Hot Chili Quarterly Report
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 ha annunciato sviluppi significativi per il suo progetto Costa Fuego Copper-Gold in Cile, inclusi uno Studio di Fattibilità Preliminare (PFS) e la prima Riserva Mineraria. Il progetto mostra forti risultati economici con un VAN post-tasse all’8% del 1,2 miliardi di dollari USA e un TIR del 19%.
I punti salienti includono:
- Riserve Minerarie Probabili di 502 Mt con 0,37% di Cu, 0,10 g/t di Au, 0,49 g/t di Ag e 97 ppm di Mo
- Durata del progetto di 20 anni con una produzione media annua di 116 ktpa CuEq
- Ricavi totali durante la vita utile del progetto (LOM) di 17,3 miliardi di dollari USA e flusso di cassa libero di 3,86 miliardi di dollari USA
- Costi di capitale iniziali di 1,27 miliardi di dollari USA
L’azienda ha inoltre annunciato uno studio di fattibilità preliminare per l’approvvigionamento idrico di Huasco, con un piano in due fasi: la Fase 1 prevede una fornitura di acqua di mare da 500 L/s con un VAN all’8% di 122 milioni di dollari USA, e la Fase 2 una fornitura di acqua desalinizzata da 1.300 L/s con un VAN all’8% di 977 milioni di dollari USA. Inoltre, è stata confermata una importante scoperta di un porfido Cu-Au a La Verde, situata a 30 km a sud di Costa Fuego.
Hot Chili ha anunciado avances significativos en su proyecto Costa Fuego Copper-Gold en Chile, incluyendo un Estudio de Factibilidad Preliminar (PFS) y la primera Reserva de Mineral. El proyecto presenta una sólida rentabilidad con un VAN post-impuestos al 8% de US$1.200 millones y una TIR del 19%.
Los aspectos destacados incluyen:
- Reservas Probables de Mineral de 502 Mt con 0,37% de Cu, 0,10 g/t de Au, 0,49 g/t de Ag y 97 ppm de Mo
- Vida útil del proyecto de 20 años con una producción anual promedio de 116 ktpa CuEq
- Ingresos totales durante la vida útil del proyecto (LOM) de US$17.300 millones y flujo de caja libre de US$3.860 millones
- Costos iniciales de capital de US$1.270 millones
La compañía también anunció un PFS para el suministro de agua de Huasco, con un plan en dos etapas: la Etapa 1 contempla un suministro de agua de mar de 500 L/s con un VAN al 8% de US$122 millones, y la Etapa 2 un suministro de agua desalinizada de 1.300 L/s con un VAN al 8% de US$977 millones. Además, se confirmó un importante descubrimiento de un pórfido Cu-Au en La Verde, ubicado a 30 km al sur de Costa Fuego.
Hot Chili는 칠레의 코스타 푸에고 구리-금 프로젝트에 대한 주요 개발 사항을 발표했으며, 여기에는 예비 타당성 조사(PFS)와 최초 광석 매장량이 포함됩니다. 이 프로젝트는 견고한 경제성을 보여주며, 세후 NPV 8%가 12억 달러, 내부수익률(IRR)은 19%입니다.
주요 내용은 다음과 같습니다:
- 502Mt의 추정 광석 매장량, 구리 0.37%, 금 0.10 g/t, 은 0.49 g/t, 몰리브덴 97 ppm 포함
- 연평균 116 ktpa CuEq 생산을 목표로 하는 20년 프로젝트 수명
- 총 수명 기간 매출 173억 달러, 자유 현금 흐름 38.6억 달러
- 초기 자본 비용 12.7억 달러
또한 회사는 Huasco 수자원 공급을 위한 PFS도 발표했으며, 1단계는 500L/s 해수 공급으로 NPV 8%가 1억 2,200만 달러, 2단계는 1,300L/s 담수 공급으로 NPV 8%가 9억 7,700만 달러입니다. 추가로, 코스타 푸에고에서 남쪽으로 30km 떨어진 라 베르데에서 주요 구리-금 포르피리 광상 발견이 확인되었습니다.
Hot Chili a annoncé des avancées majeures pour son projet Costa Fuego cuivre-or au Chili, incluant une étude de faisabilité préliminaire (PFS) et une première réserve minérale. Le projet affiche une forte rentabilité avec une VAN après impôts à 8% de 1,2 milliard de dollars US et un TRI de 19%.
Les points clés sont les suivants :
- Réserves probables de minerai de 502 Mt à 0,37% de Cu, 0,10 g/t d’Au, 0,49 g/t d’Ag et 97 ppm de Mo
- Durée du projet de 20 ans avec une production annuelle moyenne de 116 ktpa CuEq
- Revenus totaux sur la durée de vie (LOM) de 17,3 milliards de dollars US et flux de trésorerie libre de 3,86 milliards de dollars US
- Coût initial d’investissement de 1,27 milliard de dollars US
La société a également annoncé une PFS pour l’approvisionnement en eau de Huasco, avec un plan en deux étapes : la phase 1 prévoit une fourniture d’eau de mer de 500 L/s avec une VAN à 8% de 122 millions de dollars US, et la phase 2 une fourniture d’eau dessalée de 1 300 L/s avec une VAN à 8% de 977 millions de dollars US. Par ailleurs, une importante découverte de porphyre Cu-Au a été confirmée à La Verde, située à 30 km au sud de Costa Fuego.
Hot Chili hat bedeutende Entwicklungen für sein Costa Fuego Kupfer-Gold-Projekt in Chile bekanntgegeben, darunter eine vorläufige Machbarkeitsstudie (PFS) und die erste Erzreserve. Das Projekt weist starke wirtschaftliche Kennzahlen mit einem Nachsteuer-NPV8% von 1,2 Milliarden US-Dollar und einer IRR von 19% auf.
Wichtige Highlights sind:
- Wahrscheinliche Erzreserven von 502 Mt mit 0,37 % Cu, 0,10 g/t Au, 0,49 g/t Ag und 97 ppm Mo
- Projektlaufzeit von 20 Jahren mit einer durchschnittlichen Jahresproduktion von 116 ktpa CuEq
- Gesamter LOM-Umsatz von 17,3 Milliarden US-Dollar und freier Cashflow von 3,86 Milliarden US-Dollar
- Startkapitalkosten von 1,27 Milliarden US-Dollar
Das Unternehmen kündigte außerdem eine PFS für die Wasserversorgung von Huasco an, mit einem Stufenplan: Stufe 1 sieht eine Meerwasserversorgung von 500 L/s mit einem NPV8% von 122 Millionen US-Dollar vor, Stufe 2 eine entsalztes Wasser von 1.300 L/s mit einem NPV8% von 977 Millionen US-Dollar. Zudem wurde eine bedeutende Cu-Au-Porphyr-Entdeckung bei La Verde bestätigt, 30 km südlich von Costa Fuego.
