Hot Chili Limited · ASX:HCH
Hot Chili — Rule Symposium 2024
40 slides from Hot Chili's conference presentation, Jul 9, 2024
Slide 1: A New Copper Supplier Is Coming: Size, Growth & Development
For personal use only A NEW A NEW ASX: HCH COPPER WATER TSXV: HCH SUPPLIER IS SUPPLIER IS COMING COMING OTCQX: HHLKF Size, Growth & Development COMPANY PRESENTATION | 1 Optionality at Low Elevation in Chile Costa Fuego Huasco Water www.hotchili.com.au Boca Raton, Florida, 7-11th July 2024
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 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% For personal use only Insiders Options & Performance Rights 9.1 M Retail, 49.3% 0.7% Fully funded into H2 2025 Cash A$35 M (approx.) Instit
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 For personal use only ✓ Secured electrical connectio
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 For personal use only • Leveraging an existing port to potentially unlock significant capital and operating cos
Slide 8: Costa Fuego Indicated Resource Increased
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 (Feb 2024): • 6% increase in contained CuEq metal for the total Indicated Resource
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 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 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% For personal use only US$1.10 B US$1.54 B 112 kt CuEq¹ (or 248 Mlbs CuEq) Post-Tax IR
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) , For personal
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 For personal use only (85% M&I Resource) Hot Chili Ltd High Sphere size represents projected Life of Min
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 , For personal use only , le a on (masl ) Increasing Elevation Average Elevation 740m asl Maritime Concession Granted
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 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 15: Exploration – Productora Deposit Footprint
Exploration – Productora Deposit Footprint Two large-scale targets adjacent to Resource set for drill testing in 2024 680RL Resistivity depth slice 6822000mN Chargeability Productora A High sulfidation epithermal target resource ’ Footprint of Soil As > 30ppm Lithocap alteration Mapped silica ridges
Slide 16: Exploration – Domeyko Cluster
Exploration – Domeyko Cluster New Landholding Located South of Costa Fuego boasts several historical copper-gold mines For personal use only COMPANY PRESENTATION | 16 www.hotchili.com.au
Slide 17: 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 For personal use only grid at Maitencillo substation Vallenar and Freirina • Able to use up to 100% • Providing so
Slide 18: For personal use only
For personal use only COMPANY PRESENTATION | 18 www.hotchili.com.au
Slide 19: Huasco Water
Huasco Water Hot Chili Launches New Water Company • New JV water company established – Hot Chili 80% & CMP 20% For personal use only • Transfer of all water assets to Huasco Water has commenced • Water supply security for Hot Chili and CMP as potential foundation off-takers • Hot Chili - approx. 700
Slide 20: Project Roadmap
Project Roadmap Developing the Costa Fuego Project into an operating asset For personal use only H1 2024 H2 2024 2025 2026 Mineral Resource Update Development Study & Delivery of Water Business Delivery of Definitive ✓ Complete - Q1 2024 Resource Growth Activities Case Study Feasibility Study Water
Slide 21: For personal use only
For personal use only COMPANY PRESENTATION | 21 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral
Slide 22: Appendices
Appendices For personal use only A new copper & water supplier is coming COMPANY PRESENTATION | 22 www.hotchili.com.au
Slide 23: 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 24: Management
Management For personal use only José Ignacio Silva1 Grant King Carol Marinkovich Executive Vice President – Chile Chief Operating Officer Company Secretary Andrea Aravena1 Kirsty Sheerin Geology Manager – Chile Resource Development Manager COMPANY PRESENTATION | 24 1 Chilean National, resides in Ch
Slide 25: 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 26: 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 27: ESG - Our Environment
ESG - Our Environment Sustainable development for the critical mineral of an electric future • Over 10 years of environmental monitoring across Costa Fuego and related infrastructure For personal use only • Water Conservation focus, with drilling using fresh water purchased from licensed local provi
Slide 28: 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 29: 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 30: New Material Copper Supply
New Material Copper Supply FS Construc on Ramp up Construc on xpansion Ramp up PFS FS Construc on FS For personal use only Construc on Ramp up B PFS FS xplora on ecline Construc on Construc on P PFS FS Construc on Spence rowth p on elayed Ramp up P PFS FS Construc on Water Permit FS Construc on elay
Slide 31: Concentrate Specification 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 32: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Project Mineral Resource Estimate, 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 are
Slide 33: For personal use only
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 34: For personal use only
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 35: 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 36: 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 37: Global Developer and Market Peer Group (continued)
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 38: Qualifying Statements
Qualifying Statements National Instrument 43-101 (Canadian Reporting Standard) Joint Ore Reserves Committee Code (JORC) 2012 (Reporting Standard ASX) The PEA is preliminary in nature, includes Inferred resources that are considered too speculative geologically to have the economic considerations The
Slide 39: For personal use only
For personal use only COMPANY PRESENTATION | 39 www.hotchili.com.au
Slide 40: 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, Harbor Access Weste