Horizonte well-funded to ride out pandemic
looks back on 2019 as “another successful year” and says it is well-funded to see through the current global Covid-19 pandemic crisis.
The Brazil-focused nickel company reported a strong cash balance of £17.8m for the year ended 31 December 2019 following a $25m cash injection from Orion Mine Finance in October executed to kick-start development of the group’s Araguaia project in Brazil.
Horizonte says it plans to continue advancing Araguaia to the "construction-ready" phase and progressing the financing process amid the current global environment.
Whilst the effects of Covid-19 may result in a delay to the project finance process, the company remains confident due to the fundamentals of the nickel market remaining ‘robust.’
This morning’s final results also highlighted the group’s ongoing project Vermelho to be one of the lowest cost nickel development projects globally.
Shares in Horizonte Minerals closed at 2p on Tuesday afternoon.
A pre-feasibility study in October projected a 38-year mine life, with total cash flows over that time estimated at some $7.3bn after tax.
The group says Vermelho ‘looks set to benefit’ from significant growth in the electric vehicle market due to the battery grade nickel and cobalt product it will produce and the timing at which it will come into production.
Horizonte says its two projects provide strong returns at prices well below Wood Mackenzie’s previously forecasted price incentive of $19,800/t Ni and are therefore ‘well positioned to help contribute to the envisioned supply gap.’
“We continue to believe that Horizonte is uniquely placed to benefit from the improving nickel market fundamentals, driven by the robust market for stainless steel combined with the fast growing EV market,” said David J Hall, Chairman of Horizonte.
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