Hot Chili (HCH) H2 2024 earnings summary

Executive summary

• Upgraded Costa Fuego mineral resource: 798 Mt Indicated at 0.45% CuEq and 203 Mt Inferred at 0.31% CuEq, with over 85% of contained metal now Indicated, supporting the upcoming Pre-Feasibility Study (PFS).

• Major capital raise of A$31.9M completed to accelerate project development, land consolidation, and exploration.

• Strategic water assets transferred to new subsidiary Huasco Water, securing the only active maritime water concession in the region.

• Memorandum of Understanding (MOU) executed with Las Losas Port for bulk concentrate exports, enhancing project logistics.

• Expanded landholdings and exploration pipeline through new option agreements and acquisitions near Costa Fuego.

Financial highlights

• Net loss after tax attributable to owners: $7,569,376 for FY2024 (2023: $5,225,065).

• Basic and diluted loss per share: (6.13) cents (2023: (4.37) cents).

• Cash and cash equivalents at year-end: $33,741,518 (2023: $2,948,964).

• Exploration and evaluation expenditure capitalized: $215,831,609 (2023: $220,436,849).

• Total assets: $250,882,309; total equity: $247,427,176 as of 30 June 2024.

• A$31.9M raised via private placement and share purchase plan; US$15M received from Osisko Gold Royalties for NSR royalty.

Outlook and guidance

• Costa Fuego PFS on track for completion by end of 2024, with Environmental Impact Assessment targeted for H1 2025.

• Huasco Water business case study planned for H1 2025, exploring monetization and third-party offtake opportunities.

• Continued regional consolidation and exploration to underpin future resource growth.

• Focus on advancing permitting, infrastructure, and project financing options.