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Down 9% in a week, what's going on with the Chalice Mining share price?

It's been a rough week – and year – for the Chalice Mining share price.

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Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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Key points
  • The Chalice Mining share price is recovering some of this week's losses on Friday, but it hasn't proved enough to boost the resource stock back into the green 
  • The copper, nickel, gold, and PGE explorer's stock has slumped nearly 9% this week, likely weighed down by falling commodity prices 
  • Such happenings might have also dragged on the ASX 200 resources sector. It's slumped more than 5% this week 

The Chalice Mining Ltd (ASX: CHN) share price has had a week to forget. But at least it's not alone in its tumble. It's been joined by many of its S&P/ASX 200 Index (ASX: XJO) resource peers.

At the time of writing, the Chalice Mining share price is picking up to trade at $3.75, 7.45% higher than its previous close. Though, that's still 8.53% lower than it was at the end of last week.

For context, the ASX 200 is also up 0.28% today while the All Ordinaries Index (ASX: XAO) has gained 0.5%.

Let's take a closer look at what might have gone wrong for the ASX 200 mineral explorer and developer's stock this week.

Rede arrow on a stock market chart going down.

Image source: Getty Images

What's weighing on the Chalice Mining share price?

The Chalice Mining share price is regaining some lost ground today. It's suffered lately amid a sell-off among resource shares and sliding commodity prices.

Many of the company's projects house copper, nickel, gold, and platinum group elements.

Unfortunately, the prices of both copper and nickel have slipped more than 5% over the last week on the London Metal Exchange. The fall has left the price of nickel at its lowest point since February while copper is trading at 16-month lows.

Meanwhile, gold futures have slipped 1% over the course of this week, according to CommSec.

The commodities' downturn might have weighed on the Chalice Mining share price this week despite Goldman Sachs increasing its voting power in the company by around 1% to reach 9.2% on Monday after selling a similar amount earlier this month.

It's likely also dragging on the S&P/ASX 200 Resources Index (ASX: XJR). The sector has fallen 5.3% since last Friday's close.

The last time the market heard news from Chalice Mining was nearly a month ago. Then, the company announced it had successfully completed a $100 million institutional placement.

The placement saw the company offering new shares for $6 apiece. That marked a 10% discount on the Chalice Mining share price.

Since then, the stock has plunged 39%. It has also fallen 58% since the start of 2022 and 47% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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