Hot Chili Limited · ASX:HCH
Hot Chili — BMO Global Metals, Mining & Critical Minerals Conference 2023
32 slides from Hot Chili's conference presentation, Feb 27, 2023
Slide 1: Copper: THE Critical Commodity
www.hotchili.net.au ASX: HCH I TSXV: HCH I OTCQX: HHLKF For personal use only Copper THE Critical Commodity Size, Growth & Development Optionality at Low Elevation in Chile February 2022
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: Opportunity
Opportunity Size, growth and copper development optionality at low elevation in Chile For personal use only Copper Optionality & Growth By-Product Metal & Economic Leverage • One of the top 10 largest, low risk, undeveloped copper • Molybdenum resource: 67.4kt Mo (in 725Mt) indicated resources (S&P
Slide 4: Copper – THE Critical Commodity
Copper – THE Critical Commodity Looming structural supply deficit means copper incentive price must escalate For personal use only Cu Inventories At Critical Levels Declining Cu Production Grades Committed NEW Cu Capacity & Lack of Major New Discoveries Lacking Fiscal & Geopolitical Uncertainty Incr
Slide 5: Corporate Summary – Fit For Purpose Board & Management
Corporate Summary – Fit For Purpose Board & Management Recent North American secondary listings provide platform for re-rate to Nth American peer group For personal use only Capital Structure Board Investors by Type Exchange ASX/TSXV: HCH I OTCQX: HHLKF Independent Chairman Dr Nicole Adshead-Bell Gl
Slide 6: Costa Fuego – Track Record of Consolidation & Exploration Success
Costa Fuego – Track Record of Consolidation & Exploration Success Decade of commitment to acquisition, growth and future development de-risking For personal use only Deal Resource Infrastructure Option agreement with AMSA and Update Port negotiation consolidation of Productora MRE and Resource Updat
Slide 7: Low Elevation Advantage – Lowers Economic Hurdle
Low Elevation Advantage – Lowers Economic Hurdle Long term commitment to risk-reduction of future development For personal use only 1 Water Risk Removed ✓ Granted maritime concession with land access ✓ All water required for operations secured 2 Power Line Risk Removed ✓ Secured electrical connectio
Slide 8: Track Record of Growth Via Consolidation & Discovery
Track Record of Growth1 Via Consolidation & Discovery Increased indicated metal by 1,500% over 11 years, 82% of total resource now in indicated category 2022 For personal use only 2020 3.41 Mt 2011 2.06 Mt CuEq* Indicated 0.21 Mt CuEq* Resource CuEq* Inferred Resource 0.73 Mt 0.34 Mt 1.48 Mt CuEq* C
Slide 9: Bulk Tonnage Copper-Gold Resources at Cortadera & Productora
Bulk Tonnage Copper-Gold Resources at Cortadera & Productora Open pit and underground cave development potential 14km apart – central processing strategy For personal use only Cuerpo 2 Cuerpo 3 Cuerpo 1 *CuEq takes into account assumed commodity prices and average metallurgical recoveries from testw
Slide 10: AMSA Option & New Leases – Low Cost & High Value Growth Potential
AMSA Option1 & New Leases2 – Low Cost & High Value Growth Potential Larger porphyry cluster potential at Cortadera, 10,000m drill program underway For personal use only Fourth Porphyry Confirmed at Cortadera LCD0001 (56m depth) grading 1.0% Cu, 0.7g/t Au, 4.6g/t Ag New Drill Results from LCD00013 12
Slide 11: Cortadera Resource Upgrade On-Track
Cortadera Resource Upgrade On-Track Ongoing Cuerpo 1 drilling confirms depth potential For personal use only Cortadera Cu envelopes: Medium Grade (MG) is +0.3% Cu, High Grade (HG) is +0.4% Cu & Very High Grade (VHG) is *0.6% Cu *CuEq takes into account assumed commodity prices and average metallurgi
Slide 12: Future Growth Pipeline
Future Growth Pipeline Strategic land package, multiple untested targets For personal use only 1 Cortadera Porphyry Cluster ✓ 5 new targets being drill tested ✓ Large-scale resource growth potential 2 Corroteo ✓ Potential “look-alike” Productora- style bulk copper-gold target ✓ Clearing permit appro
Slide 13: One of the World's Largest Undeveloped Copper Projects
One of the World’s Largest Undeveloped Copper Projects (Not Controlled by A Major Mining Company) Low-altitude, no arsenic, infrastructure-rich, with no infrastructure or permitting impediments For personal use only 1. Graph constructed from public information (used without consent of the source) an
Slide 14: Deeply Undervalued – ASX Listing Discount?
