Horizonte Minerals PLC (LON:HZM TSX:HZM) saw its shares rise today on news the firm has completed 60% of the feasibility study at the Araguaia nickel project in Brazil and expects to finish the work by early 2018.
Jeremy Martin, chief executive, also noted the rise in the nickel price over the past eight weeks.
READ: Feasibility study at Horizonte Minerals’ Araguaia project now at an ‘advanced stage’
“There has been a steady increase in the nickel price over the last eight weeks with prices now over US$11,000 per tonne (US$5 per lb), this aligned with our project milestones over the next 12 months should see increased interest in the company.”
In late afternoon trading, Horizonte shares were 7%, or 0.2p higher at 2.92p.
In a note to clients, ‘house’ broker finnCap reiterated its medium-term target price of 8p on Horizonte shares
A pre-feasibility study generated an after tax net present value of US$328mln based on a price of US$12,000 per tonne.
"The next major milestone and de-risking step for the project will be the award of the Installation Licence, which allows construction to start,” added Martin in a statement.
“We are now in a position to submit all the documentation for the Installation Licence to the environmental agency in Q3 2017 with a view to the award of the licence in Q1 2018.”
In addition, the developer said it has sent out capital equipment requirements, has finalised the power line route from national grid to the plant, had completed site layout work and a forecast of expected manning levels.
READ: Horizonte firms up environmental plans for Araguaia
Also, mine planning and design is at an advanced stage of completion while geotechnical sampling and testwork has been completed to support engineering design.
On the social and environmental front, finalised environmental control plans should be submitted this quarter while work on water and energy sustainability plans is continuing.
"We are making good progress towards the completion of the Feasibility Study and with over 60% of the work streams complete to date it remains on schedule to be completed on budget around the end of the year with targeted publishing in early 2018.”
-- Adds share price, broker target price --