Grades and production benchmark, page-3

Agreed fully, HCH grades are fine and comparable to most other deposits in Chile

What people are missing is that with these Chilean Porphyry deposits it is not a grades game but a tonnage game with strong control over costs

HCH has a major cost advantage owing to low elevation, which makes a huge impact on infrastructure costs, energy, transportation, water

The PFS shows that there are strong economics but certainly there is room for improvement;
1. More tonnage is needed to both increase annual production as well as extend mine life. This is the attraction of La Verde, which could be the key to providing this additional tonnage as a feeder into the main processing facility
2. The Cortadera block cave capex needs to be pushed out into the future in order to reduce its DCF impact. Again if La Verde works out and can provide additional open pit tonnage up front, this will improve the overall Costa Fuego project economics

The Elephant in the room is the financing as Costa Fuego is just too big and capital intensive for a small cap such as HCH to develop alone
1. Huasco water could provide a good part of the total initial build financing but we need to see developments in desalination permits and strategic partners
2. On top of Huasco, I would still see that a partner is needed on this project. Does not have to be a mega cap such as BHP, Rio, Glencore, Anglo but maybe the likes of , First Quantum, Lundin, Hudbay, Capstone. Antofagasta would be very interesting, fully focused on Chile and very large, sitting between the mega caps and the mid caps