CHALICE MINING LTD's stock surged 5.26% during intraday trading on Tuesday, following a bullish upgrade by UBS. The bank raised its rating on Chalice to buy from neutral and increased its price target by 57% to A$2.75/share.
The upgrade comes after Chalice released a pre-feasibility study for its Gonneville deposit in Western Australia, outlining a 23-year, two-stage open pit development with production expected to start in early 2030. UBS analyst Levi Spry noted that while forecast production may have been softer than market expectations, it could serve as a baseline for future growth. "Our updated modelling sees 10% higher production through further flow sheet optimization and increased revenue stemming from higher forecast Platinum Group Elements commodity prices," UBS said.