Hot Chili Trades at 2.9x Discount as La Verde Resource Could Lift Costa Fuego NPV

Hot Chili Limited's share price has increased four-to-five-fold over the past 15 months, but Managing Director and CEO Christian Easterday believes there is more room to run. The company is advancing the Costa Fuego Copper-Gold Project in Chile, which could become one of only five independent copper developers globally with a project capable of over 100,000 tonnes of annual production.

On an EV/lb basis, Hot Chili trades at roughly 3.8 cents per pound of reserve, compared to a peer group average of around 11 cents per pound - implying a 2.9x re-rating opportunity if the gap closes. A maiden La Verde resource estimate (targeting ~500Mt) is due before year-end and could lift Costa Fuego's post-tax NPV from $1.2B toward $2B.

The Huasco Water asset offers a financing pathway aimed at covering a substantial share of Costa Fuego's equity requirement with minimal dilution. FID (Final Investment Decision) is targeted for 2029, and first production is guided for 2031, following a restated PFS and EIA submission in Q2 2027.