Hot Chili (HCH) H1 2026 earnings summary

Executive summary

• Expanded La Verde Cu-Au porphyry discovery, identifying high-grade shallow starter pit potential and a converging high-grade copper-gold core at depth.

• Regulatory approval received for expanded drilling at La Verde, with a second RC drill rig commencing in February 2026.

• Well-funded into 2026 following a A$14.1M entitlement offer and a subsequent A$40M private placement.

• Strategic partnering process advanced, with multiple parties in due diligence for Costa Fuego and Huasco Water Projects.

• Loss after income tax for the half-year was A$4.09M, an improvement from A$6.51M loss in the prior year.

Financial highlights

• Cash and cash equivalents at 31 December 2025 were A$4.62M, with an additional A$1.8M in VAT and JV recoup.

• Total assets increased to A$253.1M from A$244.8M at June 2025.

• Exploration and evaluation expenditure capitalized at A$244.4M.

• Net assets rose to A$249.5M from A$239.6M at June 2025.

• No dividends declared or paid during the period.

Outlook and guidance

• Proceeds from recent financings will accelerate drilling at La Verde, establish a maiden mineral resource, and support feasibility and environmental studies for Costa Fuego.

• Environmental Impact Assessment (EIA) for Costa Fuego scheduled for completion by end of 2026.

• Strategic partnering process may result in a range of transactions, but no certainty of outcome.