Why would you even look at C1 when the mine is not up? C1 is...

First 17 Last

Share
Profile

Follow
Kinzu

833 Posts.

07/03/16

07:43

Post #: 17202788
Share

Originally posted by malmanu ↑

Loan facilities of US18.5 Million and US$9.53 Million drawn so far , cash left end of march expected to be around $2.1m , they can last several years on cash remaining and fund facilities left when the quarterly spend is AUD $1.2m.

High cost miners shutting down has nothing to do with HCH who mention its C1 cost of US$1.47/lb paid metal (including credits) for Productora is very competitive.

Productora copper project (82.5% owned by Hot Chili and 17.5% owned by CMP as of Oct 2015)

Monday 1 st February 2016 - Taurus Funds Management and CAP, the parent company of Compañía Minera del Pacífico S.A. (CMP), Hot Chili’s joint venture partner at Productora, have agreed to subscribe to A$1.6 million of the placement.

The issue of placement shares to Taurus Funds Management has been completed and The issue of placement shares to CAP is expected to be completed in the coming weeks following CAP board ratification of CAP's agreement to participate in the placement.

Additional Purchase Option for CMP to Move to 50.1% Interest in Productora - 06/08/14

In consideration for the execution of the MOU, Hot Chili has agreed to grant CMP an option (Additional Purchase Option) to acquire further shares in SMEA SpA such that upon exercise of the Additional Purchase Option CMP will be entitled to acquire a further 32.6% interest, for a total 50.1% shareholding interest in SMEA SpA.

The Additional Purchase Option will have a minimum exercise price of US$80 million.

The Addition Purchase Option may be exercised by CMP at the election of CMP within 90 days after the receipt by Hot Chili and delivery to CMP of:

1. the results of the PFS; and

2. a valuation report of the Productora Project prepared by a suitably qualified technical expert, jointly appointed by Hot Chili and CMP to value the Productora Project in accordance with the VALMIN Code, which states the technical expert’s preferred valuation of a 50.1% economic interest in the Productora Project (the “Valuation”). The expert will be instructed to prepare the Valuation using valuation methodology commonly used within the mining industry and to give due regard for a premium for control of the Productora Project.

The exercise price of the Additional Purchase Option will be the higher of:
(a) US$80 million; and
(b) the value of the further shares in SMEA SpA to be acquired on exercise of the Additional Purchase Option as determined by the Valuation

Expand

Why would you even look at C1 when the mine is not up? C1 is more relevant when the thing is already up and running and you are evaluating if their cash position will go up or down. C3 is the cost you should look at when investing money to start a company. My question is why would any risk 975m AUD $ for HCH to possibly break even at current prices (Assuming everything goes to plan and costs actually reconcile with the pre-feas) The current c3 also excludes financing costs (Assuming they go down debt path).

you dont have to be a genius to know the odds are stacked heavily against HCH once you read more feasibility reports. An IRR% of 15% when using an inflated copper price of 3$/lb is pretty bad.

market is already pricing this in.

HCH Price at posting: 5.2¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 5 more messages in this thread...

First 17 Last

Add HCH (ASX) to my watchlist

(20min delay)
Last $1.04		Change -0.215(17.2%)		Mkt cap ! $123.6M

Open	High	Low	Value	Volume
$1.03	$1.08	$1.02	$911.9K	871.0K

Buyers (Bids)

No.	Vol.	Price($)
3	13555	$1.04

Sellers (Offers)

Price($)	Vol.	No.
$1.05	20000	1

View Market Depth

No.	Vol.	Price($)
3	13555	1.035
8	47865	1.030
2	4500	1.025
3	21626	1.020
2	37472	1.015

Price($)	Vol.	No.
1.050	20000	1
1.060	5430	2
1.070	39000	2
1.075	500	1
1.090	4000	1

Last trade - 16.10pm 06/05/2024 (20 minute delay)


Last $1.05		Change -0.215 ( 15.7 %)
Open	High	Low	Volume
$1.03	$1.08	$1.03	234446
Last updated 15.59pm 06/05/2024 ?

HCH (ASX) Chart

Why would you even look at C1 when the mine is not up? C1 is...

Featured News

Westpac tracks lower in profits in first half of 2024, with a 16% yoy drop amid slowing economy

Sold out signs go up for RIU Resources Roundup in Sydney

Tamboran is listing on the NYSE, and Wall Street is paying attention

Mantle Minerals to kick off drilling at Mt Berghaus in WA

Maiden drilling at West Arunta hints at major IOCG system for Rincon

Buyers (Bids)

Sellers (Offers)

Featured News

Why would you even look at C1 when the mine is not up? C1 is...

Featured News

Top Stories

Westpac tracks lower in profits in first half of 2024, with a 16% yoy drop amid slowing economy

Sold out signs go up for RIU Resources Roundup in Sydney

Tamboran is listing on the NYSE, and Wall Street is paying attention

Mantle Minerals to kick off drilling at Mt Berghaus in WA

Maiden drilling at West Arunta hints at major IOCG system for Rincon

Buyers (Bids)

Sellers (Offers)

Featured News