Here’s why Chalice Mining (ASX:CHN) crashed more than 25% on Wednesday!

Nick Sundich Nick Sundich, August 30, 2023

Chalice Mining (ASX:CHN) shares crashed on Wednesday and it is all because of the release of a scoping study.


What are the Best Resources stocks to invest in right now?

Check our buy/sell stock tips


A recap of Chalice Mining (ASX:CHN)

Chalice Mining owns the Julimar PGE-nickel deposit that lies an hour out of Perth. The company has never looked back since it first discovered the deposit and scratched the surface of its potential, given its resources, convenient location and the perfect timing of the discovery amidst the push for decarbonisation.


Why it fell this morning

But investors found out this morning that it could cost $1.6-$2.3bn to turn into an operating mine and this is why shares fell this morning. The price tag will depend on the output, 15m tonnes a year would lead to the lower figure while 30m tonnes a year would lead to the higher figure.

Chalice also revealed that it would not make a Final Investment Decision until 2026 and first production may not occur until 2029.

Investors are not just worried about the price tag – although if the deposit is as good as it seems, there shouldn’t be a problem. They also fear the substantial equity dilution and/or debt burden that could occur. And it is also less likely now that it will be acquired any time soon as some investors had hoped for. Hence the big sell off today!


Stocks Down Under Concierge is here to help you pick winning stocks!

The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector, including Resources!

Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target and stop loss level in order to maximise total returns. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.

Our performance is well ahead of the ASX200 and All Ords.

You can try out Concierge … for FREE.




There’s no credit card needed – the trial expires automatically.



Stocks Down Under
Average rating:  
 0 reviews

Recent Posts

raise capital at a discount

Why do cash burning ASX companies raise capital at a discount?

Why do ASX companies raise capital at a discount? This is a question many investors ask when they are diluted…

airline stocks and fuel prices

Airline stocks and fuel prices: Air New Zealand (ASX:AIZ) and Qantas (ASX:QAN) investors just got a painful reminder about the aviation industry’s biggest cost

The relationship between the performance of Airline stocks and fuel prices has seemingly been forgotten in the past couple of…

african mining countries

4 African mining countries that ASX resources investors should avoid

African mining countries offer a lot of potential for ASX resources companies and their investors, but also a lot of…