Why has the Chalice Mining share price dived 13% in the past week?

The Chalice Mining Ltd (ASX: CHN) share price has tumbled 13% since this time last week despite no news having been released by the company.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) – the company’s home sector – has traded relatively flat, lifting just 1.75% in that time.

The Chalice Mining share price is $4.24 right now, 0.7% lower than its previous close. For context, the S&P/ASX 200 Index (ASX: XJO) is sinking 1.07% today.

So, what’s been going on with the ASX mineral exploration stock lately? Let’s take a look.

What’s going on with the Chalice Mining share price lately?

Chalice Mining has had a rocky run on the ASX lately, culminating in a 13% tumble in its stock over the last week.

Interestingly, the market hasn’t heard news from the miner for three weeks now. At that time, it agreed to get started on the second stage of its joint venture with Venture Minerals Limited (ASX: VMS).

The second stage will see Chalice Mining spend $2.5 million on exploration at the South West Project. In return, it will receive an additional 19% holding in the project – bringing its total ownership to 70%.

That announcement was the last in a string of good news that saw the Chalice Mining share price gain 34% between the end of June and its early-August peak.

Much of the news released over that time also related to a newly discovered nickel-copper-platinum zone at the company’s Julimar Project.

But any residual excitement from such announcements seems to have dissipated over the last seven days. Fortunately (or unfortunately), the stock is well versed in trading in the red.

It has slumped 55% since the start of 2022. Meanwhile, the ASX 200 has dumped 8% and the materials sector has fallen 4%.

The Chalice Mining share price is also currently 59% lower than its 52-week high of $10.48, reached in November.

The post Why has the Chalice Mining share price dived 13% in the past week? 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 no position in any of the stocks mentioned. 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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