$?Bill in a ? Life mine, page-23114

Barry Fitzgerald RRS column this morning has a bit on HCH. Positive stuff. ...

That copper-focussed column on June 8 was followed up here two weeks ago with the idea that with OZ Minerals’, now absorbed by BHP in a $9.6 billion takeover (the mining market leader agrees with the 2025 pivot point for copper), investors dollars would dribble down to the copper explorers/developers.

Once of those mentioned was Hot Chili (ASX:HCH) which was trading at $1.06 at the time. It has since taken off to $1.45 for a 37% two-week gain.It was argued at the time that Glencore was on board with an equity position, and a royalty deal has been struck with Osisko, the latter providing a see through value for Hot Chili’s Costa Fuego project in Chile of $US1.34 billion.The question was asked why hadn’t the local market got on board with the story. The Osisko royalty see-through value, and the release of a scoping study into Costa Fuego’s development, has turned that around. The market is now on board.The scoping study covered a base case long life, large scale project with a post-tax NPV8 of $US1,100m and an IRR 21% for a nominal 20Mtpa processing plant and a 12,000t heap leach copper cathode SX-EW plant with combined average annual production of 95,000t of copper and 49,000 ounces of gold at an AISC of $US1.74/lb.Piers Reynolds at Veritas Securities (which has acted for the company in the past) reckons the re-rating of the company is not done yet. Post the Osisko royalty deal and the scoping study, Reynolds put a $3.54 a share price target on the stock. That’s not a typo.