The premier palladium- nickel-copper development project in the western world
Diggers & Dealers Mining Forum
5-7 AUGUST 2024
A S X : C H N
Why Chalice? Our 100% owned Gonneville Project is one of the largest
palladium-nickel-copper development projects in the western world
Tier-1 scale Resource in Western Australia
• 17Moz of Pd-Pt-Au (3E), 960kt Ni, 540kt Cu, 96kt Co contained in
Resource, starting at surface1
- Pre-FeasibilityStudy and regulatory approvals underway
- Exploration upside - 9,600km2 surrounding licence holding
Strategic MOU with
• Non-binding framework for collaboration during the PFS
- Intention to formalise a potential binding partnership post completion of the PFS (mid CY25)
Compelling value and leverage
• High leverage to Pd, Ni price recovery from cyclical lows
- Predicted to become the lowest cost PGE mine in the western world (after Ni-Cu-Co credits) - a unique and competitive asset
Strong financial position
• ~A$111M in cash and listed investments2 and no debt - estimated $15M required to complete the Gonneville PFS
- 660Mt @ 0.79g/t Pd+Pt+Au (3E), 0.15% Ni, 0.083% Cu, 0.015% Co (refer to the Mineral Resources Estimate contained in Appendix for tonnes and grade by confidence category)
- Includes ~$22M in listed Investments at 30 June 2024
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Chalice is an ASX300 listed specialist explorer-developer - we are a
leading investment opportunity for exposure to the PGE price rebound
Capital structure
Shares on issue | 389M |
Market capitalisation | A$420M1 |
Trading liquidity | ~5M shares/day |
Cash balance | A$89M2 |
Listed investments | A$22M2 |
Enterprise value | A$331M1 |
Major shareholders3 | |
Tim Goyder (founder) | 11% |
Paradice | 5% |
Goldman Sachs | 5% |
Board & Management | 2% |
Other institutional | ~28% |
ASX:CHN 6-month performance
$/share | Volume | Share price |
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Research coverage
Million
30
25
20
15
10
5
0
Top 10 shareholders representing >40% of the register materially unchanged in the last 12 months
1. As of 23 July 2024; 2. As of 30 June 2024. 3. Major shareholder information is as disclosed in the last substantial shareholder notice provided to the Company. Note: Arctis Global disclosed a long equity derivative position of 46,728,282 shares on 10 Nov 2022.
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Why palladium? Strong future demand for palladium driven by hybrid EV sales outgrowing battery EV sales
- Key driver of palladium demand is sales of internal combustion engine / hybrid vehicles (ICE/PHEV)
- ~85% of demand from catalytic converters
- ~10% of demand from hydrogenation
- Underwhelming battery electric vehicle (BEV) sales is driving decreasing profits at western car manufacturers
- Quantity of palladium required per vehicle trending higher due to increasing production of hybrid vehicles and tightening emissions standards on ICE vehicles
Battery electric vehicles (BEV) v Total vehicle sales in China, US and Europe in the last 12 months
Vehicles without Pd (BEV) | Vehicles with Pd (ICE+Hybrid) | |
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
- 46% of current US BEV owners considering switching back to ICE
Source: China Passenger Car Association (CPCA), company data, Motor Intelligence, McKinsey Mobility Consumer Pulse 2024 (n = 36,954)
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Why palladium? Supply is concentrated in Russia and South Africa - supply risks are high, disruptions are common and recycling is subdued
- Palladium production is dominated by ageing, deep, under-invested mines in Russia and South Africa
- Western mines are rapidly becoming uneconomic and are being shut, making supply concentration worse
- Weak prices and lack of investment resulting in recycling volumes trending down rapidly
Global Palladium Supply Market Share (2023)
41% | ||||
36% | ||||
13% | ||||
6% | 3% | |||
Russia | South Africa | North | Zimbabwe | Rest of world |
America |
LBMA Palladium price (US$/oz)
3,500 | Norilsk | Ukraine | |
flooding | invasion | ||
3,000 | 'Diesel-gate' | COVID-19 | |
2,500 | pivot to | Auto destocking / | |
petrol & Pd |
2,000 | Russia dumping? |
1,500
1,000
500
0 Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23Jul-23Jan-24Jul-24
Gonneville is the only palladium project in the western world with scale
Source: AME Research, LBMA = London Bullion Market Association
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PGE prices are deep into the cost curve and unsustainable - given strength of demand, pricing could revert to incentive levels in near term
PGE industry all-in sustaining cost curve (cash costs plus sustaining CapEx), net of by-product credits, US$/oz 4E 2023A1
2,500
2,000
Quartile 1 | Quartile 2 | Quartile 3 | Quartile 4 |
AISC (US$/oz 4E)
1,500
1,000
500
0
Current PGE 4E basket price (approx.)
