Chalice downsizes board, cuts costs amid nickel prices slump

Australia’s Chalice Mining (ASX: CHN) became on Friday the latest nickel player forced to take steps towards reducing costs amid a sharp decline in the price of the metal, a crucial metal for electric vehicle (EV) batteries.Chalice announced a series of measures aimed at mitigating the impact of weak nickel prices, including reducing the its board size to four members from six. It also said that is implementing targeted cuts in corporate overheads and project expenditures.The move means the company will fail to meet its diversity goals as the two board members dismissed were the only female directors — Linda Kenyon and Jo Gaines.In its 2023 annual report, Chalice said it had 29% female representation on its board and pledged to at least maintain this level. “The company extends its sincere thanks to Linda and Jo for their significant contributions over several years and wishes them the very best in the future,” it said in the statement.Investors reacted positively to the news, with the stock closing up 5.14% at A$1.13 a share. This leaves Chalice with a market capitalizations of A$437.66 million ($295m).Nickel prices dropped 40% last year, extending losses into 2024. The metal fell a further 2.02% this week, closing at $16,657 per tonne on Friday, according to data from Markets Insider. The market conditions have pressured miners, including the world’s largest mining company BHO (ASX: BHP) to halt operations and projects, and to reassess their financial strategies.Anglo American (LON: AAL) is exploring options to either divest or close down its nickel division, while Glencore (LON: GLEN) has decided to suspend and sell some of its operations in the islands of New Caledonia.Australian producers have long been key suppliers of refined nickel, which influences prices on the LME. In January 2023, Australia accounted for 72% of the nickel in the exchange’s warehousing network, but by June this share had dropped to 29%.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com