A Conversation with Dr. Nicole Adshead-Bell

For February, we caught up with Dr. Nicole Adshead-Bell of Hot Chili Ltd after VRIC. Before reaching the level of Independent Non-Executive Chairman at Hot Chili, she began her career as a geologist and spent much of her career bridging the gap between the technical, corporate (Executive and Director), institutional investor and investment banking segments of the business – within an ESG framework. Nicole had insight on navigating public speaking, how to judge the resilience of a company, and how non-executive senior employees can support management during demanding cycles.

What set the groundwork for your career in mining?

I had no choice. My father, an academic geologist, shaped my path into mining. He successfully convinced both my brother and me (my brother is now VP Geology at Franco Nevada (TSX:FNV)) My father did out with my sister as she is an academic anthropologist, a loss for mining but a gain for anthropology, she’s brilliant and funny, check out her Substack Silent But Deadly.

At VRIC, you made the case for Hot Chili in front of 100+ investors: what’s key to connecting with so many people at once?

When I figure it out, I will let you know. Seriously, though, Hot Chili has the right project, in the right place, with the right people and is exposed to the right commodity – making it an easy sell. Copper is the critical commodity in this changing world – the electrification of everything. I cannot think of a single other commodity that has such compelling supply- demand dynamics. I think we will look back on this time and wish we had gorged on all things copper. I joined Hot Chili as a director in early 2022, benefiting from a decade of hard work by the Hot Chili team. Hot Chili, with the Costa Fuego Copper Project, is well-positioned for the impending copper supply deficit, boasting size, scale, with notable location and infrastructure advantages.

Have you noticed any correlation between a management team’s character and a company’s resilience?

Absolutely. I recently calculated that I have had over 10,000 meetings with companies throughout the course of my career working for an investment fund, as an investment banker and as a sell-side analyst. This means I have seen the good, the bad and the ugly (also, a favorite movie of mine!). Hot Chili's management, including CEO Christian Easterday, Executive Vice President José Ignacio Silva and Geology Manager Andrea Aravena have a plus decade-long history with the Company, showcasing commitment, grit and strategic thinking. Their foresight on successful power access and, even more significant, water permitting, a critical factor for Chilean mining (and all mining since “no water equals no project”) exemplifies their commitment to long-term success.

How does a non-executive director support management during difficult times?

Number one is to be available. Hot Chili’s board has extensive mining industry life cycle expertise, from the technical to financial. It is our job to parlay that expertise, while exercising independent judgement, to support management in preserving the value of our flagship asset in the most non-dilutive way possible. We have all experienced the highs and lows of numerous commodity cycles and, unfortunately, don’t control the copper price (although I have ideas on how this could be done…a copper version of OPEC anyone?). We are focused on pulling the levers we can control to ensure disciplined capital allocation aimed at increasing value per share.

What’s on your bedside table?

Growing up without a TV, I'm a voracious reader with a penchant for sci-fi, fantasy, and crime. Currently enjoying Mick Herron's Bad Actors. Up next is Stuart MacBride's latest, and I'm eagerly awaiting a potential release from Harry Bingham's Fiona Griffiths series. Substacks like Silent But Deadly provide lighthearted entertainment, while The Free Press and The Economist fill the objective void left by traditional media. My husband's educational non-fiction discussions keep me sounding intelligent. Currently on my Kindle is Steven Koonin's Unsettled, recommended by many in mining, which provides a fascinating perspective on climate science.