Hot Chili Limited · ASX:HCH
Hot Chili — BMO Global Metals, Mining & Critical Minerals Conference 2025
41 slides from Hot Chili's conference presentation, Feb 24, 2025
Slide 1: Delivering A Copper-Gold Giant At Low Elevation In Coastal Chile
ASX: HCH TSXV: HCH Delivering A Copper-Gold Giant OTCQX: HHLKF At Low Elevation In Coastal Chile 23 to 26 February 2025 COMPANY PRESENTATION | 1 www.hotchili.net.au @hotchililimited @hotchiliIR Hollywood, Florida
Slide 2: Cautionary Notes and Technical Information
Cautionary Notes and Technical Information This Presentation (the “Presentation”) has been prepared by management of Hot Chili Limited (“Hot Chili” or the “Company”) and does not represent a recommendation to buy or sell securities of the Company. Investors should always consult their investment adv
Slide 3: Forward Looking Statements
Forward Looking Statements This Presentation contains certain statements that are “forward-looking information” within the meaning of applicable Canadian securities legislation and Australian securities legislation (collectively, “forward-looking statements” or “forward- looking information”). All s
Slide 4: The Investment Proposition
The Investment Proposition Costa Fuego: A large, advanced copper project with significant leverage La Verde Deposit – Rapidly Expanding Cu-Au Copper Porphyry Discovery Indicated Resource contains 6.4 Blb Cu, Inferred • Third significant copper-gold discovery for Hot Chili confirmed in January 2025 R
Slide 5: Corporate Overview
Corporate Capital Structure Investors By Type Overview Glencore 7.5% GS Group ASX/TSXV: HCH Stock Exchanges 5.7% OTCQX: HHLKF Blue Spec 5.5% Shares Outstanding 151.4 M Insider Retail, s 0.7% Options & Performance 49.3% 9.1 M Rights Institutional 31.4% A$19.0 M Cash (as of 31 December 2024) A$115 M (
Slide 6: Costa Fuego Copper-Gold Project, Chile
Costa Fuego Copper-Gold Project, Chile One of the largest scale, lowest elevation copper resources in the world (not controlled by a major miner) Top 10 Undeveloped PEA1 – Strong Low Risk – Elevation, Costa Fuego – Large Copper Resource Economics Infrastructure Scale Appeal and (S&P 2022) & Leverage
Slide 7: Low Elevation Advantage – Lowers Economic Hurdle
Low Elevation Advantage – Lowers Economic Hurdle Long-term commitment to risk-reduction of future development 1 Water Risk Removed Granted maritime concession with land access All water required for operations secured 2 Power Line Risk Removed Secured electrical connection to grid Renewables
Slide 8: Costa Fuego Indicated Resource of 798 Mt and Growing
Costa Fuego Indicated Resource of 798 Mt and Growing Over 85% of Costa Fuego’s contained CuEq metal classified as Indicated Oblique Long-Section View of Cortadera – Looking North-East Consistent and sustained track record of Resource Growth: • Total Indicated Resource (798 Mt grading 0.45% CuEq)1,2
Slide 9: World's Largest Undeveloped Copper Mineral Resources
World's Largest Undeveloped Copper Mineral Resources Peer benchmark – projects not controlled by a major mining company 3.6 Mt CuEq* The Global Resource Peer Group of Mineral Resources were selected on the following basis: Top 20 largest global primary copper Mineral Resources (not controlled by a m
Slide 10: La Verde – Confirmation of a Significant Cu-Au Porphyry Discovery
La Verde – Confirmation of a Significant Cu-Au Porphyry Discovery Unified under single ownership after years of strategic consolidation La Verde Open Pit (Shallow copper oxide pit) Discovery Drillhole DKP002 (Completed Nov 2024, Announced 18 Dec 2024) 308 m @ 0.5% Cu, 0.3g/t Au from 46 m (to end of
Slide 11: Large Scale Appeal - Expanding Fast
Large Scale Appeal - Expanding Fast 5,700 metres of Reverse Circulation drilling across nineteen drill holes1 • Wide, Shallow, Near Surface Mineralisation • Current footprint extent 550 m by 400 m • Open in all directions • Larger Footprint of Mapped +1% Veined Porphyry to be tested • Surface mappin
Slide 12: Open Laterally, Southern Extension Confirmed
Open Laterally, Southern Extension Confirmed Drilling is currently testing significant along-strike extensions1 • Lateral extents being tested in Phase one campaign • Current drilling activity focused on southern porphyry extension, could rapidly increase footprint size • Gravel cover masking larger
Slide 13: Untapped Potential at Depth
Untapped Potential at Depth Drillholes finishing strong, further opportunity at depth1 • Mineralised to depth of Reverse Circulation (RC) drilling capability • 8 of 12 RC holes with strong assay results to end-of-hole • Boosted by significant gold • Planned concentrator at Productora designed to acc
