Expenditure review pays off for Chalice

A decision by Chalice Mining in January to review its expenditure appears to be paying off for the Tim Goyder-backed exploration company.

In January, Chalice told the market it planned to slash its expenditure by 40 per cent this year, due to weak nickel and platinum group metal pricing.

In its March 2024 quarterly report, the West Perth-based company said that along with having a cash balance of $104 million, its operating cash outflows for the quarter reached $7 million – a reduction of 55 per cent from the December 2023 quarter.

“This reduction reflects the successful implementation of the expenditure review announced in January 2024 to ensure Chalice’s strong cash balance is preserved,” the company said.

“This cash balance will allow continued execution of Chalice’s growth strategy with maximum flexibility and capital discipline, without needing to raise capital in the foreseeable future.”

It’s been a busy month for Chalice, which is moving closer towards a final investment decision at its Gonneville nickel-copper-platinum project, located near Tooday in Western Australia’s Avon district.   

On April 8, Chalice said it had had lodged plans to develop Gonneville with the Environmental Protection Authority. As it stands, a final investment decision has been pencilled in for the end of 2026.

Should it get the green light, construction is expected to begin in 2027, for first production in 2029. 

Last week, Alex Dorsch-led Chalice also confirmed it had upgraded its mineral resource update for Gonneville. The revised estimate now contains 3.8 million ounces of palladium and platinum, 120,000 tonnes of nickel, along with 120,000t of copper – which was formed on the basis of both selective open-pit and underground mining.

Mr Dorsch said the upgraded estimate was the first step in Chalice resetting its development strategy for the project. 

Chalice last traded at $1.26 per share, up 2 per cent, as of 10.11am WST.