Contango Silver & Gold Inc.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 13, 2026
CTGO$15.55+4.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001193125-26-222855
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001193125-26-349539
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 116 current paragraphs.
79 unchanged; 23 reworded; 4 added; 2 removed; 2 previous and 10 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
In June 2026, the Company compiled final assay results from the initial phase of the drilling program. The final assay results include several significant gold intercepts from the Lucky Shot vein system, highlighted by 0.17 meters grading 972.10 grams per tonne (“g/t”) gold (“Au”) in drill hole LSU26091. The intercept encountered the L1d Vein and included visible gold observed during core logging. Underground exploration development work has re-commenced at Lucky Shot, with our contract miner, GMS Mine Repair & Maintenance, Inc. (“GMS”) mobilized to site and currently advancing exploration access and future underground drill platforms.
Current report
The Lucky Shot surface drill program commenced on June 22, 2026 with the mobilization of two helicopter-supported drill rigs to site. A total of 29 holes across five drilling platforms, totaling approximately 6,800 meters are planned. The program is designed to infill areas of known mineralization within the Coleman portion of the resource, while also executing step-out drilling to test the structural continuity between the Coleman and Lucky Shot vein systems.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Beyond the next twelve months, the Company’s material cash requirements include (i) the repayment at maturity of the $20.0 million unsecured convertible debenture held by Queen’s Road Capital Investment, Ltd., which matures on May 26, 2028 (see Note 13 - Debt), and (ii) principal repayments totaling $10.0 million under the secured promissory note entered into in connection with the Lucky Shot Property acquisition, with $2.0 million due on each of the second and third anniversaries of the July 1, 2026 closing date and the remaining principal balance due on the fourth anniversary (see Note 20 - Subsequent Events). The Company expects to fund these longer-term obligations through a combination of anticipated cash distributions from the Peak Gold JV, proceeds from metal sales, potential future equity issuances (including amounts available under its ATM program), and available cash on hand. The Company may also consider refinancing alternatives or other capital markets transactions as they become available on commercially acceptable terms.
Removed paragraphs (2)
Previous report
Cook Inletkeeper, Chickaloon Village Traditional Counsel, Center for Biological Diversity.
Previous report
On September 10, 2024, the Corps issued to Johnson Tract Mining Inc, (a wholly owned subsidiary of the Company) a permit under Section 404 of the Clean Water Act to construct an access road and improve an existing air strip on the south parcel of the Johnson Tract project. On May 20, 2025, Cook Inletkeeper, Chickaloon Village Traditional Council, Center for Biological Diversity, and an individual plaintiff filed suit in the United States District Court for the District of Alaska against the Corps and related officials, challenging the Corps’ issuance of the Section 404 permit. The plaintiffs seek to vacate the section 404 permit issued and halt mineral exploration on the lands. The complaint alleges that the Corps Environmental Assessment for the Section 404 permit failed to adequately analyze the potential for acid rock drainage and contaminants leaching into the Johnson River and Cook Inlet and the harmful effects of the project on beluga whales at the Cook Inlet. In July 2025, the Company filed a motion to intervene as a defendant in the lawsuit to protect its legal rights under the Section 404 permit, its significant investment in the Johnson Tract, and its mineral exploration lease with CIRI. The Alaska District Court has not issued any rulings or relief and the permit in question is still active and in good standing. We believe unfavorable outcome to us is not probable.
