Timing is Everything
www.hotchili.net.au
Costa Fuego
Timing is Everything
ASX: HCH I TSXV: HCH I OTCQB: HHLKF
April 2022
Cu
Hot Chili Presentation 2
Disclaimer
This document is for information purposes only and should not be considered a recommendation to purchase, sell or hold a security. This document does not constitute an offering memorandum or
an offer or solicitation in any province or other jurisdiction in which an offer or solicitation is not authorized. A preliminary prospectus dated November 3, 2021 containing important information relating
to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec. A copy of the preliminary prospectus, and
any amendment, is required to be delivered with this document. The preliminary prospectus is still subject to completion. There will not be any sale or any acceptance of an offer to buy the securities
until a receipt for the final prospectus has been issued. The securities may not be sold until a receipt for the prospectus is obtained from the securities regulatory authorities. No securities regulatory
authority has expressed an opinion about these securities and it is an offence to claim otherwise. The preliminary prospectus constitutes a public offering of the securities only in those jurisdictions
where they may be lawfully offered for sale and, in such jurisdictions, only by persons permitted to sell such securities. This document does not provide full disclosure of all material facts relating to
the securities offered and is not subject to liability for misrepresentations under applicable Canadian securities laws. Investors should read the preliminary prospectus, the final prospectus and any
amendment for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. This presentation has been prepared in connection with an
offering of securities of Hot Chili Limited (the “Company”).
The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or
sold in the United States, or to or for the account or benefit of a U.S. Person (as defined in Regulation S under the U.S. Securities Act), except in compliance with the registration requirements of the
U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. This document does not constitute an offer to sell or a solicitation of an offer to buy any of the
Securities in the United States.
Forward-Looking Statements
This presentation contains certain statements which contain "forward-looking information" within the meaning of Canadian securities legislation (each a "forward-looking statement"). No assurance
can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. Forward-looking information is by its
nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-
looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could",
"would", "believe", "predict", "forecast", "pursue", "potential", "capable", "budget", "pro forma" and similar expressions are intended to identify forward-looking statements.
The forward-looking statements within this document are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak
only as of the date of this presentation. In addition, this presentation may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by
the Company.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a
conclusion, forecast or projection contained in the forward-looking statements in this Prospectus, including, but not limited to, the following material factors: operational risks associated with the
COVID-19 pandemic; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources of properties
where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market
volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining
concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and
uncertainties described elsewhere in this presentation and in the prospectus.
Such factors are discussed in more detail under the heading "Risk Factors“ in the prospectus. New factors emerge from time to time, and it is not possible for management to predict all of those
factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially
from those contained in any forward-looking statement.
The forward-looking statements contained in this presentation are expressly qualified by the foregoing cautionary statements and are made as of the date of this presentation. Except as may be
required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of
this presentation or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Prospective investors should read this entire
presentation and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of their investment in the Ordinary Shares.
Although the forward-looking statements contained in this presentation are based upon assumptions which the Company believes to be reasonable, the Company cannot assure holders or
prospective purchasers of Ordinary Shares that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this Prospectus, the
Company has made assumptions regarding: future commodity prices; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact
of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future
operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. The Company has included the
above summary of assumptions and risks related to forward-looking information provided in this presentation in order to provide holders and prospective purchasers of Ordinary Shares with a more
complete perspective on the Company's future operations and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. These forward-looking statements are made as of the date of this presentation and the Company
disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable
securities laws.
