Hot Chili Half-Year Report Highlights

Copper developer Hot Chili’s half-yearly report was just released and we’re here to break down all the important milestones investors need to pay attention to.

Why should you care?

Hot Chili is advancing one of the largest copper deposits not owned by a major copper miner and the company’s Costa Fuego project will potentially be first in line among non-majors to start up later this decade, putting it in an excellent position to harvest expected higher copper prices.

Best in Class Returns vs Startup Costs

Hot Chili also owns irrespaceable water rights and is in advanced talks for preferred port export access giving it 2 key advantages over every other copper mine in the southern Atacama region of Chile.

Half-Yearly Review

Hot chili had a productive half-year ending December 2023.

The company filed a preliminary economic assessment in August showing the Costa Fuego open pit mine has $1.1 billion of post tax value at $3.85/lb copper and cash costs of only $1.33/lb compared to copper at $4.00 per pound currently.

Subsequent to year end Hot chili increased the total estimated mineral resource at Costa Fuego by 6% to 4.2 million tons copper equivalent and expects more resource upgrades to come.

The chart below demonstrated the impressive growth in resource at Costa Fuego, now a 4.2 million tonne copper resource and still growing.

Costa Fuego Resource up 7x From First Discovery in 2011

Expanded Land Holdings

Hot Chili was also busy consolidating land holdings, signing options agreements to acquire two historical mine areas. Marsellesa & Cordillera are two past producing mines, only 10km from the Costa Fuego project.

With no drill tests to date and all production coming from shallow copper oxides only, its likely these properties will help Hot Chili expand the scope of the Costa Fuego project.

Marsellesa and Cordillera Land Map

The company also acquired the Cometa land package, less than 15 kilometers from the Costa Fuego processing hub.

Surface mapping and soil and rock sampling have been done, identifying several targets, but Hot Chili will be the first company to drill on the property.

Cometa Land Package (Bottom Right)

Undrilled at depth, these land holdings could go a long way to supporting Hot Chili’s goal of upgrading Costa Fuego potential production 50%, from 100k to 150k tons per day. 

Monetizing The Water Concession

Work continues on how best to exploit Hot Chili’s ownership of the only maritime water concession in the region.

Hot Chili sits at a much lower elevation than peers and will have lower operating and capital costs in Chile due to the elevation and unique water access.

Atacama Region Elevation Map

The company is exploring how to monetize excess water supply and coastal land access.

Future copper projects in the region will demand 3,700 litres per second while Hot Chili only needs 300 of the 2,200 litres it is permitted for.

Significant monetization opportunities await.

A Catalyst Rich 24 Months To Come

With many catalysts to come in 2024:

• Pre-feasibility study
• Resource upgrades
• Exploration drilling
• Execution of a port services agreement

Hot Chili is well positioned to continue growing shareholder value.

Catalyst Rich 24 Months

 

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