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.

| More on:
Rede arrow on a stock market chart going down.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Resources Shares

A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath
Resources Shares

‘Self-interested billionaires’: Fortescue share price climbed today despite union war of words

Fortescue’s hydrogen plans received some negative attention today.

Read more »

A woman lies back and relaxes in her boat with a big smile on her face as it floats on the rising tide.
Resources Shares

Why is the Lake Resources share price rebounding 5% on Monday?

Why have Lake Resources shares shot up 5% today?

Read more »

a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.
Resources Shares

3 ASX mining shares soaring between 6% and 20% on new finds

We take a look at what these three ASX mining shares discovered.

Read more »

Three coal miners smiling while underground
Resources Shares

Why India can’t get enough of Aussie coking coal and which ASX shares have exposure

Some ASX coal mining shares could benefit from India’s strong demand for coal.

Read more »

a man in high visibility vest and hard hat at the wheel of heavy mining machinery looks backwards out of the cabin window.
Resources Shares

How did the Fortescue share price respond last earnings season?

Here's what happened to the Fortescue share price when the company dropped its first-half results.

Read more »

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.
Resources Shares

Here’s why I dig the Rio Tinto share price right now

There’s a good reason to go hunting for shares of this ASX miner right now.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Is the Santos share price a buy following the energy giant’s latest acquisition?

Santos has slipped, should investors seize the opportunity?

Read more »

A woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop regarding the Xero share price
Resources Shares

Looking to buy BHP shares? Here’s what to watch when the mining giant reports this week

What kinds of things should investors be looking at in the Big Australian's upcoming result?

Read more »