Slide 14: Big Footprint, 70% Covered by Shallow Gravels
Big Footprint, 70% Covered by Shallow Gravels Defined by Geophysical Surveys – Airborne Magnetics and Induced Polarisation • Visibility under gravel cover • Look-alike targets present over wider magnetic footprint • Implementation of Artificial Intelligence (A.I.) • Preparing to deploy AI- powered e
Slide 15: Comparable Scale to Large Cu-Au Porphyry Deposits
Comparable Scale to Large Cu-Au Porphyry Deposits Better first-pass drill results than reported for Cortadera in 2019 La Verde Cortadera • Following in the footsteps of Cortadera • Nearby Cortadera Mineral Resource1 of 531 Mt at 0.44% CuEq (Indicated) and 149 Mt at 0.30% CuEq Open Open (Inferred) •
Slide 16: A Significant New Copper-Gold Discovery
A Significant New Copper-Gold Discovery HCH leveraging 16 years of exploration expertise in the region La Verde1 Cortadera2 • Insights from Cortadera Shaping Exploration Strategy • Highest grades were inaccessible with RC drilling at Cortadera • ‘4D modelling’ of lithology commenced • Geological und
Slide 17: Costa Fuego PEA Highlights
Costa Fuego PEA Highlights Strong financial results using 8% discount rate & long-term US$3.85/lb copper price and US$1,750/oz gold price Primary Annual Production Rate (First 14 Years) Post-Tax NPV8% Pre-Tax NPV8% US$1.10 B US$1.54 B 112 kt CuEq¹ (or 248 Mlbs CuEq) Post-Tax IRR Pre-Tax IRR Equal to
Slide 18: Strong Leverage to Copper Price
Strong Leverage to Copper Price 50% increase in long-term copper price from US$3.85/lb near triples post-tax NPV8% and doubles IRR Sensitivity Analysis Sensitivity to Copper Price (Post-Tax NPV8% - ±40% Sensitivity Ranges) (Post-Tax NPV8% & IRR) Copper Revenue 4,500 60% (Price,Recovery,Grade) 4,046
Slide 19: Capital Intensity
Capital Intensity Peer benchmark – capital intensity and average annual copper equivalent* production Measured & Indicated Resource (M&I) >50% Costa Fuego Measured & Indicated Resource (M&I) <50% (85% M&I Resource) Hot Chili Ltd High Sphere size represents projected Life of Mine Average Annual CuEq*
Slide 20: Elevation & Water Permits for Copper Development Projects
Elevation & Water Permits for Copper Development Projects Peer Benchmark – elevation above sea level and water permits (maritime or terrestrial) Water Permit Approved No Water Permit Filo del Sol 4,000 Los Azules Escalones Canariaco Norte 3,000 Elevation (masl*) Increasing Elevation Average Elevatio
Slide 21: Market Valuation of Measured & Indicated Copper Resources
Market Valuation of Measured & Indicated Copper Resources Peer benchmark – market capitalisation / M&I CuEq* mineral resources (US¢/lb) Increasing Market Valuation Warintza Market Cap. / lb M&I CuEq 6.89 US¢/lb Marimaca Los Azules Costa Fuego 3.60 20.9 Cactus 0.94 3.35 Company Average 3.30 Caravel 1
Slide 22: Environment, Social & Governance Focused
Environment, Social & Governance Focused Over a decade of responsible and respectful Investment 2 Environment 3 Social Energy • Connection to Chilean • Community engagement national grid at Maitencillo program underway, substation including MOU agreements with Indigenous stakeholders • Renewable ene
Slide 23: Huasco Water
Huasco Water Huasco Water plans to construct a multi-user water network in Southern Atacama region of Chile2 • New Joint Venture water company established. Hot Chili (80% interest) & CMP1 (20% interest) • Long lead-time items secured, including a granted maritime water concession to extract seawater
Slide 24: Huasco Water – Conceptual Basis of Study
Huasco Water – Conceptual Basis of Study1 Proposed three-stage approach aligned with Costa Fuego development plan Basis of Study - Stage 11: Establishment of sea water intake, Stage 2 Network1 principal pipeline route and infrastructure connection to supply up to 600 L/s seawater to Costa Fuego. Pot
Slide 25: Investment Highlights
Investment Highlights Costa Fuego is a large scale, low-cost, low elevation primary copper development project located in Chile High-quality, Long-life, Low-cost Near-term Copper Development Project 1 • After-tax NPV8% of US$1.10 bn and IRR of 21% based on an initial mine life of 16 years1 • Competi
Slide 26: Appendices
Appendices A new copper & water supplier is coming COMPANY PRESENTATION | www.hotchili.net.au 26
Slide 27: Board Members
Board Members Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Independent Chairman Managing Director & Chief Independent Non-Executive Executive Officer Director Roberto de Andraca Mark Jamieson Adriasola1 Non-Executive Director Non-Executive Director (Glencore Nominee) COMPANY PRESENTATION