- Strong project economics with US$1.2B post-tax NPV and 19% IRR
- Significant ore reserves of 502 Mt with multi-metal content
- Extended 20-year mine life with substantial annual production
- High leverage to copper price - NPV increases to US$2.2B at US$5.30/lb Cu
- Low-risk location with existing water permit and grid power access
- Additional revenue potential from Huasco Water project
- Large funding requirement of US$1.27B for initial capital costs
- Project execution risk with ±25% accuracy in PFS estimates
- Additional US$442M capital costs needed for risk reduction
Period Ending 31 March 2025
Highlights
Hot Chili Announces Preliminary Feasibility Study (PFS) & Maiden1 Ore Reserve2 for the Costa Fuego Cu-Au Project
- Low-risk, Chilean coastal copper development with advanced permitting - multi-decade mine life, top quartile copper production scale3 and lowest quartile capital intensity
- Strong economics and leverage to rising copper price:
- Post-tax Net Present Value (NPV8%) of
US (approximately, within a range of$1.2 billion US to$786 million US ) and post-tax Internal Rate of Return (IRR) of$1.62 billion 19% (approximately, within a range of15% to22% )
- Post-tax Net Present Value (NPV8%) of
- Maiden ore reserve for Costa Fuego Copper-Gold Project (Costa Fuego) lowers operational risk1,2:
- Probable Ore Reserves of 502 Mt at
0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams
- Probable Ore Reserves of 502 Mt at
Hot Chili Announces PFS for Huasco Water & MOU for Seawater Supply to Costa Fuego
- Strong economics for a large, multi-user, water business opportunity
- Stage 1 PFS4 for 500L/s of potential seawater supply to Costa Fuego
- Post-tax NPV8% of
US and IRR of$122 million 19%
- Post-tax NPV8% of
- Staged approach for regional, desalinated water supply with large 4,000 L/s catchment of potential off-takers
- Stage 2 PFS for 1,300 L/s of potential desalinated water supply
- Post-tax NPV8% of
US and IRR of$977 million 19%
- Post-tax NPV8% of
- First-Mover Advantage, only active maritime licence in the Huasco Valley region of
Chile
Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde
- Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery, located 30km south of Costa Fuego, providing significant potential for front-end, open pit, mine life growth
- Phase 1 drill programme completed on 10 April 2025, phase 2 planned and awaiting regulatory approval
- Assay results for nineteen holes pending and second Environmental Impact Assessment (EIA) commenced to integrate La Verde into Costa Fuego and materially enhance project economics
- Expenditure reduced by
60% to65% over next six months during Definitive Feasibility Study (DFS) planning & PFS optimisation phases
Potential Strategic Funding Discussions Advancing
- Strong interest in asset-level investment opportunities for Costa Fuego and Huasco Water
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1 Hot Chili previously released Ore Reserves for Productora, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and |
2 Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement. |
3 S&P Market Intelligence. The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. |
4 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company's Costa Fuego project (the "Costa Fuego PFS") and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27th March 2025 "Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project" outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and JORC Code 20212 within 45 days thereof. |
Cautionary Statement – JORC Code (2012)
The Preliminary Economic Assessment referred to in this Report is equivalent to a Scoping Study under JORC Code (2012) reporting guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the Costa Fuego Copper Project in |
Of the Mineral Resources scheduled for extraction in the PEA production plan, approximately |
The Mineral Resources underpinning the production target in the PEA have been prepared by a competent person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 31 March 2022. The Mineral Resource Estimate update released in February 2024 does not materially change the Mineral Resource inventory that formed the basis of the 2023 PEA, and no new scientific or technical information has been developed that would materially affect the outcome of the 2023 PEA and, therefore, the results and conclusions of the 2023 PEA are considered current and have been restated for this Report. |
To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study ("DFS"), mine construction and production stages, funding in the order of |
This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PEA. |
SUMMARY OF OPERATIONAL ACTIVITIES
Costa Fuego PFS Delivered On-Time & Within Guidance
The Costa Fuego PFS was announced on 27th March 2025. The PFS delivered globally meaningful scale and a multi-decade project life for Costa Fuego. Highlights included:
Globally Meaningful Scale & Multi-Decade Mine Life
- Project Life Extended to 20 Years
- Average Annual Production Increased 116 ktpa Average CuEq1 Production Rate: Including 95 kt Cu and 48 koz Au during primary production (first 14 years)
- Competitive Cost Position: Life of mine (LOM) average C1 Cash Cost2 of
US /lb and All-in-Sustaining Cost of$ 1.38 US /lb (both estimated net of by-product credits)$1.85 - Increase in Total Copper and Gold Production: 1.5 Mt Cu (3.31 Blb Cu) and 780 koz Au produced over the LOM
- Robust Financial Profile: Total LOM revenue of approximately
US and total LOM free cash flow of approximately$17.3 billion US (post-tax, after operating costs, capital costs, and royalties)$3.86 billion - Significant Risk Reduction: PFS prepared assuming ±
25% accuracy. An additionalUS of capital costs applied to significantly reduce key areas of risk, including changes in project scope and inflationary pressures$442 million
Strong Economics and Leverage to Rising Copper Price
- Post-tax NPV8% of
US (approximately, within a range of$1.2 billion US to$786 million US ) and post-tax IRR of$1.62 billion 19% (approximately, within a range of15% to22% ) - First Quartile Capital Intensity: Start-up Capital Cost of
US delivers a capital intensity of$ 1.27 billion US /t of average annual CuEq. metal produced$ 14,079 - Highly Leveraged to Copper Price: At spot copper price of
US /lb3, post-tax NPV8% increases to$5.30 US and post-tax IRR to$2.2 billion 30% , respectively
Low-Risk, Coastal Copper Development with Advanced Permitting
- Low Elevation and Over a Decade of Permitting Advance Provides a Foundation for Development: One of only a few global copper development projects at low elevation with a water permit, and grid power
- Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego Stage-1 (EIA-1) based on current PFS-scale and definition
Maiden Ore Reserve for Costa Fuego Lowers Operational Risk
- Maiden4 Ore Reserve5 for Costa Fuego. Probable Ore Reserves of 502 Mt at
0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams
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1 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper |
2 See page Announcement page 3 for full non-IFRS measures disclaimer. |
3 Copper price – Fast markets quote 26/03/2025. High of |
4 Hot Chili previously released Ore Reserves for Productora, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and |
5 Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement. |
Sphere size represents Leverage Index – which was calculated as the ratio of % increase in Cu price to % increase in NPV8%.
The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Significant projects such as Pebble and King-king were excluded by Hot Chili due to high perceived geopolitical risk, limiting the probability of development. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a
Sphere size represents projected Life of Mine Average Annual CuEq* Production. 1 PFS CuEq considers long-term commodity prices and PFS metallurgical recoveries for the production feed from testwork. The CuEq metal was determined as the equivalent copper metal with equal value to all saleable production. See slide 37 for PFS commodity prices and slides 33 & 34 for PFS metallurgical recoveries.
The South American Developer Peer Group of project studies were selected on the following basis: South American primary copper projects (not controlled by a major miner), net of by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a
Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation "Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve" Dated 27th March 2025 ).
Huasco Water PFS Outlines Valuable Strategic Asset
The Huasco Water1 PFS was announced on 31 March 2025. The Huasco Water PFS presented a robust business case for both Stage 1 and Stage 2 of its proposed regional scale seawater and desalinated water business, with a conceptual level study for Stage 3 desalinated water supply expansion. Highlights included:
Strong Economics for a Large, Multi-User, Water Business
- Stage 12 Water Supply PFS for 500L/s of Potential Seawater Supply: Post-tax NPV8% of
US and IRR of$122 million 19% . Construction capital cost for seawater supply estimated atUS with a 4.5-year payback$151 million - Stage 2 Water Supply PFS for 1,300 L/s of Potential Desalinated Water Supply: Post-tax NPV8% of
US and IRR of$977 million 19% . Construction capital cost for desalinated water supply estimated atUS with a 4-year payback. Stage 2 financial outcomes include Stage 1 capital and operating cashflows$1.4 billion - Stage 3 Conceptual Study for Expansion to 2,300 L/s of Potential Desalinated Water Supply
Stage 1- Multi-Decade Seawater Supply to Costa Fuego
- 20 Year Seawater Supply with Foundation Off-taker: Memorandum of Understanding (MOU) executed for water supply of up to 500 L/s to Costa Fuego
- Long Lead-times Permits Secured: Granted maritime water concession to extract seawater, permit for coastal land access, Stage 1 pipeline easements and connection to the electrical grid secured
- Near-Term Development Decision Tied to Costa Fuego: First water supply planned for end of decade
Stage 2 and 3 – Regional, Desalinated Water Supply Opportunity
- Large Catchment of Potential Off-takers: Over 4,000 L/s of desalinated water demand identified, including six undeveloped mining projects without secured access to desalinated water supply. No offtake agreements have been secured for stage 2 or 3 and discussions with potential customers are ongoing
- Staged Growth Approach: Establishment of seawater supply infrastructure toward the end of the decade, followed by the commencement of initial desalinated water supply shortly thereafter, and subsequent staged expansion. The staged approach enables long term scalable water supply to support mining, community, and agriculture in the Huasco Valley region with potential to extend well beyond the initial project horizons
First-Mover Advantage
- Only Active Maritime License: HW Aguas para El Huasco SpA (Huasco Water), a joint venture between Hot Chili (
80% interest) and Compañia Minera Del Pacifico "CMP" (20% interest), is the only company with permitted access to supply seawater in the Huasco Valley region following a ten-year regulatory approval process - Desalination Permitting Advancing: Over a year advanced on regulatory applications to enable the supply of desalinated water from the existing maritime concession and a second maritime concession application by Huasco Water
- Long Permitting Timelines Continue: No regulatory changes have been made to
Chile 's maritime permitting process since Huasco Water was granted its concession. Hot Chili maintains a competitive advantage as the first mover in the area for a water distribution business - EIA Advanced: Stage 1 seawater supply is included within the Costa Fuego EIA, baseline studies complete.
