Challenger Gold (CEL) H1 2024 earnings summary

Executive summary

• Net profit after tax for the half-year ended 30 June 2024 was $53.9 million, up from $34.5 million in the prior year period.

• Two capital placements raised $9.6 million before costs, with options potentially adding $15.9 million if exercised.

• Hualilan Gold Project PFS advanced, with all critical path elements completed and significant open pit scale increase.

• Ongoing process to secure funding for Hualilan Feasibility Study, paused until PFS completion due to recent capital raise.

• Strategic focus on monetising Ecuador assets, with a maiden MRE at Colorado V expected after drilling completion.

Financial highlights

• Revenue and other income totaled $57.4 million, including $55.99 million gain on net monetary position.

• Profit before tax was $51.6 million, up from $31.3 million year-over-year.

• Basic EPS was 4.09 cents, diluted EPS 3.96 cents, both higher than prior year.

• Cash and cash equivalents at 30 June 2024 were $5.7 million, up from $4.3 million at 31 Dec 2023.

• Net assets increased to $181.0 million from $127.4 million at 31 Dec 2023.

Outlook and guidance

• Hualilan PFS to incorporate material opportunities for optimisation, aiming for lowest-quartile costs and emissions.

• Monetisation of Ecuador assets planned post-Colorado V MRE, with options including listing, trade sale, or farm-in.

• Additional capital will be required within 12 months to fund ongoing exploration and project development.