Rick Van Nieuwenhuyse, Chief Executive Officer of the Company, stated, "The first quarter of 2026 was a period of significant operational transition and strategic growth. At Manh Choh, while harsh winter conditions and operational challenges impacted Q1 throughput and costs, we are pleased to report that we are now entering a high-production phase; we expect ore tons processed and ore grade processed to increase for the remainder of the year, as we transition into the higher-grade portions of the South Pit. Manh Choh remains on track to meet our 2026 guidance of 40,000 to 45,000 ounces of gold production, which will set the stage for 2027, which we are guiding to 75,000 to 80,000 ounces of gold production with cash costs of $1,200 to $1,300 per ounce sold and all-in sustaining costs of $1,300 to $1,400 per ounce sold.
With this momentum, our cost guidance for the year remains firm. During the quarter we received a US$9 million ("M") cash distribution from the Peak Gold JV. Our cash on hand for the end of the quarter was US$97.5 M an increase from US$64.8 M at December 31, 2025. For 2026, we anticipate cash costs between $1,900 to $2,000 and all-in sustaining costs of $2,200 to $2,300 per ounce of gold sold. Furthermore, we have strengthened our financial flexibility by reducing hedge contracts to 22,000 ounces and reduced our debt to $13.6 M, both of which we intend to fully settle by year-end."
Mr. Van Nieuwenhuyse continued, "This has also been a transformative quarter for our corporate reach. Following the successful merger with Dolly Varden Silver, we have fully integrated our teams and are already seeing the benefits of our combined strengths. It was a true honor to ring the opening bell at the New York Stock Exchange on April 24th, and we look forward to the upcoming ceremony at the Toronto Stock Exchange on June 12th.
Our exploration and development pipeline is equally robust. At Lucky Shot, our underground drilling has exceeded expectations, providing excellent clarity on the system's continuity. We are now accelerating underground development work and surface drilling in Q2-2026. Simultaneously, we are preparing for a 40,000-meter surface program at Kitsault Valley, with an updated mineral resource estimate expected by late June. Finally, at Johnson Tract, we are gaining significant ground with FAST-41 permitting and the mobilization of heavy equipment to support year-round operations. We are preparing for a very productive 2026."
During Q1-2026, the Company had the following updates:
In Q1-2026, Contango's share of production sold from the Manh Choh mine, jointly held by Kinross and Contango, totaled 8,012 ounces of gold and 15,042 ounces of silver, receiving a cash distribution of $9 million ("M"). The Company reported total income from operations of $4.8 M and adjusted net income1 of $4.7 M. The Company reported a net loss of $14.3 M, including a $19.0 M loss on derivative contracts for Q1-2026. The Company's unrestricted cash position as of March 31, 2026 was $97.5 M compared to $64.8 M as of December 31, 2025.
Manh Choh Production Results
Peak Gold JV (on a 100% basis)1
Q1-2026
Total tons mined
1.96
M tons
Ore tons mined
220,878
tons
Gold oz mined
38,415
oz
Ore tons processed
187,479
tons
Gold grade processed
0.131
oz/t
Gold recovery
88.5
%
Gold oz produced
26,890
oz
Gold oz sold
26,710
oz
Silver oz sold
50,142
oz
Contango's Share (on a 30% basis)1
Gold oz produced
8,067
oz
Gold oz sold
