Chalice Mining Ltd
(ASX: CHN)Share Price and News
About Chalice Mining
Chalice Mining is a mineral exploration and evaluation company based in West Perth, Australia. Its flagship asset is the Gonneville Project, a major discovery of platinum group elements (PGEs), nickel, copper, and cobalt in Western Australia's West Yilgarn region.
This project is regarded as the largest undeveloped PGE-nickel-copper deposit in the Western world, containing approximately 17 million ounces of PGEs, 960,000 tonnes of nickel, 540,000 tonnes of copper, and 96,000 tonnes of cobalt.
CHN Company History
Founded in 2005, Chalice Mining, formerly Chalice Gold Mines Limited, has evolved from a gold-focused explorer to a diversified mining company. The pivotal moment in its history was the 2020 discovery of the Gonneville deposit, which shifted the company's focus toward critical minerals essential for decarbonisation and urbanisation.
Future Outlook of Chalice Mining Ltd (ASX: CHN)
Chalice Mining's future is closely tied to the development of the Gonneville Project. In August 2023, the company completed a Scoping Study outlining a long-life, low-cost, low-carbon critical minerals mine with the potential for strong financial returns. A Pre-Feasibility Study is underway to determine the optimal development pathway.
Financially, Chalice is in a pre-revenue phase, with a reported net loss of A$25.46 million over the past twelve months. However, revenue is expected to grow at an annual rate of 46.6%, and earnings per share (EPS) are forecast to increase by 42.7% annually.
Chalice's cash reserves of approximately A$80 million at the end of 2024 provide a solid foundation for ongoing exploration and development activities. Sector-wise, the demand for critical minerals like nickel, copper, and PGEs is anticipated to rise, driven by the global shift towards renewable energy and electric vehicles. Chalice’s strategic positioning in this sector could offer significant growth opportunities.
Is CHN a Good Stock to Buy?
Investing in Chalice Mining presents both opportunities and risks. On the positive side, the company’s Gonneville Project holds substantial potential, and the demand for critical minerals is on an upward trajectory. Analyst sentiment is generally optimistic, with a consensus rating leaning towards a "strong buy."
However, as a pre-revenue company, Chalice carries inherent risks associated with project development, regulatory approvals, and market volatility. The company’s return on equity is forecasted to be -6% in three years, indicating potential challenges in achieving profitability. Investors should weigh these factors carefully, considering their risk tolerance and investment horizon.
While Chalice offers exposure to the critical minerals sector, it is essential to monitor project developments and market conditions closely.
Our Stock Analysis
Resources stocks for Dummies: Here’s how to get started in the ASX’s most exciting sector in 2025
Over a third of companies listed on the ASX are resources stocks. Resources stocks offer exposure to many different commodities…
Why investors are excited about Chalice’s Gonneville/Julimar project once again and if they’re getting ahead of themselves
Chalice Mining (ASX:CHN) shares climbed over 10% yesterday after an announcement declaring a ‘major metallurgical breakthrough at Gonneville’. Investors liked…
JORC Resources Explained: What Investors Need to Know
The mining industry forms the backbone of global economic activity, and its foundation lies in the accurate assessment of mineral…
Chalice Mining (ASX:CHN): Its got 16Moz of 3E (Palladium, Platinum and Gold combined); so why the sell off?
Chalice Mining (ASX: CHN) has been the exploration story of the decade. All of the hundreds of explorers on the…
4 factors to consider if spin out companies make good investments
Spin out companies come into existence whenever a company decides to separate a division from the parent company into a…
Here are 5 rebound stocks and 5 that could be about to be the next success stories
One of the best ways to make money from stocks is from so-called rebound stocks. By this we mean stocks…
Frequently Asked Questions
Chalice Mining does not currently pay dividends, as it is in the exploration and development phase and has not yet generated any revenue.