Costa Fuego PFS: $1.20B NPV, 19% IRR
Hot Chili Limited's Costa Fuego in Chile, Atacama Coastal belt, Huasco Valley, ~60km from port has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $1.20B, an after-tax IRR of 19%, and initial capital of $1.27B. The mine plan runs 20 years at about 116 kt CuEq per year.
Hot Chili Limited's Costa Fuego has reported Pre-Feasibility Study (PFS) results for the copper-gold project in Chile, Atacama Coastal belt, Huasco Valley, ~60km from port. The study headlines an after-tax net present value of $1.20B at a 8% discount rate. It reflects Hot Chili Limited's (HCH.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.20B using a 8% discount rate. After-tax IRR is 19%. Initial capital expenditure is estimated at $1.27B. The study models a payback period of 4.5 years. Economics are based on Cu=US$4.30/lb, Au=US$2,280/oz, Mo=US$20/lb, Ag=US$27/oz (PFS base case).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 116 kt CuEq. The open-pit strip ratio is 1.5.
Resources and ownership. Mineral reserves: 502 Mt @ 0.43% CuEq. Mineral resources: 798 Mt @ 0.45% CuEq (M+I); 203 Mt @ 0.31% CuEq (Inferred). The company holds a 80% interest in the project. Royalties and streams: Glencore can purchase up to 60% of concentrate for first 8 years at benchmark terms.
These figures are extracted from Hot Chili Limited's technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.