Hot Chili Limited · ASX:HCH
Hot Chili — Vancouver Resource Investment Conference 2025
38 slides from Hot Chili's conference presentation, Jan 17, 2025
Slide 1: Size, Growth & Development – Optionality at Low Elevation in Chile
For personal use only ASX: HCH TSXV: HCH OTCQX: HHLKF Size, Growth & Development Optionality at Low Elevation in Chile COMPANY PRESENTATION | 1 January 19 to 20, 2025 www.hotchili.net.au Vancouver Convention Centre
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: 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 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: Corporate Capital Structure
Corporate Capital Structure INVESTORS BY TYPE Glencore Overview ASX/TSXV: HCH 7.5% GS Group Exchange OTCQX: HHLKF 5.7% Blue Spec Shares Outstanding 151.4 M 5.5% Insiders For personal use only Retail, 49.3% 0.7% Options & Performance Rights 9.1 M Fully funded into H2 Cash A$25.7 M (as of 30 September
Slide 6: 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 For personal
Slide 7: Costa Fuego Indicated Resource Increased
Costa Fuego Indicated Resource Increased to 798 Mt Over 85% of Costa Fuego’s contained CuEq metal classified as Indicated Oblique Long-Section View of Cortadera – Looking North-East Costa Fuego Mineral Resource update (26 February 2024): • 6% increase in contained CuEq metal for the total Indicated
Slide 8: 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 3.6 Mt CuEq* The Global Resource Peer Group of Mineral Resources were selected on the following basis: Top 20 largest global primary copper Mineral Resources
Slide 9: 6,000m Drilling Programme Underway at La Verde
6,000m Drilling Programme Underway at La Verde First Results Confirm Significant Copper-Gold Porphyry – 202m grading 0.6% Copper & 0.3g/t Gold from 70m HCH Domeyko Landholding N For personal use only As at 18th Dec 2024 La Verde COMPANY PRESENTATION | www.hotchili.net.au 9 1See Announcement ‘Hot Chi
Slide 10: Large Porphyry Cu-Au Deposit Emerging at La Verde
Large Porphyry Cu-Au Deposit Emerging at La Verde Comparable to Cortadera Cuerpo 3 Porphyry Footprint – Cornerstone of HCH 798Mt Indicated Mineral Resource • Located underneath shallow gravels For personal use only • High gold to copper ratios in first results • First-pass RC drill programme expande
Slide 11: 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% 112 kt CuEq¹ For personal use only US$1.10 B US$1.54 B (or 248 Mlbs CuEq) Post-Tax IR
Slide 12: 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) 4,500 60% Copper Revenue (Price,Recovery,Grade) 4,046
Slide 13: Capital Intensity
Capital Intensity Peer benchmark – capital intensity and average annual copper equivalent* production Measured & Indicated Resource (M&I) >50% Measured & Indicated Resource (M&I) <50% Costa Fuego (85% M&I Resource) For personal use only Hot Chili Ltd High Sphere size represents projected Life of Min
Slide 14: Elevation & Water Permits for Copper Development Projects
Elevation & Water Permits for Copper Development Projects Peer benchmark – elevation above sea level and water permits (maritime or terrestrial) Water Permit Approved No Water Permit Filo del Sol 4,000 Los Azules Escalones Canariaco For personal use only Norte 3,000 Elevation (masl*) Increasing Elev
Slide 15: Market Valuation of Measured & Indicated Copper Resources
Market Valuation of Measured & Indicated Copper Resources Peer benchmark – market capitalisation / M&I CuEq* mineral resources (US¢/lb) Increasing Market Valuation For personal use only Filo 32.90 Company Average 4.56 Weighted Average 2.92 The Global Market Resource Peer Group of market-listed compa
Slide 16: Environment, Social & Governance Focused
Environment, Social & Governance Focused Over a decade of responsible and respectful Investment 2 Environment 3 Social Energy • Connection to Chilean national • Funding of orphanages in grid at Maitencillo substation Vallenar and Freirina For personal use only • Able to use up to 100% • Providing so
Slide 17: Huasco Water
Huasco Water Huasco Water plans to construct a multi-user water network in Southern Atacama region of Chile2 • New Joint Venture water company established. Hot Chili (80% interest) & CMP1 (20% interest) • Long lead-time items secured, including a granted maritime water concession to For personal use
Slide 18: Huasco Water – Conceptual Basis of Study
Huasco Water – Conceptual Basis of Study 1 Proposed three-stage approach aligned with Costa Fuego development plan Basis of Study - Stage 11:Establishment of sea water intake, principal Stage 2 Network1 pipeline route and infrastructure connection to supply minimum 600 L/s seawater to Costa Fuego. F
Slide 19: Project Roadmap
