Hot Chili Limited

Hot Chili Limited is an Australia-based copper exploration and development company, focused on advancing its flagship Costa Fuego Copper-Gold Project in Chile. Positioned as one of the largest undeveloped copper resources outside of major mining ownership, Costa Fuego boasts a significant mineral resource with 798 million tonnes in the Indicated category, grading at 0.45% copper equivalent (CuEq), and an additional 203 million tonnes in the Inferred category at 0.31% CuEq. The project is strategically located in a low-elevation area with existing infrastructure, offering a clear logistical and cost advantage for future development.

In response to the increasing demand for copper—a key material for net-zero initiatives—Hot Chili is driving Costa Fuego through critical development stages, including pre-feasibility studies and regulatory processes, with a production target of approximately 95,000 tonnes of copper per year over the first 14 years. The company’s innovative approach includes establishing a dedicated water supply company, enhancing resource efficiency and sustainability.

Hot Chili is publicly traded on the ASX (HCH), TSXV (HCH), and OTCQX (HHLKF), and is committed to delivering strong returns through disciplined development, while maintaining a high standard of environmental, social, and governance (ESG) practices. With a clear path to production and a vision for sustainable operations, Hot Chili is poised to become a major player in the global copper industry.

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Hot Chili Limited offers a unique investment opportunity through its Costa Fuego Copper-Gold Project, one of the world’s largest undeveloped copper resources located in a favorable mining jurisdiction. Positioned to capitalize on a structural copper deficit driven by increasing demand from clean energy and electrification initiatives, Costa Fuego stands out with its robust project economics and strategic infrastructure advantages. The project's projected 16-year mine life is expected to deliver a high annual output of 112,000 tonnes of copper equivalent (CuEq), including 95,000 tonnes of copper and 49,000 ounces of gold, underpinned by a post-tax NPV of US$1.1 billion.

Costa Fuego’s location in Chile offers a low-elevation site with secured access to maritime water resources, substantially reducing infrastructure costs and environmental impact. This advantage, alongside advanced development milestones like an environmental impact assessment and a dedicated water supply company, makes the project particularly resilient to regulatory and logistical challenges.

With copper's critical role in achieving global climate goals, Hot Chili Limited is well-positioned to meet rising copper demand while offering significant leverage to copper price increases. As a company with a clear development plan, operational advantages, and strong ESG commitment, Hot Chili represents a compelling growth opportunity for investors seeking exposure to sustainable, large-scale copper production.

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Hot Chili Limited is led by a team of industry veterans with extensive experience in mining, project development, and corporate strategy. At the helm is Christian Easterday, Managing Director and CEO, who has over two decades of experience in the mining sector, with a strong focus on project advancement and resource expansion. His leadership has been pivotal in transforming Costa Fuego into one of the largest copper-gold projects in South America.

Supporting Easterday is Grant King, Chief Operating Officer, who brings over 20 years of expertise in global mining operations. King oversees all technical and operational aspects of the Costa Fuego project, ensuring that the development process is efficient, safe, and in line with Hot Chili’s high standards for ESG and sustainability.

The technical team is strengthened by José Ignacio Silva, Executive Vice President for Chile, whose extensive local knowledge and operational insight are critical for navigating the regulatory landscape and establishing strong community relationships. Silva’s Chilean background and industry connections provide a solid foundation for Hot Chili’s growth in the region.

With a leadership team deeply experienced in mining and dedicated to sustainable development, Hot Chili Limited is well-positioned to advance the Costa Fuego project and deliver long-term value for shareholders.

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Hot Chili Limited is executing a comprehensive growth strategy centered on advancing its Costa Fuego Copper-Gold Project toward production while prioritizing operational excellence and sustainability. The company’s development roadmap includes pre-feasibility and environmental assessments targeted for completion by 2025, laying the foundation for Costa Fuego to become one of the largest copper producers in Chile by the end of the decade.

A key component of Hot Chili’s strategy is leveraging Costa Fuego’s low-elevation location and established infrastructure, including a maritime water concession, which significantly reduces capital and operating costs. This infrastructure advantage allows Hot Chili to progress efficiently, with a reduced environmental footprint compared to high-altitude mining projects. The company is also advancing a dedicated water supply business, which provides Costa Fuego with a secure water source, minimizing dependency on regional water resources.

Hot Chili is committed to expanding its resource base through ongoing exploration, with additional drilling planned throughout 2024. This exploration strategy aims to increase Costa Fuego’s production potential and mine life, supporting the company’s goal of scaling the project to produce over 150,000 tonnes of copper per year for 20 years.

By integrating responsible development practices, proactive community engagement, and a focus on renewable energy sources, Hot Chili Limited aims to deliver sustainable growth while establishing itself as a premier copper producer for the global transition to clean energy.

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As of 2024, Hot Chili Limited is financially well-positioned to advance its Costa Fuego Copper-Gold Project, supported by a robust capital structure and strategic funding initiatives. The company is fully funded through the second half of 2025, with a cash position of A$33.8 million as of June 30, 2024, and a market capitalization of approximately A$123 million. Hot Chili’s financial backing includes notable institutional investors, with Glencore holding a 7.5% stake, underscoring strong industry support.

Costa Fuego’s projected economics are highly compelling, with a pre-tax Net Present Value (NPV) of US$1.54 billion and a post-tax NPV of US$1.1 billion at an 8% discount rate. Initial capital expenditure (CAPEX) is estimated at US$1.05 billion, reflecting the advantages of leveraging Costa Fuego’s existing infrastructure and low elevation. With a projected payback period of just 3.5 years and a life-of-mine free cash flow of US$3.28 billion, the project demonstrates excellent capital efficiency and potential for significant returns.

The Costa Fuego project’s cost structure is designed for resilience in varying market conditions, with an all-in sustaining cost (AISC) projected at US$1.33 per pound of copper, placing it among the lower-cost producers. Hot Chili is also exploring financing options, including debt, equity, and potential strategic partnerships, to support further project development while managing shareholder dilution.

Hot Chili’s disciplined financial approach, combined with favorable project economics and strategic investment, provides a solid foundation for advancing Costa Fuego to production and delivering long-term shareholder value.

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Hot Chili Limited stands at the forefront of copper exploration and development with its flagship Costa Fuego Copper-Gold Project, one of the largest undeveloped resources in a top-tier mining jurisdiction. With a 16-year mine life, strong project economics, and a commitment to sustainable practices, Costa Fuego presents a compelling investment opportunity aligned with the global shift toward electrification and renewable energy.

The company’s experienced management team, strategic financial position, and infrastructure advantages set it apart as a cost-efficient, scalable producer. By advancing Costa Fuego through key development milestones—spanning pre-feasibility studies, environmental assessments, and community partnerships—Hot Chili is poised to become a major copper supplier. Its focus on ESG principles and dedicated water and power solutions further demonstrate Hot Chili’s dedication to responsible mining.

For investors seeking exposure to a large-scale, future-ready copper project, Hot Chili Limited offers substantial growth potential in a rapidly evolving market. As Costa Fuego moves toward production, Hot Chili is well-positioned to deliver long-term value for shareholders while contributing meaningfully to sustainable global copper supply.

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