Hot Chili Limited (ASX: HCH)
- Erik Bergseng, CFA(R)
- Aug 18, 2025
- 3 min read
Updated: Aug 19, 2025
We have prepared a research report on Hot Chili Limited (ASX: HCH), you can access it by clicking the link below.
Hot Chili Limited is a copper-gold company whose flagship asset is the Costa Fuego project in Chile’s Atacama Region. Costa Fuego comprises four deposits: Productora, Alice, Cortadera, and San Antonio, located within ~20 km of each other near the town of Vallenar, ~600 km north of Santiago and ~60 km from port facilities at Las Losas. Over the past decade the company reports securing surface rights for the proposed central processing facilities, an electrical connection, a maritime concession and coastal access for seawater extraction, and easements for seawater and power infrastructure.
Productora (including Alice) sits within the Chilean JV company SMEA SpA, which is owned 80% by Hot Chili (via subsidiary Sociedad Minera El Corazón Limitada) and 20% by CMP S.A. (a CAP group company)
Costa Fuego PFS (March 2025)
On 27 March 2025 Hot Chili announced results of a Pre-Feasibility Study (PFS) and a maiden project-wide Ore Reserve for Costa Fuego. The PFS outlines a 20-year operating life with a 14-year primary production period, averaging 95 ktpa copper and 48 kozpa gold during the primary years, and a LOM copper average of 74 ktpa. The study reports LOM C1 cash costs of US$1.38/lb (net of by-product credits) and AISC of US$1.85/lb, with total LOM revenue of ~US$17.3 billion and post-tax LOM free cash flow of ~US$3.86 billion. Reported start-up capital is US$1.27 billion. The base-case post-tax project economics at an 8% discount rate are stated as NPV₈ ~US$1.20 billion, IRR ~19%, and a 4.5-year payback. The company also discloses sensitivity to copper price: at a spot copper price of US$5.30/lb, the post-tax NPV₈ increases to ~US$2.2 billion and the post-tax IRR to ~30%.
For the first 14 years, the study presents an average of 116 ktpa CuEq, comprising 95 ktpa Cu, 48 kozpa Au, 158 kozpa Ag, and ~4.4 Mlbpa Mo, with a 20-year processing life averaging 74 ktpa Cu.
The company states it is preparing to submit Stage-1 Environmental Impact Assessment (EIA-1) based on the PFS scope. Following the PFS, Hot Chili commenced a second EIA process to integrate the La Verde copper-gold porphyry discovery as part of a potential Stage-2 hub. The announcement notes that the subsequent pathway includes commencement of a Definitive Feasibility Study and advancing environmental activities to maintain a “first production before the end of the decade” timetable.
Costa Fuego is described as a low-elevation, coastal development with proximity to grid power, a regional workforce and port access. The project area averages ~740 m elevation and lies near the Pan-American Highway, with ~60 km distance to the Las Losas port. The company reports long-standing work to secure key permits, surface rights and easements for power and seawater infrastructure.
Important Notice
This article repeats company-reported facts from ASX releases and company materials. It is sourced from materials believed to be accurate but has not been verified by any third parties for accuracy. It should not be relied upon for any purpose. It is not a recommendation, opinion, or forecast and the contained factual statements are for informational purposes only. For full technical detail (including Competent Person statements, assumptions and risk factors), please read the original ASX announcement(s) and the PFS technical report when available via Hot Chili’s website and disclosure portals. Selected sources include: the company’s PFS announcement and slide pack dated 27 March 2025 and related materials.
You can find Hot Chili’s ASX announcements page here: https://www2.asx.com.au/markets/company/HCH