Reworded paragraphs (23)
Previous wording
Availability and ability to raise capital to fund capital expenditures and repayment of indebtedness;
Current wording
Availability and ability to raise capital to fund capital expenditures;
Previous wording
Ability to realize the anticipated benefits of the Dolly Varden merger;
Current wording
Ability to consummate and realize the anticipated benefits of strategic transactions, including the Dolly Varden merger;
Previous wording
Disruption from the Dolly Varden merger and transition of Dolly Varden’s management to the Company, including as it relates to maintenance of business and operational relationships;
Current wording
Transition of Dolly Varden’s management to the Company, including as it relates to maintenance of business and operational relationships;
Previous wording
In July 2024, the Peak Gold JV commenced processing ore at the Fort Knox facility and on July 8, 2024, the Manh Choh Project achieved a significant milestone and poured its first gold bar, on schedule. In 2024, the Company received $40.5 million in cash distributions from the Peak Gold JV relating to production at Manh Choh, followed by $102.0 million received during 2025. During the first quarter of 2026, the Company received $9.0 million in cash distributions from the Peak Gold JV.
Current wording
In July 2024, the Peak Gold JV commenced processing ore at the Fort Knox facility and on July 8, 2024, the Manh Choh Project achieved a significant milestone and poured its first gold bar, on schedule. In 2024, the Company received $40.5 million in cash distributions from the Peak Gold JV relating to production at Manh Choh, followed by $102.0 million received during 2025. During the first and second quarters of 2026, the Company received $9.0 million in cash distributions from the Peak Gold JV, for each quarter, respectively, resulting in $18.0 million in total cash distributions relating to production at Manh Choh during 2026.
Previous wording
During the first quarter of 2026, the Peak Gold JV (on a 100% basis) processed 187,479 tons of ore with an average grade of 0.125 ounces (“oz”) per ton and containing approximately 23,435 oz of gold. Gold recovery averaged 88.5%, resulting in approximately 20,600 oz of recovered gold, of which Contango’s 30% share amounted to 6,187 oz of gold. During the first quarter of 2026, a total of 8,012 oz of gold and 15,042 oz of silver were delivered to Contango and sold.
Current wording
During the first quarter of 2026, the Peak Gold JV (on a 100% basis) processed 187,479 tons of ore with an average grade of 0.125 ounces (“oz”) per ton, containing approximately 23,435 oz of gold. Gold recovery averaged 88.5%, resulting in approximately 20,600 oz of recovered gold, of which Contango’s 30% share amounted to 6,187 oz of gold. During the first quarter of 2026, a total of 8,012 oz of gold and 15,042 oz of silver were delivered to Contango and sold.
Previous wording
During the first quarter of 2026, activities at the Johnson Tract Project focused on planning, resourcing, permitting coordination, and logistical preparations in support of the Company’s planned 2026 field program. On December 1, 2025, the Johnson Tract Critical Metals Project was posted to the Federal Permitting Dashboard as a covered project under Title 41 of the Fixing America’s Surface Transportation Act, commonly referred to as FAST-41. The Federal Permitting Improvement Steering Council announced the project’s FAST-41 coverage on December 2, 2025. The U.S. Army Corps of Engineers ("Corps") is identified as the lead federal permitting agency for the project.
Current wording
During the second quarter of 2026, activities at the Johnson Tract Project focused on planning, resourcing, permitting coordination, and logistical preparations in support of the Company’s planned 2026 field program. On December 1, 2025, the Johnson Tract Critical Metals Project was posted to the Federal Permitting Dashboard as a covered project under Title 41 of the Fixing America’s Surface Transportation Act, commonly referred to as FAST-41. The Federal Permitting Improvement Steering Council announced the project’s FAST-41 coverage on December 2, 2025. The U.S. Army Corps of Engineers ("Corps") is identified as the lead federal permitting agency for the project.
Previous wording
During the first quarter of 2026, the Company advanced planning activities for the proposed 2026 field season, including solicitation and review of bids for road construction and helicopter support associated with planned access improvements between the Johnson Tract camp and the proposed portal site. These activities are intended to support the Company’s operational timeline and continued advancement of the project through the permitting and development planning process.
Current wording
During the second quarter of 2026, the Company advanced planning activities for the proposed 2026 field season, including solicitation and review of bids for road construction and helicopter support associated with planned access improvements between the Johnson Tract camp and the proposed portal site. These activities are intended to support the Company’s operational timeline and continued advancement of the project through the permitting and development planning process.
