HCH 3.70% 84.0¢ hot chili limited

Are we missing something here?, page-8

  1. 359 Posts.
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    Couple reasons in my opinion -
    1. Majority of people in the speculative penny space want quick returns. HCH hasn't provided quick returns (unless of course you got in at March in which case you've 5 bagged it but who's counting). HCH are a slow boil, which doesn't meet the expectations (some realistic, most unrealistic) of the majority of new-recent shareholders. Compounded by consistent complaining on this forum about management, would definitely contribute to scaring away new retail investors. I personally think Management are doing everything the right way (a few minor qualms but nothing to write home about).
    2. 12 Month+ shareholders are annoyed that the price has dropped since they bought, which is fair. But the fact they still hold shows they believe in the resource (since its a great resource). But these same people arent willing to put in any more capital, which is absolutely fair.
    3. Both Points 1 and 2 talk to a lack of new interest in the company. New listing on TSX may potentially bring in new investor pool (at the very least new retail investors). Further company presentations at Diggers & Dealers and other various industry roadshows will help draw big investors as well.

    The latest announcement was essentially more of the same - positive drill results that built confidence in what we already knew was there and expected, it wasn't terribly surprisingly positive news which is what would usually kick a SP into gear. But nonetheless, it was a positive announcement.

    Announcements we can look forward to in 2021 -
    1. Continual expansion & infill drilling of Cortadera Resource (SP likely to respond to infill drilling that shows Cuerpo 1/2/3 are likely to join up).
    2. Internal Scoping Study complete, PFS scheduled to begin Q4 of CY2021.
    3. Dual-Listing on the TSX.
    4. Resource upgrade Q3/Q4 CY2021. Move to bulk indicated tonnage with .4%Cu grade / 0.5%CuEq.
    5. Cortaderra North results. Positive early signs show double the surface molybdenum count that Cortaderra showed. Grant King said if they knew that originally they probably would have targeting drilling Cortadera North first before Cortadera.

    Commodity Market
    Plenty of driving market forces to look forward to this next 4 years -
    1. Increase in US focus on renewables and EVs
    2. Tesla Ramp up production
    3. European car manufacturer EV ramp up
    4. Chinese economic stimulus
    5. Biden economic stimulus + associated inflation from excessive printing of currency - likely to contribute to 'artificial' inflation of commodity prices, which is still good news for those not holding USD.

    Risks include -
    1. A potential capital raise in Q1 CY2022, since the latest December 2020 Quarterly indicated estimated 5.9 quarters of funding remain.
    However, since the major drilling campaign should have been completed by then, costs should likely reduce significantly so you may be able to milk an extra quarter out of the funding and push any further raise into Q2 CY2022.
    Having said that, the next cost to consider by that stage is a PFS so that will need to be funded somehow - hopefully from remaining funds?
    If Productera is producing an income at that point, there is potential to simply fund the PFS on finance. I would like to think if there was the need for a Cap Raise it would be done via SPP instead of institutional.

    2. Covid in Chile. Chile have been one of the first South American nations (if not the first) to adopt the vaccine, which is a good start.


    Anyway, just my 2 cents.
 
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84.0¢
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82.5¢ 84.0¢ 82.0¢ $82.44K 99.12K

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