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1 HW Aguas para El Huasco SpA ("Huasco Water"), a joint venture between Hot Chili ( |
2 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company's Costa Fuego project (the "Costa Fuego PFS") and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27th March 2025 "Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project" outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and JORC Code 20212 within 45 days thereof. |
Huasco Water PFS Key Outcomes
Stage | Key Performance Indicator | IRR | |||
12 % | 15.5 % | (Base case) | |||
Stage 1 PFS | Fixed Water Tariff | US$M/year | 23 | 28 | 33 |
Variable Water Tariff | US$/m³ | 0.48 | 0.58 | 0.69 | |
Average Annual Price of Water1 | US$/m³ | 2.31 | 2.80 | 3.32 | |
Nominal Seawater Water Demand | L/s | 500 | 500 | 500 | |
Costa Fuego PFS Total Cash Costs | US$/lb Cu | 1.31 | 1.35 | 1.38 | |
Impact on Costa Fuego PFS Total Cash Cost | US$/lb Cu | -0.07 | -0.04 | 0 | |
Post-tax NPV8 | US$M | 41 | 80 | 122 | |
Levelized Cost of Water to Huasco Water ( | US $/m³ | 1.66 | 1.66 | 1.66 | |
Construction Capital | US$M | 151 | 151 | 151 | |
Sustaining Capital | US$M | 26 | 26 | 26 | |
Stage 1 & 2 PFS Engineering (Seawater & Desalinated Water) | Fixed Water Tariff | US$M/year | 243 | 283 | 327 |
Variable Water Tariff | US$/m³ | 1.47 | 1.71 | 1.98 | |
Average Annual Price of Water2 | US$/m³ | 6.39 | 7.44 | 8.59 | |
Nominal Desalinated Water Demand | L/s | 1,300 | 1,300 | 1,300 | |
Post-tax NPV8 | US$M | 328 | 640 | 977 | |
Levelized Cost of Water to Huasco Water ( | US $/m³ | 4.85 | 4.85 | 4.85 | |
Construction Capital | US$M | 1,430 | 1,430 | 1,430 | |
Sustaining Capital | US$M | 1,170 | 1,170 | 1,170 | |
Stage 33 Conceptual Study (Desalinated Water Expansion) | Fixed Water Tariff | US$M/year | 312 | 359 | 410 |
Variable Water Tariff | US$/m³ | 1.78 | 2.04 | 2.33 | |
Average Annual Price of Water4 | US$/m³ | 6.93 | 7.97 | 9.11 | |
Nominal Desalinated Water Demand | L/s | 2,300 | 2,300 | 2,300 | |
Expansion Capital | US$M | 1,900 | 1,900 | 1,900 | |
Sustaining Capital | US$M | 2,380 | 2,380 | 2,380 | |
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1 Average Annual Price of Water for Costa Fuego. Price is calculated subject to each project's location and requirements. |
2 Average Annual Price of Water for customers supplied in the Stage 2. Price is calculated subject to each customers location and requirements. |
3 Stage 3 tariffs are the average for all customers for Stage 1, 2 and 3 |
4 Average Annual Price of Water for customers supplied in the Stage 3. Price is calculated subject to each customers location and requirements. |
La Verde Exploration Update
On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of Costa Fuego. Highlights included:
Rapidly Emerging Major Copper-Gold Porphyry Discovery
- New drill results from an additional ten Reverse Circulation (RC) drill holes confirm La Verde as a major copper-gold porphyry discovery in low elevation coastal
Chile , with broad, consistently mineralised intersections extending over 300 m vertically, commencing at shallow depths. - Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery:
- 320 m grading
0.3% Cu and 0.1 g/t Au from 34 m to end-of-hole (DKP009) - including 134 m at
0.4% Cu and 0.2 g/t Au from 180 m depth - including 56 m at
0.5% Cu and 0.2 g/t Au from 258 m depth - 200 m grading
0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole (DKP005) - including 38 m at
0.5% Cu and 0.2 g/t Au from 68 m depth - 172 m grading
0.4% Cu and 0.2 g/t Au from 48 m (DKP012) - including 20 m at
0.5% Cu and 0.2 g/t Au from 62 m depth
and 78 m grading
- including 32 m at
0.6% Cu and 0.2 g/t Au from 232 m depth - 135.5 m grading
0.3% Cu and 0.1 g/t Au from 64 m to end-of-hole (DKP006) - including 62 m at
0.4% Cu and 0.2 g/t Au from 124 m depth - which included 26 m at
0.5% Cu and 0.3g/t Au from 124 m depth - 32 m grading
0.4% Cu from surface (DKP011)
- 80 m grading
0.3% Cu and 0.1 g/t Au from 8 m depth (DKP004)- including 34 m at
0.4% Cu from 8 m depth
- including 34 m at
La Verde Discovery Keeps Growing – Large Scale Appeal
- New drill results reinforce La Verde's potential scale, adding to the strong results reported on 18 December 2024:
- 308 m grading
0.5% Cu, 0.3 g/t Au from 46 m to end-of-hole (DKP002)
- including 202 m at
0.6% Cu, 0.3g/t Au from 70 m depth - which included 100 m at
0.7% Cu and 0.3g/t Au from 118 m depth
- including 202 m at
- 362 m grading
0.3% Cu, 0.1g/t Au from 28m to end-of-hole (DKP001)- including 174 m at
0.4% Cu and 0.1 g/t Au from 36 m depth - which included 22 m at
0.6% Cu, 0.2g/t Au from 144 m depth
- including 174 m at
Drilling Coverage at La Verde Doubled & Porphyry Mineralisation Remains Open
- First-pass drill coverage now extends across an area measuring 1,000 m by 550 m: 30 reverse circulation (RC) holes for 9,352 m drilled.
