Contango Announces 2025 Year End Financials and Provides 2026 and 2027 Production Guidance

Key Takeaways:

• Contango’s share of production from the Manh Choh mine totaled about 60,200 gold equivalent ounces in 2025
• The company recorded a net loss of $36.1 million, influenced by a $46.0 million unrealized derivative loss
• Adjusted net income reached $73.0 million, with total income from operations at $69.1 million
• Underground diamond drilling commenced at the Lucky Shot project in Q4 2025
• Johnson Tract showed a post-tax net present value of $615.4 million using a $4,000 gold price

Overview

Contango ORE, Inc. released its 2025 year-end results, revealing steady performance at its Alaskan mining operations, including the Manh Choh project in partnership with Kinross. The company’s share of production met expectations, recording approximately 60,200 gold equivalent ounces (GEO) for the year.

Financial Performance and Debt Management

According to the company’s Form 10-K, Contango reported a net loss of $36.1 million, driven largely by a $46.0 million unrealized loss on derivative contracts. Despite this, the firm noted an adjusted net income of $73.0 million, illustrating its strong operating fundamentals. Total income from operations stood at $69.1 million, while the unrestricted cash position rose to $64.8 million at year-end 2025.
Contango continued to prioritize debt reduction in 2025, repaying $37.5 million on its Credit Facility and delivering 43,739 ounces of gold into existing hedge contracts. By December 31, 2025, the Credit Facility balance had dropped to $14.6 million, and the hedge commitments stood at 43,000 ounces of gold.

Focus on Lucky Shot

In the final quarter of 2025, Contango launched an underground diamond drilling program at its Lucky Shot project. The initial assay results, released in February 2026, showed promise for resource in-fill and expansion. The company aims to target 400,000 to 500,000 measured and indicated gold ounces, with a feasibility-level production goal of 40,000 to 50,000 ounces annually, assuming exploration success. A feasibility study is expected within 12 to 18 months, potentially leading to a production decision in 2027.

Johnson Tract’s Outlook

Another key focus is the Johnson Tract polymetallic deposit, where an initial assessment announced in May 2025 projected a post-tax net present value of $615.4 million at a gold price of $4,000, paired with a rapid payback period of 1.3 years. Permitting efforts under the FAST-41 program are progressing, and Contango intends to scale up field activities in 2026 by mobilizing heavy equipment and building a road from the camp to the proposed portal site.

Looking Ahead: The Dolly Varden Merger

As Contango moves toward finalizing its merger with Dolly Varden, expected by late March 2026 (subject to regulatory and shareholder approvals), executives anticipate a post-merger update outlining additional exploration milestones and operational strategies for the combined entity, which will be rebranded as Contango Silver and Gold Inc. The company extends its gratitude to employees, government agencies, contractors, and local communities, emphasizing that future success hinges on continued support and collaboration.