Hot Chili Limited · ASX:HCH
Hot Chili — Precious Metals Summit 2023
37 slides from Hot Chili's conference presentation, Sep 12, 2023
Slide 1: ASX Announcement: Costa Fuego PEA Presentation – Precious Metals Summit
ASX Announcement Tuesday 12th September 2023 Costa Fuego PEA Presentation – Precious Metals Summit – Beaver Creek Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to release an updated corporate presentation to be used at the Precious Metals Summit being
Slide 2: Costa Fuego: Size, Growth & Development
For personal use only ASX: HCH TSXV: HCH OTCQX: HHLKF Costa Fuego Size, Growth & Development Optionality at Low Elevation in Chile Beaver Creek, Colorado – September 12-15, 2023 COMPANY PRESENTATION | 1 www.hotchili.com.au
Slide 3: Disclaimer & Forward-Looking Statements
Disclaimer & Forward-Looking Statements Disclaimer This Presentation (the "Presentation") is to be used by the recipient for informational purposes only and does not purport to be complete or contain all of the information that may be material to the current or future business, operations, financial
Slide 4: 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 PEA - Strong Low Risk – Elevation, Next Growth Phase Copper Resource Economics Infrastructure & Up-Scale Strategy For personal use only
Slide 5: Copper: The Critical Commodity
Copper THE Critical Commodity For personal use only Copper inventories at Fiscal & geopolitical critical levels with deficit uncertainty projected to continue Declining copper production Increasing copper demand grades & lack of major from NET ZERO mandates new discoveries Committed NEW copper Mater
Slide 6: US$15 Million Investment Agreement with Osisko Gold Royalties
US$15 Million Investment Agreement with Osisko Gold Royalties • Execution of binding Investment Agreement for US$15 million, subject to Closing1 For personal use only • 1% Net Smelter Return (NSR) royalty on copper and 3% NSR royalty on gold • Equivalent to a 1.12% CuEq* NSR royalty across payable m
Slide 7: Corporate Capital Structure and Investors by Type
Investors by Type Corporate Capital Structure (5th September 2023) ASX/TSXV: HCH Glencore, 9% Blue Spec, 6% Overview Exchange Shares Outstanding OTCQX: HHLKF 119.4 M GS Group, 5% Insiders, 1% For personal use only Options & Performance Rights 20 M Retail, 56% Institutional 23% Osisko Investment Cash
Slide 8: 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 For personal use only ✓ Secured electrical connectio
Slide 9: Copper Price Scenarios
Copper Price Project Metric Units Base Lower Upper (US$3.50/lb) (US$3.85/lb) (US$4.20/lb) For personal use only NPV8% US$M 1,046 1,540 2,029 Pre-Tax IRR % 19% 24% 29% Copper Price Post-Tax NPV8% IRR US$M % 733 17% 1,100 21% 1,463 25% Scenarios Annual Average Revenue Annual Average EBITDA US$M US$M 7
Slide 10: 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% For personal use only US$1.10 B US$1.54 B 112 kt CuEq¹ (or 248 Mlbs CuEq) Post-Tax IR
Slide 11: 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 (Price,Recovery,Grade) , For personal
Slide 12: Capital Intensity
Capital Intensity Peer Benchmark – Capital Intensity & Average Annual Copper Equivalent* Production For personal use only Sphere size represents projected Life of Mine Average Annual CuEq* Production. Grey spheres contain majority Inferred material in study schedule. * The copper-equivalent (CuEq) a
Slide 13: Ratio of Post-tax NPV8%/Start-up Capital
Ratio of Post-tax NPV8%/Start-up Capital Peer Benchmark – Normalised at US$3.85/lb Cu For personal use only Sphere size represents projected life of mine average annual CuEq* production. Grey spheres include projects which are not reported at an 8% Discount Rate (i). The projects Hillside and Carave
Slide 14: World's Largest Undeveloped Copper Mineral Resources
