Hot Chili chases US$447M free cash flow from Chilean water business
Phase 2 will see a desalinization system, estimated at a cost of $ 1.4 billion, will provide water for a rate of 1300 liters/sa a series of potential companies within the Huasco Valley region.
The numbers really begin to increase during the second phase, with cash flows without taxes that jump to about 4 billion dollars from $ 9.35 billion revenue modeled in 22 years.
The post-tass NPV for phase 2 reaches $ 977 million with a 4-year refund.
The approach staged of the company allows you to downsize for long -term supply to mining, community and agriculture in the Huasco Valley region, with the potential to extend beyond the initial estimates of the project.
Hot Christian Easterday, chilli chief administrator, said: “The results of the preliminary study of preliminary feasibility offer an opportunity for the hot chili pepper to fully consider the strategic value of its subsidiary company owned by 80 % Huasco Water, which controls all our critical water activities. The company sees the potential for the outsourcing of offer of offer of sea water offered by a sea water offered by a sea supply agreement that is committed to an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement of an agreement seafood supply.
Huasco Water has identified a possible demand of at least up to 4000l/s in six unlawful mining projects, everyone requires access to a desalted water supply.
The watering of desalinization is expected to occur shortly after the offer of sea water, which should start at the end of the decade, is conveyed to Costa Feugo.
The authorization process to update its maritime concessions to allow the progress of the desalized water is the advancement.
The Huasco Valley region contains one of the largest groups of important copper projects not developed in the world, all that need a reliable water supply. If a copper price improvement deserves a move towards the production for the Fuego coast of Hot Chili, Huasco’s water will be dragged together with it.
Management states that only three potential customers in the region that can draw on their water activity are Teck Resources, Atex Resources and Agrosuper.
Agrosuper is a food production company and also produces animal feed. A memorandum of understanding for the water -designed water was performed with the group.
The HW waters for the Huasco Spa (Water Huasco) are a joint venture between hot pepper (80 %) and Pacific Compagnia – CMP (20 %interest).
Huasco Water is the only company with access allowed to sea water in the Huasco Valley region following a ten -year regulatory approval process.
The process of authorization for desalinization water has advanced in the last year with regulatory applications made to allow the offer from the existing maritime concession. A second application for maritime concession by Huasco Water was submitted. The second application includes the unloading of brine for potential sea water desalinization operations.
The first advantage of the hot kilos movement in the water sector in Chile cannot be overrated. The question in the area seems to be real and the barriers to the entrance for others who have not undergone the ten -year ordeal to be authorized could simply give Huasco and the hot pepper a potentially decades free race to provide water both to its project and to the other mega projects that are scattered throughout the area without current water options.
With the prices of copper recently on the move, Hot Chili is able to derive a double advantage. Not only will the economy of its Costa Feugo project improve, but the company is about to collect prizes from other copper groups in the region that could develop the thirst for Huasco water.
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