Challenger Gold (CEL) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax of $74.6M for FY2024, up from $53.9M in FY2023, driven by gains on net monetary position and strong operational performance.

• Completed multiple capital raisings totaling over $15M, including strategic placements and a share purchase plan, strengthening the balance sheet.

• Secured a Toll Milling Agreement for the Hualilan Gold Project, enabling near-term cash flow and funding for further project development.

• Advanced the Hualilan Pre-Feasibility Study (PFS) and Life of Mine (LOM) studies, with critical path elements completed and further optimization underway.

• Continued strong ESG performance, including carbon neutrality certification and significant community engagement initiatives.

Financial highlights

• Revenue and other income totaled $83.95M, primarily from gains on net monetary position and blue chip swaps.

• Net profit after tax increased 38% year-over-year to $74.6M.

• Basic EPS rose to 5.39 cents (2023: 4.7 cents); diluted EPS at 5.35 cents.

• Exploration and evaluation expenditure increased to $222M (2023: $138.7M), reflecting expanded project activity.

• Cash and cash equivalents at year-end were $0.85M, with significant post-year-end funding secured.

Outlook and guidance

• Focus on generating early cash flow from Toll Milling at Hualilan to fund standalone project development.

• Monetisation or spin-off of Ecuador assets planned following maiden resource estimate at Colorado V.

• Ongoing optimization of Hualilan project economics through metallurgical improvements and expanded resource definition.

• Additional funding required for continued exploration and development; multiple financing options under consideration.