- Assay results pending for nineteen drill holes: Assay turnaround time from laboratories slower than usual due to peak summer drilling season in the high Andes
- Shallow porphyry mineralisation remains open in all directions
- Phase 1 drill programme completed on 10th April 2025
Next Steps
- Regulatory application for further clearing access being advanced
- Phase 2 drill programme (RC and diamond drilling) planned to commence following regulatory approval
- Deeper diamond drill testing being planned: 8 of 12 RC drill holes reported to date recorded significant mineralisation to end-of-hole
- Advanced four-dimensional geological modelling underway in addition to regional scale exploration activities across the La Verde discovery area and Domeyko landholdings
- Second EIA commenced to integrate La Verde into Costa Fuego
Table 1 - Drill Holes Completed for Costa Fuego in Quarter 1 2025
Prospect | Hole ID | North | East | RL | Depth | Azimuth | Dip | Results |
La Verde | DKP014 | 6785852 | 324747 | 1,147 | 444 | 300 | -60 | Pending |
La Verde | DKP015 | 6786096 | 324434 | 1,159 | 313 | 132 | -60 | Pending |
La Verde | DKP016 | 6785947 | 324416 | 1,110 | 360 | 110 | -60 | Pending |
La Verde | DKP017 | 6786094 | 324685 | 1,185 | 336 | 100 | -60 | Pending |
La Verde | DKP018 | 6785835 | 324428 | 1,108 | 145 | 100 | -60 | Pending |
La Verde | DKP019 | 6785720 | 324718 | 1,145 | 279.5 | 255 | -60 | Pending |
La Verde | DKP020 | 6785748 | 324586 | 1,141 | 144 | 270 | -60 | Pending |
La Verde | DKP021 | 6785619 | 324324 | 1,197 | 402 | 75 | -60 | Pending |
La Verde | DKP022 | 6785527 | 324414 | 1,200 | 288 | 75 | -60 | Pending |
La Verde | DKP023 | 6785421 | 324320 | 1,197 | 402 | 90 | -60 | Pending |
La Verde | DKP024 | 6785424 | 324417 | 1,203 | 402 | 110 | -60 | Pending |
La Verde | DKP025 | 6785313 | 324415 | 1,187 | 276 | 270 | -75 | Pending |
La Verde | DKP026 | 6785870 | 324312 | 1,110 | 147 | 105 | -60 | Pending |
La Verde | DKP027 | 6785755 | 324906 | 1,139 | 402 | 300 | -60 | Pending |
La Verde | DKP028 | 6785617 | 324758 | 1,136 | 432 | 300 | -60 | Pending |
La Verde | DKP029 | 6785615 | 324758 | 1,175 | 366 | 265 | -60 | Pending |
La Verde | DKP030 | 6785770 | 324774 | 1,133 | 393 | 275 | -60 | Pending |
Table 2 – Significant Intersections returned for Costa Fuego in Quarter 1 2025
Hole ID | Coordinates | Azim. | Dip | Hole Depth | Intersection | Interval | Copper | Gold | Silver | Molybdenum | |||
North | East | RL | From | To | (m) | (% Cu) | (g/t Au) | (ppm Ag) | (ppm Mo) | ||||
DKP003 | 6785971 | 324840 | 1192 | 117 | -59 | 282 | 36 | 246 | 210 | 0.2 | 0.1 | 0.4 | 5 |
110 | 128 | 18 | 0.2 | 0.2 | 0.3 | 7 | |||||||
140 | 160 | 20 | 0.3 | 0.1 | 0.4 | 7 | |||||||
188 | 196 | 8 | 0.3 | 0.1 | 0.5 | 4 | |||||||
DKP004 | 6785836 | 324423 | 1093 | 90 | -60 | 120 | 8 | 88 | 80 | 0.3 | 0.1 | 0.5 | 19 |
Incl | 8 | 42 | 34 | 0.4 | 0.0 | 0.6 | 16 | ||||||
Or Incl | 26 | 36 | 10 | 0.6 | 0.1 | 0.5 | 18 | ||||||
DKP005 | 6785789 | 324564 | 1124 | 91 | -60 | 248 | 8 | 247.5 | 239.5 | 0.3 | 0.1 | 0.9 | 18 |
Or | 48 | 247.5 | 199.5 | 0.4 | 0.1 | 1.0 | 21 | ||||||
Incl | 32 | 40 | 8 | 0.5 | 0.1 | 0.5 | 8 | ||||||
And Incl | 68 | 106 | 38 | 0.5 | 0.2 | 1.1 | 9 | ||||||
Or Incl | 70 | 82 | 12 | 0.6 | 0.2 | 1.0 | 8 | ||||||
DKP006 | 6785721 | 324727 | 1130 | 110 | -60 | 199.5 | 64 | 199.5 | 135.5 | 0.3 | 0.1 | 0.8 | 6 |
Incl | 124 | 186 | 62 | 0.4 | 0.2 | 1.1 | 7 | ||||||
Or Incl | 124 | 150 | 26 | 0.5 | 0.3 | 1.2 | 7 | ||||||
And Incl | 170 | 174 | 4 | 0.6 | 0.2 | 2.2 | 7 | ||||||
DKP007 | 6785854 | 324742 | 1149 | 270 | -60 | 204 | 0 | 204 | 204 | 0.2 | 0.1 | 0.4 | 32 |
Incl | 80 | 88 | 8 | 0.3 | 0.1 | 0.7 | 23 | ||||||
And Incl | 160 | 204 | 44 | 0.3 | 0.1 | 0.5 | 84 | ||||||
Or Incl | 186 | 194 | 8 | 0.4 | 0.1 | 0.7 | 91 | ||||||
DKP008 | 6785855 | 324748 | 1150 | 5 | -60 | 324 | 0 | 324 | 324 | 0.2 | 0.1 | 0.5 | 12 |
Incl | 0 | 16 | 16 | 0.3 | 0.1 | 0.3 | 6 | ||||||
And Incl | 144 | 154 | 10 | 0.3 | 0.1 | 1.4 | 20 | ||||||
And Incl | 174 | 218 | 44 | 0.3 | 0.1 | 0.5 | 7 | ||||||
DKP009 | 6786075 | 324552 | 1152 | 131 | -60 | 354 | 34 | 354 | 320 | 0.3 | 0.1 | 0.7 | 13 |
Incl | 46 | 66 | 20 | 0.5 | 0.1 | 0.9 | 8 | ||||||
And Incl | 124 | 140 | 16 | 0.5 | 0.2 | 0.7 | 21 | ||||||
And Incl | 180 | 314 | 134 | 0.4 | 0.2 | 0.8 | 8 | ||||||
Or Incl | 258 | 314 | 56 | 0.5 | 0.2 | 1.1 | 6 | ||||||
Or Incl | 260 | 274 | 14 | 0.5 | 0.3 | 1.7 | 4 | ||||||
DKP010 | 6785851 | 324742 | 1148 | 209 | -60 | 276 | 0 | 92 | 92 | 0.2 | 0.1 | 0.3 | 10 |
Incl | 0 | 10 | 10 | 0.4 | 0.2 | 0.3 | 4 | ||||||
136 | 220 | 84 | 0.3 | 0.1 | 0.8 | 15 | |||||||
Incl | 190 | 206 | 16 | 0.4 | 0.1 | 1.2 | 20 | ||||||
252 | 274 | 22 | 0.3 | 0.1 | 0.6 | 14 | |||||||
DKP011 | 6786096 | 324429 | 1159 | 91 | -60 | 326 | 0 | 32 | 32 | 0.4 | 0.0 | 0.8 | 23 |
228 | 252 | 24 | 0.2 | 0.0 | 0.5 | 72 | |||||||
Incl | 232 | 234 | 2 | 0.4 | 0.0 | 2.1 | 44 | ||||||
274 | 310 | 36 | 0.2 | 0.0 | 0.3 | 31 | |||||||
DKP012 | 6785977 | 324839 | 1193 | 300 | -60 | 306 | 48 | 220 | 172 | 0.4 | 0.2 | 0.5 | 14 |
Incl | 62 | 82 | 20 | 0.5 | 0.2 | 0.3 | 6 | ||||||
And Incl | 192 | 202 | 10 | 0.5 | 0.2 | 0.6 | 94 | ||||||
And Incl | 228 | 306 | 78 | 0.5 | 0.1 | 0.8 | 24 | ||||||
Or Incl | 232 | 264 | 32 | 0.6 | 0.2 | 1.0 | 16 | ||||||
248 | 260 | 12 | 0.7 | 0.2 | 0.8 | 21 | |||||||
SUMMARY OF CORPORATE ACTIVITIES
Cash Position and Capital Structure Changes
As of 31 March 2025, the Company had cash of
The operating expenditure for quarter ended 31 March 2025 included payments for exploration and evaluation of
The investing expenditure for quarter ended 31 March 2025 related to payments for patentes (annual rent) for the Company's mining tenements.
The Company expects monthly expenditure to be materially reduced by approximately
In addition, the Company is engaged in discussions related to potential renegotiation of forthcoming Option payments later in 2025 to maximise funds, while Hot Chili engages in potential future strategic funding discussions.
The following summarises the Company's securities on issue:
- 151,596,149 ordinary fully paid shares
- 1,914,000 options at AUD
$1.50 - 5,938,248 service and performance rights
Board Changes
With the release of the Company's Pre-feasibility Studies for its Chilean Costa Fuego copper-gold project and Huasco Water project, Hot Chili commenced preparation in its next steps toward a final phase of development.
