Challenger Gold (CEL) H1 2026 earnings summary

Executive summary

• Reported a net loss after tax of $10.7 million for the half-year ended 30 June 2026, compared to a profit of $7.3 million in the prior period, primarily due to the absence of a $11.7 million gain on net monetary position recognized in 2025 and increased expenses.

• Completed an $85 million capital raise and significant board and management changes, including the appointment of Peter Marrone as Non-Executive Chairman and new executive leadership.

• Advanced the Hualilán Gold Project in Argentina, with the Pre-Feasibility Study (PFS) confirming robust project economics and a staged development plan.

• Initiated first gold production at Hualilán, with 1,543 ounces of gold and 6,670 ounces of silver produced during the half-year.

Financial highlights

• Revenue for the half-year was $2.8 million, up from $1.8 million in the prior period.

• Net loss after tax was $10.7 million, compared to a profit of $7.3 million in the prior year, reflecting higher expenses and the absence of hyperinflationary gains.

• Cash and cash equivalents at 30 June 2026 were $20.0 million, with $61.8 million raised post-period end, increasing cash to $50.5 million by 31 August 2026.

• Net cash outflow from operating and investing activities totaled $38.7 million for the half-year.

• Inventory write-down of $1.8 million and full impairment of $4.7 million on toll processing intangible asset recognized.

Outlook and guidance

• Targeting commercial production at Hualilán by early 2029, with a focus on technical optimization, financing, and execution readiness.

• Ongoing infill and exploration drilling at Hualilán to support resource growth and reserve conversion.

• Assessing transition from toll treatment to an ore purchase agreement to reduce processing cost risk.

• Plans to refinance a $15 million convertible debenture due September 2026.