Hot Chili (HCH) RIU Explorers Conference 2026 summary

Project development and market context

• Costa Fuego copper-gold project is advancing, supported by recent drilling success at La Huerta and a new discovery at La Verde, with integration into a 20-year mine plan underway.

• The project is among the top five independent global copper developments, with a pre-feasibility study outlining 120,000 tons of copper equivalent annually over 20 years.

• Market sentiment and copper prices have improved, quadrupling the stock price in five to six months and enabling a AUD 40 million institutional placement to expand into North America.

• Rising P/NAV ratios and increased M&A activity highlight a favorable environment for copper developers, with strategic asset-level partnering underway.

• Environmental impact assessment submission is planned for year-end, starting the clock for definitive feasibility by 2028.

Exploration and resource growth

• La Verde, a new bulk tonnage discovery, is expected to add five years of production and potentially push the project into tier one status.

• Accelerated drilling with multiple rigs aims to define a first resource and integrate it into reserves for a restated pre-feasibility by year-end.

• Shallow, higher-grade mineralization at La Verde could replace initial mine feed, increasing revenue by 30–40% and improving payback and financial metrics.

• The resource base is already top ten globally, with La Verde likely to elevate it to tier one, targeting over 5 million tons copper and 5 million ounces gold.

• Pre-feasibility economics are robust, with long-term copper and gold prices now higher than initial assumptions.

Financial and operational advantages

• Project location at low elevation (700m) reduces capital intensity and cash costs, with a compact development footprint and central processing.

• La Verde could increase project NPV and IRR by 50%, leveraging higher metal prices and scale.

• Annual copper supply is among the highest for developers with over 40,000 tons, with almost 95,000 tons projected.

• The project is designed for both sulfide concentration and leach operations, with new ore sources being prepared for development.