Published March 19, 2026, ATB Cormark Capital Markets analyst Richard Gray, CFA, maintained his Outperform rating on Contango Ore Inc. (Now Contango Silver & Gold Inc. (CTGO:NYSEA; CTGO; TSX)), raising his price target to US$50.00 from US$46.00 following shareholder approval of the company's merger with Dolly Varden Silver. At the current share price of US$19.62, the new target implies a total return of approximately 155%.
Following a special meeting held on March 17, Contango shareholders approved all three proposals required to complete the merger with Dolly Varden Silver. The first proposal authorized the issuance of new Contango shares to Dolly Varden shareholders at an exchange ratio of 0.1652 Contango shares per Dolly Varden share. The second proposal authorized a significant expansion of the company's authorized share count, from 45 million to 250 million shares. The third proposal approved the new 2026 Omnibus Incentive Plan. On the Dolly Varden side, the arrangement received approval from 98.78% of the votes cast by shareholders present. A court hearing for final approval of the arrangement was scheduled for March 23, with closing expected shortly thereafter.
Under the terms of the merger, existing shareholders of both companies will each own approximately 50% of the combined entity on a fully diluted in-the-money basis. The combined company is expected to carry approximately US$112 million in cash and US$34 million in debt. Leadership will be drawn from both organizations, with Contango's Rick Van Nieuwenhuyse serving as CEO and Dolly Varden's Shawn Khunkhun as President.
The merged portfolio will be anchored by the producing Manh Choh mine in Alaska (30% interest), alongside the high-grade Lucky Shot and Johnson Tract projects, also in Alaska, and Dolly Varden's Kitsault Valley project in British Columbia's Golden Triangle. Kitsault Valley has historically produced 20 million ounces of silver and currently hosts resources of 64 million ounces of silver and 1.0 million ounces of gold.
Gray's updated pro forma net asset value (NAV) of US$50.00 per share reflects the combined entity. The NAV breakdown assigns US$345.2 million to Manh Choh (NPV5% at US$4,500/oz, net of gold hedges), US$688.9 million to Johnson Tract (NPV5%), US$120.0 million to Lucky Shot (0.40 MMoz at an in-situ value of US$300/oz), and US$401.7 million to Kitsault Valley (2.05 MMoz AuEq at an in-situ value of US$200/oz). The NAV incorporates US$46 million in cash acquired from Dolly Varden and the US$47.5 million February 2026 equity financing, offset by the US$46.8 million February 2026 gold hedge contract settlement and the issuance of an estimated 15.2 million shares to complete the transaction. Pro forma shares outstanding are estimated at 32.6 million, yielding a total NAVPS of US$50.00. While the per-share NAV declined from the prior estimate of US$66.00, Gray raised his target multiple to 1.00x NAV from 0.70x previously, citing the addition of silver optionality through Kitsault Valley, an expected Canadian stock listing, and a reduced hedge position following Contango's recent equity financing.
Key risks to the target price include commodity price volatility, with gold prices subject to global supply and demand dynamics beyond the company's control, as well as the potential for hedging arrangements to limit upside participation in rising spot prices. Operational risks encompass geological uncertainty, project execution delays, input cost volatility, and health, safety, and environmental challenges inherent to large-scale mining. The company also faces geopolitical and jurisdictional risks across its operating regions, including potential changes to mining codes, royalty structures, and evolving community and indigenous land rights considerations. Technical risks include geotechnical failures, seismic events, tailings management liabilities, and increasing ESG-related regulatory scrutiny.
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Important Disclosures:
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Contango Silver & Gold Inc.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for ATB Cormark Capital Markets, Contango Ore Inc., March 19, 2026
Disclosures Historical ratings and price targets prior to February 2, 2026, for Contango Ore Inc. were provided by Cormark Securities Inc., a predecessor company of ATB Capital Markets Corp. During the last 12 months, ATB Capital Markets Corp. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of Contango Ore Inc. During the last 12 months, ATB Cormark Capital Markets Corp. received compensation for having provided investment banking and related services to Contango Ore Inc. Ranking Distribution % IB Clients Top Pick 1% 0% Outperform 69% 26% Speculative Buy 11% 3% Sector Perform 17% 37% Underperform 1% 0% Restricted 0% 0% Not Rated 0% 0% Tender 1% 0% Under Review 0% 0% Total 100% 24% ATB Capital Markets Corp.'s rating system reflects its outlook for the expected performance of an issuer's equity securities relative to its peer group over the next 12 months. Top Pick - A security we consider our best idea for returns above the peer group. Outperform - A security is expected to provide a return greater than the peer group. Speculative Buy - A security expected to provide a return greater than the peer group, but the risk of a significant loss is material. Sector Perform - A security is expected to provide a return in line with the peer group. Underperform - A security is expected to provide a return below its peer group. Not Rated - A security where a rating has not been assigned. Tender - A security where a surrender to a takeover bid or other offer is believed to be fair, which is likely shorter than a 12-month period. Under Review - The analyst is considering the implications of new information on a short-term basis.
The Analyst(s) that prepared this report may not be subject to U.S. rules regarding the preparation of research reports and the independence of analysts. The information contained in this publication is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. The material within this report is intended for the general use of clients of ATB Capital Markets Corp. or its affiliates. Reproduction in whole or in part without permission is prohibited. While the accuracy and completeness of the information contained in this document is not guaranteed by ATB Capital Markets Corp., or its affiliates, it was obtained from sources believed to be reliable. ATB Capital Markets Corp. and its officers, directors, employees, and affiliates may, from time to time, acquire, hold or sell positions in the securities mentioned as principal or agent. The authors of this report certify that the views expressed in this report accurately reflect their personal views about the subject security, sector and issuer. The authors of this report further certify that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. ATB Capital Markets Corp. may receive and intends to seek compensation for investment banking services from all issuers under research coverage within the next three months. ATB Capital Markets Corp. has not approved this report for the purposes of section 21 of the Financial Services and Markets Act 2000 as it is being distributed only to persons who are investment professionals within the meaning of article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and is not intended to and should not be relied upon by any other person. ATB Capital Markets USA Inc., Cormark Securities (USA) Ltd., or their affiliates, have taken reasonable steps regarding the accuracy of key statements in this report and accept responsibility for the content of this research report. U.S. Institutions interested in effecting transactions in any of the securities discussed in this report should contact ATB Capital Markets USA Inc. at (720) 683-6700 or Cormark Securities (USA) Ltd. at (800) 461-2275.
