Contango Silver & Gold Inc.

What they do

Contango conducts its business through a 30% membership interest in the Peak Gold JV, which owns and operates the Manh Choh mine in Alaska; Kinross Gold subsidiary KG Mining holds the other 70% and serves as manager and operator. The company also wholly owns HighGold Mining, which holds the Johnson Tract project, leases the Lucky Shot property, and controls additional Alaska mineral claims through Contango Minerals Alaska and Avidian Gold Alaska. Its assets are in production, exploration, or development stages, with Manh Choh its only producing mine.

Revenue drivers

• Manh Choh gold and silver sales (30% share) — Contango's share of production sold from the Peak Gold JV totaled 8,627 ounces of gold and 10,319 ounces of silver in Q2-2026, and the company received a $9.0 million cash distribution from the JV during the quarter.
• Peak Gold JV cash distributions — The company's primary cash inflow is distributions from the Manh Choh operation, with $9.0 million received in Q2-2026 and total returns to date of $160 million against an initial $105 million capital investment.
• Exploration and development assets — Johnson Tract, Lucky Shot, Kitsault Valley, and the Avidian properties are not currently producing revenue and are held for future development.

Recent performance

For Q2-2026, Contango reported a total loss from operations of $8.5 million, net income of $4.8 million, and an adjusted net loss of $5.5 million. The company's share of Manh Choh production sold was 8,627 ounces of gold and 10,319 ounces of silver, and it received a $9.0 million distribution from the Peak Gold JV. Unrestricted cash was $89.0 million at June 30, 2026, up from $64.8 million at year-end 2025. On a 100% basis, the Peak Gold JV processed 253,494 ore tons in Q2-2026 at a grade of 0.145 oz/t with 80.4% gold recovery, producing 29,618 gold ounces.

Strategy

Management completed mining in the North Pit at Manh Choh and is transitioning to the higher-grade South Pit, expecting increased processed tonnage and grades through the remainder of 2026. The company amended its credit facility and converted remaining 2027 gold hedges into debt, fully liquidating its hedge book to provide 100% unhedged exposure to gold prices. It bought out the Lucky Shot lease and a 2% NSR royalty to secure 100% ownership and settled outstanding milestone payment obligations. Following the merger with Dolly Varden Silver, the company is advancing the Kitsault Valley resource estimate and has completed over 35,000 meters of its 40,000-meter 2026 drill campaign.

Risks

• Dependence on non-operated Manh Choh — Kinross subsidiary KG Mining manages and operates the Peak Gold JV, so Contango does not control mining, processing, or cost decisions at its only producing asset.
• Commodity price and cost volatility — The company's results depend on gold and silver prices and on input costs such as diesel, natural gas, oil, and electricity, which the 10-K notes can fluctuate unpredictably.
• Exploration and development risk — Substantially all of Contango's other properties, including Johnson Tract, Lucky Shot, Kitsault Valley, and the Avidian properties, remain in exploration or development and may never reach production.
• History of losses — Contango reported annual net losses each year from 2022 through 2025, including a $36.1 million loss in 2025.

Outlook

Management guides to 2026 production of 40,000 to 45,000 gold ounces and expects the third 2026 campaign later in August to produce 11,000 to 12,000 gold equivalent ounces net to Contango. For 2027, the company guides 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. It also states a longer-term goal of growing from an average of 60,000 gold equivalent ounces to over 200,000 ounces of gold and 5 million ounces of silver annually.