Chalice Mining shares sink after it outlines cost cuts
Make us a preferred source
Make us a preferred source on Google
More news: Shares in critical minerals explorer Chalice Mining have dropped 5.1% to $1.015 by 2:30pm AEDT after it announced plans to slash costs in the face of weaker commodity prices. Chalice said it will cut expenditure by 40% compared with 2023 across completed definition drilling, executive salaries, director fees and a management structure shakeup.
Chalice Mining to slash costs amid downturn
The news: Critical minerals explorer Chalice Mining has outlined plans to slash costs significantly in 2024 to cope with weak market conditions.
The numbers: The explorer will cut its expenditure by 40% compared to 2023, including $29 million due to the completion of resource definition drilling at its Gonneville project in Western Australia, and another $2.2 million via a reduction in corporate overheads through cuts in executive salaries, director fees and a rationalising of management structure.
The context: The cuts follow an expenditure review in the December quarter. CEO Alex Dorsch said market conditions have continued to deteriorate in the resources sector in the early part of 2024, particularly in nickel and platinum, and the cost cutting would ensure the company’s growth plans can continue without the need to raise capital in the foreseeable future. Chalice has been the target of short sellers, with its shares down more than 80% this year after disappointing results for a scoping study at Gonneville, where it is building a $2 billion mine.
The source: ASX announcement
