Contango Ore, Inc. Q2 2026 Earnings Recap

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.