Contango Ore, Inc. Earnings Recaps
Q4 2026
Sep 11, 2026
Contango Silver & Gold shares fell 5.6% after earnings, suggesting investors focused less on the execution update and more on the lack of near-term production visibility and reliance on future milestones. Management highlighted strong field-season execution, but key value drivers—including the Lucky Shot resource estimate and Johnson Tract tunnel—remain ahead, while Manh Choh’s production benefits are largely expected next year.
Key takeaways
- The company completed nearly 70,000 meters of drilling across its two main projects, including more than 50,000 meters at Kitsault versus an initial 40,000-meter plan.
- At Manh Choh, oxygen-plant modifications for higher-sulfide South Pit ore are operating; recoveries are expected in the 80% to low-90% range depending on sulfur content.
- Management is guiding toward 75,000 ounces of Manh Choh production next year, with all-in sustaining costs of approximately $1,200–$1,300 per ounce.
- Lucky Shot underground development and exploration drilling remain on schedule, with a mineral resource estimate expected in the first half of next year; roughly 1,100 meters of drilling is planned for the KM vein.
- Johnson Tract’s road and laydown area work exceeded plan, but tunnel construction and infill drilling are deferred to next year; permitting for the tunnel is described as substantially complete.
Q2 2026
Aug 16, 2026
The stock responded positively, up 3.7%, on outlook clarity driven by the removal of hedges and progress toward higher-grade production in the second half, supporting full-year guidance despite near-term lower grades and elevated costs.
Key takeaways
- Q2 attributable production was 8,900 ounces from the Manh Choh JV, with 8,627 ounces sold at an average spot price of $4,328 per ounce.
- The lower grades mined in H1, especially from the North pit, pressured realized grades and costs; cash costs were $2,665/oz and AISC $2,830/oz in H1.
- Full-year production guidance of 40,000–45,000 ounces remains intact, as higher grades and greater tonnage from the South pit are expected in H2.
- Significant cost improvement anticipated in H2, with targeted cash costs of $1,900–$2,000 driven by completion of pre-stripping and higher ore grades.
- The removal of gold price hedges enables the company to sell 100% of output at spot starting Q3, improving margin capture and expected distributions from the JV approaching $60 million for the year.