2025. Distribution from Peak Gold JV: Received $87 million to date. Adjusted Net Income: Impacted by a $30 million unrealized derivative loss. Gold Recovery: Test batch blending achieved 94% recovery, adding about 1,300 ounces in Q4. Manh Choh Processing: Processed 287,000 tonnes at 0.214 ounces per tonne with 92.5% recovery in Q3. Lucky Shot Production Estimates: 30,000 to 40,000 ounces annually with a 15,000-meter underground infill program underway. Warning! GuruFocus has detected 1 Warning Sign with CTGO. Is CTGO fairly valued? Test your thesis with our free DCF calculator. Release Date: November 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Contango Ore Inc (CTGO) reported a record operating income of $25 million for Q3, exceeding production plans by 2,000 ounces. The company maintained an AISC (All-In Sustaining Cost) below the target of $1,625, achieving $1,597 per ounce. Cash position significantly improved from $20 million at year-end 2024 to $107 million as of September 30, 2025. Successful test batch blending of Manh Choh's low-grade oxide ore with Fort Knox ore achieved a 94% recovery rate, adding 1,300 ounces in Q4. Contango Ore Inc (CTGO) has transitioned from an explorer to a cash-generating producer with minimal debt and two development projects advancing. Derivative hedge losses impacted the financial results, with a $30 million unrealized loss affecting the P&L. The grades processed at Manh Choh were lower than feasibility grade expectations due to blending with lower-grade material. Sustaining capital for tractor replacements and ongoing exploration drilling contributed to an increase in AISC. The company is still in the permitting phase for the Johnson Tract project, which is a critical path item for future development. There is uncertainty regarding the processing of low-grade material from Manh Choh, as detailed results and cost analyses are still pending. Q: What factors contributed to Contango Ore Inc's record operating income and maintaining AISC below target? A: Rick Nieuwenhuyse, CEO, explained that the record operating income of $25 million was due to production levels exceeding plans by about 2,000 ounces. The AISC was kept below the $1,625 target at $1,597 per ounce, thanks to a stable diesel price and effective mine planning by Kinross, which tends to underpromise and overdeliver. Q: Can you explain the strategic thinking behind the recent capital allocation moves? A: Michael Clark, CFO, stated that the strategy remains to deliver into hedges and pay down debt on schedule. The company saved $2.4 million this quarter by using carry trades in a rising gold market. The goal is to deliver all hedges by September of next year, pending the 2026 plan for Manh Choh. Q: What insights can you provide about the adjusted net income reported this period? A: Michael Clark explained that the adjusted net income was introduced to clarify the impact of derivative hedge losses, which are unrealized losses due to the forward curve of the gold price. These losses affected the P&L by $30 million, turning a potential net income into a net loss. The adjustment helps shareholders understand the business's normal operations. Q: What does the successful metallurgical test at Manh Choh indicate about processing additional material? A: Rick Nieuwenhuyse noted that the test batch blending Manh Choh's low-grade oxide ore with Fort Knox ore achieved a 94% recovery, adding about 1,300 ounces in Q4. This test suggests potential for processing additional low-grade material, which was previously uneconomic, by blending it with Fort Knox ore. Q: How does Lucky Shot fit into Contango's larger portfolio, and what is the timeline for its development? A: Rick Nieuwenhuyse described Lucky Shot as a high-grade project with a modest resource of 100,000 to 110,000 ounces at 14 grams per tonne. The company plans a 15,000-meter underground infill drilling program, aiming for a feasibility study in 12-18 months and a production decision by 2027. The project aligns with Contango's DSO model, focusing on high-grade, profitable mines. For the complete transcript of the earnings call, please refer to the full earnings call transcript.