Challenger Gold (CEL) Q1 2026 TU earnings summary

Executive summary

• Toll processing at Hualilan to commence on 1 May 2026, with first gold sales revenue expected in May 2026.

• Hualilan standalone Pre-feasibility Study (PFS) is complete and scheduled for release in the next week.

• Mining rates during the quarter exceeded forecasts, with operational efficiency gains and accelerated development of the Magnata access ramp.

• Cash at bank at quarter-end was $20.6 million, with expenditure of $15.8 million for the quarter.

• Substantial increase in Mineral Resource Estimate (MRE) at Ecuador projects, now totaling 9.1 Moz AuEq.

Financial highlights

• Cash position at quarter-end: $20.6 million.

• Quarterly expenditure: $15.8 million, including $1.7 million in one-off costs (CAPEX, Ecuador farmin, infill drilling, PFS, and road works).

• Exploration and development expenditure: $3.1 million, unchanged from previous quarter.

• Mining expenditure: $11.5 million, reflecting higher mining rates.

• Administration and corporate costs: $1.0 million, down from $1.3 million last quarter.

Outlook and guidance

• First gold sales revenue from tolling expected in May 2026.

• Mining rates moderated from April 2026 to 150-160kt per month, reducing mining spend by $0.5 million/month.

• Re-optimisation of Sanchez, Norte, and Magnata pits planned for Q2 2026, incorporating updated grade control data.

• Monetisation options for Ecuador assets under consideration, including TSX listing, sale, or partnership.