Sign up
Mining Capital

Horizonte Minerals releases financial results as investors await Araguaia project news

The company is preparing ahead of the construction phase at Araguaia and recently advanced the newly acquired Vermelho asset with testing.
The market fundamentals for nickel are seen as improving

Horizonte Minerals PLC (LON:HZM) this morning released its financial results for the three months ended 31 March 2019, which confirmed it had £5.28mln of cash at the end of the first quarter.

The pre-revenue exploration and mine development group reported a £453,740 loss for the quarter.

Operationally, the company is presently focussed on the ongoing development and exploration of its nickel assets.

READ: Horizonte Minerals uniquely placed to benefit from improving nickel market

The most advanced is the 100%-owned Araguaia project in Brazil, for which the company now has a construction permit and is making preparations for the build.

First production should be in 2022 with the mine scheduled to run for 28 years.

Phase 1 will see the production of 14.5kt/year of nickel in ferronickel form, with the potential to increase that to 29kt/year through additional capex spending of US$199mln. Capital expenditure for phase I was estimated at US$443mln in last year’s feasibility study with cash costs of US$3.77/lb.

That feasibility study showed Araguaia to have a post-tax net present value of US$401mln and an internal rate of return of 20.1%. Cash costs are expected to be US$3.77 per pound of nickel, or US$8,193 per tonne, making Araguaia a low-cost producer.

Construction can start once funding of around US$443mln is arranged.

A second project Vermelho, a nickel-cobalt project in the eastern part of the Carajás mining district, was acquired by Horizonte in December. And recent testwork provided a positive outcome, with results confirming the metal quality is high enough for stainless steel production and potentially for electric vehicle batteries.

Why Invest In Horizonte Minerals PLC? Read More Here

Register here to be notified of future HZM Company articles
View full HZM profile View Profile
View All

Related Articles

© mining Capital 2019

Mining Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed mining companies to interact with institutional and highly capitalised investors.
Headquartered in London, Mining Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.