Challenger Gold (CEL) Q4 2025 earnings summary

Executive summary

• Mining at Hualilan commenced on schedule and exceeded production forecasts, with 175,229 tonnes mined in December versus a forecast of 146,316 tonnes.

• Ore haulage to Casposo for toll processing is set to begin mid-February 2026, with processing to follow 2-4 weeks later.

• The Casposo plant restart has delivered gold recoveries above 90%.

• The Hualilan Pre-Feasibility Study (PFS) is on track for completion in Q1 2026, with open pit design and scheduling finalized.

• Ecuador projects' Mineral Resource Estimate (MRE) doubled to 9.1 Moz AuEq, enhancing regional significance.

Financial highlights

• Cash at quarter-end was $36.2 million, fully funding operations through to first toll milling cash flow.

• Quarterly expenditure included A$12.8 million in one-off costs: A$5.1 million for contractor mobilisation, A$3.0 million in toll milling capex, A$1.8 million in capital raise fees, and A$3 million project finance repayment.

• Exploration and development expenditure totaled $3.1 million, down from $3.9 million in the previous quarter.

• Administration and corporate costs were $1.33 million, up from $1.2 million last quarter, including $0.59 million in interest on convertible notes.

Outlook and guidance

• Ore haulage and processing at Casposo are expected to commence as scheduled, with full-scale operations ramping up.

• The PFS financial model and capital cost estimate are nearing completion, with finalization expected in February 2026.

• Underground mining potential at Hualilan will be reassessed after further drilling over the next 12-18 months.

• Monetisation options for Ecuador assets are being explored, including TSX listing, sale, or partnership.