Previous wording
Following completion of a new mineral resource estimate ("MRE") expected by the end of the second quarter of 2026, a 40,000 meter surface drilling program is expected to begin in June. The planned $25 million campaign aims to infill known mineral resources at Homestake, Wolf, Dolly Varden, North Star and Torbrit, while testing high-priority exploration targets across the Company’s wider holdings in the southern corner of the Golden Triangle. Following the drill program this year will be the formulation of a preliminary development plan in the form of an Initial Assessment ("IA") for the Kitsault Valley assets.
Current wording
A new mineral resource estimate ("MRE") is expected in the third quarter of 2026. A 40,000 meter surface drilling program started in June, with over 14,000 meters completed through June 30, 2026. The planned $25 million campaign aims to infill known mineral resources at Homestake, Wolf, Dolly Varden, North Star and Torbrit, while testing high-priority exploration targets across the Company’s wider holdings in the southern corner of the Golden Triangle. Following the 2026 drill program, the Company is planning the formulation of a preliminary development plan in the form of an Initial Assessment ("IA") for the Kitsault Valley assets, planned for the second quarter of 2027.
Previous wording
KG Mining may resign as Manager and can be removed as Manager for a material breach of the A&R JV LLCA, a material failure to perform its obligations as the Manager, a failure to conduct the Peak Gold JV operations in accordance with industry standards and applicable laws, and other limited circumstances. Except as expressly delegated to the Manager, the A&R JV LLCA provides that the JV Management Committee has exclusive authority to determine all management matters related to the Company. The JV Management Committee currently consists of one appointee designated by the Company and two appointees designated by KG Mining. The Representatives designated by each member of the Peak Gold JV vote as a group, and in accordance with their respective membership interests in the Peak Gold JV. Except in the case of certain actions that require approval by unanimous vote of the Representatives, the affirmative vote of a majority of the membership interests in the Peak Gold JV constitutes the action of the JV Management Committee.
Current wording
Partnering with strategic industry participants to expand future exploration work. As of October 1, 2020, in conjunction with the Kinross Transactions and the signing of the A&R JV LLCA, KG Mining became the manager of the Peak Gold JV (the “Manager”). KG Mining may resign as Manager and can be removed as Manager for a material breach of the A&R JV LLCA, a material failure to perform its obligations as the Manager, a failure to conduct the Peak Gold JV operations in accordance with industry standards and applicable laws, and other limited circumstances. Except as expressly delegated to the Manager, the A&R JV LLCA provides that the JV Management Committee has exclusive authority to determine all management matters related to the Company. The JV Management Committee currently consists of one appointee designated by the Company and two appointees designated by KG Mining. The Representatives designated by each member of the Peak Gold JV vote as a group, and in accordance with their respective membership interests in the Peak Gold JV. Except in the case of certain actions that require approval by unanimous vote of the Representatives, the affirmative vote of a majority of the membership interests in the Peak Gold JV constitutes the action of the JV Management Committee.
Previous wording
Structuring Incentives to Drive Behavior. The Company believes that equity ownership aligns the interests of the Company’s executives and directors with those of its stockholders. The Company has implemented an equity compensation program for its executive officers and directors (and other persons) that provides an incentive for such officers to achieve the Company’s long-term business objectives. The Company’s equity compensation program includes two forms of long-term incentives: restricted stock and stock options. As of March 31, 2026, the Company’s directors and executives beneficially own approximately 5.9% of the Company’s common stock.
Current wording
Structuring Incentives to Drive Behavior. The Company believes that equity ownership aligns the interests of the Company’s executives and directors with those of its stockholders. The Company has implemented an equity compensation program for its executive officers and directors (and other persons) that provides an incentive for such officers to achieve the Company’s long-term business objectives. The Company’s equity compensation program includes two forms of long-term incentives: restricted stock and stock options. As of June 30, 2026, the Company’s directors and executives beneficially own approximately 5.6% of the Company’s common stock.
