Contango Ore (CTGO) Q4 2025 earnings summary

Executive summary

• 2025 year-end earnings included $102 million in cash distributions from Peak Gold JV and $88.6 million recognized as net income from the JV, reflecting 30% ownership via equity accounting.

• FY 2025 production from Manh Choh mine totaled 60,200 gold equivalent ounces, in line with guidance, with 57,315 ounces of silver included.

• Unrestricted cash position rose to $65 million at year-end 2025 from $20 million at year-end 2024, mainly due to equity raises and JV distributions.

• Merger with Dolly Varden expected to close in late March 2026, bringing significant additional cash and expanding the project portfolio.

• Reported net loss of $36.1M due to a $46.0M non-cash unrealized loss on derivative contracts; adjusted net income was $73.0M.

Financial highlights

• $102 million in cash distributions from Peak Gold JV in 2025; $88.6 million net income recognized from JV.

• Total income from operations was $69.1M in FY 2025, up from $26.3M in FY 2024.

• Adjusted net income increased to $73.0M from $16.1M year-over-year.

• Debt reduced to under $15 million, with $37.5 million in principal repayments and plans to extinguish debt and hedges by early 2027.

• Realized hedge losses of $63 million and debt paydown of $37.5 million funded by JV profits.

Outlook and guidance

• 2026 is a transition year at Manh Choh, with ore tons mined expected to rise 14% and gold ounces mined up 4% year-over-year.

• 2026 AISC guidance rises to $2,200-$2,300/oz due to increased pre-stripping and mine plan sequencing; expected to drop in 2027 as mining shifts to higher-grade ore.

• 2027 gold production guidance: 75,000-80,000 oz at cash costs of $1,200-$1,300/oz, with strong margins at current gold prices.

• Cash expected to remain stable around $60 million in 2026, with significant free cash flow generation projected for 2027-2028.

• Cash distributions from Peak Gold JV projected at $48M–$54M in FY 2026 and $165M–$175M in FY 2027, assuming $3,700/oz gold price.