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.