World's Largest Undeveloped Copper Mineral Resources Peer Benchmark – Projects Not Controlled by a Major Mining Company For personal use only 3.4 Mt CuEq* Low Med igh The Global Resource Peer Group of Mineral Resources were selected on the following basis: Top 20 largest global primary copper Minera
Slide 15: Market Valuation of Measured & Indicated Copper Resources
Market Valuation of Measured & Indicated Copper Resources Peer Benchmark - Market Capitalisation / Measured & Indicated CuEq* Mineral Resources (US¢/lb) l M I Cu Increasing Market Valuation For personal use only Filo 79.56 S l Company Average 8.79 Market Cap Weighted Average 4.17 The Global Market R
Slide 16: Market Valuation of Development Study Project NPV
Market Valuation of Development Study Project NPV Peer Benchmark – Ratio of Market Capitalisation / Post-Tax NPV8% – Normalised at US$3.85/lb Cu PEA Study PFS/DFS Study 8% Increasing Market Valuation For personal use only Ra o of Market Cap Filo 1.61 Company Average 0.25 Weighted Average 0.22 The Gl
Slide 17: Elevation and Water Permits for Copper Development Projects
Elevation and Water Permits for Copper Development Projects Peer Benchmark – Elevation above sea level and Water Permits (Maritime or Terrestrial) Water Permit Approved No Water Permit , For personal use only , leva on (masl ) Increasing Elevation Average Elevation 740m asl Maritime Concession Grant
Slide 18: 30,000m Drilling Program Underway
30,000m Drilling Program Underway Next Growth Phase & Up-Scale Strategy Cortadera Porphyry Expansion Targets Costa Fuego Cross section Growth Pipeline Dyke For personal use only Corridor 1.3km 500mRL US$3.30/lb Cu pits US$3.90/lb Cu pit untested Projected IP Conductivity anomaly untested Long sectio
Slide 19: Environment, Social and Governance Focused
Environment, Social and Governance Focused Over a Decade of Responsible and Respectful Investment 2 Environment 3 Social Energy • Connection to Chilean national • Funding of orphanages in For personal use only grid at Maitencillo substation Vallenar and Freirina • Able to use up to 100% • Providing
Slide 20: Project Roadmap
Project Roadmap Developing the Costa Fuego Project into an Operating Asset For personal use only 2023 2024 2025 2026 Delivery of Preliminary Delivery of Mineral Resource Upgrade Delivery of Definitive Economic Assessment Pre-Feasibility Study (H1 2025) Feasibility Study (Q2 2023) (H2 2024) (H1 2026)
Slide 21: Appendices
Appendices For personal use only A new copper supplier is coming COMPANY PRESENTATION | 20 www.hotchili.com.au
Slide 22: Board
Board Members For personal use only Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Independent Chairman Managing Director & Chief Independent Non-Executive Director Executive Officer Roberto de Andraca Adriasola1 Mark Jamieson Non-Executive Director Non-Executive Director (Glencore Nominee)
Slide 23: Management
Management For personal use only José Ignacio Silva1 Grant King Penelope Beattie Executive Vice President – Chile Chief Operating Officer Company Secretary & Chief Financial Officer Andrea Aravena1 Kirsty Sheerin Geology Manager – Chile Resource Development Manager COMPANY PRESENTATION | 22 1 Chilea
Slide 24: Key Consultants & PEA Contributors
Key Consultants & PEA Contributors For personal use only Dr Steve Garwin Dr John Beeson Chief Technical Advisor Lead Structural Geologist The Costa Fuego PEA was compiled by Wood Australia Pty Ltd, with support from experienced and reputable independent Qualified Persons (QPs) and Key Consultants, b
Slide 25: 27-Bank Consensus Forecast
27-Bank Consensus Forecast Copper Price (US$/lb) Provided by National Bank Financial - 2023 Broker 2023 2024 2025 2026 2027 Estimate Estimate Estimate Estimate Estimate Long Term Barclays $3.70 $3.15 $3.25 $3.40 n.a. n.a. Bell Potter $3.64 $4.00 $4.08 n.a. n.a. n.a. BMO $3.57 $3.51 $3.63 $3.97 n.a.
