Hot Chili Ltd Stock Price, News & Analysis

Hot Chili Limited (HHLKF) has strengthened its leadership team with two significant appointments ahead of its Definitive Feasibility Studies for the Costa Fuego copper-gold project and Huasco Water project in Chile. Stuart Mathews, former Gold Fields executive vice president, joins as Non-executive Chair, bringing over 32 years of international mining experience and a track record of delivering five mining projects from exploration to operations. Alberto Cerda, a Chilean mining engineer with 40+ years of experience, has been appointed as Project Director, having previously led major mining projects including Los Pelambres, Antamina, and the Norte Abierto Joint Venture for Newmont and Barrick.

Hot Chili has achieved a significant milestone as its Costa Fuego copper-gold project and Huasco Water project in Chile have been registered with the Office for Sustainable Project Management by the Chilean Ministry of Economy. This registration, following the company's September 2024 application, positions both projects for priority status and streamlined administrative approvals.

The projects now benefit from centralized monitoring through a single platform, with unique identification codes assigned (Costa Fuego: PRYXTX11, Huasco Water: ZPJCFN59). This development follows Hot Chili's recent Pre-Feasibility Study, which confirmed Costa Fuego as a multi-decade, top quartile production scale copper project with lowest quartile capital intensity.

The company is also anticipating final drill results from its La Verde copper-gold porphyry discovery, the latest addition to its Costa Fuego production hub. This strategic registration marks a crucial step forward in Hot Chili's development plans in Chile's coastal range.

Hot Chili has announced significant developments for its Costa Fuego Copper-Gold Project in Chile, including a Preliminary Feasibility Study (PFS) and Maiden Ore Reserve. The project demonstrates strong economics with a post-tax NPV8% of US$1.2 billion and IRR of 19%.

Key highlights include:

• Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo
• 20-year project life with average annual production of 116 ktpa CuEq
• Total LOM revenue of US$17.3 billion and free cash flow of US$3.86 billion
• Start-up Capital Cost of US$1.27 billion

The company also announced a PFS for Huasco Water supply, featuring a Stage 1 plan for 500L/s seawater supply with NPV8% of US$122 million, and Stage 2 for 1,300 L/s desalinated water supply with NPV8% of US$977 million. Additionally, a major Cu-Au porphyry discovery at La Verde has been confirmed, located 30km south of Costa Fuego.

Hot Chili (HHLKF) has announced corrections to its Preliminary Feasibility Study (PFS) for Huasco Water, its 80% owned water rights entity in Chile's Huasco Valley. The PFS outlines a three-stage water supply project:

Stage 1: 500L/s seawater supply with US$122M NPV, 19% IRR, US$151M capital cost, and 4.5-year payback. An MOU was executed for water supply to Costa Fuego Copper-Gold Project.

Stage 2: 1,300 L/s desalinated water supply with US$977M NPV, 19% IRR, US$1.4B capital cost, and 4-year payback.

Stage 3: Conceptual expansion to 2,300 L/s of desalinated water supply.

Huasco Water holds the only active maritime license in the region, with over 4,000 L/s of identified desalinated water demand from potential customers. Development is planned for the end of the decade, with first water supply targeted for Costa Fuego.

Hot Chili has announced the results of a Pre-Feasibility Study (PFS) for its 80%-owned subsidiary Huasco Water in Chile. The study outlines a three-stage water supply project:

Stage 1: 500L/s seawater supply with US$116M NPV, 19% IRR, US$151M capital cost, and 4.5-year payback. An MOU has been executed for water supply to Costa Fuego Copper-Gold Project.

Stage 2: 1,300 L/s desalinated water supply with US$958M NPV, 19% IRR, US$1.4B capital cost, and 4-year payback.

Stage 3: 2,300 L/s desalinated water expansion with US$1.3B NPV, 19% IRR, and US$1.9B capital cost.

Huasco Water holds the only active maritime license in the region after a ten-year approval process. The project targets water supply to community, agriculture, and mining in the Huasco Valley region over 42 years.

Hot Chili (HHLKF) has announced the results of its Pre-Feasibility Study (PFS) for the Costa Fuego copper-gold project in Chile. The project demonstrates top quartile copper production scale with a 20-year mine life and average annual production of 116,000 tonnes copper equivalent, including 95,000 tonnes copper and 48,000 ounces gold during primary production.

Key financial metrics include:

• Post-tax NPV (8%) of US$1.2 billion and IRR of 19%
• Start-up capital cost of US$1.27 billion
• Total life-of-mine free cash flow of US$3.86 billion
• Average C1 cash cost of US$1.38/lb

The project features a Probable Mineral Reserve of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo. Located at low elevation (740m) and 60km from port facilities, Costa Fuego benefits from existing infrastructure and proximity to workforce. The company plans to submit an Environmental Impact Assessment in 2025.

Hot Chili (HHLKF) has expanded its drilling coverage at the La Verde copper-gold porphyry discovery in Chile's Atacama region. The first-pass drill coverage now extends across 1,000m by 550m, with 27 reverse circulation holes totaling 8,162m completed to date.

The company has doubled its drilling coverage since February 2025, with shallow porphyry mineralization remaining open in all directions. Eight of 12 reported drill holes showed significant mineralization to end-of-hole, with assay results pending for fifteen additional holes. The discovery is located approximately 30km south of the company's planned Costa Fuego Project central processing hub.

Hot Chili is planning deeper diamond drill testing, while experiencing delays in assay turnaround time due to peak summer drilling season. The Pre-Feasibility Studies (PFS) for Costa Fuego and Huasco Water are in their final stages of completion.

Hot Chili (ASX: HCH, TSXV: HCH, OTCQX: HHLKF) has appointed Mrs Fiona Van Maanen as an Independent Non-Executive Director, effective March 17, 2025. Van Maanen brings over 30 years of executive experience in corporate governance, financial management, and accounting in the mining industry.

Van Maanen currently serves as Non-Executive Director at several mining companies including Westgold Resources (ASX: WGX), Wildcat Resources (ASX: WC8), and Pantoro (ASX: PNR). In her new role at Hot Chili, she will Chair the Company's Audit & Risk Committee. She will stand for election as a director at the Company's 2025 Annual General Meeting.

Hot Chili has announced significant developments in its Costa Fuego copper hub project for the half-year ended December 31, 2024. The company confirmed a major copper-gold porphyry discovery at the newly acquired La Verde Copper Mine, with drilling results showing broad mineralization extending over 300m vertically.

Key highlights include:

• Cash position of A$19 million as of December 31, 2024
• La Verde acquisition secured through option agreement worth US$8.89 million total
• Pre-feasibility Study (PFS) for Costa Fuego Cu-Au project in final stages
• Completion of key workstreams in metallurgy, mining, and infrastructure
• Progress on Huasco Water Supply PFS with potential for third-party water supply opportunities

The La Verde discovery shows promising results with mineralization footprint extending 550m by 400m, remaining open in all directions. The company completed 19 RC drill holes totaling 5,700m, with assays from 12 holes confirming significant copper-gold mineralization.