Chalice Mining (CHN) Investor Update summary

Project overview and financial highlights

• The project is a world-class, large-scale, low-cost palladium-nickel-copper operation in Western Australia, with a 23-year open pit life and pre-tax free cash flow of AUD 4.7–6.2 billion.

• Pre-tax NPV is AUD 1.4–2.0 billion with an IRR of 23–29%, and an initial payback period of 2.7 years.

• All-in sustaining costs are $370/oz, placing the project in the second quartile globally and as the lowest-cost undeveloped PGM project.

• Project is fully funded to FID with AUD 76 million in cash and strategic partnerships, including an MOU with Mitsubishi.

• Only half the resource is exploited in the initial plan, with significant upside for expansion and life extension.

Operational and technical details

• Annual production targets: 220,000 oz precious metals (mainly palladium), 7,000 t nickel, 8,000 t copper, 700 t cobalt.

• Open pit design features a low strip ratio (1.2 LOM), high-grade early years, and robust EBITDA margins above 45%.

• Process flowsheet includes leaching for oxides and sequential flotation for sulphides, producing saleable copper and nickel concentrates and a doré.

• Pre-production capex is AUD 820 million, enhancing project economics and funding feasibility.

• Over AUD 15 million spent on metallurgical test work, with high confidence in process design and recoveries.

Market positioning and strategic advantages

• Project offers strong leverage to palladium prices, with AUD 250 million NPV increase per $100/oz price rise.

• Diversified revenue: 51% palladium, 22% nickel, 17% copper, providing resilience to price fluctuations.

• Located near Perth, enabling a residential workforce and simple logistics, reducing operational risk.

• Strong government support, with Major and Strategic Project Status and ownership of freehold land.

• Significant exploration upside in the broader West Yilgarn region and below the current pit shell.