Member Info for AIMtodeath

Go on twitter and read #HZM tweets for more positive points.

Many look at a chart and go that is at 5 year highs......but it is only at the first rung of the ladder to come...... VERy few people have seen a junior go from explorer to producer, how do you think midcaps on FTSE 250 etc get valuations of $1b+.....they are producers.....

2. Vermehlo - EV Class 1 Nickel using HPAL (however this is amenable to stainless so useful for both but with the EV revolution and the premium for Class 1 HZM are seekingt o develop it as class 1 for EVs)
Read about it here - https://horizonteminerals.com/uk/en/vermelho_project/
As I have already said Vale developed we have scaled downt he size to reduce the CAPEX and focused entirely on EVs. With the Araguaia project running a junior can't find another $600m+ and you don't want to wait until 2025 when Araguaia is throwing off enough cash (because it will be a printing machine at $18k +) to start, this needs to be producing in 2025 hence they want to partner on this and preferably with HPAL experience.
At todays prices (not adding a premium for Class1 ) Capex $652M, $2.124B, IRR 29.6%
LFP batteries not to be feared because the world would not be able to supply Nickel Chemistries for all EVs, making prices rocket and either push tech away from Nnickel and'or loads of expensive mines can function at much higher prices. You know the EV story and were Nickel is going, this 38yr mine only using the high grade area will do just fine too.

And these 2 combined NPV today is $3.7B and Mcap is $150m.....less than 5%. Look at EML presentation they compare world projects and most sit a min 20-25% for this stage!
There is still Serra do Tapa a capable stainless mine in it's own right and just a footnote for now. With the 2 current projects HZM would be a top 10 world producer....not bad for a junior.

Current valuation closest available comparison is a recent T/O in Indonesia by Aussie Nickel Mines convert across on a discounted valuation (i.e. they bought at discount to professional valuation) of 29p for just Araguaia project. Add in Vermehlo and Serra do Tapa you'd be looking at 50p all day everyday but more likely 75p....Discounted today at the curent level of development. In 2025 if this is not £1 a share the world has gone to ****!

Or go of to Uni!

However, Nickel Laterites are not deep underground and in veins, they are open pit operations. Stainless is still a market but increasing use of a develping technique called High Pressure Acid Leaching HPAL can provide Class1 Nickel from Laterite. It does not have the glory that sulphide has, BUT whatever the case the demand in Nickel Class 1 means the EV future HAS to survive on HPAL projects because there just is not enough sulphides to provide the material needed. It is not one or the other it is a MUST. It has poor press for being expensive and not very eco friendly, that is because it often requires expensive infrastruture to remote places and often Chinese firms operating in Se Asia not giving a sh*t....but htings are changin ESG is forcing the change. To be seen later, 1. HZM EV Nickel has a lot of infrastructure already nearby reducing CAPEX and 2. HZM ESG is industry leading, no wet tailings, power from Hydro, no deep sea waste and employs locals and many women in the workforce.

So HZM - Owns 3 Nickel projects in a greater District Quote
The Company's 100% owned Measured and Indicated Mineral Resources now total 280 million tonnes with 3.5 million tonnes (7.6 billion Ibs) of contained nickel and 155 thousand tonnes (3.4 million Ibs) of contained cobalt; and
·; Horizonte now owns one of the world's largest inventory of undeveloped nickel and cobalt Resources globally, in a mining district with well-developed infrastructure.
https://www.lse.co.uk/rns/HZM/significant-new-nickel-resource-at-serra-do-tapa-zsvrx6siriv3xv6.html was the latest firming up of the 3 project areas giving an idea how much they have of the stuff.
All bought in the downturn for peanuts!

There are currently 2 projects though. One Araguaia is Finance ready and Vermehlo that is moving to DFS and awaiting a partner to build as it is a lot for a junior to move both forward at the same time. But Vermehlo was owned and had $200m spent on it by VALE and is nearly all in the measured category, this is well advanced compared to any project world wide.

1. Araguaia - Stainless Steel
Awaiting Finance package ($25m was invested in a royalty by Orion - these guys are deep pocket mine investors - so HZM is currently very well funded) Made up of a current waiting to be signed off Bank Manadate from 5 international banks, ECAs, Brazilian Banks, Offtakes and a cornerstone investor in place to take up the short fall in equity)
Read about it here - https://horizonteminerals.com/uk/en/araguaia_project/ see also the calculator for how much difference the higher prices in Nickel make over the original DFS of $14k.
Plan is to build a RKEF line and use cash flow to build second line. C1 cash costs are industry lowest quartile, HZM can make a profit at just over $10k Nickel, some mines cannot start until $20k
At today's price this has a capex of $443M, NPV of $1.582B and IRR 36%.....and we are just valued at what $150m odd!!

