To The Moon

📊 Investment Report: Challenger Gold Limited (ASX: CEL)

Date: 10 September 2025

Closing Price: AUD 0.130 (-3.70%)

Market Cap: Small-cap exploration/mining company (micro to small cap, highly speculative).

---

1. Company Overview

Challenger Gold Limited (ASX: CEL) is an Australian-listed gold and copper exploration and development company with primary projects in South America, specifically Ecuador. The company’s flagship project is the Hualilan Gold Project, which is being advanced toward development, alongside early-stage copper exploration in Argentina.

The company is positioned as a junior explorer moving toward resource expansion and feasibility work, with the long-term goal of becoming a mid-tier gold and copper producer.

---

2. Key Projects & Resources

🔶 Hualilan Gold Project (San Juan Province, Argentina)

Ownership: Challenger Gold holds majority interest.

Geology: High-grade epithermal gold system with significant copper and silver by-products.

Resource Estimate (latest public release):

~2.8 Moz AuEq (gold equivalent) JORC Resource – consisting of gold, silver, and copper mineralization.

Resource remains open along strike and at depth, with substantial exploration upside.

Status:

Current drilling campaigns expanding high-grade zones.

Preliminary metallurgical studies demonstrate recoveries of gold and copper suitable for processing.

Early-stage scoping/feasibility studies underway.

🔶 El Guayabo Copper-Gold Project (Ecuador)

Exploration Project with copper-gold porphyry potential.

Geology: Presence of porphyry-style copper-gold mineralization similar to tier-1 Andean deposits.

Status: Early exploration with geophysical surveys and initial drilling programs.

---

3. Production & Development Notes

No current production. CEL remains a pre-production explorer.

Focus is on resource expansion and de-risking Hualilan toward a development decision.

Scoping studies suggest potential for open-pit and underground mining operations.

Development timeline depends on funding, regulatory approval, and feasibility outcomes, likely several years before first production.

---

4. Financial Position

Cash Position: Typically, CEL maintains a modest cash balance (historically in the AUD $5–15M range) to fund drilling.

Revenue: No production revenue; all income derived from capital raisings and possible JV/farm-in arrangements.

Expenses:

Exploration expenditure primarily on drilling, geophysics, and feasibility studies.

Corporate costs remain lean but significant for a junior.

Capital Needs:

Ongoing capital raisings are expected to continue.

Potential for strategic investment, JV, or off-take financing as the Hualilan Project advances.

---

5. Management & Governance

Board & Executive: Experienced exploration and mining professionals with a history in Latin American resource projects.

Key Leadership:

CEO/MD: Mining engineer/geologist background with track record of resource development.

Chairman/Board: Combination of mining finance and geology expertise.

Management has executed aggressive exploration campaigns and been successful in rapidly increasing the Hualilan resource base.

---

6. Technical Analysis (Chart Review)

Indicators from the provided chart:

Price: AUD 0.130 (retraced -3.70% from previous close of AUD 0.135).

Bollinger Bands: Price is trading near the upper band (upper: 0.138, mid: 0.119). Suggests the stock is still in an uptrend but consolidating.

SKDJ (Stochastic): K (60.54) vs. D (61.39) – momentum is slowing, potential for sideways action or mild pullback.

MACD: Positive but flattening, indicating a possible short-term consolidation after recent gains.

Volume: 1.34M shares traded, above average, showing good liquidity for a micro-cap.

📈 Trend: Since July 2025, the stock has risen from AUD 0.071 to a high of AUD 0.140 – a near-doubling. The short-term technicals suggest consolidation after a strong rally.

---

7. Risks & Considerations

Exploration Risk: No guarantee of successful conversion from resource to economic reserve.

Funding Risk: Ongoing capital raisings dilute shareholders unless offset by JV/off-take deals.

Jurisdictional Risk: Argentina and Ecuador carry moderate-to-high political and regulatory risk for mining.

Commodity Price Exposure: Highly sensitive to gold and copper price movements.

Execution Risk: Transition from explorer to developer is capital-intensive and requires strong management execution.

---

8. Market Sentiment & Outlook

Investor Sentiment: Positive on exploration success – CEL has delivered rapid resource growth, attracting speculative investor interest.

Sector Outlook: Gold remains supported by macro uncertainty (inflation, geopolitical risks), while copper has structural demand drivers (EVs, energy transition).

Valuation: CEL trades at a steep discount to in-ground gold ounces compared to peers, reflecting early-stage risk but also providing significant leverage to exploration success.

---

📌 Investment View

Challenger Gold Limited (CEL) is a high-risk, high-reward junior explorer with a substantial and growing gold-copper resource base in Argentina and exploration exposure in Ecuador.

Strengths:

Rapid resource growth at Hualilan.

High-grade gold system with copper credits.

Strong exploration upside in two mineral-rich jurisdictions.

Weaknesses:

No current cash flow.

Dependence on capital markets for funding.

Jurisdictional risks.

Outlook: Attractively valued for speculative investors seeking exposure to gold and copper exploration upside. The path to production will require further capital and de-risking through feasibility work.

---

✅ Summary Statement:

Challenger Gold Limited (CEL) is attractively positioned as an undervalued junior gold-copper explorer, with a resource base nearing 3 Moz AuEq and strong exploration upside. The stock has rallied recently but remains speculative, with future performance highly dependent on exploration success, funding, and commodity prices.