Executives from the newly combined Contango Silver & Gold outlined near-term milestones, exploration plans, and their longer-term growth ambitions during a webcast following shareholder approval of the transaction. Management said the company is positioning itself as a North American precious-metals platform built around current cash flow, active drilling, and a pipeline of projects in Alaska and British Columbia.
Near-term milestones: Kitsault resource update, active drilling, and permitting
Rick van Nieuwenhuyse, CEO, said investors should expect a new Mineral Resource Estimate (MRE) for Kitsault, noting roughly 200,000 meters of drilling have been completed since the last estimate. He said the updated MRE is expected around the end of next quarter (June timeframe).
He added that drilling is ongoing at Lucky Shot, and the company is continuing permitting work at Johnson Tract, including preparations to begin building a road. Van Nieuwenhuyse said 2026 will be “a busy year,” with planned spending of roughly $50 million across the portfolio.
Management’s pitch: a “mid-tier producer” ambition backed by cash flow
President Shawn Khunkhun described the combined company as a “new go-to name” for precious-metals investors focused on safety, security, and high grades. He said the company’s stated ambition is to become a mid-tier producer focused on precious metals in North America.
Khunkhun highlighted several elements he believes differentiate the company from many junior peers, including cash flow and funding capacity. He said the company is “well-funded,” contrasting it with juniors that rely on frequent share issuances and dilution.
Van Nieuwenhuyse said the company is starting with about $100 million in the bank and described meaningful free cash flow generation, adding that the company has largely worked through its hedge book and paid down most of its debt. He emphasized that management cannot control geopolitical events or metals prices, but can control budgets and capital discipline.
Manh Choh outlook: guidance, costs, and updated base-case assumptions
Van Nieuwenhuyse discussed Manh Choh production and cost guidance, explaining that 2026 is expected to be the operation’s lower production and higher cost year due to the transition from the north pit to the south pit and associated stripping work.
- 2026 guidance: ~45,000 gold-equivalent ounces (mostly gold) at $1,900–$2,000 all-in sustaining costs (AISC).
- 2027 guidance: 75,000–80,000 ounces at $1,300–$1,400 AISC.
He said the company expects to update its website and that its base-case assumption for free cash flow modeling has moved from $3,200 gold to $3,700 gold. He characterized the next year’s cash flow at current prices as “ridiculous,” suggesting it could be “a couple of hundred million dollars” at today’s gold price, while also noting Kinross operates the mine and remains conservative in assumptions.
Johnson Tract: economics and permitting progress
Asked about Johnson Tract, van Nieuwenhuyse said he was constrained by SEC rules from discussing economics above the price assumptions used in the company’s S-K 1300 disclosure, but noted the company included $4,000 gold in its materials. He said that at that level the project’s NPV is well over $600 million, and emphasized that it offers a one-year payback, which he described as unusual in mining.
He also argued Johnson Tract’s polymetallic sulfide nature creates potential processing synergies with Kitsault-style ores. On permitting, he said the project is part of the FAST-41 dashboard and described an improved backdrop for mining permitting, citing government recognition of “critical metals.”
Kitsault: expected resource gains and the longer runway
Khunkhun said the upcoming Kitsault MRE is “just a point in time,” and described expectations for meaningful growth and category conversion, particularly in the north (gold-rich) portion of the project where he said a large portion of the resource had been inferred. He said he expects:
- Approximately a 50% increase in silver ounces.
- Roughly 50% conversion of inferred ounces to indicated at Homestake.
- A potential grade lift as conversion occurs, noting the indicated grade is higher than inferred.
Khunkhun added that the broader property remains lightly explored, citing a “string of pearls” concept and pointing to a roughly 5-kilometer gap between the Wolf and Homestake Silver areas as prospective for additional discoveries. He said the project currently contains about 64 million ounces of silver (all categories) and 1 million ounces of gold, and that the updated resource will incorporate the 200,000 meters drilled.
In a separate discussion, management described how its direct-ship-ore approach—shipping ore to an existing mill—can reduce capital needs and permitting complexity compared with building a new mill and tailings facility, though it requires sufficiently high grade to offset transport costs. Van Nieuwenhuyse said the company permitted Manh Choh in 18 months and framed the smaller footprint as an advantage.
On corporate matters, Khunkhun said the company can currently be purchased under CTGO in the U.S., and said it expects to trade on the TSX under the same symbol. He emphasized liquidity and index inclusion as key benefits of larger exchanges, calling liquidity “the oxygen of capital markets.”
Contango ORE (NYSEAMERICAN:CTGO) executives also addressed operational questions, including fuel exposure and Alaska logistics. Van Nieuwenhuyse said the company typically buys diesel about a year ahead in Alaska, limiting near-term impact from price increases, and estimated transportation is roughly a third of AISC, with fuel about a third of transportation costs. He also said bridge-related heavy-load restrictions that drew attention last year have been resolved and that trucks are running “24/7, 365.”
About Contango ORE (NYSEAMERICAN:CTGO)
Contango ORE Royalty Trust (NYSE American: CTGO) is a grantor royalty trust that holds net overriding royalty interests in oil and gas properties. As a non‐operating entity, the trust itself does not engage in exploration, drilling or production activities but instead receives a percentage of revenues generated by producing wells. This structure offers investors exposure to commodity price movements and production volumes without the direct capital expenditure or operational risks associated with upstream oil and gas companies.
The trust’s assets consist primarily of royalty interests in offshore leases located on the continental shelf of the Gulf of Mexico.
