CIMG 2025 Q3 Earnings Significant Loss Reduction Amid Revenue Decline

CIMG (IMG) reported its fiscal 2025 Q3 results on Nov 18, 2025, showing a sharp revenue decline but a meaningful narrowing of losses. The company reduced its net loss by 25.8% year-over-year to -$1.07 million, driven by cost management and operational adjustments. However, the 83.2% revenue drop to $61.58 million highlights ongoing challenges. While the results reflect progress in controlling losses, the lack of guidance and mixed post-earnings stock performance underscore uncertainty.

Revenue

CIMG’s Q3 revenue plummeted 83.2% to $61.58 million from $366.89 million in the prior-year period, reflecting significant operational headwinds. Gold mines led with $706.70 million in revenue, followed by Essakane ($370.30 million) and Cote Gold ($263.60 million). The Westwood complex contributed $72.80 million, while exploration, evaluation, and development activities reported $0. Corporate operations also generated $0 in revenue, underscoring the company’s reliance on core mining segments for cash flow.

Earnings/Net Income

CIMG’s net loss narrowed to -$1.07 million in Q3 2025, a 25.8% improvement from -$1.44 million in Q3 2024. The company’s loss per share decreased to -$0.03 from -$0.92, a 96.7% reduction. While the earnings turnaround is a positive sign, the persistent net loss and revenue contraction indicate that cost-cutting measures alone may not be sufficient to restore profitability without addressing underlying revenue drivers.

Price Action

CIMG’s stock price surged 7.10% on the latest trading day but fell 8.49% for the week and 35.29% month-to-date. The mixed short-term performance reflects investor skepticism about the company’s ability to sustain its recent earnings improvements and reverse its revenue decline.

Post-Earnings Price Action Review

The strategy of buying CIMG shares on earnings report dates and holding for 30 days has underperformed the market over the past three years. In 2023, the approach yielded a modest 1.64% gain despite 14.5% quarterly revenue growth, while the market gained 25.14%. The trend worsened in 2024, with a -14.29% return against the market’s 11.58% gain, and continued in 2025 with a -2.17% return versus the market’s 14.43% gain. This backtest

CEO Commentary

CIMG’s leadership emphasized progress in reducing operating losses while acknowledging the need for structural reforms to address the revenue decline. The CEO highlighted ongoing cost optimization initiatives and exploration of new market opportunities to diversify revenue streams. Strategic priorities include enhancing operational efficiency, accelerating development projects, and strengthening liquidity. Despite the challenging environment, management expressed cautious optimism about long-term recovery, contingent on successful execution of these initiatives.

Additional News

CIMG announced the appointment of a new Chief Financial Officer on Nov 10, 2025, to bolster financial strategy amid its restructuring efforts. Additionally, the company announced a $50 million capital allocation plan for 2026, focusing on debt reduction and high-potential exploration projects. These moves signal a renewed focus on stability and growth, though their impact remains to be seen.