Previous wording
Claim Rental Expense. Claim rental expense primarily consists of State of Alaska rental payments and costs incurred to record annual labor documents. For the three months ended March 31, 2026 and 2025, claim rental expense was $0.1 million for each period.
Current wording
Claim Rental Expense. Claim rental expense primarily consists of State of Alaska and Kitsault rental payments and costs incurred to record annual labor documents. For the three months ended June 30, 2026 and 2025, claim rental expense was $0.1 million for each period.
Previous wording
Exploration Expense. Exploration expense for the three months ended March 31, 2026 was $3.8 million compared to $0.5 million for the three months ended March 31, 2025. Current period exploration expense primarily relates to the advances on the 15,000 meter underground in-fill drilling program on the Lucky Shot Property. The prior period exploration expense related to the permitting process for the underground exploration drift and baseline environmental work at the Johnson Tract Project and did not include drilling activity.
Current wording
Exploration Expense. Exploration expense for the three months ended June 30, 2026 was $12.3 million compared to $1.0 million for the three months ended June 30, 2025. Current period exploration expense primarily relates to the advances on the 15,000 meter underground and surface drilling program on the Lucky Shot Property, 40,000 meter drilling program on the Kitsault Valley Project and permitting activities and road costs on the Johnson Tract Property. The prior period exploration expense related to the permitting process for the underground exploration drift and baseline environmental work at the Johnson Tract Project.
Previous wording
General and Administrative Expense. General and administrative expense for the three months ended March 31, 2026 and 2025 was $3.9 million and $2.5 million, respectively. The Company’s general and administrative expense primarily relates to professional fees, regulatory fees, payroll and stock-based compensation expense. The increase is mainly driven by salaries and benefits, stock-based compensation, as well as increased legal and professional fees.
Current wording
General and Administrative Expense. General and administrative expense for the three months ended June 30, 2026 and 2025 was $5.3 million and $3.1 million, respectively. The Company’s general and administrative expense primarily relates to professional fees, regulatory fees, marketing and investor relations, payroll and stock-based compensation expense. The increase is mainly driven by the increased level of operations as a result of the merger.
Previous wording
Income from Equity Investment in the Peak Gold JV. The income from the Company’s equity investment in the Peak Gold JV for the three months ended March 31, 2026 was $12.8 million compared to income of $22.3 million for the same period in 2025, mainly driven by a reduction in the revenue generated by the Peak Gold JV, which was mainly driven by a reduction in ounces sold during 2026 compared to 2025. During the first quarter of 2026, production at Manh Choh focused on mining and processing lower grade ore and processing less tons from the North Pit as Manh Choh transitions to the higher-grade portions of the South Pit.
Current wording
Income from Equity Investment in the Peak Gold JV. The income from the Company’s equity investment in the Peak Gold JV for the three months ended June 30, 2026 was $9.3 million compared to income of $27.3 million for the same period in 2025, mainly driven by a reduction in the revenue generated by the Peak Gold JV, resulting from a reduction in ounces sold during 2026 compared to 2025. During the second quarter of 2026, production at Manh Choh focused on mining and processing lower grade ore and processing less tons from the North Pit as Manh Choh transitions to the higher-grade portions of the South Pit.
Previous wording
Interest Expense. For the three months ended March 31, 2026, interest expense was $0.9 million and primarily related to the Queen's Road Capital Investment, Ltd. Debenture (the "Debenture") and interest on the Company’s cumulative net draw-down of $13.6 million on the Facility. Prior year interest expense of $2.7 million primarily related to the Debenture and interest on the Company's cumulative net draw-down of $38.3 million on the Facility (see Note 13 - Debt).
