The Issue with CHN

The issues with this stock, unfortunately, are all positives.

To start, it has far too much coin. The management team is proven, having delivered A$107 million in value for shareholders over the company's history. And the MD - Tim Goyder - owns 17% of the stock. There's, unfortunately, little need to market the company for those reasons.

This has been the WORST short-term stock. But from a medium to long term perspective, this company offers GIGANTIC potential.

The management team believe in their PROVEN ability to do it again. That's why they don't care for marketing or publishing multiple announcements. They have the right mix assets to make a major discovery, with the prime project in the Quebe region of Canada. If it doesn't produce the goods, management have enough coin to roll the dice again and try something else.

It's highly unlikely that we will hear any news, unless there's another major discovery. That's always disappointing from a short-term trading and valuation perspective. BUT, given the cash on hand and project mix, CHN remains one of my core portfolio holdings.

It's an absolute no-brainier at these prices.

The fact that its buying more land adjacent to Chalice’s East Cadillac Gold Project, speaks volumes of the project's potential. You don't show your hand, until you've bluffed the market and put in as much as possible. That maximises the potential return.

I believe we will see a re-rate, within the next three months. It could be sooner, if Chalice actually did any marketing or announce some results. There has been plenty happening, behind the scenes, where you get the feeling a decent announcement is imminent.

Anything positive could easily send the market cap, and share price, sharply higher. Given the PROVEN potential of the Abitibi region of Quebec, Canada, I believe CHN should be at least a 10-mil EV company.


GLTA.

Patience is a virtue with this one.