Ann: $1.66 million Rights Issue Shortfall Placed, page-47

Re Chalice [CHN]:
several factors contributed to Chalice Mining's significant share price decline:

1. High project costs: The scoping study revealed that developing the Gonneville deposit into an operating mine could cost between $1.6 billion to $2.3 billion, which was higher than some analysts expected.
2. Delayed timeline: Chalice indicated it would not make a Final Investment Decision until 2026, with first production potentially not occurring until 2029. This extended timeline concerned investors.
3. Commodity price assumptions: The scoping study relied on optimistic metal price assumptions, particularly for palladium. The study assumed $2,000 per ounce for palladium, while current prices are around half that amount.
4. Transition from speculative to production-focused: Investors realized Chalice would shift from a speculative miner to a company tied to a productive asset, making it more susceptible to market realities like price fluctuations and demand changes.
5. Potential dilution: There were concerns about substantial equity dilution and/or debt burden that could occur to finance the project.
6. Short-selling pressure: Chalice has become a target for short-sellers, with 5.9% of its register in the hands of short-sellers. This has contributed to downward pressure on the stock price.
7. Overall market sentiment: There has been a general lack of appetite for junior mining stocks, despite the critical role they play in future commodity supply chains.

These factors combined led to a significant sell-off, with Chalice's shares falling approximately 70% since April 2023, despite the company's Gonneville deposit being considered one of Australia's most important critical metal projects