Slide 26: 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 forecast, Water stress Share of copper Fresh water supply and demand Sources of water used in Chilean mining $ per metric ton of payable metal in Chile
Slide 27: New Material Copper Supply
New Material Copper Supply FS Construc on Ramp up A Construc on pansion Ramp up FS FS Construc on FS For personal use only Construc on Ramp up FS FS plora on ecline Construc on Construc on A FS FS Construc on Spence rowth Op on elayed Ramp up A FS FS Construc on ater ermit FS Construc on elayed Cons
Slide 28: Concentrate Specification Defined by Five Locked-Cycle Tests
Copper-Gold-Silver-Molybdenum Copper-Gold-Silver-Molybdenum Concentrate Assays Concentrate Assays Element Unit Value Element Unit Value Concentrate For personal use only Cu % 26 Mn ppm 98 Au ppm 5 Na ppm 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
Slide 29: Global Resource Peer Group Data
Mo Company Project Cu Au Au Ag Ag Mo Mo CuEq CuEq Average Processing Reported Level of Report Class Mt Cu% pp Recovery Study Date Report Source Mt g/t Moz g/t Moz Mt kt % Mt m Northern Preliminary Dynasty Pebble MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.4 Cu=84%, Au=73%, Economic 202
Slide 30: Global Resource Peer Group Data (continued)
Company Project Ag Mo Average Processing Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Report Source Moz ppm Recovery Study Date Ind Oxide 309 0.32 1.0 0.31 3.1 2.7 27 0.50 1.5 Filo Mining Oxide: Cu=82%, Filo del Sol Inf Oxide 95 0.25 0.2 0.31 1.0 2.2 7 0
Slide 31: Global Developer and Market Peer Group
Global Developer and Market Peer Group Benchmarking Data Project Units Costa Fuego Hillside Mantos Blancos Caravel Kharmagtai Filo del Sol Escalones Santo Domingo Casino Mantoverde Canariaco Norte Copper World Cascabel Josemaria Vizcachitas Los Azules Caravel Minerals Western Copper Lundin Mining Lo
Slide 32: Global Developer and Market Peer Group: Resource Benchmarking Data
Global Developer and Market Peer Group Resource Benchmarking Data (continued) Canariaco Warintza/La Project Units Costa Fuego Hillside Caravel Kharmagtai Filo Escalones Casino Cascabel Vizcachitas Los Azules Marimaca Antakori Norte Verde Western Rex Caravel Xanadu Filo Mining World Alta Copper Los A
Slide 33: Global Developer and Market Peer Group: Reference Data
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/2022/05/NI-43-101-Costa-Fuego-Resources-FINAL.pdf https://static1.squarespace.com/static/5dcb886c7d6813437e9216a8/
Slide 34: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Copper-Gold Project Mineral Resource Estimate, March 2022 Costa Fuego Open Pit Resource Grade Contained Metal 7 Classification Tonnes CuEq Cu Au Ag Mo Copper Eq Copper Gold Silver Molybdenum 7 (+0.21% CuEq ) (Mt) (%) (%) (g/t) (g/t) (ppm
Slide 35: Qualifying Statements
Qualifying Statements National Instrument 43-101 (Canadian Reporting Standard) Joint Ore Reserves Committee Code (JORC) 2012 (Reporting Standard ASX) This PEA is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic The PEA referred
Slide 36: For personal use only
For personal use only COMPANY PRESENTATION | 35 www.hotchili.com.au
Slide 37: Full Version of PEA Presentation
Full Version of PEA Presentation For personal use only Mr Christian Easterday Hot Chili Limited Managing Director Narrated ACN 130 955 725 E: admin@hotchili.net.au Overview of First Floor, 768 Canning Highway, Applecross, Western Australia 6153 Cost Fuego PO Box 1725, Applecross, Harbor Access Weste