Right Project, Right Team, Right Time
Rising demand and paucity of new copper supply will drive Cu
prices
Hot Chili Presentation 3Source: https://www.macrotrends.net/1476/copper-prices-historical-chart-data
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
3/Jan/17 3/Jul/17 3/Jan/18 3/Jul/18 3/Jan/19 3/Jul/19 3/Jan/20 3/Jul/20 3/Jan/21 3/Jul/21 3/Jan/22
Cu Price (US$/lb)
✓Only low-altitude sizeable copper developer positioned for
production in next 5 years
✓Backed by Glencore
✓Strong ESG credentials
✓Lack of new Cu supply + rising demand = higher Cu price
Cu
2021 Achievements
Delivered into guidance
4
✓Completed 47,000m of resource upgrade drilling at
Cortadera
✓Started Costa Fuego PFS – due Q3/22
✓Attracted a major diversified miner (Glencore) as
a core 9.96% shareholder
✓Made final payment for 100% ownership of
Cortadera
✓Consolidated capital structure
✓Completed successful TSXV listing in Canada
Leadership – Fit For Purpose
Chilean and exploration, permitting, project financing, construction
and operating expertise
Dr Nicole Adshead-Bell, Chairman
Appointed March 2022
Geologist with >25 years combined technical, corporate
(Executive and Director), institutional investor, investment
banking and project financing experience
Christian Easterday, Managing Director & CEO
Geologist & Mineral Economist with >20 years global
experience, fluent Spanish, founding Director
Roberto de Andraca Adriasola, Director
Chilean National with over 25 years experience in the finance
and mining sectors
Mark Jamieson, Director (Glencore Nominee)*
General Manager Resource Engineering for Glencore’s
global copper group; engineer with >20 years global mining
experience, including sub level and block cave mines
Dr Allan Trench, Director
Geologist/geophysicist with >28 years global technical
management consulting, academic and advisory
experience
Randall Nickson, Director
Geological engineer with >36 years global experience
including 14 years in Chile focused on copper exploration,
fluent Spanish
Penelope Beattie, Company Secretary & CFO
Chartered CA with >20 years global experience
Grant King, COO
Mining Engineer with >20 years global experience, including
open pit, sub level and block cave projects and mines
José Ignacio Silva, Country Manager & Chief
Legal Counsel
Chilean National and lawyer with >15 years global legal and
mining sector experience
Andrea Aravena, Geology Manger – Chile
Chilean National and geologist >14 years Chilean
mining/exploration experience
John Hearne, Executive Studies Manager
Mining engineer with >35 years global mining experience
across all stages of the mining life cycle
Kirsty Sheerin, Resource Development Manager
Resource geologist with >14 years global mining experience
Dr Steve Garwin, Chief Technical Advisor
Geologist with >28 years experience and a leading
authority on porphyry, epithermal and Carlin‐style
mineralization in the circum‐Pacific region
Dr John Beeson, Lead Structural Geologist
Geologist with >25 years experience in global
exploration
*Glencore retains the right to appoint a Director to the Board, subject to holding at least 7.5% of the share capital of Hot Chili, except where Glencore does not
have the opportunity to participate in a dilution event. Refer to 2 August 2021 ASX Announcement for details.
Board Management
Hot Chili Presentation 6
Top 5 Shareholders
Capital Structure 3 Year Share Price Performance
Issued Shares 110,177,389
Share Price A$1.39 (1 April 22)
Mkt
Capitalisation
A153 M (18 March 22)
Mkt Capitalisation
(fully diluted)
A$189 M
(incl Con Notes, Options,
Performance Rights)
Cash A$31 M (approx.)
Expected Cash
Inflows in 2022
VAT Recovery & CMP
+ A$4.5 M (estimated)
In-Money A$1.25 Options
+ A$6.3 M (expiry May 22)
10.33% CDS & Co
9.96% Glencore
6.37% KAS & Blue Spec Group
5.31% Roytor & Co
5.16% GS Group Australia
$1.39
Cortadera
Deal
HG Core
discovered
COVID
Slump
Cortadera
MRE1
Volume
Share
Price
Glencore
9.99%
Analyst Coverage
Veritas Securities
Argonaut Securities
IA Capital Markets
Cormark Securities
Fundamental Research
TSXV
listing
Australia Canada
ASX: HCH I TSXV: HCH I OTCQB: HHLKF
Expected Cash
Inflows in 2022
Cash
Corporate Overview
Top 5 shareholders total >37% ownership, fully funded for 18mths
Chile – Home to Copper Giants
Top 20 copper mines by annual production
7
Copper is a critical metal in the
global electrification movement
that is forecast to drive
copper demand through
the next decade
Source: S&P Global Market Intelligence, 2022
Chile is home to 7 of the 20 largest
copper mines in the world.
* See slide 25 for details on top 20 copper mines by capacity
PFS Stage Development
Study Scale (per annum)
100kt Cu, 70-80koz Au
Costa Fuego is a Copper Super-Hub
Low elevation, proximal infrastructure decreases economic hurdle
8
2.8 Mt (Ind)
0.6 Mt (Inf)
Copper Gold
2.6 Moz (Ind)
0.4 Moz (Inf)
Top 10* Undeveloped Cu Resource (S&P)
on coast of #1 Global Producer - Chile
* Top 10 Cu Resource/Reserve (Active), at PFS level or above, with low operational risk (S&P , 2022)
Q1 22 - Resource Upgrade
On-time, In-Guidance