Why is the Chalice Mining share price soaring 14% on Monday?

Chalice Mining shares are rocketing amid some big news.

| More on:
Female miner standing smiling in a mine.

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

It's been a very happy start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares. At present, the index is up a healthy 0.81% and back over 7,100 points. But let's talk about the Chalice Mining Ltd (ASX: CHN) share price, which is making those market rises look pitiful by comparison.

Chalice Mining shares are on fire today. This ASX 200 mining stock closed at $1.40 a share last week. But at present, those same shares are going for $1.59 each after hitting a high of $1.65 earlier this morning. That puts the Chalice Mining share price up a whopping 13.98% at present.

So what on earth is going on with this company today that resulted in its valuation swelling by almost a fifth over just a few hours?

Why has the Chalice Mining share price rocketed 14% today?

Well, we can't know for sure just yet. There hasn't been any fresh official ASX news or announcements out of Chalice today. Or indeed since Thursday last week.

However, we can point to one development that might have ASX investors excited about this company today.

According to reporting in the Australia Financial Review (AFR) today, the Indonesian government has apparently failed to secure access to subsidies from the United States' Inflation Reduction Act (IRA). The IRA is a mammoth program that President Joe Biden passed last year that aims to develop critical mineral infrastructure, as well as facilitate the transition to clean energy.

It allows American producers of strategic minerals, as well as those domiciled in key American allies, access to lucrative subsidies. As a key US ally, many Australian companies, including nickel producer Chalice, have already been allowed some subsidies under this program.

Indonesia was hoping that it too would qualify. But according to the report, Indonesian President Joko Widodo failed to seal the deal at a recent meeting with Biden.

This has reportedly resulted in "Australia's largest nickel producers… breathing a sigh of relief", as they compete with Indonesian producers (many of which are backed by Chinese investment) within our region and on global markets.

So it seems likely that it is this news that is giving investors such an insatiable appetite for Chalice Mining shares this Monday. However, even after these impressive gains, the Chalice Mining share price remains down by more than 74.6% over 2023 thus far.

Motley Fool contributor Sebastian Bowen 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 Resources Shares

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »

Miner looking at a tablet.
Resources Shares

Should I buy the dip in BHP shares today?

BHP shares are back in the green for 2025. Now what?

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Resources Shares

Kaboom! Syrah Resources shares jump 26% on Trump tariff news

Changing market dynamics?

Read more »