FAIRBANKS, Alaska, March 16, 2026 /PRNewswire/ - Contango ORE, Inc. ("Contango" or the "Company") (NYSE American: CTGO) announced today that it filed with the Securities and Exchange Commission its Form 10-K for the year ended December 31, 2025 ("FY 2025").
In FY 2025 Contango's share of production from its Manh Choh mine, operated in partnership with Kinross, totaled approximately 60,200 gold equivalent ounces(1) ("GEO"). The Company reported a net loss of $36.1 million ("M"), including a non-cash expense of $46.0 M from an unrealized loss on derivative contracts for FY 2025. The Company reported adjusted net income(2) of $73.0 million ("M") and total income from operations of $69.1 M. The Company's unrestricted cash position as of December 31, 2025 was $64.8 M compared to $20.0 M as of December 31, 2024.
Rick Van Nieuwenhuyse, President and CEO of the Company, stated, "Production in FY 2025 was in line with guidance, producing approximately 60,200 gold equivalent ounces, including 57,315 ounces of silver. In FY 2025, 57,800 ounces of gold were sold (the remaining sold during Q1 2026) with cash costs per ounce sold(1) of $1,459 and all-in-sustaining costs per ounce sold(1) of $1,616 in line with 2025 guidance of $1,625 per ounce sold. During FY 2025, the Company remained focused on paying down its debt and delivering into the hedge contracts with $37.5 M in principal repayments on its Credit Facility and 43,739 ounces of gold delivered into its hedge contracts, bringing the Credit Facility balance down to $14.6 M and hedge contracts to 43,000 ounces as of December 31, 2025. The Company further offset its hedge book through the repurchase of 15,446 ounces on February 12, 2026.
_____________________________ (1) See non-GAAP measures in the Company's 10K for the year ended December 31, 2025 (2) See non-GAAP measures at end of this press release for calculation of adjusted net income
At the Lucky Shot project, we commenced an underground diamond drilling program in Q4 2025 with positive initial assay results released in late February 2026. The current program represents the first phase of a multi-phase underground and surface exploration campaign designed to support resource in-fill and expansion with an objective of targeting 400,000 to 500,000 measured and indicated gold ounces to support a feasibility level mine production and transportation plan, with the objective of targeting 40,000 to 50,000 ounces of annual gold production using our Direct Shipping Ore (DSO) approach, assuming positive exploration success. We expect to complete the feasibility study in 12 to 18 months and make a production decision in 2027.
At Johnson Tract an initial assessment of the tide water accessible high grade polymetallic (gold, zinc, copper, silver, lead) deposit was announced on May 6, 2025, indicating a post-tax net present value of $615.4 M and pay-back period of 1.3 years using a $4,000 gold price. We remain heads down with permitting under the FAST-41 program and will scale up field activities in 2026, including heavy equipment mobilization, construction of a road from the camp to the proposed portal site and winterizing the camp for year-round operations. This will result in developing sustainable mining projects that domestically produce the metals needed for our modern society and security.
Finally, we would like to acknowledge and thank our dedicated team of employees, the State and Federal agencies we work with as well as our contractors and extensive network of stakeholders in the communities around our projects. As we advance toward the Dolly Varden merger, currently targeted to close by late March, subject to shareholder and final regulatory approvals, we recognize that our continued success relies on support from all these groups as well as our investors. Note that after the Dolly Varden merger closes, we anticipate a comprehensive update on all exploration activities and plans for 2026 for the new Company -- Contango Silver and Gold Inc."
During FY 2025 and subsequent to year end, the Company has the following updates:
Manh Choh Production Results
Peak Gold JV (on a 100% basis)(1) FY 2025
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Total tons mined 13.6 M tons
Ore tons mined 1.20 M tons
Gold oz mined 216,758 oz
Ore tons processed 1,069,470 ton
Gold grade processed 0.20 oz/t
Gold recovery 93%
Gold oz produced(2) 198,450 oz
Gold oz sold 192,750 oz
Silver oz sold 191,050 oz
Contango's Share (on a 30% basis)(1)
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Gold oz produced 59,500 oz
Gold oz sold 57,800 oz
Total gold equivalent oz produced(3&4) 60,200 oz
Silver oz sold 57,315 oz
Total gold sales $196,653,253
Total silver sales $2,313,217
Cash costs on a by-product basis, per oz
sold(4) 1,459 per oz sold
AISC on a by-product basis, per oz sold(4) 1,616 per oz sold
Principal debt repayments $37,500
Gold oz delivered into hedge contracts 43,739 oz
Average realized spot gold price $3,400 per oz sold
Cash distributions received from Peak Gold JV $102,000,000
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Notes:
1. Certain numbers have been rounded for presentation purposes.
2. Includes estimate of recoverable gold inventory of 5,700 oz.
3. Gold equivalent oz calculated using a factor of 85.1 to 1 for
conversion of silver oz.
4. See non-GAAP measures disclosed in the Company's 10K for the year
ended December 31, 2025.
FY 2025 Production Highlights (Contango's 30% share):
-- FY 2025 Production of 60,200 gold equivalent ounces ("GEO")3, including
1,700 ounces ("oz") of recoverable gold inventory and 57,315 oz of silver
-- Average realized spot gold price of $3,400 per oz
-- Average head grade of gold processed of 0.20 oz per ton ("oz/t")
-- 43,739 oz of gold delivered into hedge contracts
-- $102 million ("M") in cash distributions received from the Peak Gold JV
for 2025
-- Cash costs per ounce sold of $1,459 and all-in sustaining costs ("AISC")
of 1,616 per ounce sold
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(3) Gold equivalent oz calculated using a factor of 85.1 to 1 for conversion
of silver oz.
Lucky Shot Project:
-- In Q4 2025, the first phase of a 15,000-meter underground in-fill
drilling program commenced with positive initial assays results released
in late February 2026. This work, along with detailed engineering,
hydrology and geotechnical work will form the basis for a feasibility
level mine and transportation plan for Lucky Shot, targeting 40,000 oz to
50,000 oz of gold production per year using our Direct Shipping Ore (DSO)
approach, assuming positive exploration success. We expect to complete
the feasibility study in 12 to 18 months and make a production decision
in 2027.
Johnson Tract Project:
-- In FY 2025, the Company continued with ongoing work to permit the
underground exploration drift along with baseline environmental and
engineering work to support permitting a road and barge landing facility
within the Transportation and Port Easements granted to Cook Inlet
Regional Inc. (CIRI) the underlying landowner. Field crews started work
in July 2025 and finalized the field program in mid-October.
-- On January 30, 2026, the Johnson Tract project was officially placed onto
the FAST-41 Dashboard.
Repayments of Debt, Reduction of Hedge Contracts and Financing:
-- The Company's unrestricted cash position as of December 31, 2025 was
$64.8 M.
-- In FY 2025, Contango repaid $37.5 M on the Facility, reducing the
outstanding principal balance to $14.6M.
-- On September 25, 2025, the Company raised gross proceeds of $50 M by
issuing 1,975,000 shares of common stock and pre-funded warrants to
purchase up to 525,000 shares of common stock at a public offering price
of $20.00 per share and $19.99 per pre-funded warrant.
-- 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 a public 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 million to purchase 15,446 puts with a
strike price of $4,000 per ounce. As of the date of this report, the
remaining gold hedge contracts total 11,000 ounces in 2026 and 15,000
ounces in the first half of 2027.
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