Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (June 2025)
33 slides from Hot Chili's investor presentation, Jun 10, 2025
Slide 1: Huasco Water
ASX: HCH TSXV: HCH Huasco Water OTCQX: HHLKF Water Supply Solutions for Mining, Agriculture, and Community June, 2025 COMPANY PRESENTATION | 1 www.hotchili.net.au www.hotchili.net.au
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements Disclaimers This presentation does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili, Huasco Water or the results of the Water Supply
Slide 3: Huasco Water Project
Huasco Water Project Poised to play a pivotal role in meeting global demand for copper HW Aguas para El Huasco SpA (“Huasco Water”), a joint venture between Hot Chili Limited “HCH” (80% interest) and Compañía Minera Del Pacifico “”CMP” (20% interest) Only active maritime license with permitted acces
Slide 4: Huasco Water PFS Highlights
Huasco Water PFS Highlights Strong economics for a potentially large, multi-user water business ▪ Permitted Seawater Supply Post-Tax NPV8% Construction Capital Stage 1 Potential Seawater ▪ Multi-decade Project Life Supply US$122 M US$151 M Post-Tax IRR Payback Period 500 L/s ▪ MOU Executed, Near-ter
Slide 5: Project Area of Influence
Project Area of Influence Huasco Water is optimally located to supply the wider Huasco Valley ▪ 150 km area of strategic influence, in an area dense with undeveloped mining projects ▪ Located on a regionally significant valley, host to several communities, opportunity for further agricultural develo
Slide 6: Regional Water Demand
Regional Water Demand Chile’s copper-rich regions are also its driest Water Use in Conventional As the largest global copper producer1, Chile supplied nearly Sulphide Flotation and one-third of the copper produced in 2020 (28.5 per cent), with Leaching Operations Comminution a value of more than US$
Slide 7: Huasco Water Project - Basis of Study
Huasco Water Project - Basis of Study 1 Proposed three-stage approach aligned with Costa Fuego development plan Stage 11: Establishment of sea water intake, principal pipeline route and infrastructure connection to supply up to 500 L/s seawater to Costa Fuego. Potential Stage 21: Baseline modular re
Slide 8: Calculation of Tariffs for Economic Analysis
Calculation of Tariffs for Economic Analysis Capital and operating costs form basis of the tariff estimation Under the Huasco Water model, a potential client would pay: – Fixed water tariff – servicing capital cost repayment (paid per year) – Variable water tariff – servicing operating costs for wat
Slide 9: Stage 1 - PFS Financial Outcomes
Stage 1 - PFS Financial Outcomes Seawater supply to the Costa Fuego Copper-Gold Project Stage 1 (Costa Fuego 20-Year project) Units Value Stage 1 Forecast Cashflows (at Base Case 19% IRR) Tariff Variable Tariff US$/m³ 0.69 Fixed Annual Tariff US$M/year 33 Project Life years 20 Total Volume of Seawat
Slide 10: Stage 2 - PFS Financial Outcomes
Stage 2 - PFS Financial Outcomes1 Addition of desalinated water supply to the Huasco Water Project Stage 2 Units Value Stage 2 Forecast Cashflows (at Base Case 19% IRR) Tariff Variable Tariff US$/m³ 1.98 Fixed Annual Tariff US$M/year 327 Project Life years 22 Total Volume of Seawater Delivered Mm³ 2
Slide 11: Environment and Social Focus
Environment and Social Focus Huasco Water is committed to providing low-environmental-impact benefits to community, agriculture, and mining At the Seawater Intake: ▪ Marine environment chemical and biological baseline studies, landscape analysis and intake bathymetry completed. ▪ Screens and filters
Slide 12: Project Derisking
Project Derisking The Huasco Water PFS and ongoing studies integrate multiple workstreams to reduce project risk Water Extraction Permitting • Application to enable supply of desalinated water from existing maritime concession submitted, aided by Huasco Water’s designation as a Project of National I
Slide 13: Investment Highlights
Investment Highlights Base Case at 19% IRR achieves a strong Stage 1 outcome for both Huasco Water and Costa Fuego Projects Strong Economics • Stage 1 - Costa Fuego project seawater supply Base-case post-tax Net Present Value (NPV8%) of 1 US$122 Million and Internal Rate of Return (IRR) of 19% Long
Slide 14: Huasco Water Preliminary Feasibility Study
ASX: HCH TSXV: HCH OTCQX: HHLKF Huasco Water Preliminary Feasibility Study 31st March 2025 www.hotchili.net.au
Slide 15: Stage 1 - Study Network
Stage 1 - Study Network Supply of Seawater to the Costa Fuego Copper-Gold Project1 Stage 1 500 L/s Network (Raw Seawater) Expected Supply Volume Costa Fuego Cu-Au (HCH) Potential Client(s) Marine Infrastructure (jetty and pumping station) & Seawater Conveyance Infrastructure System (pipeline and ter
Slide 16: Stage 1 - Economics
Stage 1 – Economics Base Case at 19% IRR achieves best outcome for both Huasco Water and Costa Fuego Projects Internal Rate of Return (IRR) Project Metric Units 12% 15.5% 19% (Base Case) Fixed Water Tariff US$M/year 23 28 33 Variable Water Tariff US$/m3 0.48 0.58 0.69 Average Annual Price of Water U
Slide 17: Stage 1 - Coastal Works
Stage 1 – Coastal Works Seawater Transfer System from Coast to Costa Fuego Project Seawater Intake System Seawater Delivery Point Support Platform Intake Pipeline Access Road (~6 km to Huasco Township) Pumping Station Pipeline to Productora Site Access Jetty (~62 km) Submarine Pumps with 100 m Passi