On 11 March 2025, Hot Chili advised that Dr Nicole Adshead-Bell, Non-Executive Chair and Mr Stephen Quin, Non-Executive Director had tendered their resignations as Directors of the Company, effective immediately.
On 17 March 2025, the Company announced the appointment of experienced and well-regarded Australian mining executive, Mrs Fiona Van Maanen, to the Board of Hot Chili as an Independent Non-Executive Director
Further board and key executive appointments are planned and aim to strengthen and align the Company's capability at an important inflection in the Company's growth.
Additional ASX Disclosure Information
ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.
ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 31 March 2025
The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.
ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.
ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled
Health, Safety, Environment and Quality
Field operations during the period included geological reconnaissance activities, reverse-circulation drilling, field mapping, and sampling exercises across the major Cortadera and Productora landholdings, as well as new project at La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.
There were no Lost Time Injuries (LTI) during the quarter.
Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families.
Table 4. HSEQ Quarter 1 2025 Performance and Statistics
Deposit | Productora | Cortadera | All Projects | |||
Timeframe | Q1 2025 | Cum.² | Q1 2025 | Cum.² | Q1 2025 | Cum.² |
LTI events | 0 | 0 | 0 | 6 | 0 | 8 |
NLTI events | 0 | 4 | 0 | 6 | 0 | 11 |
Days lost | 0 | 0 | 0 | 152 | 0 | 263 |
LTIFR index | 0 | 0 | 0 | 20 | 0 | 18 |
ISR index | 0 | 0 | 0 | 510 | 0 | 599 |
IFR Index | 0 | 44 | 0 | 40 | 0 | 43 |
Thousands of man-hours | 3.6 | 92 | 2.5 | 298 | 21.4 | 439 |
Incidents on materials and assets | 0 | 1 | 0 | 0 | 0 | 1 |
Environmental incidents | 0 | 0 | 0 | 0 | 0 | 0 |
Headcount¹ | 10 | 11 | 8 | 31 | 57 | 50 |
Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million-manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) Average monthly headcount (2) Cumulative statistics since April 2019. |
Tenement Changes During the Quarter
During the Quarter, Sociedad Minera La Frontera SpA ("La Frontera") has abandoned the Marsellesa option agreement and the Cometa option agreement and the mining rights have been returned to the respective owners. Furthermore, the Domeyko Option Agreement Offeror has claimed the exploitation concessions "Cazurro 3 1/60", "Cazurro 4 1/60" and "Cazurro 7 1/40" in use of the preferential right held by virtue of exploration concessions "Cazurro 3", "Cazurro 4" and "Cazurro 7" respectively. Consequently, the Domeyko Option Agreement has been amended, including the mentioned concessions and the exploitation concession called "Antonio 36 1/15".
During the same period, Sociedad Minera El Águila has claimed 2 mining exploitation concessions "Suerte 1/7" and "Suerte II 1/15", which are in process to be constituted.
The Company's existing tenements are detailed in the table below.
Table 4 Current Tenement (Patente) Holdings in
Cortadera Project Tenements
Cortadera Project | |||||
N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
1 | ALCENIA 1/10 | 50 | |||
2 | AMALIA 942 A 1/6 | 53 | |||
3 | ATACAMITA 1/82 | 82 | |||
4 | CORROTEO 1 1/260 | 260 | |||
5 | CORROTEO 5 1/261 | 261 | |||
6 | CORTADERA 1 1/200 | 200 | |||
7 | CORTADERA 1/40 | 374 | |||
8 | CORTADERA 2 1/200 | 200 | |||
9 | CORTADERA 41 | 1 | |||
10 | CORTADERA 42 | 1 | |||
11 | LAS CANAS 1/15 | 146 | |||
12 | LAS CANAS 16 | 1 | |||
13 | LAS CANAS ESTE 2003 1/30 | 300 | |||
14 | MAGDALENITA 1/20 | 100 | |||
15 | PAULINA 10 B 1/16 | 136 | |||
16 | PAULINA 11 B 1/30 | 249 | |||
17 | PAULINA 12 B 1/30 | 294 | |||
18 | PAULINA 13 B 1/30 | 264 | |||
19 | PAULINA 14 B 1/30 | 265 | |||
20 | PAULINA 15 B 1/30 | 200 | |||
21 | PAULINA 22 A 1/30 | 300 | |||
22 | PAULINA 24 1/24 | 183 | |||
23 | PAULINA 25 A 1/19 | 156 | |||
24 | PAULINA 26 A 1/30 | 294 | |||
25 | PAULINA 27A 1/30 | 300 | |||
26 | PURISIMA 1/8 (1/2 | 20 | NSR | ||
27 | CF 1 | 300 | |||
28 | CF 2 | 300 | |||
29 | CF 3 | 300 | |||
30 | CF 4 | 300 | |||
31 | CF 5 | 200 | |||
32 | CF 6 | 200 | |||
33 | CF 7 | 100 | |||
34 | CF 8 | 200 | |||
35 | CF 9 | 100 | |||
36 | CF 10 | 200 | |||
37 | CF 11 | 200 | |||
38 | CHAPULIN | 3 | |||
39 | CHILIS 1 | 200 | |||
40 | CHILIS 3 | 100 | |||
41 | CHILIS 4 | 200 | |||
42 | CHILIS 5 | 200 | |||
43 | CHILIS 6 | 200 | |||
44 | CHILIS 7 | 200 | |||
45 | CHILIS 8 | 200 | |||
46 | CHILIS 9 | 300 | |||
47 | CHILIS 10 1/38 | 190 | |||
48 | CHILIS 11 | 200 | |||
49 | CHILIS 12 1/60 | 300 | |||
50 | CHILIS 13 | 300 | |||
51 | CHILIS 14 | 300 | |||
52 | CHILIS 15 | 300 | |||
53 | CHILIS 16 | 300 | |||
54 | CHILIS 17 | 300 | |||
55 | CHILIS 18 | 300 | |||
56 | CORTADERA 1 | 200 | |||
57 | CORTADERA 2 | 200 | |||
58 | CORTADERA 3 | 200 | |||
59 | CORTADERA 4 | 200 | |||
60 | CORTADERA 5 | 200 | |||
61 | CORTADERA 6 1/60 | 265 | |||
62 | CORTADERA 7 1/20 | 93 | |||
63 | CRISTINA 1/40 | 40 | |||
64 | DIABLITO 1/5 | 25 | |||
65 | DONA FELIPA 1/10 | 50 | |||
66 | DORO 1 | 200 | |||
67 | DORO 2 | 200 | |||
68 | DORO 3 | 300 | |||
69 | FALLA MAIPO 2 1/10 | 99 | |||
70 | FALLA MAIPO 3 1/8 | 72 | |||
71 | FALLA MAIPO 4 1/26 | 26 | |||
72 | MINORI 1 | 300 | |||
73 | MINORI 2 | 300 | |||
74 | MINORI 3 | 300 | |||
75 | MINORI 4 | 300 | |||
76 | PORFIADA B | 200 | |||
77 | PORFIADA D | 300 | |||
78 | PORFIADA G | 200 | |||
79 | PORFIADA I | 300 | |||
80 | PORFIADA II | 300 | |||
81 | PORFIADA III | 300 | |||
82 | PORFIADA IV | 300 | |||
83 | PORFIADA V | 200 | |||
84 | PORFIADA VI | 100 | |||
85 | PORFIADA X | 200 | |||
86 | 200 | ||||
87 | 200 | ||||
88 | 300 | ||||
89 | 300 | ||||
90 | 300 | ||||
91 | SOLAR 1 | 300 | |||
92 | SOLAR 2 | 300 | |||
93 | SOLAR 3 | 300 | |||
94 | SOLAR 4 | 300 | |||
95 | SOLAR 5 | 300 | |||
96 | SOLAR 6 | 300 | |||
97 | SOLAR 7 | 300 | |||
98 | SOLAR 8 | 300 | |||
99 | SOLAR 9 | 300 | |||
100 | SOLAR 10 | 300 | |||
101 | SOLEDAD 1 | 300 | |||
102 | SOLEDAD 2 | 300 | |||
103 | SOLEDAD 3 | 300 | |||
104 | SOLEDAD 4 | 300 | |||
TOTAL | 22.653 | ||||
Note. Frontera SpA is a |
Productora Project Tenements
Productora Project | |||||
N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
1 | ALGA 7 A 1/32 | 89 | |||
2 | ALGA VI 4 | 2 | |||
3 | ALGA VI 5/24 | 66 | |||
4 | ARENA 1 1/6 | 40 | |||
5 | ARENA 2 1/17 | 113 | |||
6 | AURO HUASCO 1A 1/8 | 35 | |||
7 | CABRITO-CABRITO 1/9 | 50 | |||
8 | CACHIYUYITO 1 1/20 | 100 | |||
9 | CACHIYUYITO 2 1/60 | 300 | |||
10 | CACHIYUYITO 3 1/60 | 300 | |||
11 | CARMEN I, 1/50 | 222 | |||
12 | CARMEN II, 1/60 | 274 | |||
13 | CF 12 | 100 | |||
14 | CF 13 | 200 | |||
15 | CF 14 | 300 | |||
16 | CHICA | 1 | |||
17 | CHOAPA 1/10 | 50 | |||
18 | 255 | ||||
19 | 139 | ||||
