Contango ORE Drops Gold Hedges to Boost Upside as Manh Choh Output Ramps
MarketBeat
Published: Jul 13, 2026, 03:02 AM
Sentiment Analysis
Contango ORE removed its remaining gold hedge book by converting the last 15,000 hedged ounces into debt, which management says will give shareholders fuller upside exposure to gold prices.
The company also added downside protection by buying put contracts at a $3,100 strike on the same ounces, with lenders initially funding the cost and the repayment folded into debt.
Management said the move comes as Manh Choh output ramps , with production expected to improve in the next two quarters and 2027 guided as a stronger, lower-cost year that will be fully exposed to spot gold prices.
Contango ORE NYSEAMERICAN: CTGO executives said the company has eliminated its remaining gold hedge book by converting the last 15,000 ounces of hedged gold into debt, a move management framed as increasing shareholder exposure to gold prices while preserving equity.
Speaking during an investor webinar, Rick Van Nieuwenhuyse, President and CEO of Contango Silver & Gold, said the hedges were not put in place as a bet against gold, but were required by lenders in 2023 as the company moved the Manh Choh mine toward production.
“Investors invest in a gold-producing company, and particularly a junior gold-producing company, because they want that exposure, that leverage to the upside in the gold price,” Van Nieuwenhuyse said. “Where we are now, we believe in the upside in the gold price.”
Mike Clark, CFO of Contango Silver & Gold, said the remaining hedges covered March and June 2027 deliveries totaling 15,000 ounces and were priced at $1,935 per ounce after a prior restructuring.
Source: MarketBeat
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