Hot Chili Limited · ASX:HCH
Hot Chili — Mines & Money Hong Kong (March 2015)
24 slides from Hot Chili's conference presentation, Mar 20, 2015
Slide 1: Positioned for Production
For personal use only Positioned for Production March 2015 ACN 130 955 725
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Pr
Slide 3: A Leading Global Copper Development
Productora, Chile A Leading Global Copper Development For personal use only Flagship project with Mineral Resources of over 1Mt of contained copper and 675,000oz of gold Metal inventory continues to grow PFS completion expected this year and DFS set to commence Landmark deal with Chilean res
Slide 4: Corporate Overview
Corporate Overview Poised for re-rating For personal use only Cash at Hand Approx. A$ 5 million (10th March 2015) Sprott Lending Debt Facility US$10 million drawn (included in cash) US$8.5 million un-drawn Capital Structure 347.7 Million shares 11.0 Million unlisted 30c options (exp Jun 2019) Share
Slide 5: Resources and reserves set to grow
Productora Resources and reserves set to grow For personal use only Revised Mineral Resource and Ore Reserve estimate expected with PFS completion in mid-2015 Will include first resource estimate for the Alice copper porphyry discovery Copper Metal Growth (Mt) Gold Metal Growth (Moz) Inferred Re
Slide 6: Alice Discovery: Bulk tonnage porphyry to underpin growth
Alice Discovery Bulk tonnage porphyry to underpin growth For personal use only Approximate projection of Alice mineralised porphyry, immediately adjacent to Productora site office First exploration drilling in 2 years – copper porphyry discovery confirmed in late 2014 Located 400m west of the pl
Slide 7: Alice Discovery: New phase of discovery begins
Alice Discovery New phase of discovery begins For personal use only Main Zone Entire Mineral Resource and Ore Reserve currently hosted within Productora main zone Cluster of porphyry footprints identified along the western extent of Productora main zone Bulk-tonnage, porphyry mineralisation tr
Slide 8: Alice Discovery: To feature in PFS inventory
Alice Discovery To feature in PFS inventory For personal use only Schematic Cross-section of Alice Copper Porphyry Deposit Preliminary mineralisation modelling outlines bulk tonnage resource potential from surface Preliminary pit optimisations indicate low strip ratios and high in-pit conversion
Slide 9: Productora PFS expanded and due in mid-2015
Productora PFS PFS expanded and due in mid-2015 For personal use only Preliminary Productora Project Layout Pre-feasibility Study (PFS) on-track for completion this year and will include Alice Oxide project adds to PFS following robust Scoping study Preliminary pit optimisations indicating inc
Slide 10: Productora PFS: Oxide project adds further scale
Productora PFS Oxide project adds further scale For personal use only Productora Central Pit Ore Reserves set to grow Scoping study confirms Oxide resources are amenable to conventional heap leaching Potential to add toward 10,000 tpa of copper production Will reduce overall costs and pre-stri
Slide 11: Productora PFS: Port access study MOU executed
Productora PFS Port access study MOU executed For personal use only Las Losas Port terminal at Huasco, 40km west of Productora Hot Chili and PLL (51% CAP, 49% Agrocommercial) to co-operate and study an expansion of Las Losas into a copper concentrate terminal Hot Chili to fund PFS of Las Losas f
Slide 12: CMP Transaction: Landmark deal clears path to production
CMP Transaction Landmark deal clears path to production For personal use only 100% 75% CAP controls 75% interest in CMP and Mitsubishi Corp controls the remaining 25% interest Sociedad Compañía Minera del Pacifico Minera El Corazón Limitida S.A. (SMECL) (CMP) 82.5% 17.5% CMP interest in SMEA followi
Slide 13: CMP Transaction: Infrastructure and major Chilean mining partner
CMP Transaction Infrastructure and major Chilean mining partner For personal use only Conversion of CMP Productora assets into 17.5% stake in SMEA CMP Productora assets: Surface rights Easements Interest in certain CMP tenements CMP free-carried to end of PFS Please see ASX release of No
Slide 14: CMP Transaction: Option to increase CMP stake to 50.1%
CMP Transaction Option to increase CMP stake to 50.1% For personal use only Option to purchase a further 32.6% interest in Productora for minimum US$80 million and maximum of US$110 million in two tranches: Tranche 1- US$26 million following PFS Tranche 2- Remainder following DFS CMP to pay
Slide 15: CMP Transaction: Strong Endorsement of Value
CMP Transaction Strong Endorsement of Value For personal use only Independent Expert values Productora at many multiples of Hot Chili’s market capitalisation 100% Project Basis Min Valuation Max Valuation BDO- Independent Expert (100% basis) $ million 245 297 Implied HCH Share price for 82.5% inte
Slide 16: CMP Transaction: Recommendation to Approve
CMP Transaction Recommendation to Approve For personal use only General Meeting of shareholders in April 2015 to approve the CMP Transaction Approval of the CMP Transaction de-risks Productora’s development and will provide: Critical infrastructure necessary to develop Productora faster Fund
Slide 17: Productora Development Timeline - Copper - CMP Option
Productora Development Timeline- Copper- CMP Option For personal use only Development Pre-Feasibility Definitive Procurement & Production Feasibility Construction Finance Project Finance Stage 1- Oxide Stage 2- Sulphide Q1 2014 2H 2015 Q4 2016 2H 2018 Copper Price US$8,000/t Median long-term consens
Slide 18: Productora: Key Value Drivers in 2015
Productora Key Value Drivers in 2015 For personal use only Approval of infrastructure deal with April Chilean resource major CMP Commence Alice resource drilling May Deliver PFS along with expanded Mid 2015 Resource and Reserve estimates Commence DFS and project financing 2H 2015 process O
Slide 19: For personal use only
For personal use only 19 HOT CHILI I March 2015
Slide 20: Qualifying Statements: Ore Reserves
Qualifying Statements Ore Reserves For personal use only Productora Ore Reserve Statement, 31st March 2014 Grade Contained Metal Payable Metal Molybdenu Molybdenu Ore Tonnage Copper Gold Copper Gold Molybdenum Copper Gold Category m m Type (Mt) (ounces (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) (ton
Slide 21: Qualifying Statements: Mineral Resources
Qualifying Statements Mineral Resources For personal use only Productora Mineral Resource Statement, 31st March 2014 Classification Tonnage Grade Contained Metal (+0.25% Cu) (Mt) Copper Gold Molybdenum Copper Gold Molybdenum (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) Indicated 158.6 0.50 0.11 152 79
Slide 22: Qualifying Statements: Competent Person's Statement
Qualifying Statements Competent Person’s Statement For personal use only Exploration Results Exploration information in this presentation is based upon work undertaken by Mr Christian Easterday, the Managing Director and a full- time employee of Hot Chili Limited whom is a Member of the Australasian
Slide 23: For personal use only
For personal use only 23 HOT CHILI I March 2015
Slide 24: Hot Chili Limited
For personal use only Hot Chili Limited ACN 130 955 725 Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.com.au ASX: HCH