20 | 255 | ||||
21 | 3 | ||||
22 | 1 | ||||
23 | ELEONOR RIGBY 1/10 | 100 | |||
24 | ELQUI 1/14 | 61 | |||
25 | ESPERANZA 1/5 | 11 | |||
26 | FRAN 1 1/60 | 220 | |||
27 | FRAN 12 1/40 | 200 | |||
28 | FRAN 13 1/40 | 200 | |||
29 | FRAN 14 1/40 | 200 | |||
30 | FRAN 15 1/60 | 300 | |||
31 | FRAN 18, 1/60 | 273 | |||
32 | FRAN 2 1/20 | 100 | |||
33 | FRAN 21, 1/46 | 226 | |||
34 | FRAN 3 1/20 | 100 | |||
35 | FRAN 4 1/20 | 100 | |||
36 | FRAN 5 1/20 | 100 | |||
37 | FRAN 6 1/26 | 130 | |||
38 | FRAN 7 1/37 | 176 | |||
39 | FRAN 8 1/30 | 120 | |||
40 | JULI 10, 1/60 | 300 | |||
41 | JULI 11, 1/60 | 300 | |||
42 | JULI 12, 1/42 | 210 | |||
43 | JULI 13, 1/20 | 100 | |||
44 | JULI 14, 1/50 | 250 | |||
45 | JULI 15, 1/55 | 275 | |||
46 | JULI 16 1/60 | 300 | |||
47 | JULI 17 1/20 | 100 | |||
48 | JULI 19 | 300 | |||
49 | JULI 20 | 300 | |||
50 | JULI 21 1/60 | 300 | |||
51 | JULI 22 | 300 | |||
52 | JULI 23 1/60 | 300 | |||
53 | JULI 24 1/60 | 300 | |||
54 | JULI 25 | 300 | |||
55 | JULI 27 B, 1/10 | 48 | |||
56 | JULI 27, 1/30 | 146 | |||
57 | JULI 28, 1/60 | 300 | |||
58 | JULI 9, 1/60 | 300 | |||
59 | JULIETA 10, 1/60 | 300 | |||
60 | JULIETA 11 | 300 | |||
61 | JULIETA 12 | 300 | |||
62 | JULIETA 13 1/60 | 298 | |||
63 | JULIETA 14 1/60 | 269 | |||
64 | JULIETA 15 1/40 | 200 | |||
65 | JULIETA 16 | 200 | |||
66 | JULIETA 17 | 200 | |||
67 | JULIETA 18 1/40 | 200 | |||
68 | JULIETA 5 | 200 | |||
69 | JULIETA 6 | 200 | |||
70 | JULIETA 7 | 100 | |||
71 | JULIETA 8 | 100 | |||
72 | JULIETA 9 | 100 | |||
73 | JULITA ¼ | 4 | |||
74 | LEONA 2A 1/4 | 10 | |||
75 | LIMARI 1/15 | 66 | |||
76 | LOA 1/6 | 30 | |||
77 | MAIPO 1/10 | 50 | |||
78 | MONTOSA 1/4 | 35 | NSR | ||
79 | ORO INDIO 1A 1/20 | 82 | |||
80 | PEGGY SUE 1/10 | 100 | |||
81 | PRODUCTORA 1/16 | 75 | |||
82 | SUERTE 1/7 | 21 | |||
83 | SUERTE II 1/15 | 15 | |||
84 | TOLTEN 1/14 | 70 | |||
85 | URANIO 1/70 | 0 % | 350 | 25-year Lease Agreement | |
86 | ZAPA 1 1/10 | 100 | |||
87 | ZAPA 1/6 | 6 | GSR | ||
88 | ZAPA 3 1/23 | 92 | |||
89 | ZAPA 5A 1/16 | 80 | |||
90 | ZAPA 7 1/24 | 120 | |||
TOTAL | 14.514 | ||||
Note. SMEA SpA is subsidiary company - |
Note. Frontera SpA is a |
El Fuego Project Tenements
Domeyko Project | |||||
N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
1 | ANTONIO 1 1/56 | 280 |
| ||
2 | ANTONIO 1/40 | 200 | |||
3 | ANTONIO 10 1/21 | 63 | |||
4 | ANTONIO 19 1/30 | 128 | |||
5 | ANTONIO 21 1/20 | 60 | |||
6 | ANTONIO 36 1/15 | 74 | |||
7 | ANTONIO 5 1/40 | 200 | |||
8 | ANTONIO 9 1/40 | 193 | |||
9 | CAZURRO 1 | 200 | |||
10 | CAZURRO 2 | 200 | |||
11 | CAZURRO 3 | 300 | |||
12 | CAZURRO 4 | 300 | |||
13 | CAZURRO 5 | 100 | |||
14 | CAZURRO 6 | 200 | |||
15 | CAZURRO 7 | 200 | |||
16 | CAZURRO 8 | 200 | |||
17 | CERRO MOLY 1 | 300 | |||
18 | CERRO MOLY 2 | 300 | |||
19 | CERRO MOLY 3 | 300 | |||
20 | CERRO MOLY 4 | 300 | |||
21 | CAZURRO 3 1/60 | 300 | |||
22 | CAZURRO 4 1/60 | 300 | |||
23 | CAZURRO 7 1/40 | 200 | |||
24 | EMILIO 1 1/8 | 38 | |||
25 | EMILIO 3 1/9 | 45 | |||
26 | INES 1/40 | 200 | |||
27 | LORENA 1/2 | 2 | |||
28 | MERCEDITA 1/7 | 22 | |||
29 | PRIMO 1 1/6 | 36 | |||
30 | SANTIAGUITO 5 1/24 | 114 | |||
31 | DOMINOCEROS 1/20 (1/4) | 20 |
| ||
32 | CF SUR 1 | 300 | |||
33 | CF SUR 2 | 300 | |||
34 | CF SUR 3 | 300 | |||
35 | CF SUR 4 | 300 | |||
36 | CF SUR 5 | 200 | |||
37 | CF SUR 6 | 300 | |||
38 | CF SUR 7 | 300 | |||
39 | CF SUR 8 | 300 | |||
40 | CF SUR 9 | 200 | |||
41 | CF SUR 10 | 200 | |||
42 | CF SUR 11 | 300 | |||
43 | CF SUR 12 | 300 | |||
44 | CF SUR 13 | 300 | |||
45 | CF SUR 14 | 300 | |||
46 | CF SUR 15 | 200 | |||
47 | CF SUR 16 | 300 | |||
48 | CF SUR 17 | 300 | |||
49 | CF SUR 18 | 300 | |||
50 | CF SUR 19 | 300 | |||
51 | CF SUR 20 | 300 | |||
52 | CF SUR 21 | 300 | |||
53 | CF SUR 22 | 300 | |||
54 | CF SUR 23 | 200 | |||
55 | CF SUR 24 | 200 | |||
56 | CF SUR 25 | 300 | |||
57 | CF SUR 26 | 300 | |||
58 | CF SUR 27 | 300 | |||
59 | CF SUR 28 | 200 | |||
60 | CF SUR 29 | 300 | |||
61 | CF SUR 30 | 200 | |||
62 | CF SUR 31 | 300 | |||
63 | CF SUR 32 | 300 | |||
64 | CF SUR 33 | 300 | |||
65 | CF SUR 34 | 300 | |||
66 | CF SUR 35 | 300 | |||
67 | KRETA ¼ | The mining concession is included in | |||
68 | MARI 1 | 300 | |||
69 | MARI 1/12 | 64 | The mining concession is included in | ||
70 | MARI 6 | 300 | |||
71 | MARI 8 | 300 | |||
TOTAL | 16.055 | ||||
Note. Frontera SpA is a |
San Antonio Project | |||||
N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
1 | MERCEDES 1/3 | 50 |
| ||
2 | PORFIADA A 1/33 | 160 | |||
3 | PORFIADA C 1/60 | 300 | |||
4 | PORFIADA E 1/20 | 100 | |||
5 | PORFIADA F 1/50 | 240 | |||
6 | PORFIADA IX 1/60 | 300 | |||
7 | PORFIADA VII 1/60 | 270 | |||
8 | PORFIADA VIII 1/60 | 300 | |||
9 | PRIMA 1 | 1 | |||
10 | PRIMA 2 | 2 | |||
11 | ROMERO 1/31 | 31 | |||
12 | 25 | ||||
13 | 10 | ||||
14 | 90 | ||||
15 | SANTIAGO Z 1/30 | 300 | |||
16 | 75 | ||||
17 | 25 | ||||
18 | 76 | ||||
19 | 26 | ||||
20 | 244 | ||||
21 | 200 | ||||
22 | 300 | ||||
23 | 300 | ||||
24 | 300 | ||||
TOTAL | 3.725 | ||||
Note. Frontera SpA is a |
Cordillera Project | |||||
N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
1 | ALBORADA III 1/35 | 162 |
| ||
2 | ALBORADA IV 1/20 | 54 | |||
3 | ALBORADA VII 1/25 | 95 | |||
4 | CAT IX 1/30 | 150 | |||
5 | CATITA IX 1/20 | 100 | |||
6 | CATITA XII 1/13 | 61 | |||
7 | CORDILLERA 1/5 | 20 | |||
8 | HERREROS 1/14 | 28 | |||
9 | MINA HERREROS III 1/6 | 18 | |||
10 | MINA HERREROS IV 1/10 | 23 | |||
11 | PORSIACA 1/20 | 20 | |||
12 | QUEBRADA 1/10 | 28 | |||
13 | VETA 1/17 | 17 | |||
TOTAL | 776 | ||||
Note. Frontera SpA is a |
Qualifying Statements
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ( "NI 43-101" ) and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of
The Costa Fuego Copper project pre-feasibility study (the "PFS") was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 23 of this presentation and will be provided in the PFS technical report (to be available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au within 45 days of March 27, 2025 (the "PFS Technical Report").
PFS Technical Report
For readers to fully understand the information in this presentation, they should read the PFS Technical Report in its entirety when it is available, including all qualifications, assumptions, limitations and exclusions that relate to the information to be set out in the PFS Technical Report. The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this presentation is subject to the assumptions and qualifications to be contained in the PFS Technical Report.
The PFS Technical Report will replace and supersede the technical report titled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8, 2024, with an effective date of February 26, 2024 (the "2024 PEA").
Qualified Persons – NI 43-101
