Latest news with #ChaliceMining
Yahoo
20 hours ago
- Business
- Yahoo
We Think Chalice Mining (ASX:CHN) Can Easily Afford To Drive Business Growth
Explore Chalice Mining's Fair Values from the Community and select yours Just because a business does not make any money, does not mean that the stock will go down. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while history lauds those rare successes, those that fail are often forgotten; who remembers Given this risk, we thought we'd take a look at whether Chalice Mining (ASX:CHN) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let's start with an examination of the business' cash, relative to its cash burn. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Long Is Chalice Mining's Cash Runway? A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. In December 2024, Chalice Mining had AU$90m in cash, and was debt-free. Importantly, its cash burn was AU$24m over the trailing twelve months. That means it had a cash runway of about 3.7 years as of December 2024. Importantly, analysts think that Chalice Mining will reach cashflow breakeven in 5 years. Essentially, that means the company will either reduce its cash burn, or else require more cash. You can see how its cash balance has changed over time in the image below. Check out our latest analysis for Chalice Mining How Is Chalice Mining's Cash Burn Changing Over Time? Whilst it's great to see that Chalice Mining has already begun generating revenue from operations, last year it only produced AU$446k, so we don't think it is generating significant revenue, at this point. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. Notably, its cash burn was actually down by 60% in the last year, which is a real positive in terms of resilience, but uninspiring when it comes to investment for growth. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. Can Chalice Mining Raise More Cash Easily? While we're comforted by the recent reduction evident from our analysis of Chalice Mining's cash burn, it is still worth considering how easily the company could raise more funds, if it wanted to accelerate spending to drive growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Since it has a market capitalisation of AU$656m, Chalice Mining's AU$24m in cash burn equates to about 3.7% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. How Risky Is Chalice Mining's Cash Burn Situation? As you can probably tell by now, we're not too worried about Chalice Mining's cash burn. For example, we think its cash runway suggests that the company is on a good path. And even its cash burn reduction was very encouraging. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Taking all the factors in this report into account, we're not at all worried about its cash burn, as the business appears well capitalized to spend as needs be. On another note, Chalice Mining has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
West Australian
06-08-2025
- Business
- West Australian
Chalice Mining picks a month to release highly-anticipated study into Gonneville project
A make-or-break study into Chalice Mining's mixed metals development on farmland near Toodyay will be released in three months time, the company's boss has declared. Alex Dorsch narrowed the expected timeframe for the long-awaited pre-feasibility study into the Gonneville palladium-nickel-copper project to be unveiled. 'Effectively, November it (the PFS) is going to be released,' he said on Wednesday at Diggers & Dealers. 'The critical path there at the moment is we had to bring magnetite into our resource estimate.' Chalice has joined forces with Japanese conglomerate Mitsubishi to work on the PFS. Once the PFS is completed, Mitsubishi is set to decide whether or not it wants to lock in a binding partnership with Chalice to develop the billion-dollar mine. Mr Dorsch on Wednesday also lobbied for platinum group metals to be included in the Federal Government's $1.2 billion critical minerals strategic reserve. 'The benefit of PGMS is there's very, very small volumes to store. You don't need much,' Mr Dorsch said. 'You probably need the size of this table (a 1.5 metre by 1 metre table) to store a significant quantity of strategic reserves for the country. 'I think if they could do that alongside some other Western nations, obviously, that would be the smart way to do it.' Mr Dorsch expressed 'surprise' the Albanese Government had opted to establish the $1.2b stockpile. He said the 'simple thing' would be to make approvals 'more rapid' and establish more infrastructure near mining projects.