Nickel - History/charts - Currently the second highest intraday price in over 5 years and will finish today highest end of day price in over 5 years. Only thing higher was an intraday spike on Indonesian ban - see below)
https://uk.investing.com/commodities/nickel?cid=959208
http://www.kitcometals.com/charts/nickel_historical.html

Nickel - Uses
1. Main - Stainless Steel - After historical price spikes in Nickel $50k/t, NPI (Nickel pig iron) came a long and floored the price, mainly out of Indonesia. World's biggest supplier but last year stopped exports 2 years early (see spike in price last year before Covid ripped it down), second highest is Philippines. Indonesia want to develop their own supply chain of Nickel enrichment/steel etc, rather than sell the basic stuff to China and their industries benefit from the value add (see also EV batteries now too). However, this NPI material is low quality and not for the best Stainless, the product HZM will supply is FerroNickel at a high quality for Western Europe Mills. Philippines is increasing supply but they are also closing mines for environmental issues and old. So SE Asia was a boom in supply but the fast money coming back to bite them now with poor ESG etc. All Nickel can be used in stainless in one way or another.
However there is Class 1 and Class 2. Class 1 is high quality mainly from Nickel Sulphide mines and it 'must' be used for Nickel Sulphate the Nickel used in EV batteries.
2. Secondary and GROWING - EV batteries. 2 main chemistries LFP and various NMC, NCA etc. LFP has no Nickel and the others Nickel is the main ingredient also rising from 1:1:1 to 6:1:1 to now 8:1:1. LFP are normally shorter range and cheaper and go in Cinese motors and cheaper short range tasks, Nickel rich for long range, performance and Western World with more premium cars and range anxiety. But your Lithium knowledge starts to cross over here. Many many 'new' techs are in labs but none close to being commercial. Theclosest as you might have read is Solid State, most appear to be still based on the Nickel chemistry and maintains a cathode. If your predictions for EVs and batteries is anything to go by then you can appreciate the demand increase for Nickel is. Now this requires Class 1 Nickel only, so as the demand for battery Nickel increases so does theis Class 1 demand, given htere is a premium for class 1 then mines are going to pull class 1 from from the Stainless market for EVs.....and reduce supply to stianless, which means prices for stainless supply goes up as supply gets cut. As you will see this is a win win for HZM. Class 1 easily comes from Nickel Sulphide easily and main supply but it is in very limited finds, old mines burnt out and very few new ones with the kind of grades that make it economical, some investors would have you believe that it is the daddy and nothing else matters and are full of FUD and 'propaganda' to push their escalating valuatins on quite frankly very expensive low grade

Shakes head.......You do realise the BUYOUT price that this creates....

Interesting I wonder who I have on mute, I didn't see the post that triggered DJ. Other times I've felt there is a missing post.
CM - I'll put a synopsis together in afternoon.

Problem is they will be in a super cycle and nothing will be cheap, they would have to pick up brownfield sites/leases and start from scratch. To becme a mid-cap they would need to diversify into other metals as they have plenty of Nickel for 50 years!

It is not sexy and now there is no FOMO on drill results, testing etc where there is regular price rising moments through the year. This has done all the hard work.....we are awaiting the big event, explorer TURNS producer..... This is the SEXIEST thing to happen to an explorer in AIM and yet they are chasing frckin small cap oil companies still or the latest few percent trend.
All the miners this week have been quiet, many awaiting THE news and people move between them hoping to catch the news often lauded 'it's coming' everyday on twitter, Sunday nights the worst for 'to the moon', 'anyday now' rubbish, trying to influence the next week FOMO in their shares.....

There is a feeling whilst there is still some rotation out at his price, there is definitely some under current buys that see 8p as the price of no return, if they don't get in now whilst it 'might drop' on macro sentiment/general red days as sometimes comes around, this has no serious reason to drop and buying will jump on the chance to get them lower....however the big day gets closer and it propels the share to a new level...... One where iis actively buy outside of fund raises, positioning for future production and divis, an EV exploding future and commodity super cycle. That fund raise cheque open that door to a new world...... Are you ready for it?

I mean this in the nicest way..... not all that glitters is gold, it is very easy to put holes in broad statements, every project has things that are not perfect, hurdles to jump over, limitations.
SAV is not exempt.....

While you are here CityMine, I would say that the fact the Gov tried to remove the licence from under the feet of the Aussies is not what I would call 'supportive'....albeit now they are playing nicer.
What defines quality? Just because you think it?
Size is not everything......but good for boasting mainly.
Proof of concept is NOT proof of use on a commercial scale in batteries today - This is not Spodumene, the industry will have to test it before using wholesale, SAV might have had 'testing' too, but at least the product is understood. (BCN is clay and a new product too, but the industry must branch out to other types of source for the end product that goes in the batteries)
Today it is imperative to have 'local partners', it is all part of ESG.
Given the propencity of EMH to raise money I should think you have iis on board....But they can be a 'poisoned chalice'. They have destroyed many a mining share in the last 3 years as they get redemptions/failures/bankruptcy (see City Financial collapse as one example), pull out of certain markets, get a new head of fund that has different investment ideas and wholesale dumps your stock for another sector.

Thanks for stopping by for some info on your stock, I hope it helps you.

Nice first post......haha. Make a new ccount to come from the EMH board.... hilarious....

A lot of share flat or slightly up/down in junior mining....they are all off chasing bitcoin plays this week.... another day another chase....

No you don't generally.

But the company are putting one together and we will try again in a few days when dust settles. It hopefully will look like the EMH one in content and style.

They are in no rush....Araguaia keep them going. If Vermehlo was only project then you'd be under more pressure.

Dumping you from their website for not accepting cookies is illegal, so I've stopped caring.....

Trading office and registered offices are different however. - that was a statement not a fact in this case....

Perhaps if you'd just sent the link it would save some ****ing about! Trading office and registered offices are different however.

Maybe described it wrong, as can be seen here JPM UK stock holder, but the notifier is JPM US. This means they are not bound by the UK reporting %s