Q1 2026 Contango Silver & Gold Inc Earnings Call Transcript
Key Points
- Contango Silver & Gold Inc (CTGO) is confident in meeting its annual gold production guidance of 40,000 to 45,000 ounces, despite a lower-than-expected Q1 output.
- The company has successfully reduced its hedge book to 22,000 ounces and aims to be debt-free and hedge-free by the end of the year.
- A significant increase in cash reserves from $64.8 million to $97.5 million was achieved, partly due to the Dolly Varden merger.
- The company anticipates a strong 2027 with projected gold production of 75,000 to 80,000 ounces and substantial free cash flow.
- Contango Silver & Gold Inc (CTGO) is actively investing in exploration projects, with a 60,000-meter drilling program planned for 2026, which could lead to significant resource discoveries.
- Q1 production was lower than expected at 8,000 ounces due to winter conditions and operational challenges, including a belt fire.
- Reported cash costs and all-in sustaining costs (ASIC) were significantly above full-year guidance, at $2,692 and $2,778 per ounce, respectively.
- The company reported a net loss of $14.3 million, primarily due to a $19 million non-cash derivative loss.
- Fuel price increases in Alaska could impact operational costs, with diesel prices rising from $4.50 to $6 per gallon.
- The transition year of 2026 is expected to be the lowest production year under the current mine plan, impacting overall financial performance.
All right, everyone. Good morning, good afternoon or good evening, depending on where in the world you're signing in from today. Great to see a packed house for today's event.
I've got with me today Rick Van Nieuwenhuyse, CEO of Contango Silver and Gold; and Mike Clark, the company's CFO.
Here's how today is going to work with the folks in the room. I've got some questions based on this morning's press release, but this is also an interactive event. So please do enter your questions in the chat section on the bottom of the screen.
We're going to try to stick to half an hour today. So if we can't get to your questions, I'll make sure the Contango team receives all the content as soon as the event is over, but we will try to get to as many as we can today. The event is also being recorded and will be available for replay this afternoon Eastern Time.
So let's get into the meat and potatoes here. Rick, before we get into the Q1 numbers, even telegraphing forever that this quarter was going to likely be the lightest production
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
