Challenger Gold (CEL) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half-year was $7.26M, down from $53.89M in the prior year, mainly due to a lower gain on net monetary position from hyperinflation accounting in Argentina.

• Major capital raising included a $37.5M private placement and a $2M drawdown from a project finance facility to fund mining preparations and working capital.

• Board changes included the appointment of Eduardo Elsztain as Non-Executive Chairman and Carolina Zang as Non-Executive Director.

Financial highlights

• Revenue for the half-year was $1.83M, with a significant gain on net monetary position of $11.72M.

• Basic earnings per share were 0.42 cents, compared to 4.09 cents in the prior year.

• Cash and cash equivalents increased to $26.76M as of 30 June 2025, up from $853K at year-end 2024.

• Net assets rose to $225.23M from $203.04M at 31 Dec 2024.

Outlook and guidance

• The company expects first gold sales from the Hualilan Toll Milling operation in early Q1 2026, with mining to commence in September 2025.

• A full-scale standalone Life of Mine PFS at Hualilan is targeted for release by Q1 2026.

• Monetisation of Ecuador assets is planned to fund Hualilan development, with options including TSX listing, outright sale, or strategic partnership.