Key points
- The Hot Chili share price shed almost 7% today
- The company has executed a letter of intent for port access
- Copper prices have fallen nearly 2%
The Hot Chili Ltd (ASX: HCH) share price lost some of its spice today. The ASX mining company's shares ended the day down 6.74% at $1.73 apiece.
For context, the S&P/ASX 200 Index (ASX: XJO) sunk 2.27% today.
Let's take a look at what might have impacted the company today.
Port negotiations commence
The Hot Chili share price plummeted today despite the company releasing what appeared to be a positive announcement.
The miner, which is exploring for copper in Chile, South America, signed a letter of intent with Puerto Las Losas SA (PLL) to negotiate port access and port services.
Hot Chili requires access to the port to progress its Costa Fuego copper development hub in Chile. PLL will pay for a study looking into the use of its port for the shipping of copper and other materials at the project.
Speaking on the announcement, Hot Chili country manager and chief legal counsel Jose Ignacio Silva said:
Securing port services will be a major step forward for Costa Fuego. Leveraging off existing port infrastructure will materially reduce Costa Fuego's environmental footprint during construction and operations.
As no new port or areas will be required for construction or subject to environmental permitting, we expect a positive impact to our construction capital requirements and overall permitting/construction timelines.
Hot Chili said PLL is looking to present the company with a binding offer for port services in 12 weeks or fewer. If this goes ahead, the companies will start operations in the final quarter of 2025.
Falling copper prices could have also have impacted the Hot Chili share price today. Copper has dropped 1.78% from US$4.5825 on 20 January to US$4.501 per Lbs at the time of writing.
Hot Chili share price snapshot
The Hot Chili share price has sunk 14% in the past year. In the past month, it has gained 1.47% but has fallen around 5.5% this week.
Meanwhile, the broader ASX 200 index has returned around 5% over the past 12 months.
