Horizonte Minerals PLC (LON:HZM)

Horizonte Minerals PLC (LON:HZM)


Share Price
2.58 p
Change
0.0376 (1.48 %)
Market Cap
£37.28 m
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Horizonte Minerals PLC

Horizonte Minerals plc (“Horizonte” or “the Company”) is an AIM and TSX-listed nickel development company focused on Brazil which wholly owns the advanced Araguaia ferronickel operation (“Araguaia” or “the Project”) located to the south of the Carajás mineral district of northern Brazil. The Company is developing Araguaia into the next major ferronickel mine in Brazil, with targeted...

EPIC: HZM
Market: AIM:HZM
TSX:HZM
52-week High/Low: 4.27p / 1.66p
Sector: General Mining - Nickel
Market Cap: £37.28 m
Website: www.horizonteminerals.com
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Big Picture – A Deep Dive Examination of Horizonte Minerals PLC


Horizonte Minerals PLC Snapshot

NICKEL DISTRICT CONSOLIDATION

Through exploration and acquisition of assets from some of the world’s largest miners, the Company has been able to consolidate a major district in Brazil’s Pará state, growing its nickel resources by over 600% in just six years, resulting in two Tier 1, scalable, high-grade nickel deposits. These resources are divided over two projects, namely, the advanced Araguaia ferronickel project, which is expected to produce a definitive feasibility study in October, 2018, and the recently acquired Vermelho nickel-cobalt project, poised to take advantage of the exciting electric vehicle (EV) revolution currently underway in the global automotive sector.

Asset Overview

 

 

THE ARAGUAIA NICKEL PROJECT

Horizonte is developing its 100% owned Araguaia Nickel Project as Brazil’s next major ferronickel mine. Araguaia is a Tier 1 mining project with a high-grade scalable resource, located south of the Carajás Mining District in the Pará State, north east Brazil. The area has well -developed infrastructure, including roads, rail and hydroelectric power as a result of the mining activity in Carajás .

The recently completed Feasibility Study (FS) comprises an open pit nickel laterite mining operation that delivers ore from a number of pits to a central RKEF metallurgical processing facility. The metallurgical process comprises a single line rotary kiln electric furnace (RKEF) to extract FeNi from the ore. After an initial ramp-up period, the plant will reach full capacity of approximately 900,000 tonnes of dry ore feed per year to produce 52,000 tonnes of ferronickel containing 14,500 tonnes of nickel per year. The FeNiproduct,will be transported by road to the port of Vila do Conde to the north of the State for sale to overseas customers.

The initial28 yearmine life of the FS design generates free cash flows after taxation of US$1.6 billion returning an IRR of over 20% on an initial capital cost of $US443 million with sufficient Mineral Resources to extend the mine life well beyond the 28 year period or to increase capacity.

The project has been designed to allow for a second RKEF process plant, which would double Araguaia’s output of FeNi.
 

On the 12th December 2018, the Company announced the filing of the Feasibility Study for Araguaia on SEDAR.  The Study has been prepared in accordance with the National Instrument 43-101 – standards of Disclosure for Mineral Projects (‘NI 43-101’). 

The Feasibility Study confirms Araguaia as a Tier 1 project with a large high-grade scalable resource, a long mine life and a low-cost source of ferronickel for the stainless-steel industry.  Within the Study, includes the option for future construction of a second process line with would double Araguaia’s production capacity from 14,500 t/a nickel up to 29,000 t/a nickel.

The Stage 2 expansion gives a 26-year mine life generating cash flows after taxation of US$2.6 billion with an estimated NPV of US$741 million and an IRR of 23.8%, using the base case nickel price forecast of $14,000/t. The second line will be financed
through operational cash flow, meaning upfront capital cost remains at the same level at the FS Stage 1 of US$443 million.