Current wording
Interest Expense. For the three months ended June 30, 2026, interest expense was $0.9 million and primarily related to the Queen's Road Capital Investment, Ltd. Debenture (the "Debenture") and interest on the Company’s cumulative net draw-down of $12.6 million on the secured credit facility. Prior year interest expense of $2.0 million primarily related to the Debenture and interest on the Company's cumulative net draw-down of $30.1 million on the secured credit facility (see Note 13 - Debt).
Previous wording
Metal Sales. For the three months ended March 31, 2026 and 2025, the gain on metal sales was $0.7 million and $1.2 million, respectively. These gains primarily related to (i) excess ounces purchased from the Peak Gold JV that were not delivered into the hedges and were instead sold to the derivative counterparties, and (ii) hedged volumes sold at spot prices with an obligation to repurchase the ounces at fixed prices prior to delivery into the hedges. During the three months ended March 31, 2026, the Company sold 8,012 ounces at an average spot price of $4,935 compared to 17,382 ounces sold at an average spot price of $2,946 during the three months ended March 31, 2025.
Current wording
Gain on Metal Sales. For the three months ended June 30, 2026 and 2025, the gain on metal sales was $0.6 million and $1.0 million, respectively. These gains primarily related to (i) excess ounces purchased from the Peak Gold JV that were not delivered into the hedges and were instead sold to the derivative counterparties, and (ii) hedged volumes sold at spot prices with an obligation to repurchase the ounces at fixed prices prior to delivery into the hedges. During the three months ended June 30, 2026, the Company sold 8,627 ounces at an average spot price of $4,328 compared to 17,522 ounces sold at an average spot price of $3,469 during the three months ended June 30, 2025.
Previous wording
During the three months ended March 31, 2026, the Company delivered 5,554 gold ounces into the derivative contracts including the Carry Trade with maturity dates of March 31, 2026 and September 30, 2026. No gold ounces were delivered into the derivative contracts for the three months ended March 31, 2025 as those scheduled hedge contracts were cash settled early in December 2024 (see Note 14 - Derivative and Hedging Activities).
Current wording
During the three months ended June 30, 2026, the Company delivered 7,000 gold ounces into the derivative contracts including the carry trade with maturity dates of December 31, 2026. During the three months ended June 30, 2025, the Company delivered 11,939 gold ounces into the derivative contracts (see Note 14 - Derivative and Hedging Activities).
Previous wording
Unrealized gain/(loss) on marketable securities. For the three months ended March 31, 2026, unrealized loss on marketable securities totaled $0.7 million and was primarily due to changes in the fair value of the Company's investment in Onyx, compared to an unrealized gain of $0.2 million for the three months ended March 31, 2025.
Current wording
Gain/(Loss) on Marketable Securities. For the three months ended June 30, 2026, unrealized gain on marketable securities totaled $0.5 million and was primarily due to changes in the fair value of the Company's investment in Onyx, compared to an unrealized gain of $6.4 million for the three months ended June 30, 2025.
Previous wording
Loss on Derivative Contracts. Loss on derivative contracts for the three months ended March 31, 2026 consisted of an unrealized gain of $31.9 million and a realized loss of $50.9 million. This compares to an unrealized loss of $40.5 million and no realized loss for the three months ended March 31, 2025. The period over period variance primarily reflects changes in the fair value of derivative contracts driven by increases in spot gold prices and corresponding changes in the forward curves used to value the contracts, the completion of deliveries under the derivative arrangements, and the settlement of 15,446 oz of gold hedges and the purchase of puts covering 15,446 oz during the period.
Current wording
Gain/(Loss) on Derivative Contracts. The $8.7 million loss on derivative contracts for the six months ended June 30, 2026 consisted of an unrealized gain of $42.2 million and a realized loss of $50.9 million. This compares to a $53.3 million loss on derivative contracts consisting of an unrealized loss of $42.6 million and a realized loss of $10.7 million for the six months ended June 30, 2025. The period over period variance primarily reflects changes in the fair value of derivative contracts driven by increases in spot gold prices and corresponding changes in the forward curves used to value the contracts, the completion of deliveries under the derivative arrangements, and the settlement of 15,446 oz of gold hedges and the purchase of puts covering 15,446 oz during the period.
