Chalice Mining (CHN) H2 2024 earnings summary

Executive summary

• Advanced the Gonneville PGE-Ni-Cu-Co Project with a Scoping Study and commenced a Pre-Feasibility Study targeting a staged, high-grade development approach, aiming for completion in mid-2025.

• Entered a non-binding MOU with Mitsubishi Corporation to collaborate on technical, financing, marketing, and offtake aspects of Gonneville, with intent to formalize a binding partnership post-PFS.

• Upgraded the Gonneville Mineral Resource Estimate in April 2024, increasing PGE grade by 25% and copper grade by 17% in high-grade zones compared to March 2023.

• Maintained a strong financial position with $111 million in cash and investments at FY2024 end, despite challenging commodity markets and reduced expenditures.

• Continued systematic exploration in the West Yilgarn Province, identifying over 40 greenfield targets and completing a 12,000m reconnaissance drilling program.

Financial highlights

• Net loss for FY2024 was $39.5 million, a 39.8% improvement from the $65.6 million loss in FY2023, mainly due to reduced exploration and evaluation expenditure.

• Exploration and evaluation expenditure totaled $42.5 million, down from $61.8 million in FY2023.

• Cash and cash equivalents at 30 June 2024 were $89 million, down from $145.2 million in the prior year.

• Net assets stood at $162.8 million, with current assets exceeding current liabilities by $109.4 million.

• Interest income increased to $5.0 million due to higher rates on term deposits.

Outlook and guidance

• Well-funded to complete the Gonneville Pre-Feasibility Study and progress regulatory approvals and exploration in FY2025.

• Targeted reductions in monthly expenditure from $2.4 million to $1 million to preserve cash.

• Anticipates formalizing a binding partnership with Mitsubishi Corporation post-PFS.

• Expects continued volatility in commodity prices but remains optimistic about long-term demand for critical minerals.