The leading palladium- nickel-copper project in the Western World
18 FEBRUARY 2025
A S X : C H N
Chalice Mining is a leading critical minerals explorer-developer in the world's best mining jurisdiction - Western Australia
Discoverer and 100% owner of the largest palladium- nickel-copper Resource1 in the Western World (Gonneville)
Strategic non-binding MOU with
Compelling and unique counter-cyclical investment opportunity for a Trump 2.0 macro environment - trading at ~US$18/oz 3E(EV/Resource excl Ni-Cu-Co)
Province scale exploration licence holding in the West Yilgarn provides exceptional upside
Strong financial position (A$90M cash & listed investments2) and stable, institutional share register
W E S T E R N
A U S T R A L I A
- 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 ~$10M in listed Investments at 31 December 2024
ASX: CHN | 2 |
Chalice has a uniquely strong financial position and a stable, highly institutional register
Major shareholders3
Tim Goyder
11%
Retail/Other 53%
36% Institutional
Paradice (5%)
Others (31%)
Capital structure | |
Shares on issue | 389M |
Market capitalisation | A$574M1 |
Trading liquidity | ~3M shares/day |
Cash balance | A$80M2 |
Listed investments | A$10M2 |
Enterprise value | A$484M1 |
ASX:CHN 12-month performance ($/share)
2.50
2.00
1.50
1.00
0.50
0.00
Research coverage
1. As of 17 February 2025; 2. As of 31 December 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.
ASX: CHN | 3 |
Why palladium? With Trump 2.0 policy settings and rapid growth of hybrid-ICE vehicles - palladium looks poised for recovery
Chalice share price (A$/share) vs Palladium spot price (A$/oz, LBMA)
12.00
10.00
ASX:CHN | 8.00 |
6.00 | |
Chalice | |
4.00 | |
2.00 |
0.00 Jul-18
Norilsk | Chalice | Palladium (A$) | |||
flooding | |||||
Auto destocking / | |||||
short positioning / | |||||
'Diesel-gate' | Russia dumping? | ||||
pivot to petrol | |||||
& palladium | Stillwater | ||||
auto-cats | |||||
production cut / | |||||
COVID-19 | |||||
Potential Russian | |||||
Ukraine | sanctions by G7 | ||||
invasion | |||||
Price floor? |
Jul-19 | Jul-20 | Jul-21 | Jul-22 | Jul-23 | Jul-24 |
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Palladium price (A$/oz)
Chalice/Gonneville is the only palladium exposure of scale in a safe, reliable jurisdiction
ASX: CHN | 4 |
Why palladium? Battery electric vehicle adoption has reached a
plateau and demand for ICE/hybrid vehicles continues to grow
Total passenger vehicle sales (China, US, Europe)
'000 | Global BEV market share | Vehicles with Pd (ICE, Hybrid) | |||
Demand for vehicles with Pd continues to have 10% | |||||
4,000 | CAGR through the BEV adoption phase | 50% | |||
3,500 | 45% | ||||
40%
3,000
35%
Reports of the death of internal combustion have been greatly exaggerated (Motortrend, Oct 2024)
- Palladium demand continues to grow despite BEV adoption, which appears to have plateaued
2,500 | 30% | ||||
Growth | |||||
2,000 | Early adopters receive | Growth plateaus as | plateau 25% | ||
incentives removed | 20% | ||||
1,500 | government incentives | ||||
1,000 | 15% | ||||
10% | |||||
500 | 5% | ||||
0 | 0% | ||||
- Trump 2.0 administration repealing incentives for BEVs and elsewhere they are under threat
- Western car manufacturers are scaling back their BEV growth ambitions, and scaling up hybrid production to meet consumer preferences
- More palladium required in hybrid EVs than internal combustion engine vehicles (ICE)
- Slowing BEV growth and Trump 2.0 policy settings are not yet reflected in consensus palladium demand forecasts
Source: China Passenger Car Association (CPCA), company data, Motor Intelligence.
ASX: CHN | 5 |
Why palladium? Supply is concentrated in Russia and South Africa where supply risks are high, disruptions are common, plus recycling is subdued
Global Palladium Supply Market Share (2024)
Zimbabwe
A critical input into the global automotive sector relies on a very unstable and geopolitically problematic supply chain…
8%
North
• Production largely from ageing, deep, under-invested |
South Africa
40%
Trump signed
executive order on 7 February ceasing financial aid to South Africa
America
7%
Largely the Sibanye Stillwater operation, which is operating at a loss
Russia
45%
mining complexes in Russia and South Africa | |
• | The two mines in the western world are loss making and |
are being curtailed, making supply concentration worse | |
• Weak prices and lack of investment is driving a rapid | |
decline in recycling volumes (not growth as most are | |
forecasting) | |
• | South African producers have underspent ~$18B in capital |
in the last decade, leading to supply deficits in 10 of the | |
last 11 years, with further supply declines likely |
Source: AME Research, UBS. Sector Keys: South African Mining. 09 Sep 2024. Capital intensity ($/oz real). Johnson Matthey Company date, UBS estimates.
