(Alliance News) - Horizonte Minerals shares plummeted on Tuesday, after the company said that the cost to complete one of its flagship nickel projects would be nearly double original estimate.
Horizonte is a nickel development company focused on nickel projects in Para State, Brazil. Shares in the company were down 58% to 3.60 pence each in London on Tuesday morning. Horizonte's shares have dropped 98% over the past 12 months.
This drop came after Horizonte's late-Monday announcement of a preliminary cost-to-complete estimate and schedule for its 100% owned Araguaia nickel project in northern Brazil.
The review indicated that the project would require an additional USD454 million in capital before delivery of first metal. This brings the estimate-at-completion figure to just over USD1.00 billion, around 87% higher than Horizonte's originally disclosed budget of USD537 million.
Following the review, Horizonte has also revised its schedule for Araguaia, at which the company now anticipates achieving mechanical completion in the first quarter of 2026.
However, Horizonte's Chief Executive Officer Karim Nasr warned that the construction activities at Araguaia remain subject to the successful completion of a "full financing solution". Nasr said that, while Horizonte will attempt to develop this in the coming weeks, there is no guarantee of success.
Beyond the recent cost estimate, the CEO added that "the final financing amount will be higher and will depend on a variety of factors including discussions with senior lenders, suppliers, cornerstone investors and other third parties."
Horizonte also announced that Maryse Belanger will step down from her position as interim chief operating officer on Wednesday, after which Graham Crew will assume the role of interim COO. Crew previously served as COO of Golden Star Resources Ltd, the former owner and operator of the Wassa gold mine in Ghana. Crew was also chief technical officer of La Mancha Resource Capital LLP, which advises La Mancha Resource Fund SCSp, one of the Horizonte's largest shareholders.
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Horizonte Minerals (HZM)