Contango Ore (NYSEAM:CTGO) Update / briefing February 12, 2026 03:00 PM ET Company ParticipantsMike Clark - CFORick Van Nieuwenhuyse - CEOModeratorI will say good morning, good afternoon, or good evening, depending on where in the world you're signing in from today. I've got with me today, Contango ORE's CEO, Rick Van Nieuwenhuyse, and CFO, Mike Clark, to discuss the company's recently closed financing. Mike, Rick, how are you today?Rick Van NieuwenhuyseGood. Good to see you again, Romeo.ModeratorAwesome. S ...

Group 1 - Dolly Varden Silver Corporation (DVS) and Contango Ore have announced a merger of equals, with stockholders of each company controlling approximately 50% of the new entity, MergeCo [2] - The merged company will own the Manh Choh gold mine in Alaska and several silver and gold prospects in British Columbia and Alaska, including Johnson Tract and Kitsault Valley [2] - The anticipated closing date for the merger is late February or early March 2026, with a $15 million reciprocal termination charge in place [2] Group 2 - The 2025 exploration program at Kitsault Valley completed 56,131 meters in 84 drill holes, focusing on new prospects and existing deposits [3] - As of January 21, 2026, DVS's stock has increased by 18.58% year-to-date [3]

Summary of Contango Ore and Dolly Varden Silver Merger Conference Call Companies Involved - **Contango Ore (NYSEAM:CTGO)** - **Dolly Varden Silver** Core Points and Arguments 1. **Merger Announcement**: Contango Ore and Dolly Varden Silver announced their intention to merge, creating a combined company with a market capitalization of approximately $800 million USD or over CAD 1 billion [4][18][19]. 2. **Leadership Structure**: Post-merger, Rick Van Nieuwenhuyse from Contango will serve as CEO, Sean Khunkhun from Dolly Varden will be President, and Mike Clark will be CFO [18][47]. 3. **Asset Portfolio**: The merger will combine high-grade gold and silver projects in tier one jurisdictions, focusing on Alaska and the Golden Triangle in British Columbia [12][21][60]. 4. **Production Capacity**: Current production is approximately 60,000 ounces of gold per year from the Manh Choh mine, with plans to increase to 200,000 ounces through the development of Lucky Shot and Johnson Tract [41][52]. 5. **High-Grade Assets**: The combined portfolio includes high-grade projects with gold grades exceeding 10 grams per ton and silver grades over 300 grams per ton, which are expected to yield significant cash flow [12][22][56]. 6. **Direct Shipping Ore (DSO) Model**: The DSO model will be utilized to minimize capital expenditures and expedite production timelines, allowing for efficient transportation of high-grade ore to existing mills [24][58]. 7. **Geographic Synergy**: The merger capitalizes on geographic consistency, with both companies operating in the same mining districts, enhancing operational efficiencies and exploration potential [11][21]. 8. **Support from Shareholders**: Both companies have garnered significant support from their shareholders, with 22% signing voter support agreements for the merger [20][19]. 9. **Exploration Potential**: The combined company will have access to over 500,000 hectares of prime exploration land, with plans for extensive drilling programs to further define resources [15][31][69]. 10. **Financial Strength**: The merged entity will have over $100 million in cash and is expected to generate $100 million in free cash flow annually from the Manh Choh mine [44][71]. Other Important but Possibly Overlooked Content 1. **Historical Context**: Both CEOs have extensive backgrounds in mining and have successfully built companies in the sector, indicating a strong foundation for the new entity [6][9]. 2. **Community Relations**: Both companies emphasize strong relationships with local communities and indigenous partners, which is crucial for project development and permitting [62][63]. 3. **Market Dynamics**: The merger is positioned to take advantage of current market conditions where size and liquidity are increasingly important for attracting investment [36][37]. 4. **Future Plans**: The companies plan to conduct a new 43-101 compliant resource estimate, with expectations of significant increases in both silver and gold resources [62][69]. 5. **Environmental Considerations**: The DSO model is highlighted as a more environmentally friendly approach, reducing the need for extensive milling facilities and associated permits [58]. This summary encapsulates the key points discussed during the conference call regarding the merger between Contango Ore and Dolly Varden Silver, highlighting the strategic advantages and future potential of the combined entity.