 

THE VERMELHO NICKEL COBALT PROJECT

 

Vermelho was acquired from Vale S.A. in December 2017. Vale S.A. completed a full Feasibility Study which demonstrated a nameplate capacity of 46,000 tonnes of nickel per year and 2,500 tonnes of cobalt per year. The Mineral Resource illustrates this is a Tier 1 asset in terms of size and grade, sitting firmly in the upper end of the global grade curve. The advanced work completed by Vale S.A. provides Horizonte a fast-track pathway to produce Class1 nickel and cobalt. In 2018, Horizonte plans to complete testwork to produce a battery grade product, advance permitting and deliver a Preliminary Economic Assessment. The forecast adoption of electric vehicles and energy storage is increasing the demand for battery raw materials, including nickel and cobalt.

Project Location:

 

Vermelho is located in the Carajás region in the state of Pará, north-eastern Brazil, 70km south of the Carajás major iron ore mines and copper mines operated by mining major Vale S.A.

Ownership

 

The Vermelho Nickel Cobalt Project (Vermelho) is 100%-owned by Horizonte acquired from Vale S.A. in 2017.

 

For more information on the Management team, please click here

SIGNIFICANT SHAREHOLDERS

Total shares issued and outstanding in Horizonte Minerals Plc is 1,446,377,287.
The Directors are aware of the following substantial interests or holdings in 3% or more of the Company’s ordinary called-up share capital as at 24 January 2019.

Shareholder Number of shares % of issued capital
Teck Resources 210,207,179 14.5%
Canaccord Genuity Group 143,150,000 9.9%
JP Morgan 117,739,613 8.1%
Richard Griffiths 96,550,000 6.7%
Glencore 88,362,682 6.1%
Lombard Odier Asset Management (Europe) Limited 69,445,418 4.8%


In terms of AIM Rules published May 2010 and insofar as it is aware, at 18 September 2018, 15% of the Company’s AIM securities were not in public hands.

Horizonte Minerals Plc
Rex House, 4-12 Regent Street, London, SW1Y 4RG
United Kingdom.
T: +44 (0)203 356 2901


UK Public and Investor Relations
Tavistock
1 Cornhill
London
EC3V 3ND
Tel: +44 (0) 207 920 3150
[email protected]
www.tavistock.co.uk

CORPORATE DIRECTORY

DIRECTORS 
David John Hall (Non-Executive Chairman) 
Jeremy John Martin (Chief Executive Officer) 
Owen Bavinton (Non-Executive Director) 
Alex Christopher (Non-Executive Director)
Allan Michael Walker (Non-Executive Director)
William Fisher (Non-Executive Director)  

COMPANY SECRETARY & CHIEF FINANCIAL OFFICER
Simon Retter 

REGISTERED OFFICE 
Horizonte Minerals Plc 
Rex House, 4-12 Regent Street
London SW1Y 4RG
United Kingdom 

NOMINATED ADVISOR AND BROKER 
Numis Securities Ltd
The London Stock Exchange Building
10 Paternoster Square
London EC4M 7LT
United Kingdom 

AUDITORS TO THE COMPANY 
BDO LLP
55 Baker Street
Marylebone
London W1U 7EU
United Kingdom 
 

Horizonte Minerals Plc

Rex House, 4-12 Regent Street, London, SW1Y 4RG 
United Kingdom.
T: +44 (0)203 356 2901


UK Public and Investor Relations 

Tavistock
1 Cornhill
London
EC3V 3ND
Tel: +44 (0) 207 920 3150
[email protected]
www.tavistock.co.uk
SOLICITORS TO THE COMPANY 
As to English law: 
Greenberg Traurig Maher LLP
200 Grays Inn Road
London
WC1X 8HF
United Kingdom

As to Canadian law:
Cassels Brock & Blackwell LLP 
2100 Scotia Plaza 
40 King Street West 
Toronto
Ontario
M5H 3C2 

As to Brazilian law: 
Freitas Ferraz Advogados
Rua Santa Rita Durao, 1143, 7 andar
Savassi, CEP 30.140-118
Brazil 

REGISTRAR AND CREST SERVICE PROVIDER: 
Computershare Investor Services (Ireland) Limited
Heron House
Corrig Road
Sandyford Industrial Estate
Dublin 18
Ireland

 

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