09:27 AM EDT, 03/31/2025 (MT Newswires) -- Hot Chili ( HHLKF ) , which fell 6.5% and nearer to 52 week lows last Friday, on Monday announced the results of a Pre-Feasibility Study for the company's subsidiary Huasco Water, an 80%-owned entity that controls strategic water assets in the Huasco Valley of Chile.

Among highlights, HCH cited "strong economics" for a large, multi-user, water business. It cited Stage 1 Water Supply PFS for 500L/s of Potential Seawater Supply; Post-tax Net Present Value (NPV8%) of US$116 million and Internal Rate of Return (IRR) of 19%. Start-up capital cost for seawater supply estimated at US$151 million with a 4.5 year payback.

The company cited Stage 2 Water Supply PFS for 1,300 L/s of Potential Desalinated Water Supply; Post-tax NPV8% of US$958 million and IRR of 19%. Start-up capital cost for desalinated water supply estimated at US$1.4 billion with a 4 year payback.

It also cited Stage 3 Conceptual Study for 2,300 L/s of Potential Desalinated Water Supply: Post-tax NPV8% of approximately US$1.3 billion and IRR of around 19%. Expansion capital cost for desalinated water supply estimated at US$1.9 billion with a 3.5 year payback.