Horizonte Minerals (LON:HZM TSX:HZM) remains confident its Araguaia nickel project in Brazil will come on stream when prices for the steel additive pick up again in 18-24 months time.
Prices for the metal have been volatile over the past two years, but chairman David Hall said demand overall was robust and aside from Araguaia there are few new projects scheduled in the next few years.
The nickel market is predicted to be in deficit from late 2016 and by 2018 there is an expected shortfall of around 778,000 tonnes, he said.
“As a result of this shortfall we strongly believe that we will see a longer term improved nickel price widely recognised as being +US$20,000/tonne.”
Hall added the award of a preliminary licence at Araguaia had been affected by changes in personnel at the Brazilian government licensing agency, which has pushed the timetable back six months though progress elsewhere is on track.
In the past six months, Horizonte received agglomeration test results, started the first phase of the Rotary Kiln Electric Furnace pilot plant test work and finished the final phase of infill drilling.
Cash at the end of June amounted to £2.4mln, while there was an interim loss of £1.16mln (2014: £304,000). Admin expenses dropped 36%. There was a £197,000 charged for currency movements and a £253,000 write-down on assets for sale.