The company’s share of production from the Manh Choh mine totaled approximately 60,200 gold equivalent ounces (GEO) for FY 2025, aligning with guidance. Looking ahead, Contango expects production to range from 40,000 to 45,000 ounces of gold for FY 2026, with cash costs estimated between $1,900 and $2,000 per ounce. For FY 2027, production is projected to increase to 75,000 to 80,000 ounces with lower cash costs of $1,200 to $1,300 per ounce.
Rick Van Nieuwenhuyse, President and CEO, highlighted the company’s focus on debt reduction and operational efficiency, noting that $37.5 million was repaid on the credit facility, reducing the outstanding balance to $14.6 million. The company plans to be completely unhedged by the end of FY 2026, which is expected to enhance its financial flexibility in a rising gold price environment.
Additionally, Contango is advancing its Lucky Shot project, with an underground drilling program initiated in Q4 2025. The company aims to complete a feasibility study within 12 to 18 months, targeting annual production of 40,000 to 50,000 ounces of gold. The Johnson Tract project is also progressing, with permitting activities underway.
The company is set to merge with Dolly Varden Silver Corporation, a transaction expected to close in late March 2026, which will create a combined entity focused on enhancing shareholder value through strategic growth and operational synergies.
