Contango Silver and Gold Inc. has fully repaid its initial $105 million capital investment at the Manh Choh mine in Alaska, with total returns from the asset reaching $160 million.

For the quarter ended June 30, 2026, Contango reported a net income of $4.8 million, or $0.14 per fully diluted share, compared to $15.9 million in Q2 2025. The company recorded an operating loss of $8.5 million for the second quarter of 2026, down from an operating income of $23.0 million in the same period of 2025.

Supported by a $9.0 million cash distribution from the Peak Gold joint venture, Contango ended June 30, 2026, with an unrestricted cash position of $89.0 million, up from $64.8 million at December 31, 2025. The Peak Gold joint venture is held via a 30% interest by Contango, with the remaining 70% owned by Kinross Gold Corporation subsidiary KG Mining (Alaska), Inc. across approximately 675,000 leased acres.

“The second quarter of 2026 was a transformative period of operational execution and financial restructuring for Contango across all four projects. At Manh Choh, having completed mining in the North Pit, we are entering a high-production phase as we transition into the higher-grade portions of the South Pit where we expect both processed ore tonnage and grades to increase through the remainder of the year.” — Rick Van Nieuwenhuyse, Chief Executive Officer

The company used its balance sheet strength to restructure its liabilities. On July 1, 2026, Contango amended its credit facility to increase the secured facility by $33.7 million to an aggregate principal of $46.3 million, using the proceeds alongside 15,000 put option contracts to eliminate remaining 2027 hedge obligations. Combined with early delivery of 2026 hedge obligations in June, the hedge book has been fully liquidated.

In parallel, Contango secured 100% ownership of the Lucky Shot project in the Willow Mining District by buying out the underlying lease and 2% net smelter return royalty from Alaska Hardrock Inc. for total consideration of $16,074,000, while also settling $18.75 million in milestone payment obligations for $5.0 million in cash and 100,000 common shares. The company holds mineral rights across approximately 8,600 acres of State and patented claims at Lucky Shot.

“Crucially, we hit a major milestone with Manh Choh this quarter: against our initial capital investment of $105 million ("M"), total returns to date have now reached $160 M-meaning our initial investment is fully repaid, and all future cash flows from the asset represent pure upside and clear profit.” — Rick Van Nieuwenhuyse, Chief Executive Officer

The Manh Choh mine's third mining campaign of 2026 is scheduled to commence in late August, targeting 11,000 to 12,000 gold equivalent ounces net to Contango. At Lucky Shot, underground infill drilling continues to support a feasibility study targeted for the first half of 2027, paving the way for a production decision that year.

Read the full announcement: Contango Announces Results for the Quarter Ended June 30, 2026