Chalice Mining will miss its diversity targets after dumping its only two female directors, Linda Kenyon and Jo Gaines, as part of a cost-cutting drive that will save less than $200,000 a year.
The Tim Goyder-backed explorer has cut its board from six people to four and flagged more cost cuts as it tries to shed $1.4 million a month in outflows amid weak commodity prices.
As a result of the decision Ms Gaines, who joined in late 2022 and Ms Kenyon, a board member since 2021 will leave the board at the end of the month. This leaves chair Derek La Ferla, Garret Dixon, Stephen McIntosh and chief executive Alex Dorsch at the helm of the green metals mining hopeful.
Until now, Chalice touted having 29 per cent female representation on its board, and had vouched to maintain “no less than the current composition” in its 2023 annual report.
But “in light of the current metals price environment” Chalice made the call to trim down the board.
“The board of directors has been reduced from six to four members, to align and retain necessary core skillsets required to execute Chalice’s corporate strategy,” the company said on Friday.
“The company extends its sincere thanks to Linda and Jo for their significant contributions over several years and wishes them the very best in the future.”
Ms Gaines —who was deputy chief of staff to former Premier Mark McGowan for nine years and currently chairs GESB— was paid $83,534 in board fees and non-monetary benefits in 2023. Ms Kenyon — Wesfarmers’ company secretary for over 17 years — was paid $98,021.
They are the two lowest paid members on the board, in what presumably reflects a leaning towards previous mining experience.
Chalice is preserving its $111 million cash balance as it prepares to deliver a pre-feasibility study — due mid-2025 — for the planned Gonneville nickel-copper-platinum group elements mine in Toodyay.
Chalice inked a strategic memorandum of understanding with Japanese industrials giant Mitsubishi on the project in June. There is no firm agreement in place but the explorer is banking on the group becoming a funding and technical backer for the development.
As well as trimming down costs through the board, Chalice says it has brought in further reductions in corporate costs and project expenditure. The goal is to bring monthly spending down from $2.4m a month to $1m a month over the next four months.
This will also include a more “targeted exploration budget” for FY25.
Chalice earlier this year said it would slash executive salaries, director fees as well as other corporate costs as part of a planned 40 per cent spending reduction announced in January.
Chalice shares closed 5.14 per cent higher to $1.12 on the news of corporate cuts.