The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent "Qualified Persons" within the meaning of NI 43 -101. The scientific and technical information contained in this presentation pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:
- Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
- Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
- Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
- Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical
- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost
- Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching
- Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental
- The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.
Competent Persons – JORC
The information in this presentation that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:
- Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of Haren Consulting – Mineral Resource Estimate
- Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd – Metallurgy
- Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
- Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de Ingeniería – Geotechnical
- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood Pty Ltd – Infrastructure and Capital Cost
- Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a full-time employee of Process Mineral Consulting – Leaching
- Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a full-time employee of High River Services – Environmental
- Mr Christian Easterday (MAIG), who is the Managing Director and is a full-time employee of Hot Chili Limited – Exploration Results
Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.
Production Targets Statement
The production targets and forecast financial information derived from the production targets for: (1) the Productora production mine site referred to in this release is based on
Disclaimer
This presentation does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (Hot Chili, HCH or the Company).
Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this presentation has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the
All amounts in this presentation are in
Non IFRS Financial Performance Measures
"Total Cash Cost", "All-in Sustaining Cost", "All-in cost LOM", "C1", "EBITDA" and "Free Cashflow" are not performance measures reported in accordance with International Financial Reporting Standards ("IFRS"). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Costa Fuego Project compares against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Forward Looking Statements
Statements in this presentation that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). The use of any of the words "anticipate", "envisage", "forecast", "consider", "proposed", "conceptual", "opportunity", "designed to", "believe", "could", "estimate", "expect", "intended", "may", "might", "plan", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Costa Fuego Project is developed.
In this presentation, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the results of the PFS, including expected cash inflows; anticipated production, mine life, expected costs and other projections; metal price assumptions; metal recovery rate; the ability of the Company to expand mineral resources, and/or mineral reserves and/or ore reserves beyond current estimates; the impacts of the PFS including but not limited to economic and social outcomes; the timing and ability to complete an environmental impact assessment ( "EIA" ) study; the estimation of mineral resources and reserves; opportunities to add to the Costa Fuego Project; potential opportunities related to recent discoveries; derisking of certain development items; the anticipated production profile and mine life of the Costa Fuego Project; expected access to local workforce due to the Costa Fuego Project's proximity to the regional centre; the investigation of additional growth opportunities, high-value development optimisation, monetization of cobalt and increase to overall copper and gold recovery; projected, financial measures, capital costs, cooperating costs, mine life, metal production and revenue generation; comparisons to peers confidence levels of the PFS in comparison to the 2024 PEA; the optimal exploitation strategy and the mine design, scheduling and economic evaluation pertaining thereto; marginal and breakeven new smelter return cut-offs; project layout, mine design and scheduling; processing suitability based on metallurgical testwork conducted to date; anticipated infrastructure requirements, including power supply, water supply, processing and tailings storage facilities, concentrates storage and site layouts; economic assessments and evaluations; expectations relating to environmental impact assessments, ongoing relations with local communities, local, regional and national government and regulators; anticipated projects risks and mitigation thereof; potential opportunities for growth and other optimisations; timing of the Company to file the PFS Technical Report; plans for a definitive feasibility study; statements regarding the Company's water business; and future funding requirements..
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this presentation, including, but not limited to, the following material factors: industry-wide and project-specific risks identified in the PFS Technical Report and in this presentation; operational risks; risks related to the cost estimates of exploration and development; sovereign risks associated with the Company's operations in
Although the forward-looking statements contained in this presentation are based upon assumptions which the Company believes to be reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this presentation, the Company has applied certain material assumptions including: the continuity of future commodity prices and demand; the availability of skilled labour; the timing and amount of capital expenditures; that future currency exchange and interest rates will be consistent with the Company's expectations; that increasing competition will not have a material adverse impact; that general conditions in economic and financial markets will be sustained or will improve; availability of drilling and related equipment; that regulation by governmental agencies and relations with local communities will not change in a materially adverse manner; that future tax rates operating costs will be as expected; availability of future sources of funding; that requisite financing will be available and can be obtained on reasonable terms; that the assumptions underlying estimates related to adjusted funds from operations will prove to be as anticipated and that current exploration, development, environmental and other objectives concerning the Costa Fuego Project can be achieved and that Company's other corporate activities will proceed as expected.
