Chalice Mining (CGML.F) Conference Transcript

Summary of Chalice Mining Conference Call Company Overview - Company: Chalice Mining - CEO: Alex Dorsch, who has been with the company since 2017 and appointed Managing Director in 2018 [1][2] Industry Context - Focus: Development of a leading palladium, nickel, and copper project located in Western Australia (WA) [3] - Resource Size: The project contains 17 million ounces of PGEs, 960,000 tonnes of nickel, and 540,000 tonnes of copper [3] Key Financials and Investment Opportunity - Investment Made: Approximately AUD 225 million has been invested in the project since its discovery [4][20] - Current Cash Position: GBP 78 million in cash and listed investments [6] - Market Valuation: The company is currently valued at around USD 6.50 per share, with an effective cost of USD 21 per ounce of metal in the ground [7][8] - Palladium Prices: Palladium is priced at approximately USD 1,200 per ounce, with platinum reaching a ten-year high of USD 1,500 per ounce [7] Market Dynamics - Palladium Demand: 85% of the world's automobiles use palladium, predominantly sourced from Russia and South Africa [11] - Supply Constraints: Significant supply issues are anticipated due to curtailments in production from major suppliers, with a noted 15% drop in overall PG output from mines over the last three years [10][15] - Market Tightness: The palladium market is described as rapidly tightening, with demand underestimated and supply declining [12][15] Project Development and Future Plans - Development Pathway: The project has a straightforward development pathway with all necessary approvals underway [4][5] - Cost Structure: The capital hurdle for the project has been reduced to below USD 1 billion, making it more feasible to develop under current market conditions [20] - Metallurgical Breakthrough: A significant development was achieved in obtaining a saleable nickel concentrate through flotation, which simplifies the process and reduces costs [22][24] Exploration Potential - Exploration Package: Chalice holds a large exploration package of 7,000 square kilometers in WA, with ongoing drilling activities targeting new discoveries [5][28] - Gold Exploration: The company is also focused on gold exploration, with several promising targets identified in the Western side of WA [27][29] Conclusion - Investment Thesis: Chalice Mining is positioned as a unique opportunity in the palladium market, with a strong project pipeline and significant exploration potential. The company is well-supported by institutional investors and government backing, making it a compelling investment in the current commodity cycle [33][34]