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    How Investors Are Reacting To Hot Chili (ASX:HCH) Expanding Higher-Grade La Verde Copper-Gold Results

    Simply Wall St·12/20/2025 19:16:14
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    • Earlier in December 2025, Hot Chili reported further drilling results from its La Verde copper-gold discovery in Chile, confirming wider and higher-grade mineralisation near surface with all eight completed diamond drillholes intersecting copper porphyry-style mineralisation and additional assays still pending under JORC (2012) and NI 43-101 standards.
    • These results suggest La Verde’s higher-grade core may be expanding and converging into a single system close to the company’s planned Costa Fuego processing hub, a configuration that could be operationally meaningful if future work supports current indications.
    • We’ll now examine how this apparent expansion of higher-grade mineralisation at La Verde influences Hot Chili’s broader investment narrative and risk profile.

    Find companies with promising cash flow potential yet trading below their fair value.

    What Is Hot Chili's Investment Narrative?

    To own Hot Chili, you really need to believe that Costa Fuego can progress from study stage to development and that La Verde can add meaningful, higher-grade feed close to the planned processing hub. The latest La Verde drilling update fits neatly into that thesis, reinforcing the idea of a single, near-surface higher-grade core just as the stock has been in a strong short-term uptrend. In the near term, the key catalysts remain further assays from La Verde, any updates to the Costa Fuego reserve case or project schedule, and future funding decisions, all now framed by growing market optimism. The biggest risks still look familiar: ongoing losses, no current revenue, continued dilution through equity raising and the execution challenge of turning encouraging geology and a A$1.2 billion NPV study into a financed mine.

    However, one risk in particular may surprise new shareholders who only see the recent price strength. According our valuation report, there's an indication that Hot Chili's share price might be on the expensive side.

    Exploring Other Perspectives

    ASX:HCH 1-Year Stock Price Chart
    ASX:HCH 1-Year Stock Price Chart
    Two fair value estimates from the Simply Wall St Community both sit at A$0, underlining how sharply personal models can differ from the current market enthusiasm around Costa Fuego and La Verde. When you combine that with Hot Chili’s ongoing losses and reliance on fresh capital, it is clear that sentiment can shift quickly, so it helps to weigh several contrasting views before deciding how this story might fit into your own portfolio.

    Build Your Own Hot Chili Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Hot Chili research is our analysis highlighting 3 important warning signs that could impact your investment decision.
    • Our free Hot Chili research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hot Chili's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.