Although the Company has attempted to identify important factors that could cause actual results to vary materially from those projected in such forward-looking statements, there can be no assurance that forward- looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward- looking statements. The forward-looking statements in this presentation are based on plans, expectations, and estimates of management as at the date hereof and the Company undertakes no obligation to update such forward-looking statements, other than as required by applicable law.
Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024)
1 Mineral Resources are reported on a |
2 Mineral Resources are inclusive of the Mineral Reserve |
3 The Productora deposit is |
4 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – |
5 The |
6 The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper |
7 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, |
8 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of |
9 Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price |
10 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration. |
11 The effective date of the MRE is 26 February 2024. The MRE were previously reported in Hot Chili's technical report entitled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated 8 April 2024 with an effective date of 26 February 2024 (the "2024 MRE"). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed. |
12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2024 PEA. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the 2024 PEA. |
Costa Fuego Mineral Reserve Estimate (March 2025) | ||||||||||
Grade | Contained Metal | |||||||||
Tonnes | Cu | Au | Ag | Mo | Cu | Au | Ag | Mo | ||
(Mt) | ( %) | (g/t) | (g/t) | (ppm) | (kt) | (koz) | (koz) | (kt) | ||
Open Pit | ||||||||||
Concentrator | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 293 | 0.36 | 0.08 | 0.37 | 113 | 1 043 | 728 | 3 517 | 33 | |
Total | 293 | 0.36 | 0.08 | 0.37 | 113 | 1 043 | 728 | 3 517 | 33 | |
Heap Leach | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 41 | 0.35 | 0.07 | 0.43 | 35 | 142 | 96 | 563 | 1 | |
Total | 41 | 0.35 | 0.07 | 0.43 | 35 | 142 | 96 | 563 | 1 | |
Dump Leach | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 22 | 0.13 | 0.03 | 0.23 | 41 | 29 | 20 | 168 | 1 | |
Total | 22 | 0.13 | 0.03 | 0.23 | 41 | 29 | 20 | 168 | 1 | |
Combined | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 356 | 0.34 | 0.07 | 0.37 | 98 | 1 213 | 844 | 4 248 | 35 | |
Total | 356 | 0.34 | 0.07 | 0.37 | 98 | 1 213 | 844 | 4 248 | 35 | |
Underground | ||||||||||
Concentrator | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 146 | 0.44 | 0.16 | 0.79 | 93 | 645 | 734 | 3 704 | 14 | |
Total | 146 | 0.44 | 0.16 | 0.79 | 93 | 645 | 734 | 3 704 | 14 | |
Combined (Open Pit and Underground) | ||||||||||
Proven | - | - | - | - | - | - | - | - | - | |
Probable | 502 | 0.37 | 0.10 | 0.49 | 97 | 1 858 | 1 578 | 7 951 | 49 | |
Total | 502 | 0.37 | 0.10 | 0.49 | 97 | 1 858 | 1 578 | 7 951 | 49 | |
1Mineral Reserves are reported on a |
2An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego, on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time. |
3Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code. References to "Mineral Reserves" mean "Ore Reserves" as defined in the JORC Code and references to "Proven Mineral Reserves" mean "Proved Ore Reserves" as defined in the JORC Code. |
4The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource. |
5Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total. |
6Mineral Reserves are reported using long-term metal prices of |
7The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution. |
8The Productora deposit is |
9The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – |
10The |
11The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a "Qualified Person" within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve. |
12Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than those that will be disclosed in a technical report for the PFS. A detailed list of Costa Fuego Project risks is also included in Chapter 25.12 of the 2024 PEA. |
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity | ||
Hot Chili Limited | ||
ABN | Quarter ended ("current quarter") | |
91 130 955 725 | 31 March 2025 | |
Consolidated statement of cash flows | Current quarter | Year to date | |
1. | Cash flows from operating activities | - | - |
1.1 | Receipts from customers | ||
1.2 | Payments for | ||
(a) exploration & evaluation * | (7,894) | (16,751) | |
(a) development | - | - | |
(b) production | - | - | |
(c) staff costs | (437) | (1,566) | |
(d) administration and corporate costs | (2,083) | (4,571) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 88 | 444 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other (provide details if material) | - | - |
1.9 | Net cash from / (used in) operating activities | (10,326) | (22,444) |
* Included in this amount was | |||
2. | Cash flows from investing activities | - | - |
2.1 | Payments to acquire or for: | ||
(a) entities | |||
(b) tenements | (1,082) | (3,554) | |
(c) property, plant and equipment | (11) | (70) | |
(d) exploration & evaluation | - | - | |
(e) investments | - | - | |
(f) other non-current assets | - | - | |
2.2 | Proceeds from the disposal of: | - | - |
(a) entities | |||
(b) tenements | - | - | |
(c) property, plant and equipment | - | - | |
(d) investments | - | - | |
(e) other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - |
2.4 | Dividends received (see note 3) | - | - |
2.5 | Other | - | - |
2.6 | Net cash from / (used in) investing activities | (1,093) | (3,624) |
3. | Cash flows from financing activities | - | - |
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
3.2 | Proceeds from issue of convertible debt securities | - | - |
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | - | (117) |
3.5 | Proceeds from borrowings | - | - |
3.6 | Repayment of borrowings | - | - |
3.7 | Transaction costs related to loans and borrowings | - | - |
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing activities | - | (117) |
4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
4.1 | Cash and cash equivalents at beginning of period | 19,032 | 33,742 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (10,326) | (22,444) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (1,093) | (3,624) |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | - | (117) |
4.5 | Effect of movement in exchange rates on cash held | (100) | (44) |
4.6 | Cash and cash equivalents at end of period | 7,513 | 7,513 |
5. | Reconciliation of cash and cash equivalents | Current quarter | Previous quarter |
5.1 | Bank balances | 2,513 | 14,032 |
5.2 | Call deposits | 5,000 | 5,000 |
5.3 | Bank overdrafts | - | - |
5.4 | Other (provide details) | - | - |
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 7,513 | 19,032 |
6. | Payments to related parties of the entity and their associates | Current quarter |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 126 |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. | ||
7. | Financing facilities | Total facility amount at quarter end | Amount drawn at quarter end |
7.1 | Loan facilities | - | - |
7.2 | Credit standby arrangements | - | - |
7.3 | Other (please specify) | - | - |
7.4 | Total financing facilities | - | - |
7.5 | Unused financing facilities available at quarter end | - | |
7.6 | Include in the box below a description of each facility above, including the lender, interest | ||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (item 1.9) | (10,326) |
8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | - |
8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (10,326) |
8.4 | Cash and cash equivalents at quarter end (item 4.6) | 7,513 |
8.5 | Unused finance facilities available at quarter end (item 7.5) | - |
8.6 | Total available funding (item 8.4 + item 8.5) | 7,513 |
8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | 0.73 |
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | ||
8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | ||
Significant reduction in cash outflows are expected due to the release of both the Costa Fuego and Huasco Water PFS during the quarter, with only optimisation activities expected during the next two quarters. Exploration activities will also be significantly reduced, with drilling activities at La Verde having been completed on 10th April 2025. Future cash outflows are expected to be reduced by 60 | ||
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | ||
The Company is expected to receive | ||
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | ||
Any future drilling will be targeted and cost effective and funded by working capital. Drilling can be postponed at any time to ensure commitments in the next two quarters can be met. | ||
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. | ||
Compliance statement
1 | This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. |
2 | This statement gives a true and fair view of the matters disclosed. |
Date: 24th April 2025
Authorised by: By the Board
(Name of body or officer authorising release – see note 4)
Notes
1. | This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. |
2. | If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. |
3. | Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. |
4. | If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee". |
5. | If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. |
Contact:
Mr Christian Easterday,
Managing Director,
E: admin@hotchili.net.au
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SOURCE Hot Chili Limited
FAQ
What are the key financial metrics of Hot Chili's (HHLKF) Costa Fuego PFS?
What is the production capacity and mine life of HHLKF's Costa Fuego project?
How much are the start-up costs for HHLKF's Costa Fuego project?
What are the details of HHLKF's Huasco Water project PFS?
