Contango Silver & Gold Inc.CTGO
Scheduled
Contango Silver & Gold Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ2 2026
Key takeaways
- Contango Silver & Gold reported its first full quarter as a combined company with the Dolly Varden asset fully integrated as of July.
- The company produced approximately 8,900 ounces of gold from its 30% share of the Manceau JV in Q2, selling 8,627 ounces at an average spot price of $4,328 per ounce.
- The JV is currently mining lower grade material from the North Pit, with higher grade ore expected from the South Pit in the second half of the year.
- Full-year production guidance remains at 40,000 to 45,000 ounces of gold, with about 12,000 ounces expected in each of the third and fourth quarters.
- Cash costs for the first half were $2,665 per ounce with all-in sustaining costs at $2,830, while full-year cash cost guidance is $1,900 to $2,000 per ounce, reflecting expected improvement in the second half due to higher grades and completion of pre-stripping.
- Q3 will be the first quarter where all ounces are sold at spot prices, currently around $4,400, with puts at $3,100 providing a floor.
- The company expects to receive approximately $36 million in cash distributions from the JV in the second half of 2026, potentially rising to over $60 million for the full year if gold holds at $4,400.
- On July 1, Contango completed the purchase of mineral claims around Lucky Shot, acquiring the project outright and significantly reducing royalties ahead of the feasibility study.
- Final assays from the Lucky Shot underground program included an intercept grading 972 grams per ton with visible gold, and drilling continues with two surface rigs and one underground rig.
- The company is targeting a resource update of 400,000 to 500,000 ounces grading 10 to 14 grams per ton, with a feasibility study expected in 2027.
- At Kitsault Valley, over 3,500 of a planned 4,000 meters of drilling were completed by June, with a new resource estimate underway.
- The Dolly Varden team has integrated well, operating five rigs with efficient drilling rates and costs, and additional drilling is planned within the existing budget.
- Brilliant Silver is trading around $65 per ounce, up roughly 70% year over year, and has led gold during parts of the recent rally.
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