CTGO · Contango Ore, Inc.

Contango Ore's Q1 2026 results reflect a period of operational transition and strategic growth. The company reported a GAAP net loss of $14.3 million, primarily driven by a $19.0 million loss on derivative contracts related to gold hedges. Excluding these derivative losses, adjusted net income was $4.7 million, down from $17.9 million in the prior-year quarter, as total income from operations fell to $4.8 million from $19.3 million. The decline in operating income was attributed to harsh winter conditions and operational challenges at the Manh Choh mine, which impacted throughput and costs. Despite this, management reaffirmed 2026 production guidance of 40,000-45,000 ounces of gold (on a 100% basis) and provided 2027 guidance of 75,000-80,000 ounces with significantly lower cash costs ($1,200-$1,300/oz) and all-in sustaining costs ($1,300-$1,400/oz), signaling a ramp-up to higher-grade ore in the South Pit. The company strengthened its balance sheet during the quarter, ending with $97.5 million in cash (up from $64.8 million at year-end 2025) and reducing debt to $13.6 million. It also reduced hedge contracts to 22,000 ounces and settled 15,446 ounces for $46.4 million. Post-quarter, Contango acquired 100% of the Lucky Shot project for $16.1 million, extinguishing a 2% NSR royalty, and completed its merger with Dolly Varden Silver, now trading on the TSX as Contango Silver & Gold. The company is advancing its development pipeline: a 40,000-meter drill program at Kitsault Valley, FAST-41 permitting at Johnson Tract, and a feasibility study for Lucky Shot targeting a production decision in 2027. The strong cash position and reduced debt provide financial flexibility to execute these growth projects.