Hot Chili (HCH) Q1 2026 TU earnings summary

Executive summary

• Fully subscribed A$14.1M entitlement offer completed, providing funding for key project milestones at Costa Fuego, including strategic partnering and phase-two drilling at La Verde.

• Phase-two diamond drilling commenced at La Verde, targeting depth extensions and potential resource expansion; three holes completed with assays pending.

• Regulatory approval received for expanded drilling at La Verde, enabling testing of lateral and along-strike extensions and new targets.

• Strategic partnering process advancing, with significant additional interest and BMO Capital Markets appointed as adviser.

Financial highlights

• Cash and cash equivalents at quarter end: A$13.8M, with no debt.

• Net cash from operating activities: outflow of A$2.06M for the quarter.

• Net cash used in investing activities: A$2.91M, mainly for exploration and tenement acquisition.

• Net cash from financing activities: A$13.65M, primarily from the entitlement offer.

• Estimated quarters of funding available: 6.72 based on current cash and outgoings.

Outlook and guidance

• Proceeds from the entitlement offer will fund completion of the strategic partnering process, ongoing drilling at La Verde, and general working capital.

• Ongoing work includes additional drilling, metallurgical testing, and engineering to advance Costa Fuego toward a definitive feasibility study.