RE: Shorts will burn next week.8 Oct 2023 08:21
Billy - I genuinely think by Thursday an update will be provided …the SP hopefully will be up to anywhere around 35/40p and then beyond that it’s a crystal ball as demand will soar. Undoubtedly there will be added costs but with the mine now nearing 70% completion, revenues will repay loans over 3-5 years but be covered x5
Extracts:
Not costs overrun but added additional scope items
1. To de-risk the operation, the final detailed engineering work has added additional scope items linked to the major equipment packages, made several enhanced design changes from the original engineering study (including changes to the water abstraction pipeline design and water storage reservoir), and has identified the requirement for additional civil works and quantities. Additionally, changes have been required with selected suppliers who have not been able to deliver to the project timeframe, which has added further cost pressures.
2. The results from the Feasibility Study on Araguaia Line 2 remain on track to be published in Q4-2023. The combined production of Araguaia Line 1 and 2 is expected to be 29,000 tonnes per annum.
3. The Base Case and the Stage 2 Expansion Case for the Araguaia Feasibility Study use US$14,000 nickel; however, based on the recent nickel price of $16,000, the project NPV on the Stage 2 Expansion Case is approximately $1 billion with an IRR of 30% generating free cash flow of US$3.5 billion
THE FOLLOWING STATEMENT IN MY EYES WAS ABSOLUTELY BULLISH…..AND IT WILL BE DELIVERED
4. Jeremy Martin, CEO of Horizonte, commented:
“We continue to make solid progress with construction at Araguaia Line 1 and are confident that the Project is now significantly de-risked given the near-finalization of detailed engineering and procurement, together with the detailed review of the costs to project completion, ensuring successful delivery. Despite the anticipated higher capital requirement, Araguaia remains a Tier 1 asset that will deliver strong margins over its 28-year mine life once production commences next year. Moreover, the imminent completion of the Feasibility Study on Line 2 will demonstrate Araguaia's capacity to support an annual production of 29,000 tonnes per annum.
We appreciate the strong support provided by both local stakeholders and cornerstone shareholders, as we work towards a financing solution to complete construction.”
Sign In
Follow the stocks