Slide 28: Management
Management José Ignacio Silva1 Grant King Carol Marinkovich Andrea Aravena1 Kirsty Sheerin Executive Vice President – Chief Operating Officer Company Secretary Geology Manager – Chile Resource Development Chile Manager Ryan Finkelstein Marcelo Hernando1 Cristobal Julia1 Chief Financial Officer Engin
Slide 29: Key Consultants
Key Consultants Dr Steve Garwin Dr John Beeson Elizabeth Haren Chief Technical Advisor Lead Structural Geologist Independent Resource Consultant The Costa Fuego PEA was compiled by Wood Australia Pty Ltd, with support from experienced and reputable independent Qualified Persons (QPs) and Key Consult
Slide 30: 25-Bank Consensus Forecast
25-Bank Consensus Forecast Provided by National Bank Financial – Feb 2025 Broker 2025 Copper Price (US$/lb) 2026 2027 2028 Long Term Estimate Estimate Estimate Estimate Barclays $4.40 $4.80 $5.00 n.a. $5.00 Bell Potter $4.37 $4.60 n.a. n.a. $4.70 6.00 BMO $4.09 $4.20 $4.42 $4.54 $4.31 Canaccord $4.3
Slide 31: Water Fundamentals for Copper in Chile
Water Fundamentals for Copper in Chile Seawater and elevation advantage – low cost and security of supply Operational expenditures by altitude, 2028 Water stress in Chile, Share of copper Fresh water supply and demand Sources of water used in Chilean mining forecast, $ per metric ton of payable meta
Slide 32: ESG - Our People
ESG - Our People Hot Chili values and embraces diversity As an Australian company, operating in Chile and with North American stakeholders, our Board and Employees represent the places where we work. International Team Gender Diversity • 67% of Company Employees are Chilean • Women represent 28% of
Slide 33: Concentrate Specification
Copper-Gold-Silver-Molybdenum Copper-Gold-Silver-Molybdenum Concentrate Assays Concentrate Assays Element Unit Value Element Unit Value Concentrate Cu Au % ppm 26 5 Mn Na ppm ppm 98 2,392 Mo ppm 7,411 Ni ppm 82 Specification Ag Co ppm ppm 24 263 P Pb ppm ppm 154 136 Cl ppm 238 S % 32 Al2O3 % 2 Sb pp
Slide 34: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Project Mineral Resource Estimate, 26 February 2024 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported
Slide 35: Global Resource Peer Group
Company Average Project Ag Mo CuEq Reported Level Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% Processing Report Source Moz ppm Mt of Study Date Recovery Preliminary Northern MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.4 Dynasty Cu=84%, Au=73%, Pebble Economic 2021
Slide 36: Global Resource Peer Group
Global Resource Peer Group Resource benchmarking data Project Units Costa Fuego Marimaca Warintza Caravel Kharmagtai Escalones Casino Canariaco Norte Cascabel Vizcachitas Los Azules Cactus Santo Tomas Arizona Marimaca Solaris Caravel Xanadu Mines World Copper Western Copper Alta Copper Los Andes McE
Slide 37: Global Developer and Market Peer Group
Global Developer and Market Peer Group Resource benchmarking data Project Units Costa Fuego Mantos Blancos Caravel Kharmagtai Filo del Sol Escalones Santo Domingo Casino Mantoverde Canariaco Norte Copper World Cascabel Josemaria Vizcachitas Los Azules Cactus Santo Tomas Capstone Caravel Xanadu Mines
Slide 38: Global Developer and Market Peer Group (continued)
Global Developer and Market Peer Group (continued) Reference data – hyperlinks Index Company Project Hyperlink 1 Hot Chili Ltd Costa Fuego https://www.hotchili.net.au/wp-content/uploads/2024/04/NI43-101_Mineral_Resource_Estimate_20240408.pdf 2 Capstone Copper Mantos Blancos https://capstonecopper.co
Slide 39: Supplementary Information
Supplementary Information Refer to Table One in announcement ‘Hot Chili Confirms Major Cu-Au Discovery at La Verde’ dated 11 February 2025 for JORC Table One relating to drill results in this presentation. A full table of collar locations and orientations of drillholes (WGS84_19S) shown in this pres
Slide 40: Qualifying Statements
Qualifying Statements Financial Risk Management The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information are described under the heading headings “Forward Looking Statements “ and “
Slide 41: Narrated
Narrated Hot Chili Limited ACN 130 955 725 Mr Christian Easterday Overview of First Floor, 768 Canning Managing Director Costa Fuego Highway, Applecross, Western E: admin@hotchili.net.au Australia 6153 PO Box 1725, Applecross, Western Australia 6953 Graham Farrell Investor & Public Relations (Canada
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