LONDON (Alliance News) - Horizonte Minerals PLC on Thursday said a stage two expansion at the Araguaia ferronickel project in Brazil would double annual nickel production.
Nickel developer Horizonte released a feasibility study on Araguaia which demonstrated "robust economics" on a electric furnace process plant, including the option of doubling annual nickel production via stage two expansion.
The stage two expansion case gave an estimated net present value of USD741 million after tax and an internal rate of return of 24% using a base nickel price forecast of USD14,000 per tonne.
In addition, work has begun on a pre-feasibility study of Horizonte's Vermelho nickel cobalt project, also in Brazil.
"Horizonte holds two Tier 1 assets in terms of size and grade; the development-ready Araguaia ferronickel project and the Vermelho nickel-cobalt project. Our portfolio is therefore well placed at a time when demand in stainless steel and electric vehicle markets is increasing and outstripping new nickel supply coming online," said Horizonte Chief Executive Jeremy Martin.
"2019 is set to be an exciting year for the company with multiple value drivers for shareholders all set against a positive back drop of the broader nickel market and growing Brazilian economy," Martin added.
Shares in Horizonte were up 5.8% at 2.36 pence on Thursday.
Horizonte Minerals (HZM)