Slide 18: Stage 1 - Seawater Conveyance
Stage 1 – Seawater Conveyance Seawater Transfer System from Coast to Costa Fuego Project Huasco ▪ Huasco Water PFS considers a 28” above-ground pipeline with two pumping stations Pumping Freirina Station ▪ Majority of surface rights for developing Maitencillo Seawater Intake System Substation key in
Slide 19: Stage 1 - Capital and Operating Costs
Stage 1 – Capital and Operating Costs Seawater Transfer System from Coast to Costa Fuego Project Stage 1 - Seawater Capital Costs Capital and Operating Costs were estimated by independent Engineering Consultants: Description Cost (US$M) Intake 19.3 ▪ Intake and indirect capital costs estimated by PR
Slide 20: Stage 2 - Study Network
Stage 2 – Study Network Establishing a Desalinated Water Supply for the Huasco Valley1 Stage 2 500 L/s - Raw Seawater Network 1,300 L/s – Desalinated Water Expected Supply Volume Costa Fuego Cu-Au (HCH) Los Colorados Iron Ore (CMP) Nueva Union Cu (Teck/Newmont) Huasco Valley Communities Potential Cl
Slide 21: Stage 2 - Economics
Stage 2 - Economics Robust economics for a combined seawater and desalinated water supply project Internal Rate of Return (IRR) Project Metric Units 12% 15.5% 19% (Base Case) Fixed Water Tariff US$M/year 243 283 327 Variable Water Tariff US$/m3 1.47 1.71 1.98 Average Annual Price of Water 1 US$/m3 6
Slide 22: Stage 2 - Intake, Desalination and Water Conveyance
Stage 2 – Intake, Desalination and Water Conveyance Upgrade of system with increased seawater extraction, desalination plant, and expanded conveyance route ▪ Upgrade of the marine works (utilising the same structure) to include seawater Stage 2 – Upgraded Seawater Intake System1 intake for desalinat
Slide 23: Stage 2 - Capital and Operating Costs
Stage 2 – Capital and Operating Costs Upgrade of system with increased seawater extraction, desalination plant, and expanded conveyance route Stage 2 - Capital Cost Summary Imported National Construction and Total Cost Code Commodity Supply Supply Assembly US$M US$M US$M US$M Capital and Operating C
Slide 24: Stage 3 - Study Network
Stage 3 – Study Network Potential Expansion of the Desalinated Water Supply Network1 Stage 3 Network 2,300 L/s – Desalinated Water Expected Supply Volume Los Colorados Iron Ore (CMP) Nueva Union Cu (Teck/Newmont) Valeriano Cu-Au (ATEX Resources) Huasco Valley Communities Potential Client(s) Other no
Slide 25: Stage 3 - Economics
Stage 3 - Economics Extension of water network to additional Projects higher in the Andes Internal Rate of Return (IRR) Project Metric Units 12% 15.5% 19% (Base Case) Fixed Water Tariff US$M/year 312 359 410 Variable Water Tariff US$/m3 1.78 2.04 2.33 Average Annual Price of Water 1 US$/m3 6.93 7.98
Slide 26: Stage 1 & 2 - Executed MOUs with Potential Clients
Stage 1 & 2 – Executed MOUs with Potential Clients MOUs signed for 500 L/s supply in Stage 1, 665 L/s in Stage 2, and 165 L/s in Stage 3 Costa Fuego Agrosuper SA Nutram SpA (Hot Chili Limited) Stage 1 Potential Supply – 500 L/s Stage 2 Potential Supply – 150 L/s Stage 2 Potential Supply – 15 L/s Sta
Slide 27: Stage 2 & 3 - Potential Mining Clients
Stage 2 & 3 – Potential Mining Clients Desalinated Water for globally significant mining projects the Huasco Valley Los Colorados Nueva Union Valeriano Vicuña District (CMP) (Teck/Newmont) (ATEX) (BHP/Lundin) Stage 2 Potential Supply – 200 L/s Stage 2 Potential Supply – 840 L/s Stage 2 Potential Sup
Slide 28: Huasco Water Project Opportunities
Huasco Water Project Opportunities The PFS process identified multiple strategic opportunities Significant Growth Potential in the Huasco Valley Pioneering Initiative Region1,2,3,4 The project benefits from an existing maritime concession, significantly reducing lead times and regulatory challenges.
Slide 29: Stage 1 - Development Roadmap
Stage 1 - Development Roadmap Project roadmap1 to ensures alignment and synergies between Huasco Water and Costa Fuego Stage 1 of the project will proceed to the next stage of engineering design and analysis, as detailed in the Stage 1 Development Roadmap 1 Timelines are preliminary and subject to c
Slide 30: Stage 2 - Development Roadmap
Stage 2 - Development Roadmap Current roadmap1 is based on the timings for the southern route Continued potential client engagement remains a priority, with the decision to initiate Definitive Feasibility Studies for Stage 2 of the Project reliant on securing agreements with organisations and commun
Slide 31: Study Basis - Client Base
Study Basis - Client Base Huasco Water is the only company with permitted access to supply industrial scale seawater to the Huasco Valley region. Huasco Water is also advanced in its permitting application to enable its existing maritime concession to be upgraded to provide desalinated water. The cu
Slide 32: Basis for Financial Forecasts
Basis for Financial Forecasts The basis for forecasting the tariff (or price) that clients pay for water supply is as follows: Our independent water industry expert report (PFS engineering report) outlined engineering designs for water transmission for Stage 1, Stage 2 and Stage 3 and designs were c
Slide 33: Hot Chili Limited
Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004 COMPANY PRESENTATION | 33 www.hotchili.net.au