Summary of Contango Ore (NYSEAM:CTGO) Update / Briefing on September 26, 2025 Company Overview - **Company**: Contango Ore (CTGO) - **Industry**: Mining, specifically gold production Key Points and Arguments Financing and Strategic Rationale - Contango Ore successfully closed a **$50 million** financing round at **$20 per share** aimed at institutional investors, marking a significant cash injection for the company [4][6] - The financing is described as **transformational**, intended to support the advancement of two projects: **Lucky Shot** and **Johnson Track** [6][11] - The cash flow from the **Monchola** mine is primarily directed towards paying down debt and hedging commitments, necessitating this new financing to avoid delays in project development [6][7] Project Development Plans - The company aims to **triple production** from the current **60,000 ounces** to **200,000 ounces** annually across the Lucky Shot and Johnson Track projects [11][79] - The all-in sustaining costs are projected to be around **$1,500 per ounce**, which is expected to generate strong cash flows [11][70] - The drilling operations for Lucky Shot are set to commence shortly, with a focus on resource definition and feasibility studies [20][30] Risk Management and Hedging - Contango is cautious about its hedge positions, with plans to deliver into existing contracts while monitoring gold prices [24][27] - The company anticipates that the hedges will be fully settled by the end of next year, allowing for increased cash flow to be directed towards project development [25][70] Permitting and Regulatory Environment - The permitting process for Johnson Track is ongoing, with expectations to secure necessary permits by **Q1 of next year** [35][37] - The company is leveraging the **FAST 41** program to streamline the permitting process, which is crucial for project advancement [66][67] Financial Outlook - Contango expects to generate over **$100 million** in cash flow this year, with sufficient internal funding to support the development of both Lucky Shot and Johnson Track without the need for additional financing [46][70] - The anticipated mine life for Monchola is **4.5 years**, Lucky Shot is projected at **5 years**, and Johnson Track at **7 years**, with potential for extensions based on further exploration [75][79] Future Growth and Opportunities - The company is actively seeking new opportunities that align with its **Direct Shipping Ore (DSO)** model, focusing on high-quality, high-margin projects [81][83] - Contango aims to maintain a margin of over **$2,000 per ounce** while keeping all-in sustaining costs around **$1,500** [82][83] Management Insights - The management expressed excitement about the upcoming drilling activities and the potential for significant growth, emphasizing a strong five-year plan to increase production [85][87] - The CEO highlighted the importance of executing the company's growth strategy while managing operational risks, including litigation and permitting challenges [47][49] Additional Important Information - The company is positioned strategically in Alaska, benefiting from federal support for resource development, which is seen as advantageous for future operations [60][62] - Recent legal challenges have been addressed positively, with a lawsuit against the company being dropped, which may alleviate some operational risks [48][50] This summary encapsulates the key discussions and insights from the Contango Ore briefing, highlighting the company's strategic direction, financial health, and project development plans.

