Chalice Mining (ASX:CHN) ROC % : -116.07% (As of Dec. 2023)

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What is Chalice Mining ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chalice Mining's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -116.07%.

As of today (2024-04-28), Chalice Mining's WACC % is 17.93%. Chalice Mining's ROC % is -124.10% (calculated using TTM income statement data). Chalice Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Chalice Mining ROC % Historical Data

The historical data trend for Chalice Mining's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Chalice Mining ROC % Chart

Chalice Mining Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-299.10

-847.88

-184.33

-137.83

-138.70

Chalice Mining Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-126.10	-143.32	-140.83	-135.96	-116.07

Chalice Mining ROC % Calculation

Chalice Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-70.611 * ( 1 - 1.73% )	/	( (50.107	+	49.952)	/ 2 )
=	-69.3894297	/	50.0295
=	-138.70 %

where

	Invested Capital		(A: Jun. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	186.78	-	6.699	-	( 134.532	-	max(0, 8.657	-	138.631	+	134.532	))
=	50.107

	Invested Capital		(A: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	199.064	-	7.951	-	( 148.179	-	max(0, 10.359	-	151.52	+	148.179	))
=	49.952

Chalice Mining's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-64.214 * ( 1 - 2.69% )	/	( (49.952	+	57.718)	/ 2 )
=	-62.4866434	/	53.835
=	-116.07 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	199.064	-	7.951	-	( 148.179	-	max(0, 10.359	-	151.52	+	148.179	))
=	49.952

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	172.98	-	3.192	-	( 114.357	-	max(0, 5.822	-	117.892	+	114.357	))
=	57.718

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Chalice Mining (ASX:CHN) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Chalice Mining's WACC % is 17.93%. Chalice Mining's ROC % is -124.10% (calculated using TTM income statement data). Chalice Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Chalice Mining ROC % Related Terms

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Chalice Mining (ASX:CHN) Business Description

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CGMLF:USA C8U:Germany

Address

46 Colin Street, Level 3, West Perth, Perth, WA, AUS, 6005

Website

https://www.chalicemining.com

Chalice Mining Ltd is engaged in the exploration of precious and base metal properties. The project portfolio includes Julimar Nickel-Copper-PGE Project, Pyramid Hill Gold Project, Hawkstone Nickel-Copper-Cobalt Project, South West Nickel-Copper-PGE Project, Barrabarra Nickel-Copper-PGE Project, Auralia Nickel-Copper-Gold Project, Warrego North Project, Mt Jackson Gold Project, Nulla South & Gibb Rock Gold Project, and Viking Gold Project. It operates in one reportable segment, mineral exploration and evaluation.