Hot Chili Announces PFS & Maiden(1) Mineral Reserve(2) for the Costa Fuego Cu-Au Project

Core Insights - Hot Chili Limited has announced the results of a Pre-Feasibility Study (PFS) for its Costa Fuego copper-gold project, highlighting strong economic potential and a multi-decade mine life [1][2][3] Project Overview - The Costa Fuego project is expected to have a project life extended to 20 years, with an average annual production rate of 116,000 tonnes per annum (ktpa) of copper equivalent (CuEq) during the first 14 years [6][14] - The project has a robust financial profile, with a total life-of-mine (LOM) free cash flow estimated at approximately US$3.86 billion, post-tax [6][14] Economic Metrics - The PFS indicates a post-tax Net Present Value (NPV) of US$1.2 billion, with an Internal Rate of Return (IRR) of 19% [6][12] - At a current copper price of US$5.30 per pound, the post-tax NPV increases to US$2.2 billion, and the post-tax IRR rises to 30% [6][12] Mineral Reserves and Resources - The project has Probable Mineral Reserves of 502 million tonnes (Mt) at grades of 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag, and 97 ppm Mo [4][6] - The Indicated Mineral Resources total 798 Mt at 0.45% CuEq, with contained metals including 2,910 kt of Cu and 2,640 koz of Au [28][31] Development and Permitting - The project benefits from advanced permitting, with a water permit and grid power already in place, and an Environmental Impact Assessment (EIA) submission planned for 2025 [6][12] - The Costa Fuego project is positioned as a low-risk coastal copper development, with significant exploration success at the La Verde Cu-Au porphyry discovery enhancing growth potential [6][12] Mining and Processing - Mining will utilize both open-pit and underground methodologies, with a focus on high-grade, near-surface feed to aid in capital payback [19][39] - The processing plant is designed for a nominal throughput of 20.7 million tonnes per annum (Mtpa) [21][39] Strategic Positioning - The company is well-positioned for strategic partnerships and funding discussions, with approximately A$19 million in cash as of December 31, 2024 [12][13] - The Costa Fuego project is located near existing infrastructure and a capable local workforce, minimizing the need for additional camp facilities [16][17]