Highlights

  • The September 2026 Quarterly Report described an additional porphyry centre at La Verde.
  • La Verde drilling totalled approximately 50,000 metres across two phases.
  • Hot Chili reported AUD 29.3 million cash at the end of the September quarter.
  • Costa Fuego feasibility refinement and environmental work remain in progress.

Hot Chili Limited (ASX:HCH) is advancing copper and gold projects in Chile, with work centred on Costa Fuego and exploration at La Verde. The company also develops water-supply infrastructure concepts through Huasco Water. On 5 November 2026, Hot Chili shares closed at AUD 1.31, as the company continued assessing La Verde drilling results. The September-quarter report released in October detailed drilling outcomes at La Verde, an additional identified porphyry centre and the status of project studies. These results provide geological data for further resource evaluation; they do not establish that a new copper mine has begun commercial operations.

La Verde Exploration During 2026

Hot Chili's October 2026 quarterly report stated that phase-two infill and extension drilling at La Verde had finished after 13 months and more than 40,000 metres, following approximately 10,000 metres of phase-one drilling. The combined program was described as roughly 50,000 metres. Assays from a step-out reverse-circulation hole, DKP084, included 148 metres at 0.44% copper equivalent from 36 metres downhole. The reported interval included 44 metres at 0.56% copper equivalent from 138 metres downhole. These are drilling intervals, not statements of true mineralised width or an ore reserve. A separate step-out diamond hole was reported to contain porphyry-style mineralisation farther south. Hot Chili Limited (ASX:HCH) identified this as the La Verde South porphyry centre, requiring further evaluation.

Costa Fuego and the Water Business

Costa Fuego is Hot Chili's proposed copper-gold development in Chile's coastal Atacama region. The project incorporates resource assessment, processing and infrastructure work that must be reconciled into development planning. La Verde drilling is important because a future resource estimate could affect the assumptions used for the broader development, but the company cannot treat undisclosed mineralisation as an established reserve. The September 2026 report said preparation of a revised Costa Fuego pre-feasibility study and environmental impact assessment remained on track, with assays for further drill holes pending. Huasco Water is a separate infrastructure interest linked to potential seawater requirements in the region. Its future commercial contribution depends on construction, customer Demand and contractual arrangements rather than the existence of a project concept alone.

Funding and Technical Uncertainty

The company reported AUD 29.3 million in cash following completion of a Royalty amendment agreement during the September 2026 quarter. That funding position supports continued technical programs but does not itself demonstrate construction funding for Costa Fuego. Hot Chili Limited (ASX:HCH) must still integrate drilling data into resource models, assess metallurgical performance, refine engineering and obtain required regulatory permissions. Commodity prices can alter project economics, while exchange rates and Capital costs influence budgets for a Chilean development funded from international markets. Any plan for future copper-equivalent output remains a study or company expectation until facilities are built, commissioned and operating.

Key Insights

Hot Chili Limited (ASX:HCH) reported a completed phase-two drilling program and new geological evidence at La Verde during 2026. The next questions concern assay completion, the maiden La Verde resource estimate, revised project studies, environmental approvals and financing. These milestones provide a practical way to follow development progress without treating exploration results as realised production or cash earnings.