Manh Choh Reports Q1 Gold Sales of 26,710 Ounces
Reports Q1 26,710 oz. of gold and 50,142 oz. of silver sold. CEO Rick Van Nieuwenhuyse stated, "Q1 2026 was a period of significant operational transition and strategic growth. At Manh Choh, while harsh winter conditions and operational challenges impacted Q1 throughput and costs, we are pleased to report that we are now entering a high-production phase; we expect ore tons processed and ore grade processed to increase for the remainder of the year, as we transition into the higher-grade portions of the South Pit. Manh Choh remains on track to meet our 2026 guidance of 40K-45K ounces of gold production, which will set the stage for 2027, which we are guiding to 75K-80K ounces of gold production with cash costs of $1,200 to $1,300 per ounce sold and all-in sustaining costs of $1,300 to $1,400 per ounce sold. With this momentum, our cost guidance for the year remains firm. During the quarter we received a $9M cash distribution from the Peak Gold JV. Our cash on hand for the end of the quarter was $97.5 M an increase from $64.8 M at December 31, 2025. For 2026, we anticipate cash costs $1,900-$2,000 and all-in sustaining costs of $2,200-$2,300 per ounce of gold sold. Furthermore, we have strengthened our financial flexibility by reducing hedge contracts to 22K ounces and reduced our debt to $13.6 M, both of which we intend to fully settle by year-end."
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- Financial Performance: Contango Ore reported a Q1 GAAP EPS of -$0.83, indicating challenges in profitability that may affect investor confidence and stock performance.
- M&A Developments: During the analyst call, the company discussed Lucky Shot drill results and acquisition progress, highlighting its strategic intent to expand resource base and enhance market competitiveness.
- Future Targets: Contango Ore has set ambitious targets for 2027, aiming for over $165 million in distributions and more than $100 million in cash reserves, intending to bolster financial stability through effective capital management and resource development.
- Market Reaction: Despite setting positive long-term goals, the current financial performance may lead to cautious market sentiment regarding its future growth potential, impacting shareholder confidence.
- Drilling Work Commences: Lake Victoria Gold mobilizes reverse circulation drill rigs to the Imwelo project site, with a scheduled 21-day, 1,050-meter sterilization drilling program aimed at ensuring construction facilities do not interfere with mineralized ground, thereby reducing future construction risks.
- Financing Structure Solidified: The company has secured a $25 million gold loan agreement with Monetary Metals and locked in a C$3.8 million convertible debenture financing, providing funding assurance for near-term project development while avoiding share dilution.
- Strong Technical Foundation: Metallurgical testing at the Imwelo project indicates gold recovery rates of up to 97%, with drilling in Area C revealing grades of 11.88 g/t gold, suggesting mineralization extends beyond current designs, potentially enhancing project economics.
- Regulatory Progress Made: The Tanzanian government has begun incorporating its 16% statutory free-carried interest in the Tembo mining licenses, signaling advancement of Lake Victoria Gold's second 100% owned project within the regulatory framework, thereby boosting market confidence.
- Market Dynamics: Equities are up on Friday morning following President Trump's announcement of a three-week ceasefire between Israel and Lebanon, indicating a positive market response to geopolitical stability that may boost investor confidence.
- Texas Instruments Surge: Shares of Texas Instruments rose by 19% on Thursday, marking its best day since 2000, driven by strong earnings and an analyst upgrade, highlighting the company's robust recovery in the semiconductor sector.
- Vast Data Financing Discussion: Vast Data's Founder and CEO Renen Hallak will join NYSE Live to discuss the company's $1 billion Series F funding, with Nvidia among the participants, reflecting strong market demand for data storage solutions.
- Contango Silver & Gold Merger Outlook: Executives from Contango Silver & Gold will join NYSE Live after the Opening Bell to reveal their strategic plans following a recent merger, showcasing the company's proactive positioning in the resource sector.
- Price Fluctuation Analysis: CTGO's 52-week low stands at $11.23 per share, with a high of $34.38, while the last trade was at $24.20, indicating significant volatility over the past year and reflecting varying market expectations for its future performance.
- Market Trend Observation: The current price of $24.20 is above the 52-week low, suggesting a partial recovery in investor confidence; however, it remains significantly below the high, indicating a cautious market outlook on its growth potential.
- Technical Indicator Reference: CTGO's stock price has crossed above the 200-day moving average, which may attract more attention from technical analysis investors, potentially influencing short-term trading activity and market sentiment.
- Investor Sentiment Assessment: Although the current stock price is positioned in the middle of the 52-week range, investor opinions on CTGO remain divided, necessitating close monitoring of upcoming earnings reports and market developments to assess its long-term investment value.
- Cash Distribution Surge: Contango Ore Inc (CTGO) reported cash distributions of $102 million from the Peak Gold JV in 2025, significantly boosting its cash position from $20 million at the start of the year to $65 million by year-end, primarily driven by an equity raise in September.
- Debt-Free Goal: The company is on track to achieve a debt-free and hedge-free status by early 2027, enhancing its financial flexibility and providing greater freedom for future investments and operations.
- Merger Impact: The merger with Dolly Varden is expected to increase cash reserves to over $100 million, providing a strong financial foundation that supports future project development and expansion.
- Rising Production Costs: The all-in sustaining cost (AISC) for 2026 is projected to rise to $2,200 to $2,300 per ounce due to increased pre-stripping activities, although costs are expected to decrease in 2027 as mining shifts to more efficient ore extraction.
- Meeting Results: At today's special meeting, Contango ORE shareholders overwhelmingly approved the Arrangement Proposal with 99.70% support, reflecting strong confidence in the company's future and expected to advance the merger with Dolly Varden.
- Share Increase Proposal: The proposal to increase authorized shares from 45 million to 250 million received 84.68% approval, providing greater flexibility for future capital operations and enhancing the company's competitive position in the market.
- Incentive Plan Approval: The 2026 Omnibus Incentive Plan was approved with 89.99% support, aimed at attracting and retaining key talent, thereby improving overall operational efficiency and driving long-term growth and shareholder value.
- Next Steps: While the proposals have been approved, the Arrangement still requires approval from the British Columbia Supreme Court, with a hearing scheduled for March 23, 2026, and if successful, will expedite the merger process and bolster market confidence.