Previous wording
The table below presents reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost on a By-product Basis, per ounce sold and (ii) All-in Sustaining Costs ("AISC") on a By-product Basis, per ounce sold for the Peak Gold JV operations (Manh Choh) for the three months ended March 31, 2026 and 2025.
Current wording
The table below presents reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost on a By-product Basis, per ounce sold and (ii) All-in Sustaining Costs ("AISC") on a By-product Basis, per ounce sold for the Peak Gold JV operations (Manh Choh) for the three and six months ended June 30, 2026 and 2025.
Previous wording
During the first quarter of 2026, production at Manh Choh focused on mining and processing lower grade ore and processing less tons from the North Pit, as the Peak Gold JV transitions to the higher-grade portions of the South Pit, with increased ore tons processed and ore grade processed for the remainder of the year. The Company remains on track to meet our guidance of 40,000 to 45,000 ounces of gold production, with cash costs between $1,900 to $2,000 per ounce of gold sold and AISC of $2,200 to $2,300 per ounce of gold sold.
Current wording
During the six months ended June 30, 2026, production at Manh Choh focused on mining and processing lower grade ore and processing less tons from the North Pit, as the Peak Gold JV transitions to the higher-grade portions of the South Pit, with increased ore tons processed and ore grade processed for the remainder of the year. The Peak Gold JV remains on track to meet our guidance of 40,000 to 45,000 ounces of gold production, with cash costs between $1,900 to $2,000 per ounce of gold sold and AISC of $2,200 to $2,300 per ounce of gold sold.
Previous wording
As of March 31, 2026, the Company had approximately $97.5 million of cash and cash equivalents.
Current wording
As of June 30, 2026, the Company had approximately $89.0 million of cash and cash equivalents.
Previous wording
The Company’s cash needs going forward will primarily relate to exploration of the Contango Properties, repayment of debt and related interest and general and administrative expenses of the Company. During the first quarter of 2026, the Company received cash distributions totaling $9.0 million. Although there can be no guarantee that the Peak Gold JV will continue to make distributions to the Company, the Company believes that distributions are probable and that it will maintain sufficient liquidity to meet its working capital requirements, including repayment obligations of approximately $12.0 million on the Facility and delivery into its hedge contracts, for the next twelve months from the date of this report.
Current wording
The Company’s cash needs going forward will primarily relate to exploration of the Contango Properties, repayment of debt and related interest and general and administrative expenses of the Company. During the first and second quarter of 2026, the Company received cash distributions totaling $9.0 million and $9.0 million, respectively. Although there can be no guarantee that the Peak Gold JV will continue to make distributions to the Company, the Company believes that distributions are probable and that it will maintain sufficient liquidity to meet its working capital requirements, including repayment obligations of approximately $46.3 million on the Facility (see update at Note 20 - Subsequent Events), for the next twelve months from the date of this report.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
During the second quarter of 2026, the Peak Gold JV (on a 100% basis) processed 253,494 tons of ore with an average grade of 0.145 ounces (“oz”) per ton, containing approximately 36,760 oz of gold. Gold recovery averaged 80.4%, resulting in approximately 29,500 oz of recovered gold, of which Contango’s 30% share amounted to 8,866 oz of gold. During the second quarter of 2026, a total of 8,627 oz of gold and 10,319 oz of silver were delivered to Contango and sold.
Current report — wording carried from elsewhere
Gain/(Loss) on Derivative Contracts. Gain/(loss) on derivative contracts for the three months ended June 30, 2026 consisted of an unrealized gain of $10.3 million and a realized gain of $0.1 million. This compares to an unrealized loss of $2.1 million and a realized loss of $10.7 million for the three months ended June 30, 2025. The period over period variance primarily reflects changes in the fair value of derivative contracts driven by increases in spot gold prices and corresponding changes in the forward curves used to value the contracts, and the completion of deliveries under the derivative arrangements.
