Horizonte Minerals Plc's (LON:HZM, TSX: HZM) latest half year charted significant progress as it continues to advance its Araguaia nickel project in Brazil.
With the recent completion of the acquisition of the remaining two licences that make up the Glencore Araguaia (GAP) nickel site, the enlarged property is one of the world’s largest nickel saprolite projects.
A new pre-feasibility study (PFS) is due this quarter and the firm aims to show the site has robust economics even at the current low nickel prices with a proven process route for the commercial production of ferronickel.
"If we are able to deliver a project at the lower end of the cost curve combined with significant resource upside and optionality, we will be well positioned for the upturn in the nickel markets which are forecast to rise further over the coming years from the lows of early 2016," said chairman David Hall today.
"Following the delivery of the PFS, it is our plan to advance to full Feasibility Study and we intend to commence this process later in the year," he added.
The loss before tax was £956,174, while the firm ended the period with £1.6mln in cash.
Broker Shore Capital said it believed the company to be adequately funded till sometime in 2017.
"In the interim, we continue to look forward to the results of the on-going Pre-Feasibility Study (PFS) on the company’s ‘combined’ Araguaia nickel project in Brazil, completion of which we expect in Q3 2016.
Shares added 1.32% to 1.925p.