In FY 2025 Contango's share of production from its Manh Choh mine, operated in partnership with Kinross, totaled approximately 60,200 gold equivalent ounces1 ("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 income2 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 sold1 of $1,459 and all-in-sustaining costs per ounce sold1 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.
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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
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 produced2
198,450
oz
Gold oz sold
192,750
oz
Silver oz sold
191,050
oz
Contango's Share (on a 30% basis)1
Gold oz produced
59,500
oz
Gold oz sold
57,800
oz
Total gold equivalent oz produced3&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 sold4
1,459
per oz sold
AISC on a by-product basis, per oz sold4
1,616
per oz sold
Principal debt repayments
$37,500
Gold oz delivered into hedge contracts
43,739
oz
Average realized spot gold price ...
