Contango ORE, a company engaged in the exploration of gold, silver, and copper ores in Alaska, has reported significant financial and operational developments in its latest 10-K filing.
The company's largest asset is a 30% membership interest in the Peak Gold JV, which has been actively mining and processing ore at the Manh Choh Project in Alaska. In 2024, the company received $40.5 million in cash distributions from the Peak Gold JV, and in 2025, it received $102.0 million in cash distributions. The Peak Gold JV expects the Manh Choh mine to be operational for approximately five years.
In a recent development, Contango ORE entered into an Arrangement Agreement to acquire Dolly Varden Silver Corporation. The estimated fair value of the shares to be issued for the acquisition is $397.5 million. Upon completion of the arrangement, existing Contango stockholders and former Dolly Varden shareholders will own approximately 50.001% and 49.999% of the combined company, respectively.
The company also provided production guidance for 2026 and 2027, estimating its share of gold production from the Manh Choh mine to range from 40,000 to 45,000 ounces in 2026 and 75,000 to 80,000 ounces in 2027. It anticipates robust cash distributions from the Peak Gold JV, projected to range between $48 million to $54 million in fiscal year 2026 and rising to a range of $165 million to $175 million in fiscal year 2027.
Contango ORE also reported on its Johnson Tract Project, where it completed an Initial Assessment indicating a pre-tax net present value discounted at 5% (“NPV5”) of $359.0 million and a pre-tax Internal Rate of Return (“IRR”) of 37.4%. Additionally, the company mobilized a drill rig at the Lucky Shot mine site to commence the first phase of a 15,000-meter underground in-fill drilling program.
In terms of financial operations, the company reported exploration expenses of $5.8 million for the fiscal year ended December 31, 2025, compared to $4.1 million for the previous year. General and administrative expenses for the same period were $13.1 million, up from $10.6 million in the prior year.
Contango ORE also completed underwritten offerings, including the sale of 1,975,000 shares of common stock and pre-funded warrants, as well as an underwritten public offering to institutional investors, from which it received approximately $47.2 million in net proceeds.
As a result of these announcements, the company's shares have moved 0.75% on the market, and are now trading at a price of $29.70. For more information, read the company's full 10-K submission here.
