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. It potential to deliver over 220,000/oz per annum of 3E metals (palladium, platinum and gold) along with 7kt of nickel, 8kt copper and 0.7kt cobalt, over an initial life of more than 20 years.
Chalice has invested $240m to date including >1,200 resource definition drill holes, 33 dedicated metallurgical drill holds and over 1,400 metallurgical tests and 58 geotech-logged drill holes.
Chalice Mining's History
Founded in 2005, Chalice Mining, formerly Chalice Gold Mines spend 15 years with a strategy of developing gold mines and selling them.
The 2020 discovery of the Gonneville deposit, changed it all. It was the largest nickel sulphide discovery anywhere in the world in 2 decades and the largest PGE (Platinum Group elements) discovery in Australian history. The Maiden Resource was defined at the end of 2021 and this led to a number of scoping studies, followed by a Preliminary Feasibility Study released at the end of 2025.
The study outlined the potential returns for a future mine and there were impressive figures. The cumulative free cash flow was A$4.7bn in a base case scenario with US$1,300/oz platinum, US$2,900/oz gold, US$39,000/oz cobalt. But with a ‘spot price’ scenario of US$1,500/oz palladium, US$1,660/oz platinum, US$4,250/oz gold, US$14,900/t nickel and US$12,050/t copper, this was US$6.2bn.
The NPV (using an 8% discount rate) was A$1.4bn pre-tax and A$1bn post tax with those figures being A$2bn and A$1.5bn at spot prices. The pre-tax IRR was 23%, increasing to 29% at spot pices, and a Stage 1 payback of less than 3 years.
The project would make 51% of revenue from palladium, 22% from nickel, 17% from copper and the balance from by-products. It was shown to be low-cost with US$370/oz 3E projected from Year 4 onwards with just US$50/oz in the first 3 taking account of byproduct credits. It will be the lowest cost mine in the Western world.
Chalice Mining's Outlook (ASX: CHN)
Chalice Mining's future is closely tied to the development of the Gonneville Project and its ability to bring it into production. It will need $820m to bring it into production, not counting sustaining capex. Chalice has indicated an FID will happen in 2028 once funding is secured. While Chalice says it is fully funded to this point, it will need money to build the mine.
Chalice has indicated this funding will be sourced from several sources including state and federal government initiatives, commercial banks, debt investors, green finance providers and offtake partners. Investors have been told there’ll be a better idea of how Gonneville will be funded at its Definitive Feasibility Study which is due in the first half of 2027.
There is also more work to do from a regulatory perspective including converting the Exploration Lease to a mining Lease and to submit Environmental Review Documents. The risk of negative community sentiment is legitimate too.
And of course, the plans for Gonneville are all contingent on commodity prices prices. Now there is some downside that can happen below spot prices whereby the project will still be viable (i.e. with an IRR of over 15%), but this is out of the company’s control.
Is CHN a Good Stock to Buy?
Investing in Chalice Mining presents both opportunities and risks.
It is clear that there is potential for a substantially lucrative project at Gonneville. But it is still some time away from production and that is even if it all goes to plan. The DFS won’t be complete until the first half of 2027, then funding and environmental approvals in the first half of 2028. And then, first production in early 2030…again, assuming it all goes to plan.
Chalice investors should be prepared to wait until then to realise returns…they’ll be disappointed if they expect a 50-100% return in a few months unless commodity prices rally by a very similar amount.
Our Stock Analysis
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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.