Challenger Gold (CEL) Q2 2024 TU earnings summary

Executive summary

• Hualilan Gold Project PFS advanced, with all critical path elements completed, including geotechnical, hydrogeological, and metallurgical testwork, and open pit/underground mine design showing increased scale and improved economics.

• Colorado V (Ecuador) drilling yielded significant gold-copper intercepts; maiden Mineral Resource Estimate expected post-drilling, with strategic review to monetize or spin-off Ecuador assets underway.

• Independent carbon modeling positions Hualilan as the lowest carbon intensity gold mine on the ASX, with emissions six times lower than the Australian average.

Financial highlights

• Cash at bank at quarter-end was $5.75 million.

• $4 million raised via placement, with a prominent Argentinian investor acquiring a 5% stake.

• Administration and corporate costs for the quarter were $1.4 million, including $0.4 million in one-off items (advisory fees, AGM, tenement acquisition).

• Net exploration spend was $3.1 million, with $1.6 million in one-off items mainly for PFS and Ecuador drilling.

Outlook and guidance

• Hualilan PFS to incorporate all five material opportunities identified for project improvement.

• Ecuador resource drilling expected to complete in late August, with assays pending for four holes.

• Strategic funding initiative ongoing, with discussions with two parties.

• Monetization options for Ecuador assets include listing, trade sale, or farm-in.