Chalice Mining (OTCPK:CGML.F) 2026 Conference Transcript

Chalice Mining Conference Summary Company Overview - Company: Chalice Mining (OTCPK:CGML.F) - Focus: Discovery of a large-scale palladium, nickel, and copper resource near Perth, Australia, with significant quantities of gold, platinum, and cobalt [1][2] Key Financial Metrics - Market Capitalization: Approximately AUD 700 million [5] - Cash and Investments: AUD 71 million, funding the project to Final Investment Decision (FID) in early 2028 [3] - Net Present Value (NPV): AUD 1.4 billion at base case prices, increasing by AUD 250 million for every $100 increase in palladium price [2][12] - Internal Rate of Return (IRR): 23% at base case prices, currently around 38% at spot prices [7][12] - Production Profile: Expected to produce 220,000 ounces of precious metals and 16,000 tonnes of base metals annually, with a palladium equivalent of about 450,000 ounces [6] Project Development - Mine Life: Initial 23 years with potential for further resource extraction [6] - Production Costs: All-in sustaining cost of $370 per ounce, making it the lowest cost producer in the PGM space [7][19] - Resource Size: 660 million tonnes in an open pit, with 17 million ounces of contained PGMs [7][8] - Reserve Conversion: Approximately half of the resource is in proven and probable reserves [8] Market Dynamics - Palladium Demand: Strong demand driven by hybrid vehicle sales and electronics applications, with a significant market size of 9 million ounces per year [16][18] - Geopolitical Factors: U.S. tariffs on Russian palladium are expected to drive prices higher, as there are limited alternative sources [14][15] - Supply Constraints: South African and Russian producers are struggling to maintain production, leading to a potential supply crunch [19] Exploration and Future Opportunities - Exploration Investment: AUD 5-10 million allocated for grassroots exploration in the least explored western part of Yilgarn [3] - Government Support: Major and strategic project status from the government, with encouragement to expand the project [9] - Funding Opportunities: Anticipated low-cost financing and interest from export credit agencies for project funding [24] Metallurgical Advances - Flow Sheet Development: Successful development of a proven flow sheet for nickel and copper concentrates, overcoming previous challenges [21][22] - Metallurgical Testing: AUD 15 million spent on metallurgical test work, resulting in improved recovery rates [21] Conclusion - Investment Opportunity: Chalice Mining presents a compelling investment opportunity with significant upside potential as it approaches production, especially given the current undervaluation relative to spot NPV [4][12][25]