Hot Chili (HCH) Precious Metals Summit Beaver Creek 2026 summary

Market and industry outlook

• Copper and gold are entering a new 20-year cycle of strong investment and rising prices, with copper supply constrained by long development timelines and declining grades.

• Buying existing copper production is now five times more expensive than building new greenfield projects, shifting industry focus to new developments.

• The region hosts one of the largest clusters of undeveloped copper projects, with significant corporate interest and ongoing M&A activity.

• Valuation arbitrage persists between Australian and North American copper developers, with advanced projects trading at about 0.6x P/NAV.

Project updates and milestones

• La Verde discovery is delivering world-class results, expected to transform the scale and economics of the Costa Fuego project.

• Integration of La Verde could increase resource inventory by 50% and extend mine life from 20 to 30 years, with production up to 150,000 tons per annum copper equivalent.

• EIA submission is targeted for the end of Q1 next year, aiming for FID in 2029 and first production in 2031.

• The project benefits from low elevation, proximity to infrastructure, and a unique seawater license, reducing capital intensity and operational costs.

Financial and operational highlights

• Market cap has increased by AUD 350 million, but valuation still lags North American peers.

• Addition of La Verde and higher consensus metal prices are expected to nearly double NPV and IRR, with cash flow index moving towards 2.

• Cash costs are expected to be in the lowest quartile due to high-grade additions and low strip ratios.

• The project is positioned to become the third or fourth largest independent copper developer globally, with potential to scale further.