Hot Chili (HCH) 2024 Precious Metals Summit Zurich + Energy Transition summary

Market outlook and copper supply

• Primary copper supply is expected to materially decline from 2025, with no major new investments committed, implying a need for higher copper prices to incentivize new supply, potentially reaching $6–$8 per pound.

• Industry consensus is growing around the need for higher copper prices due to constrained supply and increasing demand.

Project highlights and economics

• The Costa Fuego project in low-elevation Chile is among the top 20 undeveloped copper projects globally, featuring conventional open-pit mining and processing.

• Strong project economics are driven by extensive permitting efforts and proximity to existing infrastructure, reducing CAPEX and OPEX.

• The project benefits from a clean concentrate, valuable for blending, and a robust resource base with 85% in the indicated category.

• The PEA shows robust economics at $3.85 copper and $1,750 gold, with a build cost of $1–$1.1 billion and exceptional leverage to copper price movements.

Permitting, water, and infrastructure

• Over 10 years have been invested in permitting, securing surface rights, easements, and a strategic maritime concession for water.

• The project is one of the few in Chile with a marine water license, now spun into Huasco Water, providing funding optionality and business value.

• Water rights are seen as a perpetual asset class, with recent comparable transactions valuing similar assets at $600 million.

• Permitting for a desalination plant is underway, enhancing the business case for Huasco Water and providing potential value to other regional projects.