Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (April 2022)
40 slides from Hot Chili's investor presentation, Apr 4, 2022
Slide 1: Costa Fuego: Timing is Everything
Cu Costa Fuego Timing is Everything April 2022 www.hotchili.net.au ASX: HCH I TSXV: HCH I OTCQB: HHLKF
Slide 2: Disclaimer
Disclaimer This document is for information purposes only and should not be considered a recommendation to purchase, sell or hold a security. This document does not constitute an offering memorandum or an offer or solicitation in any province or other jurisdiction in which an offer or solicitation i
Slide 3: Right Project, Right Team, Right Time
Right Project, Right Team, Right Time Rising demand and paucity of new copper supply will drive Cu prices ✓ Only low-altitude sizeable copper developer positioned for production in next 5 years $5.00 Cu $4.50 ✓ Backed by Glencore $4.00 ✓ Strong ESG credentials Cu Price (US$/lb) $3.50 ✓ Lack of new C
Slide 4: 2021 Achievements
2021 Achievements Delivered into guidance ✓ Completed 47,000m of resource upgrade drilling at Cortadera ✓ Started Costa Fuego PFS – due Q3/22 ✓ Attracted a major diversified miner (Glencore) as a core 9.96% shareholder ✓ Made final payment for 100% ownership of Cortadera ✓ Consolidated capital struc
Slide 5: Leadership – Fit For Purpose
Leadership – Fit For Purpose Chilean and exploration, permitting, project financing, construction and operating expertise Board Management Dr Nicole Adshead-Bell, Chairman Penelope Beattie, Company Secretary & CFO Appointed March 2022 Chartered CA with >20 years global experience Geologist with >25
Slide 6: Corporate Overview
Corporate Overview Top 5 shareholders total >37% ownership, fully funded for 18mths ASX: HCH I TSXV: HCH I OTCQB: HHLKF Capital Structure 3 Year Share Price Performance Issued Shares 110,177,389 Share Price A$1.39 (1 April 22) Mkt A153 M (18 March 22) Capitalisation $1.39 Mkt Capitalisation A$189 M
Slide 7: Chile – Home to Copper Giants
Chile – Home to Copper Giants Top 20 copper mines by annual production Copper is a critical metal in the global electrification movement that is forecast to drive copper demand through the next decade PFS Stage Development Study Scale (per annum) 100kt Cu, 70-80koz Au Chile is home to 7 of the 20 la
Slide 8: Costa Fuego is a Copper Super-Hub
Costa Fuego is a Copper Super-Hub Low elevation, proximal infrastructure decreases economic hurdle Top 10* Undeveloped Cu Resource (S&P) on coast of #1 Global Producer - Chile Q1 22 - Resource Upgrade On-time, In-Guidance 2.8 Mt (Ind) 2.6 Moz (Ind) 0.6 Mt (Inf) 0.4 Moz (Inf) Copper Gold * Top 10 Cu
Slide 9: Keys to Success in Copper Hub
Valentina Productora Costa Fuego Keys to Success in Copper Hub Big Copper Timing! San Antonio Grade Top 5 in 20 largest undeveloped Cu projects (non-major) Cortadera Two large-scale deposits, from Geometry surface, low strip-ratio, open pit Good recovery, clean concentrate (no arsenic), Metallurgy s
Slide 10: Next Level of Growth & Location, Location, Location
Next Level of Growth & Location, Location, Location Low altitude, infrastructure and access with 55km to port(1) +67% Ind Resource +53% HG Ind Resource (One Third of Resource Base) 156Mt @ 0.79% CuEq for 1Mt Cu & 0.85Moz Au (1) See slides 34-36 for complete Resource disclosure of the Projects Hot Ch
Slide 11: Cortadera Porphyry Discovery
Cortadera Porphyry Discovery 1.7Mt Cu & 1.8Moz Au (Ind) in 30 Months Speed of advancement demonstrates quality Cortadera Timeline ✓ Deal to acquire 100% of Cortadera in Feb/19 ✓ Delivered compelling drill results by Jul/19 ✓ Resource Estimates in Oct/20 & March/22 ✓ Largest coastal discovery in Chil
Slide 12: Cortadera – Over 92,000m drilling
