QMEB ยป Resources executive wages slashed after half of mines operate at a ‘loss’
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Resources executive wages slashed after half of mines operate at a ‘loss’

Chalice Mining
Chalice Mining

Mining bosses will receive a major pay cut in response to a global downturn.

Chalice Mining recently reduced remuneration across its leadership team by up to 25 per cent.

“Following a comprehensive review executive salaries, director fees and other corporate costs (i.e. insurance, advisors, compliance fees) have been materially reduced and several management roles have been rationalised,” the company said in its latest corporate update.

“Several executive and management changes have been implemented as part of a rationalisation of the company’s organisation and management structure.”

The proponent will also reduce 2024 capital expenditure by about 40 per cent compared to the previous year.

“This reduction reflects the completion of Gonneville resource definition drilling (a $29 million decrease on 2023) and a reduction in corporate overheads by about $2.2M,” the update said.

“Expenditure is forecast to average about $3M per month from the second quarter of 2024 (previously about $5M per month) onwards.”

The remarks came after a high number of operations were found to be unprofitable.

“The current palladium price is estimated to be at approximately 50 per cent of the cost curve, meaning that around half of the world’s mines are currently operating at a loss,” Chalice managing director and CEO Alex Dorsch said in a public statement.

“Market conditions have continued to deteriorate in the resources sector in the early part of 2024, particularly in nickel and platinum group metals. Chalice has taken decisive action to ensure we maintain our strong financial position, and rebalance expenditures, whilst preserving the key internal capabilities required to progress key development and exploration activities.”

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