Why did the Chalice Mining share price just crash 28%?

This mineral exploration company's shares are being hammered. But why?

| More on:
A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash

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

The Chalice Mining Ltd (ASX: CHN) share price is having a day to forget on Wednesday.

At the time of writing, the mineral exploration company's shares are down 23% to $3.87.

This is an improvement on earlier in the day when its shares were down as much as 28% to $3.63.

Why is the Chalice Mining share price being sold down?

Investors have been hitting the sell button today in response to the release of an update on the Gonneville Nickel-Copper-PGE Project scoping study.

According to the release, the scoping study outlines a new long-life, low-cost, low-carbon green metals mine in Western Australia with the potential to deliver strong financial returns and regional benefits, plus significant upside.

It also outlines an executable, tier-1 scale development project in a world-class jurisdiction.

Chalice Managing Director & CEO, Alex Dorsch, commented:

The Scoping Study highlights an outstanding opportunity to develop a modern, long-life, Western Australian critical metals mine which, because of its scale, longevity and the mix of valuable green metals it is scoped to produce, represents a unique opportunity in the sector.

Gonneville has the potential to deliver a large suite of metals which are essential to global decarbonisation and urbanisation. Without the development of new strategic projects such as this, the world is forecast to fall short of net-zero ambitions which rely on the rapid deployment of clean energy and electrification technologies.

This all sounds great, right? So why is the Chalice Mining share price crashing today?

What's going on?

The reason for the share price weakness appears to be the timeline that has been outlined by management.

Despite the progress it has made so far with its drilling, the company doesn't expect to complete its pre-feasibility study until mid-2025.

After which, if everything goes to plan, first production is expected to commence in 2029. Yes, that's not a typo. First production is coming towards the end of the decade.

It seems that some investors are not willing to stick around for the journey and have been offloading their shares today.

Should you invest $1,000 in Nuix Pty Ltd right now?

Before you buy Nuix Pty Ltd 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 Nuix Pty Ltd 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 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Materials Shares

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Lynas shares charge higher on big news

What is getting investors excited today? Let's find out.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Liontown Resources shares roar higher on big news

This lithium miner is catching the eye with some big news. Here's what is happening.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

What does Macquarie think BHP shares are worth?

Is now a good time to buy the miner's shares? Let's find out.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

What does Macquarie think Pilbara Minerals shares are worth?

Is this lithium miner dirt cheap? Let's find out.

Read more »

Two miners standing together.
Materials Shares

Is it time to buy this beaten down lithium share?

This diversified miner’s share price has been hit on multiple fronts. What does it mean for investors?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »