Hot Chili Limited · ASX:HCH
Hot Chili — BMO Florida (February 2023)
32 slides from Hot Chili's conference presentation, February 2023
Slide 1: Copper: THE Critical Commodity
www.hotchili.net.au ASX: HCH I TSXV: HCH I OTCQX: HHLKF Copper THE Critical Commodity Size, Growth & Development Optionality at Low Elevation in Chile February 2023
Slide 2: 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 3: Opportunity
Opportunity Size, growth and copper development optionality at low elevation in Chile Copper Optionality & Growth By-Product Metal & Economic Leverage • One of the top 10 largest, low risk, undeveloped copper • Molybdenum resource: 67.4kt Mo (in 725Mt) indicated resources (S&P 2022) with 2.8Mt Cu (i
Slide 4: Copper – THE Critical Commodity
Copper – THE Critical Commodity Looming structural supply deficit means copper incentive price must escalate Cu Inventories At Critical Levels Declining Cu Production Grades Committed NEW Cu Capacity & Lack of Major New Discoveries Lacking Fiscal & Geopolitical Uncertainty Increasing Cu Demand From
Slide 5: Corporate Summary – Fit For Purpose Board & Management
Corporate Summary – Fit For Purpose Board & Management Recent North American secondary listings provide platform for re-rate to Nth American peer group Capital Structure Board Investors by Type Exchange ASX/TSXV: HCH I OTCQX: HHLKF Independent Chairman Dr Nicole Adshead-Bell Glencore, 9% Managing Di
Slide 6: Costa Fuego – Track Record of Consolidation & Exploration Success
Costa Fuego – Track Record of Consolidation & Exploration Success Decade of commitment to acquisition, growth and future development de-risking Deal Resource Infrastructure Option agreement with AMSA and Update Port negotiation consolidation of Productora MRE and Resource Update begins Cortadera Wes
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 ✓ Opportunit
Slide 8: Track Record of Growth Via Consolidation & Discovery
Track Record of Growth1 Via Consolidation & Discovery Increased indicated metal by 1,500% over 11 years, 82% of total resource now in indicated category 2022 2020 3.41 Mt 2011 2.06 Mt CuEq* Indicated 0.21 Mt CuEq* Resource CuEq* Inferred Resource 0.73 Mt 0.34 Mt 1.48 Mt CuEq* CuEq* CuEq* Productora
Slide 9: Bulk Tonnage Copper-Gold Resources at Cortadera & Productora
Bulk Tonnage Copper-Gold Resources at Cortadera & Productora Open pit and underground cave development potential 14km apart – central processing strategy Cuerpo 2 Cuerpo 3 Cuerpo 1 *CuEq takes into account assumed commodity prices and average metallurgical recoveries from testwork. See slides 28 and
Slide 10: AMSA Option & New Leases – Low Cost & High Value Growth Potential
AMSA Option1 & New Leases2 – Low Cost & High Value Growth Potential Larger porphyry cluster potential at Cortadera, 10,000m drill program underway Fourth Porphyry Confirmed at Cortadera LCD0001 (56m depth) grading 1.0% Cu, 0.7g/t Au, 4.6g/t Ag New Drill Results from LCD00013 120m grading 0.5% CuEq*
Slide 11: Cortadera Resource Upgrade On-Track
Cortadera Resource Upgrade On-Track Ongoing Cuerpo 1 drilling confirms depth potential Cortadera Cu envelopes: Medium Grade (MG) is +0.3% Cu, High Grade (HG) is +0.4% Cu & Very High Grade (VHG) is *0.6% Cu *CuEq takes into account assumed commodity prices and average metallurgical recoveries from te
Slide 12: Future Growth Pipeline
Future Growth Pipeline Strategic land package, multiple untested targets 1 Cortadera Porphyry Cluster ✓ 5 new targets being drill tested ✓ Large-scale resource growth potential 2 Corroteo ✓ Potential “look-alike” Productora- style bulk copper-gold target ✓ Clearing permit approved 3 High Grade Satel
Slide 13: One of the World's Largest Undeveloped Copper Projects
One of the World’s Largest Undeveloped Copper Projects (Not Controlled by A Major Mining Company) Low-altitude, no arsenic, infrastructure-rich, with no infrastructure or permitting impediments 1. Graph constructed from public information (used without consent of the source) and normalized using the
Slide 14: Deeply Undervalued – ASX Listing Discount?
Deeply Undervalued – ASX Listing Discount? Significant valuation gap between ASX and TSX copper developers Primary Listing TSX TSX Average Mkt ASX Cap./lb M&I CuEq US$0.125/lb LSE TSXV TSXV TSX TSX See slide 22 for details of project information and Market Cap./lbCuEq displayed in the above Costa Fu
Slide 15: ESG Strategy – Core to Creating Value Per Share
ESG Strategy – Core to Creating Value Per Share Contributing to Net Zero with copper – The Critical Commodity E S G ENVIRONMENTAL SOCIAL GOVERNANCE ✓ Minimize environmental footprint by ✓ Chilean focused goods and services and ✓ Transparency, accountability and integrity leveraging off existing infr
Slide 16: Investment Highlights – Deeply Undervalued
Investment Highlights – Deeply Undervalued Copper leverage + growth + disciplined development strategy = pathway to relative value re-rate Copper Growth Copper Optionality • Track record of exploration success and • One of top 10 largest, low-risk, smart acquisitions undeveloped Cu deposits (S&P, 20
Slide 17: Appendices
Appendices Hot Chili Corporate Presentation, February 2023 17
Slide 18: Leadership Strategy – Fit For Purpose Board & Management
Leadership Strategy – Fit For Purpose Board & Management Mining cycle and Chilean expertise Independent Chairman Managing Director & CEO Independent Director Non-Executive Director Non-Executive Director Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Roberto de Andraca Adriasola Mark Jamies
Slide 19: Copper Demand & Supply Gap
Copper Demand & Supply Gap Supply gap is real – size depends on speed to Net Zero Forecast Demand Under IEA NZE Forecast Copper Supply Gap Scenario Source: Glencore Source: https://www.woodmac.com/horizons/red-metal-green-demand-coppers-critical-role-in-achieving-net-zero/ Hot Chili Corporate Presen
Slide 20: Primary Copper Supply – Going Down In Every Scenario
Primary Copper Supply – Going Down In Every Scenario Falling production in even most optimistic scenario, excluding delays related to permitting, civil unrest and geopolitical instability Falling Capital Commitments Falling Production Source: S&P Market Intelligence Source: Glencore Hot Chili Corpor
Slide 21: Government Intervention in Permitting New Copper Projects Continues
Government Intervention in Permitting New Copper Projects Continues Global challenges to permitting new mines, US alone has stopped or delayed Resolution, Twin Metals, Pebble, Rosemont, Ambler/Artic Copper Projects Sanctioned Since 2007 Source: Wood Mackenzie Q2 2022, LME Hot Chili Corporate Present
Slide 22: HCH Peer Group
HCH Peer Group Junior companies with copper development projects in the Americas Western Marimaca Solaris Regulus Los Andes Company Filo Mining Hot Chili SolGold Copper and Copper Resources Resources Copper Gold Exchange TSX TSX TSX TSXV ASX/TSXV TSXV TSX/LSE TSX Warintza/ Project Marimaca Filo del
Slide 23: Costa Fuego Benchmark Graph Detail
Costa Fuego Benchmark Graph Detail 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 Preliminary 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%, Econ
Slide 24: Costa Fuego Benchmark Graph Detail (continued)
Costa Fuego Benchmark Graph Detail (continued) 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 Fuego Costa Ind 725 0.38 2.7 0.11 2.6 0.5 10 93 0.07 67 0.47 3.4 Cu=83%, Au=51%, Minera
Slide 25: 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 26: Qualified Person
Qualified Person Scientific & Technical Information (NI 43-101) Competent Person’s Statement – Exploration Results & Presentation 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 Limited wh
Slide 27: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego 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 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortader
Slide 28: Notes to Mineral Resource Disclosure – Cortadera
Notes to Mineral Resource Disclosure – Cortadera 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
Slide 29: Notes to Mineral Resource Disclosure – Productora & San Antonio
Notes to Mineral Resource Disclosure – Productora & San Antonio 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 2022 - reported by classification (open pit, using +0
Slide 30: Sampling, Analysis & Data Verification
Sampling, Analysis & Data Verification For Hot Chili Limited samples, 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 submit
Slide 31: 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 32: Hot Chili Limited
Hot Chili Limited ACN 130 955 725 Harbor Access Email: Graham.Farrell@harboraccessllc.com First Floor, 768 Canning Highway, Applecross, Western Investor & Public Email: Jonathan.Paterson@harboraccessllc.com Australia 6153 Relations (Canada) PO Box 1725, Applecross, Western Australia 6953 P: +61 8 93