Hot Chili Limited

Hot Chili Limited is an Australian-based copper developer advancing the Costa Fuego Copper-Gold Project in Chile, one of only five independent developers globally holding an advanced copper project with +100ktpa copper equivalent production potential. 

The company controls a substantial mineral resource base of 2.95 Mt CuEq (6.4 billion pounds) in the Indicated category and 0.51 Mt CuEq (1.1 billion pounds) in the Inferred category, positioning it as a near-term, meaningful-scale producer in a supply-constrained copper market. 

Listed on ASX/TSXV (HCH) and OTCQX (HHLKF), Hot Chili is capitalised at A$160 million with A$14 million in cash and strong institutional backing including Glencore (7.5% ownership).​

Hot Chili offers a compelling investment opportunity through its advanced-stage Costa Fuego project, which delivers robust economics with a post-tax NPV of US$1.20 billion and 19% IRR at base case commodity prices (US$4.30/lb copper, US$2,280/oz gold). 

The project is designed for 116 ktpa CuEq primary production over a 14-year mine life within a 20-year project duration, generating US$3.86 billion in post-tax free cashflow with a 4.5-year payback period. With C1 cash costs of US$1.38/lb copper net of by-products, Costa Fuego ranks in the bottom quartile for capital intensity among South American peers, driven by its low elevation (740m) and strategic access to existing infrastructure.​

The project benefits from de-risked infrastructure including secured seawater rights, grid power connection, and a port services MOU, while Glencore's offtake agreement for up to 60% of concentrate provides marketing security. Located in Chile's Tier-1 mining jurisdiction with streamlined permitting through priority status registration, Costa Fuego is positioned for low-cost, sustainable development with minimal environmental footprint.​

Hot Chili Limited is led by an experienced management team with deep expertise in copper development and Chilean operations. Christian Ervin Easterday, Managing Director & CEO, is a geologist and mineral economist with over 25 years' experience at top-tier gold companies including Placer Dome and Harmony Gold, and has led Hot Chili since its ASX listing in 2010. 

José Ignacio Silva, Executive Vice President, brings 20 years of mining law and business development experience in Chile, managing mining rights acquisitions and deal negotiations since 2009. 

Grant King, Chief Operating Officer, holds 20+ years of mining industry experience including as Principal Mining Engineer at Wood, with expertise in mine studies and financial modelling across the Americas. 

Ryan Finkelstein, Chief Financial Officer, is a Chartered Accountant with 16 years of experience, including CFO roles at ASX-listed mining companies and extensive expertise in compliance, governance, and risk management. The executive team is complemented by a Board of Directors with strong mining and finance expertise, positioning Hot Chili for successful project development.

Hot Chili is executing a dual-path growth strategy focused on advancing Costa Fuego to production while expanding its resource base through aggressive exploration. The company is progressing from PFS to Definitive Feasibility Study and Environmental Impact Assessment, targeting construction readiness and production ramp-up. 

The La Verde discovery represents a major growth catalyst, with diamond drilling confirming a gold-rich porphyry system measuring 1,000m x 750m x 400m depth, featuring higher-grade centres converging at depth with intercepts such as 529m @ 0.41% Cu and 0.21g/t Au.​

The Huasco Water project provides additional value creation potential through a staged development that initially supplies seawater to Costa Fuego and expands to desalinated water sales to regional mining clients, generating standalone returns with 19% post-tax IRR. The company continues to optimize project scale through resource growth initiatives, metallurgical improvements, and infrastructure sharing across its consolidated land package in the Huasco Valley.​

Hot Chili's financial position is underpinned by the robust Costa Fuego PFS, which outlines start-up capital of US$1.27 billion for a 20.7 Mtpa concentrator and 4 ktpa SX-EW facility. The project is forecast to generate average annual free cash flow of approximately US$193 million over the primary production period, with total life-of-mine recovered metal of 2.2 Mt CuEq. The company's low capital intensity (US$10,900 per tonne of annual CuEq production) reflects the advantage of existing infrastructure and low elevation, improving financing flexibility.​

With A$14 million in current cash and a modest market capitalisation of A$160 million relative to the project's US$1.20 billion NPV, Hot Chili offers significant leverage to copper price appreciation while maintaining a tight capital structure (177.3 million shares outstanding). The company is evaluating multiple funding pathways including project finance, strategic partnerships, and equity to advance to construction while minimizing dilution.​

Hot Chili Limited represents a unique investment proposition as one of the few independent developers with a large-scale, low-cost copper project in a Tier-1 jurisdiction. With Costa Fuego's compelling economics, de-risked infrastructure, and near-term production timeline, the company is positioned to deliver substantial returns as copper supply deficits emerge. The La Verde discovery provides significant upside resource growth potential, while the Huasco Water project creates additional value through regional water services.​

Backed by strong institutional shareholders and led by an experienced technical team, Hot Chili combines capital discipline with aggressive exploration to maximize shareholder value. As the project advances through DFS and permitting toward construction, the company offers exceptional leverage to rising copper prices with a clear path to becoming a meaningful mid-tier copper producer.​