Hot Chili Quarterly Report - Period Ending 30 June 2026

Hot Chili Limited released its quarterly report for the period ending 30 June 2026, which recaps previously reported La Verde porphyry Cu-Au drilling results for holes DKD044, DKP053, DKP054, DKP058, DKD049, and DKP028D. The report also covers the US$15 million OR Royalties amendment announced on 7 July 2026.

Operational updates include the deployment of a third drilling rig and the engagement of a second ISO laboratory to cut assay turnaround times. The company is making progress on a revised Preliminary Feasibility Study (PFS) and an Environmental Impact Assessment (EIA), which has been split into two independent EIAs.

The report discloses tenement changes, noting that some tenements have expired while others have been added. Hot Chili Limited reported a cash position of A$25 million at quarter-end.

Hot Chili Limited’s latest quarterly report serves primarily as a recap, with the only new developments being changes to its tenement portfolio, including some expiries and new acquisitions. The company’s cash position decreased slightly from A$35.2 million to A$25 million, consistent with expected funding burn, and it confirmed that a third drilling rig and a second laboratory are now operational, both of which had been previously flagged as imminent. No material new drill assays or financing events were introduced in the release.

The market had already absorbed the La Verde results, released on 28 July and earlier, as well as the OR Royalties financing announced on 7 July. Consequently, the stock declined from approximately A$2.05 in mid-June to around A$1.50 by late July, reflecting likely profit-taking following the news flow. The quarterly release caused no visible price reaction, with subsequent trading days showing low volume.

As a junior explorer, Hot Chili relies on discovery-driven news to move the needle, and a quarterly summary does not typically impact valuation. The primary catalysts for the company remain the maiden Mineral Resource Estimate (MRE) and the revised Preliminary Feasibility Study (PFS), neither of which is contained in this release.

Hot Chili Limited (HCH) is a copper-gold developer advancing the Costa Fuego project in Chile's coastal Atacama region. The project comprises multiple deposits, including Productora, Cortadera, and La Verde, alongside the Huasco Water seawater-supply business.

A Preliminary Feasibility Study (PFS) on Costa Fuego, dated March 2025, outlined a 20-year mine life, US$1.27 billion in capital expenditure, and a net present value (NPV) of US$1.2 billion at a 6% discount rate. The La Verde discovery adds exploration upside to the portfolio.

The company is funded with A$25 million in cash and no debt, following an A$40 million placement in February 2026 and US$30 million in royalty funding since 2023. Shareholders include Glencore (7.5%), GS Group, and insiders.