The Hot Chili (ASX:HCH) share price cooled by 7% today. Here’s why

It’s been a bad day for the mining company’s shareholders. We have the details…

| More on:
A woman holds a chilli in front of her mouth as an upside down smile.

Image source: Getty Images

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.

Should you invest $1,000 in Hot Chili right now?

Before you consider Hot Chili , you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Hot Chili wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

asx share price growth represented by cartoon man flexing biceps in front of charged battery
Resources Shares

Lighting up the market: ASX lithium stocks surge again on Tuesday

Chalk up another green day for lithium stocks...

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Broker Notes

Broker names 3 reasons the South32 share price could be cheap

South32 shares could be great value according to one leading broker...

Read more »

a man in a hard hat and checkered shirt holds paperwork in one hand as he holds his hands upwards in an enquiring manner as though asking a question or exasperated by uncertainty.
Resources Shares

The Poseidon Nickel share price has dumped 24% in a month. What’s happening?

Why is the Poseidon Nickel share price struggling so much?

Read more »

Resources Shares

Why is the Lynas share price powering ahead today?

Shares in the rare earths company are off to a great start this week.

Read more »

A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today
Resources Shares

Here’s why the Core Lithium share price is racing higher today

This lithium share is having a strong day...

Read more »

Resources Shares

Critical Resources share price leaps 12% on latest lithium project news

Shares in the emerging base metals company are up and away today.

Read more »

Three satisfied Whitehaven coal miners with their arms crossed looking at the camera proudly
Resources Shares

Oz Minerals share price rallies on potential $200m acquisition

Big news for the miner today has pushed the company's shares higher.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Resources Shares

Latin Resources share price races 9% higher on lithium update

The Latin Resources Ltd (ASX: LRS) share price is having a strong day on Tuesday. In morning trade, the lithium…

Read more »