Why has the Chalice Mining share price crashed 40% in 4 months?

It has been tough times for Chalice Mining shares.

| More on:
Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Chalice Mining is recouping some of its losses to gain 2.41% to $4.035 today 
  • Gold prices have come under extreme selling pressure as worldwide central banks lift interest rates 
  • Year-to-date, Chalice Mining shares are down 60% 

The Chalice Mining Ltd (ASX: CHN) share price has tumbled in the past four months.

Since the start of May, the gold miner's shares have crashed 40%, making it one of the worst performers across the sector.

In retrospect, Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have declined by 35% and 20%, respectively across the same time period.

At the time of writing, Chalice Mining shares are clawing back some of its losses, up 2.41% to $4.035.

What's happened to the Chalice Mining share price?

Downward pressure on gold prices has driven investors to flee the precious metal causing a sell-off for Chalice Mining shares.

Gold has been in the spotlight in recent times as central banks around the world lift interest rates to combat inflation.

The metal broke under the US$1,700 barrier for the first time in many months to currently trade at US$1,675 per ounce. This means gold has fallen 10% since the start of May.

On the other hand, bond yields have risen across the board, with the US two-year treasury rate at 3.94% – the highest since July 2007.

In early September, Chalice Mining released its presentation highlighting the significant exploration upside for the Julimar Ni-Cu-PGE Project in Western Australia.

Management noted that the Julimar discovery has kick-started the new West Yilgarn Ni-Cu-PGE Province, which could deliver more major discoveries.

However, investors were unfazed by the presentation, sending the Chalice Mining share price 13.04% lower to $3.75.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) retreated 1.77% on the same day (7 September).

Chalice Mining share price summary

Over the last 12 months, Chalice Mining shares have dropped 40%, with year-to-date down 60%.

The company's share price reached a 52-week low of $3.37 in late June before moving in a sideway channel.

Chalice Mining commands a market capitalisation of roughly $1.52 billion.

Should you invest $1,000 in Nib Holdings right now?

Before you buy Nib Holdings shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nib Holdings wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Rising price of gold represented by a share price chart and gold bars.
Gold

The gold price just booked its best quarter since September 1986. Where to now?

Up 19% in the first quarter of 2025, what can investors expect next for the gold price?

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Gold

Up 189% in a year, what's next for this ASX small-cap gold share?

This explorer has released details of a maiden drilling program amid the gold price smashing a new record.

Read more »

A gold bear and bull face off on a share market chart
Gold

Why gold is not immune from a pullback

For many gold is seen as a hedge against market volatility. But things don’t always go to plan.

Read more »

Woman with gold nuggets on her hand.
Gold

Big ASX news: Gold tops US$3,100 an ounce

Trump's new tariffs are spooking investors...

Read more »

a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.
Gold

ASX gold shares rally on another fresh record for the gold price

This corner of the market is dominating today.

Read more »

ASX gold share price.
Gold

Up 39% in a year, just how high will the gold price go?

At US$3,027 per ounce, the gold price keeps setting new record highs. Can this continue?

Read more »

Woman holding gold bar and cheering.
Gold

Up 50% in a month, why is this ASX All Ords gold stock surging again on Thursday?

The ASX All Ords gold miner is surging on Thursday even as the market sinks. But why?

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Gold Road shares rip 16% higher to record price

The gold explorer is the ASX 200's best performer for share price gains on Tuesday.

Read more »