Contango Silver & Gold (TSX:CTGO) - Direct Shipping Cash Flow Funds Path to 200koz/year Gold Plan

Interview with Rick Van Nieuwenhuyse, CEO of Contango Silver & Gold

Recording date: 27th September 2026

Contango Silver & Gold (NYSE American:CTGO, TSX:CTGO) is a North American gold producer that wants to become a mid-tier gold and silver producer without heavy shareholder dilution. Its funding comes from a 30% interest in the Manh Choh gold mine in Alaska. Kinross Gold holds the other 70% and operates the mine. Ore from Manh Choh travels about 240 miles by road to Kinross's Fort Knox mill. Contango does not operate anything, and it receives quarterly distributions that are net of all costs.

Those distributions are large relative to the company's size. Contango received $102 million in 2025, and CEO Rick Van Nieuwenhuyse expects about $100 million a year over the mine life, which runs to around 2030. Production in 2026 is lower, at 40,000 to 45,000 ounces, because of pre-stripping as mining moves from the north pit to the south pit. Guidance for 2027 recovers to 75,000 to 80,000 ounces at cash costs of $1,200 to $1,300 per ounce. The hedge book is closed. The company expects to repay its $46 million of debt by mid-2027 and also has a $20 million convertible debenture.

The strategy centres on direct shipping ore. Contango avoids building mills and tailings facilities and sends ore to existing processing plants. Van Nieuwenhuyse says this was the key to Manh Choh's short permitting timeline and its $65 million capital share. He argues that permitting timelines of five to ten years are what kill junior miners, because they erode market interest and force dilution.

Lucky Shot is next. It is 100% owned, fully permitted and currently hosts about 110,000 ounces at 14.5 g/t gold. Drilling aims to reach 400,000 to 500,000 ounces, and a feasibility study is expected to be largely complete within a year. The target is 40,000 to 50,000 ounces a year. Contango has several processing options, including Fort Knox and a rail and sea route to Taiwan, so it plans to sell the ore rather than give up equity.

The larger step comes from Johnson Tract and Kitsault Valley. Johnson Tract holds about 1.1 million ounces at 9.4 g/t gold equivalent, and a May 2025 Initial Assessment showed a post-tax NPV5 of $615.4 million at $4,000 gold. Kitsault's September 2026 MRE lifted Indicated resources 93% to 89.55 million ounces AgEq, with 64.92 million ounces Inferred. Both are polymetallic and need flotation processing. No processing solution has been secured yet.

On valuation, Contango's presentation shows its resource grade at about 2.4 times a peer average, while its P/NAV is about 0.45 times the peer average. With 33.5 million shares on issue, each milestone has a large effect per share.

The main risks are Manh Choh's finite life, the lack of operating control there, the unproven expansion at Lucky Shot, the missing processing route for the polymetallic assets, and sensitivity to metal prices. Catalysts to watch include the