Cortadera – Over 92,000m drilling Centerpiece of Costa Fuego Copper Super Hub Standout Strong Drill Drill Results Results Discovery footprint defined but not closed-off 2 diamond drill rigs active Next phase of drilling underway Results pending See ASX Announcement “Higher Grade Core Confirmed at Co
Slide 13: Cortadera - Open Pit & UG Resource
Cortadera - Open Pit & UG Resource Over 1km Vertical Copper-Gold Porphyry Extent +134% Ind Resource (1) See slide 35 for complete Resource disclosure of Cortadera Hot Chili Presentation 13
Slide 14: Cortadera's Cuerpo Porphyry
Cortadera’s Cuerpo 3 Porphyry Large High Grade Core Expanded & Upgraded to Indicated Dr Steve Garwin (SOLG & HCH) Leading HCH technical team Robust Definition of High Grade Core Ready for Mine Optimisation (Open Pit & UG) (1) See slide 35 for complete Resource disclosure of Cortadera Hot Chili Prese
Slide 15: Productora Copper-Gold Deposit
Productora Copper-Gold Deposit Upgraded Resource Estimate for Front-End Mine Schedule (1) See slide 36 for complete Resource disclosure of Productora Hot Chili Presentation 15
Slide 16: Productora – Updated and Shovel Ready
Productora – Updated and Shovel Ready Shallow High Grade Resources for First Decade of Production ➢ New resource following 18 month review of data and new mine development ➢ Material increase in high grade (+0.6% CuEq) Indicated material, as well as improved spatial continuity of mineralisation (1)
Slide 17: San Antonio Maiden Resource
San Antonio Maiden Resource First of the High Grade Satellite deposits for Costa Fuego Open pittable, +1% Cu resource from surface (1) See slide 35 for complete Resource disclosure of San Antonio Hot Chili Presentation 17
Slide 18: Step-Out Organic Growth Opportunities
Step-Out Organic Growth Opportunities Sizeable exploration drill program underway for 2022 ➢ Inaugural drill testing of multiple large-scale targets ➢ Productora - Four Targets, 1 RC rig - completed 15 holes to date, results pending Refer to ASX Announcement “Costa Fuego Lifts Growth Horizon” (17th
Slide 19: Regional Organic Growth Opportunities
Regional Organic Growth Opportunities Cortadera comprises a large porphyry cluster Cortadera Drilling underway outside and along- strike of discovery window Santiago Z Larger footprint than Cortadera Platform clearing underway Valentina 2nd HG satellite Platform clearing underway Refer to ASX Announ
Slide 20: Paucity of New Copper Discoveries
Paucity of New Copper Discoveries Cortadera is just one of two major global copper discoveries since 2016 Cortadera & Winu Hot Chili Presentation 20
Slide 21: Positioned for Development – 82% Ind
Positioned for Development – 82% Ind Costa Fuego is one of the few global copper development projects with no infrastructure or permitting impediments to timely production ➢ One of the few low-altitude, no arsenic, infrastructure heavy, major copper development projects Av CuEq% grade Av Cu% grade R
Slide 22: Re-Rating Opportunity
Re-Rating Opportunity Hot Chili has one of the most advanced copper development projects in the Americas, with one of the lowest economic hurdles Source: Pricing data is as at February 10, 2022; Company Filings; Resources normalized using following price deck: Copper US$3.00/lb, Gold US$1,700/oz, Si
Slide 23: Responsible, Respectful & Sustainable
Responsible, Respectful & Sustainable Building trust with all stakeholders Pro-active Approach ✓ Engaged Digbee ESG ✓ Implementing ESG Board Committee Environmental ✓ Leveraging existing infrastructure (port, power, roads) ✓ Foundation of low-emission Chilean grid power ✓ Aim to use high percentage
Slide 24: 2022 Catalysts
2022 Catalysts A$31M in cash, fully funded for 18 months of development & growth objectives ✓ Q1 2022: Sizeable exploration drill programme now underway, with 3 drill rigs operating ✓ Q1 2022: Concentrate off-take agreement executed 60% off-take for first 8 years of production at benchmark terms ✓ Q
Slide 25: Overlooked & Undervalued
Overlooked & Undervalued Ready to rerate in 2022 ➢ Most undervalued junior company with a material and advanced senior copper development project (PFS level) ➢ Low economic and time hurdle to development ➢ Backed by diversified major – Glencore ➢ Near-term material resource growth catalyst Q3/22 ➢ F
Slide 26: Appendix
APPENDIX Hot Chili Presentation 26
Slide 27: The Top 20 Copper Mines by Capacity
The Top 20 Copper Mines by Capacity Thousand metric tonnes copper Source: S&P Global Market Intelligence, 2022 27
Slide 28: Copper Overtakes Gold
Copper Overtakes Gold Annual Markets in 2022 28
Slide 29: Costa Fuego Benchmark Graph Detail
Costa Fuego Benchmark Graph Detail Hot Chili Presentation 29
Slide 30: Costa Fuego Benchmark Graph Detail (Cont.)
Costa Fuego Benchmark Graph Detail Cont. Hot Chili Presentation 30
Slide 31: Qualifying Statements
QUALIFYING STATEMENTS Drilling at Cortadera Hot Chili Presentation 31
Slide 32: Qualifying Statements
Qualifying Statements Scientific & Technical Information (NI 43-101) QUALIFIED PERSON AND REPORTING STANDARD The Cortadera, Productora and San Antonio MRE’s are reported to the standard of the Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”, and as such have been c
Slide 33: Qualifying Statements
Qualifying Statements Scientific & Technical Information (NI 43-101) QUALIFIED PERSON Competent Person’s Statement- Exploration Results Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limi
Slide 34: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Costa Fuego Copper-Gold Project Mineral Resource Estimate, March 2022 (using +0.25% CuEq cut-off grade) and by open pit (top), underground (middle) and total (bottom), 1 R
Slide 35: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Cortadera Deposit Mineral Resource Estimate, March 2022 (open pit, using +0.21% CuEq cut-off grade & UG using 0.30% CuEq) 1 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded
Slide 36: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Productora Deposit Mineral Resource Estimate, March 2022- reported by classification (open pit, using +0.21% CuEq cut-off grade) San Antonio Deposit Mineral Resource Estimate, March 2022reported by classification (open pit, using +0.21% CuEq cut-off grade) 1 Repo
Slide 37: Details for Significant Drilling Results
Details for Significant Drilling Results In Presentation Coordinates Hole Intersection Interval Copper Gold Silver Molybdenum Hole_ID Azim Dip North East RL Depth From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo) CRP0011D 6813925 336192.8 1027.481 45 -65 959.9 112 960 848 0.4 0.2 0.8 50 including 720 90
Slide 38: Sampling, Analysis & Data Verification
Sampling, Analysis & Data Verification A fixed cone splitter was used to create two nominal 12.5% samples (Sample "A" and "B"), along with the large bulk reject sample. The "A" sample is always taken from the same sampling chute, and comprises the primary sample submitted to the laboratory. The "B"
Slide 39: Sampling, Analysis & Data Verification (Cont.)
Sampling, Analysis & Data Verification Cont. Hot Chili has strict chain of custody security procedures for all samples sent to and from the analytical laboratories. The ALS analytical laboratory in Coquimbo (Chile) completed all sample preparation and specific gravity test work, while ALS Santiago (
Slide 40: Contact details
Hot Chili Limited ACN 130 955 725 ASX Investor Investor & Public Email: eliza@asxinvestor.com.au First Floor, 768 Canning Highway, Applecross, Western Australia 6153 Relations (Australia) PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 Harbor Access Email: Graham.Farrell@harboracc