The Hot Chili Ltd (ASX: HCH) share price is on investors' radars as the company delivered its 2026 Costa Fuego Copper-Gold Project pre-feasibility study (PFS), headlined by a post-tax NPV8% of US$1.2 billion and a projected average annual production of 116kt copper equivalent for the first 14 years.
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What did Hot Chili report?
- Post-tax, life-of-mine free cashflow of US$3.86 billion
- Post-tax NPV8% of US$1.2 billion and IRR of 19%
- Start-up capital of US$1.27 billion for a 20-year project life
- Low C1 cash cost of US$1.38/lb copper
- Probable Ore Reserve of 502Mt @ 0.46% CuEq (2.32Mt CuEq)
- Cash on hand of approximately A$46 million as at 31 July 2026
What else do investors need to know?
Hot Chili continued its impressive drilling campaign at the La Verde discovery, reporting several standout intersections that point to ongoing resource growth. A maiden Mineral Resource Estimate (MRE) for La Verde is set for later this year, alongside a revised PFS to integrate this asset into the greater Costa Fuego hub.
The company's 80%-owned Huasco Water business is a strategic asset, providing fully permitted seawater access to a region facing water constraints. This positions Hot Chili with a unique infrastructure advantage for the Costa Fuego project and future expansion.
What did Hot Chili management say?
Managing director Christian Easterday said:
Our PFS results highlight Costa Fuego's potential as a top-five independent copper development with robust economics and low costs, all in a region where infrastructure and water access set us apart.
What's next for Hot Chili?
Looking ahead, Hot Chili is focused on completing the maiden MRE for La Verde and updating the Costa Fuego PFS to include these new resources. Environmental permitting for Costa Fuego is expected in 2027, with the final investment decision targeted for 2029 and first production eyed for 2031.
Meanwhile, the company continues engaging with local communities and advancing its water business, both important in reducing development risk and building long-term project value.
Hot Chili share price snapshot
Over the past 12 months, Hot Chili shares have risen 143%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 2% over the same period.