Deeply Undervalued – ASX Listing Discount? Significant valuation gap between ASX and TSX copper developers For personal use only Primary Listing TSX TSX Average Mkt ASX Cap./lb M&I CuEq US$0.125/lb LSE TSXV TSXV TSX TSX See slide 22 for details of project information and Market Cap./lbCuEq displayed
Slide 15: ESG Strategy – Core to Creating Value Per Share
ESG Strategy – Core to Creating Value Per Share Contributing to Net Zero with copper – The Critical Commodity For personal use only E S G ENVIRONMENTAL SOCIAL GOVERNANCE ✓ Minimize environmental footprint by ✓ Chilean focused goods and services and ✓ Transparency, accountability and integrity levera
Slide 16: Investment Highlights – Deeply Undervalued
Investment Highlights – Deeply Undervalued Copper leverage + growth + disciplined development strategy = pathway to relative value re-rate For personal use only Copper Growth Copper Optionality • Track record of exploration success and • One of top 10 largest, low-risk, smart acquisitions undevelope
Slide 17: Appendices
Appendices For personal use only Hot Chili Corporate Presentation, February 2023 17
Slide 18: Leadership Strategy – Fit For Purpose Board & Management
Leadership Strategy – Fit For Purpose Board & Management Mining cycle and Chilean expertise For personal use only Independent Chairman Managing Director & CEO Independent Director Non-Executive Director Non-Executive Director Dr Nicole Adshead-Bell Christian Easterday Stephen Quin Roberto de Andraca
Slide 19: Copper Demand & Supply Gap
Copper Demand & Supply Gap Supply gap is real – size depends on speed to Net Zero For personal use only Forecast Demand Under IEA NZE Forecast Copper Supply Gap Scenario Source: Glencore Source: https://www.woodmac.com/horizons/red-metal-green-demand-coppers-critical-role-in-achieving-net-zero/ Hot
Slide 20: Primary Copper Supply – Going Down In Every Scenario
Primary Copper Supply – Going Down In Every Scenario Falling production in even most optimistic scenario, excluding delays related to permitting, civil unrest and geopolitical instability For personal use only Falling Capital Commitments Falling Production Source: S&P Market Intelligence Source: Gle
Slide 21: Government Intervention in Permitting New Copper Projects Continues
Government Intervention in Permitting New Copper Projects Continues Global challenges to permitting new mines, US alone has stopped or delayed Resolution, Twin Metals, Pebble, Rosemont, Ambler/Artic For personal use only Copper Projects Sanctioned Since 2007 Source: Wood Mackenzie Q2 2022, LME Hot C
Slide 22: HCH Peer Group
HCH Peer Group Junior companies with copper development projects in the Americas For personal use only Western Marimaca Solaris Regulus Los Andes Company Filo Mining Hot Chili SolGold Copper and Copper Resources Resources Copper Gold Exchange TSX TSX TSX TSXV ASX/TSXV TSXV TSX/LSE TSX Warintza/ Proj
Slide 23: Costa Fuego Benchmark Graph Detail
Costa Fuego Benchmark Graph Detail Project Ag Mo Average Processing Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Report Source Moz ppm Recovery Study Date Preliminary For personal use only Pebble MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.
Slide 24: Costa Fuego Benchmark Graph Detail (continued)
Costa Fuego Benchmark Graph Detail (continued) Project Ag Mo Average Processing Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Report Source Moz ppm Recovery Study Date For personal use only Fuego Costa Ind 725 0.38 2.7 0.11 2.6 0.5 10 93 0.07 67 0.47 3.4
Slide 25: Qualifying Statements
Qualifying Statements Scientific & Technical Information (NI 43-101) For personal use only QUALIFIED PERSON AND REPORTING STANDARD The Cortadera, Productora and San Antonio MRE’s are reported to the standard of the Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”, a
Slide 26: Qualified Person
Qualified Person Scientific & Technical Information (NI 43-101) For personal use only Competent Person’s Statement – Exploration Results & Presentation Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee o
Slide 27: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Copper-Gold Project Mineral Resource Estimate, March 2022 For personal use only (using +0.25% CuEq cut-off grade) and by open pit (top), underground (middle) and total (bottom) 1 Reported on a 100% Basis - combining Mineral Resource esti
Slide 28: Notes to Mineral Resource Disclosure – Cortadera
Notes to Mineral Resource Disclosure – Cortadera Cortadera Deposit Mineral Resource Estimate, March 2022 For personal use only (open pit, using +0.21% CuEq cut-off grade & UG using 0.30% CuEq) 1 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora and San Ant
Slide 29: Notes to Mineral Resource Disclosure – Productora & San Antonio
Notes to Mineral Resource Disclosure – Productora & San Antonio For personal use only Productora Deposit Mineral Resource Estimate, March 2022 - reported by classification (open pit, using +0.21% CuEq cut-off grade) San Antonio Deposit Mineral Resource Estimate, March 2022 - reported by classificati
Slide 30: Sampling, Analysis & Data Verification
Sampling, Analysis & Data Verification For Hot Chili Limited samples, 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 For personal use only is always taken from the same sampling chute, and comprises the
Slide 31: 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. For personal use only The ALS analytical laboratory in Coquimbo (Chile) completed all sample preparation and specific gravity test work
Slide 32: For personal use only
For personal use only Hot Chili Limited ACN 130 955 725 Harbor Access Email: Graham.Farrell@harboraccessllc.com First Floor, 768 Canning Highway, Applecross, Western Investor & Public Email: Jonathan.Paterson@harboraccessllc.com Australia 6153 Relations (Canada) PO Box 1725, Applecross, Western Aust
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