Thoughts on Chalice Mining (CHN)
Hi Team , Chalice Mining has had a good week up over 30% . Seems to be having a solid reporting season . Would appreciate your thoughts . Has MM looked at it before ? Takeover target ? Cheers Craig
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Answer
Hi Craig.
CHN did bounce nicely last week but its endured a rocky few years, for those not familiar with the business its a mineral exploration and development company. In 2020 CHN discovered a major greenfield discovery at the Gonneville Project project which stands as the largest undeveloped palladium-nickel-copper deposit in the western world, with a resource estimate containing approximately 17 million ounces of platinum group elements (PGEs), 960,000 tonnes of nickel, 540,000 tonnes of copper, and 96,000 tonnes of cobalt.
The reason for the advance this week was an announcement to the ASX that metallurgical test work at its Gonneville platinum group elements-copper-nickel-cobalt project in WA demonstrated that the firm would not require a hydrometallurgical process for nickel concentrate, which would reduce technical risk, process complexity, as well as capital and operating costs, effectively increasing the value of its deposit.
- We have to remain neutral towards CHN, it feels like it may “pop” one day but it keeps failing, this week its already surrendered ~18% of its initial gain.
