Hot Chili (HCH) Q4 2025 TU earnings summary

Executive summary

• Phase-one RC drilling at La Verde confirmed a significant copper-gold discovery, expanding the mineralized footprint to over 1 km by 750 m and remaining open in all directions.

• Multiple high-grade copper-gold intercepts were reported, with over half of drill holes ending in mineralization.

• Three additional large porphyry targets were identified adjacent to La Verde, indicating district-scale potential.

• Costa Fuego and Huasco Water projects were granted priority status by the Chilean Ministry of Economy, expediting permitting.

• New leadership appointments include a Non-Executive Chair and Project Director with extensive mining experience.

Financial highlights

• Cash balance at 30 June 2025 was A$5.2 million, with no debt and A$2.0 million in VAT reimbursements expected.

• Operating expenditure for the quarter was A$3.3 million, including A$1.6 million for PFS completion and EIA advancement.

• Investing activities included a recoup of A$2.7 million in joint venture expenditure.

• Net cash outflow from operations for the quarter was A$4.7 million.

• Estimated quarters of funding available is 1.11, with further funding options under consideration.

Outlook and guidance

• Phase-two diamond drilling at La Verde is planned to extend higher-grade centers at depth, pending regulatory approval.

• Strategic partnering process is ongoing, with several non-binding proposals under review to fund Costa Fuego and Huasco Water.

• Expenditure is expected to decrease in the next two quarters as only optimization activities and reduced exploration are planned.