Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (February 2022)
37 slides from Hot Chili's investor presentation, February 2022
Slide 1: Costa Fuego: Timing is Everything
Cu Costa Fuego Timing is Everything February 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 Murray Black, Chairman Penelope Beattie, Company Secretary & CFO 2nd largest shareholder, >44 years global exploration and Chartered CA with >20 years global exp
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 109,657,647 Share Price A$1.54 (11 Feb 22) Mkt A169 M (11 Feb 22) Capitalisation $1.54 Mkt Capitalisation A$208 M (fu
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 1.7 Mt (Ind) 1.5 Moz (Ind) 1.2 Mt (Inf) 1.2 Moz (Inf) Copper Gold * Top 10 Cu Resource/Reserve (Active), at PFS level or abo
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: Location, Location, Location
Location, Location, Location Low altitude, infrastructure and access with 55km to port(1) Cortadera (100%) (1) See slides 32-34 for complete Resource disclosure of the Projects Hot Chili Presentation 10
Slide 11: Cortadera – Discovery to Resource in Months
Cortadera – Discovery to Resource in 15 Months Speed of advancement demonstrates quality Cortadera Timeline ✓ Deal to acquire 100% of Cortadera in Feb/19 ✓ Delivered compelling drill results by Jul/19 ✓ Maiden Resource Estimate Oct/20 ➢ Material Resource Upgrade due in Q1/22 DD Pre-collar drilling,
Slide 12: Cortadera – THEN
Cortadera – THEN Major new Cu-Au discovery ➢ Big porphyry system from surface October 2020 ➢ +52,000m drilling since maiden resource ➢ 2 diamond drill rigs operating, 4 shifts per day (currently) ➢ Dr Steve Garwin (SOLG) leading HCH technical team FJOD-10 (52-54m), 1.3% Cu, 0.64g/t Au Refer to ASX A
Slide 13: Cortadera – NOW
Cortadera – NOW Updated copper model released in February 2022 Standout Strong Drill Drill Results Results Deposit footprint expanded 2 diamond drill rigs active New development drilling results pending See ASX Announcement “Higher Grade Core Confirmed at Cortadera” (9 th February 2022) Hot Chili Pr
Slide 14: Cortadera Copper Model – THEN
Cortadera Copper Model – THEN Three main zones of mineralization identified Cortadera Resource(1) M+I 183Mt @ 0.49% CuEq, 0.7Mt(Cu), 0.9Moz (Au), 8kt(Mo) Inf. 267Mt @ 0.44% CuEq, 0.9Mt(Cu), 1.0Moz(Au), 19kt(Mo) High Grade Core (Ind) 104Mt grading 0.74% CuEq (0.6% Cu, 0.22g/t Au) (1) See slide 33 for
Slide 15: Cortadera Copper Model – NOW
Cortadera Copper Model – NOW Linked three main mineralized zones, identified new high grade domain Drilling Impact Drilling Impact All three porphyries linked New higher grade domain (+0.6% Cu) New high grade copper oxides Upgraded resource estimate categorisation See ASX Announcement “Higher Grade
Slide 16: Drill-Bit Resource De-Risking
Drill-Bit Resource De-Risking Achieved 126% increase in drilled metres ahead of Cortadera Q1/22 resource update Drilling Impact Drilling Impact Expansion of Cuerpo 3 High Grade Core Stronger Geological porphyry model Strong continuity over 1,200m depth extent from surface See ASX Announcement “Highe
Slide 17: Step-Out Organic Growth Opportunities
Step-Out Organic Growth Opportunities Sizeable exploration drill program planned for 2022 ➢ Inaugural drill testing multiple large-scale targets ➢ Productora Central – 1 RC rig, completed 6 holes to date, results pending Refer to ASX Announcement “Costa Fuego Lifts Growth Horizon” (17th Sept 2021).
Slide 18: Regional Organic Growth Opportunities
Regional Organic Growth Opportunities Cortadera comprises a large porphyry cluster Cortadera Drilling planned outside and along- strike of discovery window Santiago Z Larger footprint to Cortadera Drill access approval received Cortadera North Look-alike target being advanced Refer to ASX Announceme
Slide 19: 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 19
Slide 20: Positioned for Development
Positioned for Development 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 Reporting C
Slide 21: 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 HCH.V NWST.V REG.V WRN.TO MARI.TO LA.V JOSE.TO SOLG.TO SLS.TO FIL.TO $0.208 $0.169 $0.154 Average Mkt Cap/CuEq (US$/lb): $0.066 $0.022 $0.033 $0.026 $0.01
Slide 22: 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 23: 2022 Catalysts
2022 Catalysts A$34M 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: Costa Fuego material resource upgrade ➢ Q1 2022: Port access definitive agreement ➢ Q1 2022: Concentrate of
Slide 24: 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 Q1/22 ➢ F
Slide 25: Appendix
APPENDIX Hot Chili Presentation 25
Slide 26: 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 26
Slide 27: Copper Overtakes Gold
Copper Overtakes Gold Annual Markets in 2022 27
Slide 28: Costa Fuego Benchmark Graph Detail
Costa Fuego Benchmark Graph Detail Hot Chili Presentation 28
Slide 29: Costa Fuego Benchmark Graph Detail Cont.
Costa Fuego Benchmark Graph Detail Cont. Hot Chili Presentation 29
Slide 30: Qualifying Statements
QUALIFYING STATEMENTS Drilling at Cortadera Hot Chili Presentation 30
Slide 31: Qualifying Statements
Qualifying Statements Scientific & Technical Information (NI 43-101) QUALIFIED PERSON All technical information in this document has been prepared by or under the supervision of Grant King, Chief Operating Officer of the Company. Mr. King is the "qualified person" for the purposes of NI 43-101. FURT
Slide 32: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure The Cortadera Technical Report and the Productora Technical Report referred to above are subject to certain assumptions, qualifications and procedures described therein. Reference should be made to the full text of the technical reports, which have been filed wit
Slide 33: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Productora Mineral Resource Summary - reported by classification (open pit, using +0.25% CuEq cut-off grade), 28th October 2021 Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in
Slide 34: Details for Significant Drilling Results In Presentation
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 35: 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 36: 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 37: 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