Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (November 2024)
38 slides from Hot Chili's investor presentation, Nov 11, 2024
Slide 1: Size, Growth & Development: Optionality at Low Elevation in Chile
ASX: HCH TSXV: HCH OTCQX: HHLKF Size, Growth & Development Optionality at Low Elevation in Chile COMPANY PRESENTATION | 1 November 11th – 12th , 2024 www.hotchili.net.au
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 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 Material delays in permitti
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 (S&P 2022) & Leverage
Slide 5: Corporate Overview
Corporate Capital Structure ASX/TSXV: HCH INVESTORS BY TYPE Glencore 7.5% GS Group Overview Exchange Shares Outstanding OTCQX: HHLKF 151.4 M 5.7% Blue Spec 5.5% Insiders Retail, 49.3% 0.7% Options & Performance Rights 9.1 M A$25.7 M Institutional Fully funded into H2 Cash (as of 30 September 2024) 3
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 ✓ Opportunit
Slide 7: MOU for Port Services Agreement
1 MOU for Port Services Agreement Commitment to Jointly Fund Feasibility Study for Bulk Concentrate Exports Significant Step Towards Securing Final Infrastructure Advantage for Costa Fuego • Leveraging an existing port to potentially unlock significant capital and operating cost savings • MOU1 with
Slide 8: Costa Fuego Indicated Resource Increased to 798 Mt
Costa Fuego Indicated Resource Increased to 798 Mt Oblique Long-Section View of Cortadera – Looking North-East Over 85% of Costa Fuego’s contained CuEq metal classified as Indicated Costa Fuego Mineral Resource update (26 February 2024): • 6% increase in contained CuEq metal for the total Indicated
Slide 9: World's Largest Undeveloped Copper Mineral Resources
World's Largest Undeveloped Copper Mineral Resources Peer benchmark – projects not controlled by a major mining company 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 (not controlled by a m
Slide 10: 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% US$1.10 B US$1.54 B 112 kt CuEq¹ (or 248 Mlbs CuEq) Post-Tax IRR Pre-Tax IRR Equal to
Slide 11: 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) , Copper Revenue (Price,Recovery,Grade) , , , (653) 2,
Slide 12: 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) Hot Chili Ltd High Sphere size represents projected Life of Mine Average Annual CuEq*
Slide 13: 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 , , Eleva on (masl ) Increasing Elevation Average Elevation 740m asl Maritime Concession Granted , Andean Winter Snow
Slide 14: 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 Filo 32.90 Company Average 4.56 Weighted Average 2.92 The Global Market Resource Peer Group of market-listed companies were selected on
Slide 15: Exploration Drilling Underway at La Verde
Exploration Drilling Underway at La Verde First-pass RC program to test potential of newly acquired bulk-tonnage porphyry target1 La Verde Porphyry Target HCH Domeyko Landholding N N La Verde Historical Open Pit and Workings + 1% A+B Veining HCH Mapping (in available exposures only) Copper Mineralis
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 • Able to use up to 100% • Providing sociological and Environ
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 extract seawater
Slide 18: Huasco Water – Conceptual Basis of Study
Huasco Water – Conceptual Basis of Study1 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. P
Slide 19: Project Roadmap
Project Roadmap Developing the Costa Fuego Project into an operating asset H1 2024 H2 2024 2025 2026 Mineral Resource Update Development Study & Delivery of Costa Fuego PFS Delivery of Definitive ✓ Complete - Q1 2024 Resource Growth Activities (Q1 2025) Feasibility Study (Throughout 2024) Delivery o
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$1.10 bn and IRR of 21% based on an initial mine life of 16 years1 • Competi
Slide 21: Appendices
Appendices A new copper & water supplier is coming COMPANY PRESENTATION | www.hotchili.net.au 21
Slide 22: Board Members
Board Members Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Independent Chairman Managing Director & Chief Independent Non-Executive Director Executive Officer Roberto de Andraca Adriasola1 Mark Jamieson Non-Executive Director Non-Executive Director (Glencore Nominee) COMPANY PRESENTATION
Slide 23: Management
Management José Ignacio Silva1 Grant King Carol Marinkovich Andrea Aravena1 Kirsty Sheerin Executive Vice President – Chile Chief Operating Officer Company Secretary Geology Manager – Chile Resource Development Manager Ryan Finkelstein Marcelo Hernando1 Cristobal Julia1 Chief Financial Officer Engin
Slide 24: Key Consultants
Key Consultants Dr Steve Garwin Dr John Beeson Elizabeth Haren Chief Technical Advisor Lead Structural Geologist Independent Resource Consultant The Costa Fuego PEA was compiled by Wood Australia Pty Ltd, with support from experienced and reputable independent Qualified Persons (QPs) and Key Consult
Slide 25: 24-Bank Consensus Forecast
24-Bank Consensus Forecast Provided by National Bank Financial – Feb 2024 Copper Price (US$/lb) Broker 2024 2025 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. International Team Gender Diversity • 67% of Company Employees are Chilean • Women represent of HCH’
Slide 28: New Material Copper Supply
New Material Copper Supply DFS Construc on Ramp up EA Construc on Expansion Ramp up PFS DFS Construc on DFS Construc on Ramp up PFS DFS Explora on Decline Construc on Construc on PEA PFS DFS Construc on Spence Growth p on Delayed Ramp up PEA PFS DFS Construc on Water Permit DFS Construc on Delayed C
Slide 29: Concentrate Specification
Copper-Gold-Silver-Molybdenum Copper-Gold-Silver-Molybdenum Concentrate Assays Concentrate Assays Element Unit Value Element Unit Value Concentrate Cu Au % ppm 26 5 Mn Na ppm ppm 98 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 S % 32 Al2O3 % 2 Sb pp
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 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported
Slide 31: Global Resource Peer Group
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 Northern Preliminary Dynasty MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.4 Pebble Cu=84%, Au=73%, Economic 2021
Slide 32: Global Resource Peer Group (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 Filo Mining Filo del Sol Oxide: Cu=77%, 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: COMPANY PRESENTATION | www.hotchili.net.au
COMPANY PRESENTATION | www.hotchili.net.au 37
Slide 38: Full Version of PEA Presentation
Full Version of PEA Presentation 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, 49 North Investor Relations Western Austr