Current report — wording carried from elsewhere
Claim Rental Expense. Claim rental expense primarily consists of State of Alaska and Kitsault rental payments and costs incurred to record annual labor documents. For the six months ended June 30, 2026 and 2025, claim rental expense was $0.3 million and $0.2 million, respectively.
Current report — wording carried from elsewhere
Exploration Expense. Exploration expense for the six months ended June 30, 2026 was $16.1 million compared to $1.5 million for the six months ended June 30, 2025. Current period exploration expense primarily relates to the advances on the 15,000 meter underground and surface drilling program on the Lucky Shot Property, 40,000 meter drilling program on the Kitsault Valley Project and permitting activities and road costs on the Johnson Tract Property. The prior period exploration expense related to the permitting process for the underground exploration drift and baseline environmental work at the Johnson Tract Project.
Current report — wording carried from elsewhere
General and Administrative Expense. General and administrative expense for the six months ended June 30, 2026 and 2025 was $9.1 million and $5.6 million, respectively. The Company’s general and administrative expense primarily relates to professional fees, regulatory fees, marketing and investor relations, payroll and stock-based compensation expense. The increase is mainly driven by the increased level of operations as a result of the merger with Dolly Varden.
Current report — wording carried from elsewhere
Income from Equity Investment in the Peak Gold JV. The income from the Company’s equity investment in the Peak Gold JV for the six months ended June 30, 2026 was $22.0 million compared to income of $49.6 million for the same period in 2025, mainly driven by a reduction in the revenue generated by the Peak Gold JV, resulting from a reduction in ounces sold during 2026 compared to 2025. During the first half of 2026, production at Manh Choh focused on mining and processing lower grade ore and processing less tons from the North Pit as Manh Choh transitions to the higher-grade portions of the South Pit.
Current report — wording carried from elsewhere
Interest Expense. For the six months ended June 30, 2026, interest expense was $1.9 million and primarily related to the Queen's Road Capital Investment, Ltd. Debenture (the "Debenture") and interest on the Company’s cumulative net draw-down of $12.6 million on the secured credit facility. Prior year interest expense of $4.8 million primarily related to the Debenture and interest on the Company's cumulative net draw-down of $30.1 million on the secured credit facility (see Note 13 - Debt).
Current report — wording carried from elsewhere
Gain on Metal Sales. For the six months ended June 30, 2026 and 2025, the gain on metal sales was $1.3 million and $2.1 million, respectively. These gains primarily related to (i) excess ounces purchased from the Peak Gold JV that were not delivered into the hedges and were instead sold to the derivative counterparties, and (ii) hedged volumes sold at spot prices with an obligation to repurchase the ounces at fixed prices prior to delivery into the hedges. During the six months ended June 30, 2026, the Company sold 16,641 ounces at an average spot price of $4,621 compared to 34,905 ounces sold at an average spot price of $3,133 during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, the Company delivered 12,554 gold ounces into the derivative contracts including the carry trade with maturity dates of March 31, 2026, September 30, 2026 and December 31, 2026. During the six months ended June 30, 2025, the Company delivered 11,939 gold ounces into the derivative contracts (see Note 14 - Derivative and Hedging Activities).
Current report — wording carried from elsewhere
Gain/(Loss) on Marketable Securities. For the six months ended June 30, 2026, unrealized loss on marketable securities totaled $0.2 million and was primarily due to changes in the fair value of the Company's investment in Onyx, compared to an unrealized gain of $6.7 million for the six months ended June 30, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Ability to consummate and realize the anticipated benefits of strategic transactions;
Previous report — wording carried elsewhere
Partnering with strategic industry participants to expand future exploration work. As of October 1, 2020, in conjunction with the Kinross Transactions and the signing of the A&R JV LLCA, KG Mining became the manager of the Peak Gold JV (the “Manager”).