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CTGO
Earnings call · Sep 2026 (FY26)

Contango Silver & Gold FY26 earnings call CTGO

Sep 9, 2026 Source

Executive summary

Contango Silver & Gold Inc. FY26 — Strong Execution Across Projects and Key Discoveries

Contango Silver & Gold Inc. demonstrated strong operational execution across its portfolio in FY26, successfully advancing key projects like Lucky Shot, Johnson Tract, and Kitsault on time and within budget, entirely funded by Manh Choh cash flow. The company also made a significant new high-grade discovery at Lucky Shot, the KM vein, while preparing for updated resource estimates and future development. Despite industry-wide assay delays and some project-specific interruptions, the focus remains on disciplined capital allocation and transitioning projects towards production.

Highlights

5

  • Over 70,000 meters of drilling completed across two main projects (Lucky Shot, Kitsault) in FY26, exceeding planned 40,000 meters at Kitsault.

  • Johnson Tract road building and laydown area completed ahead of schedule, with permitting substantially complete for tunnel construction.

  • Manh Choh mill modifications for higher-grade sulfide ore recovery successfully completed and operating, expecting 80s to low 90s recoveries.

  • New KM vein discovery at Lucky Shot with grades up to 10 ounces per ton, leading to planned 1,100 meters of drilling.

  • All projects executed on time and on budget, funded by Manh Choh cash flow, with 100% safety record (no LTIs).

Concerns

3

  • Assay turnaround times are currently extended due to high industry activity, causing 2-month delays for results.

  • Manh Choh's field season exploration activity was interrupted by a serious fire in the toe area and early snow, cutting it short.

  • Lawsuits from NGOs (Center for Biodiversity, Cook Inlet Keepers) regarding Beluga Whales pose potential delays for Johnson Tract's road and barge landing facility construction, with a process expected to play out over the next 2 years.

Guidance & targets

CategoryTargetConfidence
Manh Choh Gold Production
75,000 ounces
high materiality
High
Manh Choh All-in Sustaining Cost (AISC)
$1,200-$1,300
high materiality
High
Johnson Tract Road and Barge Landing Facility Construction Start
May 2028
medium materiality
Medium
Lucky Shot Mineral Resource Estimate (MRE) Release
early next year, first half of next year
medium materiality
High
Kitsault Mineral Resource Estimate (MRE) Update
first half of next year
medium materiality
High
Kitsault Mineral Resource Estimate (MRE) Release
certainly before the end of the month
high materiality
High
Lucky Shot Feasibility Study Completion
second half of the year
high materiality
High
Johnson Tract Tunneling Start
August, September
medium materiality
Medium

Deals & partnerships

Kinross Manh Choh project operation

Contango has a royalty; Kinross operates the mine.

Capital programs

Johnson Tract Camp Upgrade underway
Spent to date: starting to work on that this year
Start: FY26

Benefit:support year-round underground work

To accommodate year-round underground operations through the winter.

Lucky Shot West Drift Extension completed
Spent to date: advanced the tunnel about 100 meters

Benefit:access to KM vein for drilling

Extension to access the newly discovered KM vein.

Lucky Shot East Drift Development nearing completion
Spent to date: almost finished building the script

Benefit:access for drilling classic Lucky Shot vein system

Development to target the classic Lucky Shot vein system.

Risks & headwinds

Extended assay turnaround times current

couple of months

Mitigation:Not stated, but acknowledged as industry-wide frustration.

Manh Choh field season interruptions FY26

drilling cut short

Mitigation:Due to a serious fire in the toe area and early snow.

Johnson Tract legal opposition next 2 years (until May 2028)

potential to delay project

Mitigation:Extensive studies on Beluga Whales, following FAS 41 permitting process, designing program to minimize impacts.

What to watch next

Kitsault Mineral Resource Estimate (MRE) update

this month (September 2026)
Current almost 65 million ounces of silver and gold (2017/2018 era)
Target updated MRE with inferred transitioning into indicated, reflecting current gold/silver prices

Why it matters

Provides updated resource confidence and size, crucial for project valuation and future development plans.

But the MR that will come out here in a couple of weeks look for the inferred transitioning into indicated.

Q&A highlights

What does the successful completion of mill modifications mean for Manh Choh?

The oxygen plant is installed and operating, enabling 80s-low 90s recoveries for higher-grade sulfide ore from the south pit. This will lead to lower costs and higher production in FY27.

“The oxygen plant installed. It's actually a bit of redundant system that they've installed. So it's -- we should see those efficiencies in the recoveries and in th throughput.”

asked by Romeo Maione · answered by Rick Van Nieuwenhuyse

2 min read 6 chapters

Detailed narrative

Operational Excellence and Safety

The company successfully integrated two teams post-merger, executing a very busy year with over 70,000 meters of drilling, road building, and underground development across its projects. This was achieved with a 100% safety record, reporting no Lost Time Injuries (LTIs), demonstrating strong operational discipline and efficient project management.

Manh Choh Transition and Optimization

The first half of the year at Manh Choh involved transitioning from the north to the south pit, requiring significant pre-stripping. Crucially, mill modifications for recovering higher-grade sulfide ore were completed, with the oxygen plant now operating, expected to improve recoveries to 80s-low 90s. This sets the stage for increased production and lower costs in FY27, with production expected to span Q3 and Q4.

Lucky Shot Discovery and Development

A new high-grade KM vein was discovered at Lucky Shot, running up to 10 ounces per ton, which is now a priority for exploration. An 1,100-meter drilling program is underway from the new West Drift extension, with results expected before year-end. This discovery has the potential to significantly alter the overall mine plan and accelerate production, with a feasibility study targeted for H2 FY27.

Johnson Tract Infrastructure Advancement

The road from camp to the proposed portal site at Johnson Tract, along with two bridges and the portal pads, has been completed ahead of schedule. This infrastructure development is critical for enabling year-round underground development starting in FY27, with camp upgrades also underway to support winter operations. The company is actively working with local indigenous groups on gravel material for future road construction.

Kitsault Resource Expansion

The first full field season at Kitsault under the Contango banner saw over 50,000 meters of drilling, exceeding the planned 40,000 meters. An updated Mineral Resource Estimate (MRE) is expected shortly, focusing on upgrading inferred resources to indicated, incorporating new discoveries, and reflecting current gold and silver consensus pricing (e.g., $50/oz silver, $3,500/oz gold). The MRE will highlight the transition of inferred to indicated resources.

Financial Discipline and Capital Allocation

All project activities for the current year were funded entirely by cash flow from the Manh Choh operation, avoiding the need to raise capital from the market. The company plans to prioritize capital allocation for FY27 based on expected cash flow from Manh Choh, using a conservative $3,700 gold price for projections. Projects are phased to allow efficient transition of teams and resources, such as the Lucky Shot tunneling team moving to Johnson Tract.

AI-generated summary of the company's earnings call. Not investment advice.