ABC News
25-05-2025
- Business
- ABC News
Critical minerals take back seat in WA as gold hits record prices
In Australia's resources sector, Tim Goyder has been the man with the Midas touch in recent years. At one point in 2023, his stock holdings in one-time market darlings Liontown Resources and Chalice Mining saw him become a paper billionaire with an estimated net worth of $1.09 billion. But as fast as the Perth-based mining investor joined the Australian Financial Review's annual Rich List, such is the swings and roundabouts of commodity price cycles, he slipped off. That is not to say Mr Goyder has lost his golden touch, but his personal fortune reflects the downturn in critical minerals such as lithium and nickel. "Two years ago, everyone was saying lithium was the thing to be in, which I still believe," he said. Mr Goyder and his various investment arms control more than 333 million shares in Western Australia's newest lithium miner, Liontown Resources, worth $211.8 million at Friday's closing price of 63.5 cents. The company's $951 million Kathleen Valley lithium mine in WA's northern Goldfields shipped its first concentrate from Geraldton Port last September, supplying US electric vehicle manufacturers Ford and Tesla and South Korean battery maker LG Energy Solutions. The development of the long-life Kathleen Valley mine saw Liontown trade as high as $3.15 in June 2023, as US chemicals giant Albermarle circled with a $6.6 billion takeover bid before walking away during the due diligence process. Lithium's dramatic slump was underlined this month when Liontown received a state government support package in the form of waivers on port charges and tenement fees, as well as a $15 million interest-free loan until prices recover. "It's gratefully received from the WA government," Mr Goyder said. "They recognise it is an early mover industry, and every bit helps while lithium prices are low, but long term I think we've got a very, very good business." Another former market darling of Mr Goyder's is Chalice Mining, which has slowed development work for its Gonneville palladium-nickel-copper project near Toodyay in WA's Wheatbelt. His 7.8 per cent stake was worth $37.5 million at Friday's $1.23 market close, down from a record $9.86 in November 2021. In the meantime, Mr Goyder has turned his attention to gold as the precious metal soared above $5,000 an ounce in Australian dollar terms for the first time this year. As chairman of fledgling gold miner Minerals 260, and a 7.3 per cent major shareholder, he played a key role in January's $166.5 million acquisition of the Bullabulling project from Chinese-owned miner Norton Gold Fields. "We don't have buyer's remorse," Mr Goyder said. "After paying $72 an ounce, and given the gold price has risen almost $700 an ounce since we announced the deal, we don't have buyer's remorse." The Bullabulling mine, 65 kilometres south-west of Kalgoorlie-Boulder, closed in 1998 when the gold price was about $500 an ounce. Geologists have pored over old drilling data and estimate at least 2.3 million ounces of gold remains at Bullabulling, where Mr Goyder believes a mine employing 350 workers could be operational by 2028. "There's nothing better than seeing a development go ahead, jobs created, and wealth created for our shareholders," he said. Minerals 260's ASX ticker is MI6, and as one geologist pointed out during a recent field trip, they have been given a "licence to drill". Four drill rigs, and soon to be six, are turning as part of an 80,000-metre exploration campaign to find more pay dirt. "There is upside here there's no doubt, that's why we bought it," Mr Goyder said. "I'm sure once we go through all the studies, the economics are going to look very good." It is a familiar story across WA with old mines being dusted off like old newspapers amid this year's record gold prices. Among them is the Youanmi mine, about 400km east of Geraldton, which operated from 1987 to 1997 but closed when the gold price was about $450 an ounce. Perth-based Rox Resources has estimated it would cost $245 million to bring it into production. Rox has told the ASX it will complete a definitive feasibility study by the end of the year with the aim of entering production by mid-2027. At nearby Sandstone in the Mid West, WA gold miner Brightstar Resources has taken the first steps to revive mining, which ceased in 2010. The company is currently undertaking an 80,000-metre drilling campaign at Sandstone, with plans to restart production in 2028. It is funding those works by selling ore to processing plants surrounding its gold deposits at Laverton and Menzies in the northern Goldfields, a practice known as toll milling. Gold's current hot streak has seen even low-grade material become valuable again, highlighted this week at the Mt Fisher mine, a small open pit last mined in 1987 about 120km east of Wiluna. Old stockpiles, up to 195,000 tonnes of low-grade ore, that have sat at Mt Fisher for 38 years, are undergoing test work for a potential toll milling deal. "There's lots of ups and downs in the market … but the gold price has gone up exponentially in just two years," Mr Goyder said. "It's a great spot to be right now."
Business Insider
19-05-2025
- Business
- Business Insider
Morgans Reaffirms Their Buy Rating on Chalice Mining (C8U)
Morgans analyst Ross Bennett maintained a Buy rating on Chalice Mining (C8U – Research Report) on May 16 and set a price target of A$2.90. The company's shares closed last Friday at €0.64. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Bennett covers the Basic Materials sector, focusing on stocks such as Regis Resources Limited, Northern Star Resources Ltd, and Tesoro Gold. According to TipRanks, Bennett has an average return of 20.3% and a 71.43% success rate on recommended stocks. Chalice Mining has an analyst consensus of Strong Buy, with a price target consensus of €1.47, implying a 128.62% upside from current levels. In a report released on May 12, Bell Potter also maintained a Buy rating on the stock with a A$5.75 price target. The company has a one-year high of €1.21 and a one-year low of €0.44. Currently, Chalice Mining has an average volume of 3,365.
Business Insider
12-05-2025
- Business
- Business Insider
Chalice Mining (C8U) Gets a Buy from Bell Potter
Bell Potter analyst David Coates maintained a Buy rating on Chalice Mining (C8U – Research Report) today and set a price target of A$5.75. The company's shares closed last Friday at €0.63. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Coates is a 4-star analyst with an average return of 6.6% and a 52.38% success rate. Coates covers the Basic Materials sector, focusing on stocks such as Evolution Mining , AIC Mines Limited, and Regis Resources Limited. Chalice Mining has an analyst consensus of Strong Buy, with a price target consensus of €1.44. The company has a one-year high of €1.21 and a one-year low of €0.44. Currently, Chalice Mining has an average volume of 3,370.
