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LONDON (Alliance News) - Horizonte Minerals PLC Thursday said it narrowed its losses in the first-half of its financial year, due to a lower contingent which it has set aside for a tax bill on a previous acquisition.
The Brazil-focused nickel development company, which is yet to produce any revenue, said its pretax loss in the six months to June 30 narrowed to GBP304,054, compared with a loss of GBP893,791 in the first half of last year.
The company said it reined in its loss on the back of a GBP525,763 credit from the change in value of contingent consideration.
In 2010, Horizonte Minerals acquired Teck Cominco Brasil SA, and under the terms of the deal, it agreed with the former owners to pay half of the business's tax bill.
The company said Thursday that the contingent consideration has a carrying value of GBP2.0 million at June 30, compared with GBP2.5 million at December 31, 2013.
"The change in the fair value of contingent consideration has generated a credit... due to changes in the exchange rate of the functional currency in which the liability is payable and in the timing of cash flows," the company said.
The company said it made "significant progress" during the first-half of the year in advancing its Araguaia Nickel project in Brazil.
In June, the company said its subsidiary, Araguaia Niquel Mineracao, received priority status from the state of Pará's Department of Industry, Commerce and Mining to help fast-track the development of the project.
"With a positive nickel market outlook ahead... it is our objective over the next 24 months to successfully fast-track Araguaia through to completed feasibility study," said Chairman David Hall in a statement.
The company said it is well funded to move into the full feasibility stage.
Shares in Horizonte Minerals were trading 2.2% higher Thursday morning at 5.75 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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