HCH - Hot Chili

[Sean K]

Maybe the drilling team were gobsmacked by the recent price rally. Not drilling, seems to have perked up the price more than drilling.

Yes, stop drilling, please…

I think the recovery has mostly just been oversold and then the financing. I’ve got a feeling that after the PFS they’ll get more funding that way to get to DFS. Maybe all the gold etc will be streamed and Glencore take the copper.

Hopefully next MRE surprises to the upside. 4Mt of cu and 3.5Moz au would look ok.

Left field is another discovery in one of those circles on their cartoon.

 

[Sean K]

CEO putting an $11 PT on this just after 16:40 mark, if copper goes up 50%. Maybe it's OK to do that in Miami...

 

[Sean K]

I'm looking forward to $11 a share @christianeasterday.

But at the moment, I'm happy this support has been a bounce.

Not counting my chickens though.

God knows what Chile might try to do with their golden goose mining sector in the future.

 

[Sean K]

It's been a sad couple of weeks. I don't think this TA crap works. $1.30 was supposed to be support.

 

[Sean K]

This charting crap doesn't work at all!

I might just stick to throwing darts at the RIH as I drive by in my Uber.

 

[DrBourse]

Hi Sean,....

Just depends on the type of TA that you employ.....

My style of TA does not relate to your $1.30 (the Orange Line on my Chart)....
Next Support is at $0.99c IMO....

Below that $0.99c there are numerous Support Lines all the way down to abt $0.68c...
There are 4 Resistance Lines above the current SP of $1.035c....
All ST Inds are currently Underwater and all are searching for the Bottom.....
If I had to call a bottom $0.455c comes to mind...

 

[Sean K]

zzzzzzzz, not much drilling news coming out of HCH which is frustrating. They need to show that the resource is going to grow through some results, not just buying up additional land around their project. Getting to a 150Kt pa asset should be enough to make it a worthwhile project for someone to tack on, if anyone's willing to take the Chile risk.

Last presentation in Sep said they were going to come out with an updated MRE in H2 23 so they've got a month...

 

[peter2]

Phase 2 drilling commenced. Resource upgrade being finalised for Q1 24 release.

Another resource that will require billions to develop, plus there's some sovereign risk.

 

[Sean K]

Phase 2 drilling commenced. Resource upgrade being finalised for Q1 24 release.

Another resource that will require billions to develop, plus there's some sovereign risk.

I think they're going to just keep drilling until they get taken over. Maybe in 2027.

The Capex in the PEA was closer to $1b as opposed to many billions. Will probably blow out though. I think the pit will be much larger in the next study and the strip ratio will go large.

Current JORC is 4.1Mt CuEq as at 31 Mar 22 so it might get up into the 5Mt CuEq area for the upgrade. That's a lot of copper, but a porphyry.

Project has a post tax NPV of US$1.1B and current company EV of about A$100M.

Once copper goes where we think in the next couple of years it might have it's day in the sun. Or, Chile might just steal it and everyone loses.

 

[Sean K]

I'm not sure if this is ever going to be a mine or whether the senior staff are just thinking of this as a lifestyle company. Maybe they like hanging out in Santiago in Barrio Bellavista which has some quite sensational bars and cafes.

This has gone nowhere but I've been lucky to be picking bottoms and tops over the past few years. Thank you Chile.

$1.15 is trouble.

 

[Sean K]

Just getting harder and harder to beat $1.15 but when it does it might have a good run.

Maybe resource upgrade due Q1, next month, will give it a lift.

Unless it's crap.

 

[Craton]

Might be a tad early or a tad late but copper and hot chillis, what's not to like!
Interesting reading the announcements especially re. their access to water. HCH is my Mar 2024 stock tip.

 

[Sean K]

Might be a tad early or a tad late but copper and hot chillis, what's not to like!
Interesting reading the announcements especially re. their access to water. HCH is my Mar 2024 stock tip.

Hopefully they get the MRE upgrade out on time and it's a surprise to the upside.

 

[Sean K]

I've been asleep at the wheel and haven't updated myself on this thread regarding the MRE upgrade, which is crap.

Two years and 24.5km of drilling for another 100Kt of CuEq. No wonder the SP is languishing. Are these jokers serious? Two years of drilling to convert 200Mt to Indicated and reduce 100Kt of Inferred.

Can only hope the additional drilling and PFS makes it look more economical for Glencore to take over.

What a rock show.

Slightly concerned about this chart. Not sure if it could eventuate unless Chile nationalise everything.

 

[dyna]

Bought 10 grand worth today at a buck.
It will be a "wait and see" game for me with this thing now .
Probably not for the long - term , I think , but may change my mind .
Chart is starting to look promising and decided not to wait for 96 cents .

 

[Sean K]

Bought 10 grand worth today at a buck.
It will be a "wait and see" game for me with this thing now .
Probably not for the long - term , I think , but may change my mind .
Chart is starting to look promising and decided not to wait for 96 cents .

Good luck Dyna. We have a few headwinds. Communista Chile, China slowdown, potential WW3, etc etc. But, the one thing we have is that copper supplies are running out and there's no new significant mines. Only that thing in Mongolia and the thing in Navada that the locals won't allow because of a sacred cactus. Otherwise, this thing needs to be turned into a mine at some stage.

 

[dyna]

Big bidder for HCH in the queue this morning : 100,000 at a buck .
Haven't seen that before.
Not an easy stock to get one's head around , I feel .
I 've been wondering out loud to myself whether smarter folks than me have considered the possibility of ....a takeover.

 

[Sean K]

I 've been wondering out loud to myself whether smarter folks than me have considered the possibility of ....a takeover.

It's inevitable, or someone takes a very large chunk of it. Largest ASX resource outside the majors. An explorer doesn't find $1.2b capex laying around in the Atacama Desert. Glencore obviously in the box seat.

 

[Sean K]

I was a little concerned about the H&S thing looming over this but copper has come to the rescue. Hopefully the rise over $4 holds up.

 

[dyna]

Will have to keep my beady eye on this . Definitely not a stock to fall in love with . Strictly for trading . Finger hovering over the sell button , watching for the first sign of red candles.