ASX: CHN | 6 |
Gonneville PGE-Ni-Cu-Co Project Overview
A new long-life, low-cost, low-carbon, strategic critical minerals project in Western Australia
Strategic non-binding MOU with Mitsubishi Corporation
Top tier development partner,
intention to formalise a potential binding partnership post PFS1
Tier 1 scale sulphide Resource | Unique critical minerals exposure |
17Moz of Pd-Pt-Au (3E), 960kt Ni, 540kt Cu, 96kt Co contained2
Revenue split of ~50% Pd, ~20% Ni, ~20% Cu, ~10% Au/Pt/Co3
Competitive cost profile | Low-risk development location |
Predicted to become lowest cost | Mine infrastructure on ~22km2 of |
PGE producer in western world | Chalice-owned farmland, Strategic |
(2nd Quartile) after Ni-Cu-Co by- | and Major Project Status from Govt |
product credits | |
Shallow open-pit mining | Simple, industry std flowsheet |
Resource starts at surface, high- | Flotation and CIL to produce separate, |
grade feed in early years | saleable Cu-PGE-Au, Ni-Co-PGE |
concentrates and PGE-Au doré |
- 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.
- Based on the August 2023 Scoping Study 15Mtpa case adjusted to approximate long-term consensus metal prices
ASX: CHN | 7 |
The Project has been substantially de-risked by Chalice since our discovery in 2020
Resource
Tenure / Land
Team
Process Flowsheet
Infrastructure
Offtake
Approvals
Financing
FID
Drilled out to Indicated category, to depth of ~450m, Inferred Resources continue to depth of 1,100m
Acquired 22km2 of farmland surrounding the Resource in 2021-22, significantly de-risking the Project
Dan Brearley commencing as COO in March 2025, key roles secured (Geology, Metallurgy, Mining, Marketing, Approvals, Community)
Simple flotation and CIL to produce saleable concentrates and doré - a major recent breakthrough that simplifies the Project and reduces costs
Water-power corridors defined, TSF design complete, scoping cost estimate completed and Govt supportive
Saleable products confirmed, indicative terms continuing to improve and high levels of interest from potential offtakers
Referred Project in early 2024, Strategic and Major Project Status awarded, strong level of local community support
Discussions to commence in H2 2025
Targeted in ~2027
ASX: CHN | 8 |
1. Study, approvals and development timeline is indicative.
Recent major metallurgical breakthrough fundamentally simplifies the Project - saleable concentrates across the full grade range
SizingGrinding
Oxide feed
Crushing | Grinding | Copper Flotation | Nickel Flotation | CIL Leach | |||||||||||||||||||
Sulphide feed | Blend (~4:1 | ||||||||||||||||||||||
Sulphide:Oxide) | |||||||||||||||||||||||
Offtake of Cu- | Offtake of Ni-Co-PGE | Offtake of PGE-Au | |||||||||||||||||||||
PGE-Au conc. to | conc. to nickel smelter | doré to precious | |||||||||||||||||||||
copper smelter(s) | or pCAM refinery(ies) | metal refinery | |||||||||||||||||||||
22-26% Cu, 45- | 7.5-8.7% Ni, 0.8% Co, | ||||||||||||||||||||||
60g/t 3E | 18-20g/t 3E | ||||||||||||||||||||||
Type | Period | Overall metal recovery (%) | |||||||||||||||||||||
Pd | Ni | Cu | Co | Pt | Au | ||||||||||||||||||
Oxide | All | 50 | - | - | - | - | 60 | Old flowsheet | |||||||||||||||
Fresh | Yr1-4 | 76-81 | 45-47 | 74-82 | 48-63 | 26-44 | 81-86 | ||||||||||||||||
Sulphide | Yr5+ | 70-75 | 25-40 | 68-77 | 27-48 | 24-41 | 84-88 | ||||||||||||||||
ASX: CHN | 9 | ||||||||||||||||||||||
1. Refer to ASX Announcement on 17 February 2025 for full details. | |||||||||||||||||||||||
2. The preferred development case for the PFS is expected to have a production profile based on the 2023 Scoping Study but at a reduced scale. | |||||||||||||||||||||||
Simplifying the flowsheet has materially reduced costs and risk, and is expected to enhance margins for a bulk open-pitoperation
Item | Impact of new process flowsheet |
Capital costs | • Significant reduction due to removal of hydrometallurgical process (~A$260M) |
(pre-production) | |
Operating costs (sulphide)
- Significant reduction due to removal of hydrometallurgical process (~A$4.10/t processed) and reduction of leach reagent consumption (by ~70%)
- A 10% tax offset expected on CIL operating costs
- No material change expected for other processes
Recoveries | • | Marginally lower overall recoveries, but outweighed by expected reduction in costs - testwork and |
optimisations continue, which have potential to improve recoveries further | ||
Ni-Co Payabilities | • | Marginally lower Ni-Co payabilities through selling concentrate vs MHP, but outweighed by expected |
reduction in costs | ||
Complexity/risk | • Materially reduced, utilising all simple, proven, industry standard technology |
- Margins for a bulk open-pit mine plan are expected to improve significantly relative to the 2023 Scoping
Margins | Study (using conservative, consistent macro-economic assumptions) as a result of the process flowsheet |
optimisations |
1. Refer to ASX Announcement on 17 February for full details. The preferred development case for the PFS is expected to be reduced in scale relative to the 2023 Scoping Study and as such, the hydromet process cost estimates listed are indicative and for comparison purposes only.
ASX: CHN | 10 |