Chalice Mining (CHN) Mining Forum Americas 2026 summary

Gonneville project and economics

• Discovered in 2020; resource of 17 million oz PGMs, 1 million tonnes of nickel and 500,000 tonnes of copper. PFS outlines a 23-year mine life.

• PFS annual production: 220,000 oz PGMs, 7,000 tonnes nickel, 8,000 tonnes copper and 700 tonnes cobalt.

• PFS metrics: pre-tax NPV of AUD 1.4 billion, IRR of 23%, payback under three years and AISC of $370/oz, based on conservative long-term assumptions.

• Palladium price sensitivity: each $100/oz increase adds AUD 250 million to NPV and AUD 630 million to cumulative cash flow; project NPV was cited above AUD 3 billion at palladium of $2,000/oz.

• AUD 59 million in cash and listed investments, zero debt; Project Director Paul De Ponte, GM Corporate Affairs Tim Langmead and Odin Partnership joined as strategic advisers.

Palladium market outlook

• Palladium is a ~9 million oz/year niche market, with supply deficits in 9 of the past 10 years following years of low prices and underinvestment.

• China represents 30% of global palladium demand; vehicle exports and overseas preference for hybrids and combustion engines offset declining domestic battery-electric vehicle demand.

• Research cited potential incremental demand of 0.5 million–1.5 million oz by 2030 from AI, data centers and energy; Nornickel is investing $100 million in new demand areas.

• Russia and South Africa account for 90% of supply; Nornickel and Valterra production declined 10% YoY, while Valterra indicated new supply needs prices well above $2,500/oz.

• Gonneville was positioned as leverage to a potential palladium price recovery; management said the market had previously seen palladium exceed $3,000/oz.

Permitting, funding and path to FID

• Gonneville has WA strategic project and Australian major project status; it sits on owned farmland, outside state forest, with native title settled in 2021.

• Environmental review documents are being prepared for submission by end-2026; a ministerial decision is expected in H1 2028.

• Funding discussions include export credit agencies, traders, offtakers and strategic investors; Export Finance Australia is the likely lead, with ECAs indicated to provide 60%–70% of funding.

• Remaining milestones include offtake and financing, mining approval and a bankable feasibility study; FID is targeted for H1 2028, with permitting on the critical path.

• Funding balance may come from strategic investment, a stream or offtake prepay; management said development may not require a return to equity markets.