840
15Mtpa Case: ~280kozpa 4E @ US$470/oz2
Loss making operations
Predominantly South African / Zimbabwean mines -
unit costs up 8-20% in 2023 relative to 2022
-500
-1,000
Nornickel (Russia)
1,000 | 2,000 | 3,000 | 4,000 | 5,000 | 6,000 | 7,000 | 8,000 | 9,000 | 10,000 | 11,000 | 12,000 |
Cumulative 4E production (koz)
Net total cash costs (US$/oz 4E) Sustaining CapEx (US$/oz 4E)
Source: April 2024 SFA (Oxford) figures used for 2023 realised 4E cost curve data. Note: 1. 4E cost curve positioning assumes SFA Oxford 2023 actual by-product commodity prices of: Copper prices of: US$8,486/t, Nickel US$21,505/t, Iridium US$4,682/oz, Ruthenium US$464/oz, Chrome 42% CIF US$312/t. Chalice internal Cobalt prices of US$40,000/t have been assumed given not disclosed in SFA data. ZAR:USD exchange rate of 18.47 assumed. 2. AISC adjusted to reflect SFA Oxford 2023 actual by-product commodity prices (vs US$360/oz on August 2023 Scoping Study prices)
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Gonneville Project
Project Overview
Gonneville PGE-Ni-Cu-Co Project Overview
A new long-life,low-cost,low-carboncritical minerals project in Western Australia
Strategic MOU in July 2024 with Mitsubishi Corporation
Tier-1 development partner, intention to formalise a potential binding partnership post PFS (mid CY25)1
Tier-1 scale sulphide Resource
17Moz of Pd-Pt-Au (3E), 960kt Ni, 540kt Cu, 96kt Co contained2
Competitive PGE cost profile
Predicted to become lowest cost
PGE producer in the western world
(2nd Quartile)
Shallow open-pit mining
Resource starts at surface, high- grade feed in early years
Unique critical minerals asset
Revenue split of ~50% Pd, ~25% Ni, ~15% Cu, ~10% Au/Pt/Co3
Low-risk development location
Mine infrastructure on ~22km2 of
Chalice-owned farmland
Sulphide mineralogy
Ability to produce separate Cu-PGE, Ni-Co-PGEconcentrates and leach
Pd from flotation tails
- Non-bindingMOU executed on 3 July 2024 - refer to ASX Announcement for full details
- For tonnes and grade by confidence category and metal equivalent assumptions, refer to the Mineral Resources Statement in Appendix.
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3. Based on the August 2023 Scoping Study 15Mtpa case adjusted for current consensus metal prices
Remodelling of the Gonneville high-grade sulphide zones has allowed investigation of selective open-pit/undergroundmining techniques
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The rare, tier-1 scale Gonneville Resource has high-grade optionality and compelling growth potential
High Grade Mineral Resource Estimate1:
- 59Mt @ 2.0g/t 3E (Pd+Pt+Au), 0.20% Ni, 0.21% Cu, 0.019% Co
- 3.8Moz 3E, 120kt Ni, 120kt Cu and 11kt Co contained
- Starts at surface, open at depth
Mineral Resource Estimate1:
- 660Mt @ 0.79g/t 3E (Pd+Pt+Au), 0.15% Ni, 0.08% Cu, 0.015% Co
- 17Moz 3E, 960kt Ni, 540kt Cu and 96kt Co contained
Gonneville is highly leveraged to commodity prices and metallurgical recoveries
Project scale expected to increase over time
according to prevailing macro-economic
conditions:
- As prices increase, cut-off grade can be reduced, more tonnes economic to process
Gonneville NSR Grade-Tonnage table2
NSR Cut-off | NSR Cut-off in | Total Mass | Grade | ||||||
in-pit | MSO | ||||||||
A$/t | A$/t | (Mt) | 3E (g/t) | Pd (g/t) | Pt (g/t) | Au (g/t) | Ni (%) | Cu (%) | Co (%) |
15 | 110 | 690 | 0.75 | 0.59 | 0.14 | 0.02 | 0.15 | 0.082 | 0.015 |
25 | 110 | 640 | 0.78 | 0.62 | 0.14 | 0.02 | 0.15 | 0.085 | 0.015 |
35 | 110 | 530 | 0.85 | 0.67 | 0.15 | 0.03 | 0.16 | 0.092 | 0.015 |
45 | 110 | 390 | 0.97 | 0.76 | 0.17 | 0.03 | 0.16 | 0.11 | 0.016 |
55 | 110 | 270 | 1.1 | 0.88 | 0.20 | 0.04 | 0.17 | 0.12 | 0.017 |
65 | 110 | 180 | 1.3 | 1.0 | 0.23 | 0.05 | 0.18 | 0.14 | 0.017 |
75 | 110 | 130 | 1.5 | 1.2 | 0.27 | 0.06 | 0.19 | 0.16 | 0.018 |
85 | 110 | 95 | 1.7 | 1.3 | 0.30 | 0.06 | 0.19 | 0.18 | 0.018 |
95 | 110 | 73 | 1.8 | 1.4 | 0.34 | 0.07 | 0.20 | 0.19 | 0.019 |
105 | 110 | 58 | 2.0 | 1.6 | 0.37 | 0.08 | 0.20 | 0.21 | 0.019 |
115 | 110 | 47 | 2.2 | 1.7 | 0.40 | 0.09 | 0.21 | 0.22 | 0.019 |
125 | 110 | 40 | 2.3 | 1.8 | 0.42 | 0.10 | 0.21 | 0.23 | 0.019 |
135 | 110 | 34 | 2.4 | 1.9 | 0.45 | 0.10 | 0.21 | 0.24 | 0.019 |
145 | 110 | 30 | 2.5 | 1.9 | 0.47 | 0.11 | 0.22 | 0.25 | 0.019 |
155 | 110 | 27 | 2.6 | 2.0 | 0.48 | 0.11 | 0.22 | 0.26 | 0.019 |
- For tonnes and grade by confidence category and NSR assumptions, refer to the Mineral Resource Estimate table in Appendix
- For complete NSR assumptions refer to ASX Announcement "Gonneville Resource remodeled to support selective mining", dated 23 April 2024
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