Hot Chili Limited: Corrections to Yesterday’s Preliminary Feasibility Study Announcement
Perth, Australia – Hot Chili Limited, a leading mining company with operations in Chile, has announced corrections to the Preliminary Feasibility Study (PFS) for Huasco Water, an entity it owns 80% of, which controls strategic water rights in the Huasco Valley. The corrections were made in response to certain figures in the previous announcement not aligning with those previously reported to the Australian Stock Exchange.
Background
Hot Chili Limited, through its subsidiary, Huasco Water, holds strategic water rights in the Huasco Valley of Chile. The water rights cover an area of approximately 12,000 hectares, making it a valuable asset for the company and the agriculture industry in the region. The PFS, which was announced on March 31, 2025, outlined the potential economic benefits of the water rights.
Corrections
The corrections to the PFS announcement primarily involved the capital and operating costs for the water extraction and delivery system. The original announcement stated that the capital cost would be approximately AUD 110 million, while the operating cost would be AUD 33 million per year. However, the correct figures are AUD 108 million for capital cost and AUD 30 million per year for operating costs.
Additionally, the original announcement stated that the net present value (NPV) of the project would be AUD 250 million, while the corrected figure is AUD 243 million. The internal rate of return (IRR) was also corrected from 23.3% to 22.9%.
Impact on Hot Chili and Shareholders
The corrections to the PFS announcement may have an impact on Hot Chili’s share price. The initial announcement caused a significant increase in the company’s stock price, and any discrepancies or corrections may lead to a decrease. However, it is essential to note that the overall economic benefits of the water rights remain strong, and the corrections do not significantly alter the project’s potential profitability.
Impact on the World
The corrections to the PFS announcement for Huasco Water may not have a significant impact on the world at large. However, the water rights held by Hot Chili and Huasco Water are essential to the agricultural industry in the Huasco Valley. By ensuring the accuracy of financial projections and economic benefits, Hot Chili can continue to invest in the region and support the local economy.
Conclusion
Hot Chili Limited has announced corrections to the Preliminary Feasibility Study for Huasco Water, an entity it controls that holds strategic water rights in the Huasco Valley of Chile. The corrections primarily involved capital and operating costs and did not significantly alter the project’s overall economic benefits. Shareholders and the agricultural industry in the region may be impacted by any discrepancies or corrections to financial projections. Despite this, the overall potential profitability of the water rights remains strong.
- Hot Chili Limited announced corrections to the Preliminary Feasibility Study for Huasco Water
- Corrections involved capital and operating costs for water extraction and delivery system
- Net present value and internal rate of return also corrected
- Impact on Hot Chili’s share price possible
- Overall economic benefits of water rights remain strong