Project Roadmap Developing the Costa Fuego Project into an operating asset H1 2024 H2 2024 2025 2026 For personal use only Mineral Resource Update Development Study & Delivery of Costa Fuego PFS Delivery of Definitive Complete - Q1 2024 Resource Growth Activities (Q1 2025) Feasibility Study (Throu
Slide 20: Investment Highlights
Investment Highlights Costa Fuego is a large scale, low-cost, low elevation primary copper development project located in Chile High-quality, Long-life, Low-cost Near-term Copper Development Project 1 • After-tax NPV8% of US$1.10 bn and IRR of 21% based on an initial mine life of 16 years1 • Competi
Slide 21: Appendices
Appendices For personal use only A new copper & water supplier is coming COMPANY PRESENTATION | www.hotchili.net.au 21
Slide 22: Board
Board Members For personal use only Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Independent Chairman Managing Director & Chief Independent Non-Executive Director Executive Officer Roberto de Andraca Adriasola1 Mark Jamieson Non-Executive Director Non-Executive Director (Glencore Nominee)
Slide 23: Management
Management For personal use only José Ignacio Silva1 Grant King Carol Marinkovich Andrea Aravena1 Kirsty Sheerin Executive Vice President – Chile Chief Operating Officer Company Secretary Geology Manager – Chile Resource Development Manager Ryan Finkelstein Marcelo Hernando1 Cristobal Julia1 Chief F
Slide 24: Key Consultants
Key Consultants For personal use only Dr Steve Garwin Dr John Beeson Elizabeth Haren Chief Technical Advisor Lead Structural Geologist Independent Resource Consultant The Costa Fuego PEA was compiled by Wood Australia Pty Ltd, with support from experienced and reputable independent Qualified Persons
Slide 25: Bank Consensus Copper Price Forecast
24-Bank Consensus Forecast Provided by National Bank Financial – Feb 2024 Broker 2024 2025 Copper Price (US$/lb) 2026 2027 2028 Long Term Estimate Estimate Estimate Estimate Estimate Barclays $3.90 $4.00 n.a. n.a. n.a. $3.75 6.00 Bell Potter $3.92 $4.13 $4.24 n.a. n.a. n.a. Price Sensitivity Up BMO
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: ESG - Our People
ESG - Our People Hot Chili values and embraces diversity As an Australian company, operating in Chile and with North American stakeholders, our Board and Employees represent the places where we work. For personal use only International Team Gender Diversity • 67% of Company Employees are Chilean • W
Slide 28: New Material Copper Supply
New Material Copper Supply Near-term Copper Supply From Majors Production Timeline of Senior Copper Development Peers 2021 2022 2023 2024 2025 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.5 0.5 Stated Information DFS Construction Marimaca Ramp-up Mina Justa Stated Timeframe 146 kt/a 1.5
Slide 29: Copper-Gold-Silver-Molybdenum Concentrate Assays
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 30: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Project Mineral Resource Estimate, 26 February 2024 For personal use only 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures
Slide 31: Global Peer Resource Data
Company Average Project Ag Reported Level Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo ppm Mo Mt Mo kt CuEq% CuEq Mt Processing Report Source Moz of Study Date Recovery MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.4 Preliminary Northern Dynasty Cu=84%, Au=73%, Pebble Economic 2021
Slide 32: Global Peer Resource Data (continued)
Company Average Project Ag Mo Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Processing Report Source Moz ppm Study Date Recovery Ind Oxide 362 0.34 1.2 0.33 3.8 13.3 155 0.68 2.4 Oxide: Cu=77%, Filo Mining Filo del Sol Inf Oxide 133 0.25 0.3 0.30 1.3 9.93
Slide 33: Global Developer and Market Peer Group
Global Developer and Market Peer Group Resource benchmarking data Mantos Santo Canariaco Project Units Costa Fuego Hillside Blancos Caravel Kharmagtai Filo del Sol Escalones Domingo Casino Mantoverde Norte Copper World Cascabel Josemaria Vizcachitas Los Azules Caravel Minerals Xanadu Mines Western C
Slide 34: Global Developer and Market Peer Group (continued)
Global Developer and Market Peer Group Resource benchmarking data (continued) Canariaco Warintza/ Project Units Costa Fuego Hillside Caravel Kharmagtai Filo del Sol Escalones Casino Cascabel Vizcachitas Los Azules Marimaca Antakori Norte La Verde Western Rex Minerals Caravel Xanadu Filo Mining World
Slide 35: 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 36: Qualifying Statements
Qualifying Statements Financial Risk Management Joint Ore Reserves Committee Code (JORC) 2012 (Reporting Standard ASX) The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the The PEA referred to in this annou
Slide 37: For personal use only
For personal use only COMPANY PRESENTATION | www.hotchili.net.au 37
Slide 38: 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, Graham Farrell West
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