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

Rede arrow on a stock market chart going down.Rede arrow on a stock market chart going down.

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 of its previous tumble today. It’s suffered lately amid a sell-off among resource shares and sliding commodity prices.

Many of the company’s projects house on 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 news shares for $6 apiece. That marked a 10% discount to 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.

The post Down 9% in a week, what’s going on with the Chalice Mining share price? appeared first on The Motley Fool Australia.

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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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