Contango ORE (NYSE:CTGO) filed its annual report on Form 10-K for the fiscal year ended December 31, 2025, detailing the company's successful transition from explorer to producer.
The company reported that its 30% interest in the Manh Choh project in Alaska yielded 60,200 gold equivalent ounces (GEO) for the year.
This production milestone was the primary driver behind an adjusted net income of $73 million, reflecting the high-grade nature of the deposit and the efficiency of the "truck-and-process" model utilized with its joint venture partner.
On a GAAP basis, Contango reported a net loss of $36.1 million for 2025.
However, management noted that this figure was heavily impacted by a non-cash, unrealized derivative loss of $46 million related to the company's gold hedging program.\
These hedges, while impacting the reported net income due to rising gold prices, were instrumental in securing the financing required to bring Manh Choh into production.
The company’s liquidity remained healthy, ending the year with $64.8 million in unrestricted cash.
The fiscal year was also characterized by significant capital de-risking.
Contango received $102 million in cash distributions from its joint venture and utilized a portion of these proceeds to repay $37.5 million of its outstanding debt.
Furthermore, the company successfully completed equity raises totaling $100 million in gross proceeds, providing the necessary flexible capital to fund ongoing exploration at its Lucky Shot and Johnson Tract projects.
Looking toward the future, Contango provided a multi-year production outlook that highlights a significant expected increase in output.
For 2026, the company expects its share of gold production to be between 40,000 and 45,000 ounces.
Projections for 2027 show a substantial jump to a range of 75,000 to 80,000 ounces as the joint venture accesses higher-grade zones within the Manh Choh pit.