Financial Data and Key Metrics Changes - The company is producing approximately 60,000 ounces of gold annually at the Monchaux project, with all-in sustaining costs projected to be around $1,400 per ounce, although current costs are higher due to increased stripping activities [2][3][7] - The company generated about $54 million in cash last year, with a share of production amounting to approximately 35,000 ounces in the first half of the current year [6][7] - The company expects to end the year with around $20 million in cash [4] Business Line Data and Key Metrics Changes - The Monchaux project is currently in production, while the Lucky Shot mine and Johnson Track are in development stages [5][17] - The Lucky Shot mine has a historical production of 250,000 ounces of gold and is expected to produce around 40,000 ounces annually once operational [13][26] - Johnson Track is anticipated to contribute significantly to production, with projections indicating it will add approximately 100,000 gold equivalent ounces annually [26] Market Data and Key Metrics Changes - The company is currently operating under a direct shipping ore model, which allows for lower infrastructure costs and quicker production timelines compared to traditional mining methods [3][10] - The company is closely monitoring oil prices, which have been lower than projected, positively impacting all-in sustaining costs [9] Company Strategy and Development Direction - The growth strategy focuses on increasing production from 60,000 ounces to 200,000 ounces annually through the development of Lucky Shot and Johnson Track [26][27] - The company aims to clear its hedge book, which currently has about 42,000 ounces left, to maximize cash flow from gold sales at current prices [15][27] - The company is exploring strategic options for processing the ore from Johnson Track, including the possibility of owning a mill [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate over $100 million in free cash flow, which will support growth without significant dilutive financing [27] - The management highlighted the importance of maintaining a low-cost structure and avoiding large capital expenditures associated with traditional mining operations [10][27] Other Important Information - The company has a tight share structure with 12.7 million shares outstanding [4] - The company is in the permitting phase for the Johnson Track project, which is expected to progress in the coming year [19][24] Q&A Session Summary Question: Where do you plan to process the Lucky Shot ore? - The company plans to transport Lucky Shot ore to Kinross for processing, leveraging existing infrastructure [29] Question: What are the processing options for Johnson Track? - The company is evaluating multiple options for processing Johnson Track ore, including the potential ownership of a mill [30]

Financial Data and Key Metrics Changes - Operating earnings increased from a loss of $3.1 million in Q2 of last year to an income of $23 million this quarter [8] - Net income improved from a loss of $18.5 million in Q2 of last year to a net income of $15.9 million this quarter [9] - Earnings per share rose from a loss of $1.9 to a profit of $1.24 per diluted share [16] Business Line Data and Key Metrics Changes - Cash costs for the quarter were $14.16, with year-to-date costs at $13.75 [4] - All-in sustaining costs were $15.48 for the quarter and $14.62 year-to-date [4] - The company processed 250,000 tons of ore at a grade of 0.23 ounces per ton in the current campaign, compared to 255,000 tons at 0.22 ounces per ton in Q2 of the previous year [21] Market Data and Key Metrics Changes - The average realized gold price was $3,274 per ounce, compared to a blended carry trade price of $2,441 [16] - The company’s hedge position is currently at just under 63,000 ounces, expected to decrease to about 43,000 ounces by year-end [30] Company Strategy and Development Direction - The company is focused on debt reduction and advancing projects like Johnson Track and Lucky Shot, with a goal to reduce debt from $23 million to around $15 million by year-end [30][31] - The strategy includes maintaining a low share count and ensuring operational efficiency to maximize margins [51][60] - The company aims to produce 30,000 to 40,000 ounces annually from Lucky Shot, with a diluted grade above 10 grams [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational smoothness and the potential for increased gold production as the market conditions remain favorable [51][63] - The company is optimistic about the gold price outlook and is focused on prudent growth without taking excessive risks [52][89] Other Important Information - The lawsuit regarding the beluga whale issue is still ongoing, with the company involved in the legal proceedings [68] - The company is considering monetizing its Onex shares but is currently restricted by escrow agreements [78] Q&A Session Summary Question: How long will campaign three last and potential timing of the check from the JV? - Campaign three is expected to last roughly three weeks, with distributions anticipated in late September [65][66] Question: Is there still a beluga whale lawsuit issue? - Yes, the lawsuit is ongoing in federal court, and the company has joined the lawsuit [68] Question: What allowed the ASIC for the second quarter to be lower than expected? - The lower ASIC was attributed to favorable weather conditions and operational efficiencies, with expectations to remain below the target of $16.25 [70][72] Question: Are there plans to monetize the Onex shares? - Yes, the company is considering the timing for monetization but is currently restricted by escrow agreements [77][78] Question: What are the upcoming catalysts for Contango? - The focus will be on drilling underground at Lucky Shot and advancing the Johnson Track project [79]