CORRECTION - Hot Chili Announces PFS for Huasco Water & MOU for Seawater Supply to Costa Fuego

Core Insights - The article discusses the preliminary feasibility study (PFS) for Huasco Water, highlighting its potential as a long-term industrial water supply business with strong economic fundamentals [7][8][9]. Group 1: Project Overview - Huasco Water is positioned as the only company with permitted access to supply industrial-scale seawater in the Huasco Valley region, following a ten-year regulatory approval process [23][24]. - The PFS outlines three stages of water supply: Stage 1 focuses on seawater supply, while Stages 2 and 3 target desalinated water supply, with significant demand identified from various mining and agricultural projects [3][5][31]. Group 2: Financial Metrics - Stage 1 has a post-tax NPV (Net Present Value) of US$122 million and an IRR (Internal Rate of Return) of 19$151 million and a payback period of 4.5 years [5][38]. - Stage 2 shows a post-tax NPV of US$977 million, an IRR of 19$1.4 billion, with a payback period of 4 years [5][39]. - Stage 3 is conceptualized for expansion to 2,300 L/s of potential desalinated water supply, with financial metrics still under development [5][50]. Group 3: Market Demand and Client Base - Over 4,000 L/s of desalinated water demand has been identified, with ongoing discussions for potential off-take agreements with various clients, including mining companies and agricultural groups [9][26][31]. - Existing MOUs have been executed for 165 L/s of desalinated water demand for Stage 2 with private parties [27][28]. Group 4: Strategic Positioning - The company has received significant interest from both local and international water infrastructure investment groups, positioning Huasco Water for potential strategic partnerships [9][74]. - The project aligns with the Chilean government's approach to addressing water scarcity in the Atacama region, enhancing water security for local communities [30][95]. Group 5: Engineering and Infrastructure - The PFS includes robust engineering studies conducted by independent firms, ensuring optimal design and cost efficiency for the water supply infrastructure [37][46]. - The project incorporates advanced studies on environmental impacts, including wave propagation and potential natural hazards, to ensure long-term operational viability [46][90].