Hot Chili Poised for Copper Dominance in Australian Market
Hot Chili (ASX:HCH) founder Christian Easterday believes his company is poised to become Australia's next copper champion. The Costa Fuego project in Chile has an indicated resource of 3.62 million tonnes of contained copper equivalent at 0.45% CuEq, and the company recently completed a prefeasibility study outlining a US$1.27 billion operation to produce 116,000t of CuEq per year.
The study returned a post-tax net present value (8% discount rate) of US$1.2 billion, internal rate of return of 19%, and payback period of 4.5 years at metal prices of US$4.30/lb for copper and US$2280 an ounce for gold.
Copper is now trading at US$6.50/lb, while gold is US$4300/oz. Easterday said the project's inclusion in a revised PFS could dramatically change its economics with La Verde's high-grade starter pit pushing out mine life by 10 years and doubling NPVs and IRRs.
La Verde itself holds new copper-gold porphyry discovery, with recent results including 725m at 0.42% CuEq from 18m, and 250m grading 0.5% CuEq from 64m, including 36m grading 0.72% CuEq.
The company plans to release a maiden resource for La Verde later this year, followed by an environmental impact assessment in the second quarter of next year. A final investment decision is targeted in 2029, with first production expected in 2031.