HZM buying the value.12 Mar 2019 11:05
Maybe I have this wrong but the price should not be down here, pretty much says so in the 1st march RNS. I like what I see from a flick through the company website, RNS and news.
* Company said it does not know why there is weakness in price.
* Funded for its current projects
• Araguaia ferronickel project (‘Araguaia’) Feasibility Study (‘FS’) completed in Q4 2018 delivering robust economics; • Further upside potential with Stage 2 expansion at Araguaia doubling annual nickel production;
• Construction Licence recently granted by the Brazilian Pará State Environmental Agency ('SEMAS');
• Advancing project financing options for Araguaia;
• Vermelho nickel cobalt project (‘Vermelho‘) Pre-Feasibility Study (‘PFS‘) underway;
• Nickel showing positive fundamentals with midterm consensus pricing of US$16,792/tonne (‘t‘) Ni for 2022; and
• Brazil economy set for growth in 2019 and 2020 with GDP set to increase 2.4% and 2.3% respectively.
“The Company made further significant progress in the December quarter as we work towards developing the Araguaia ferronickel project and move towards becoming a nickel producer. A major milestone was the release of the FS demonstrating robust economics on the single line RKEF process plant which also includes the option to double annual nickel production through the Stage 2 expansion. The Stage 2 expansion case returned an estimated post-tax Net Present Value1 (‘NPV’) of US$741 million2 and Internal Rate of Return (‘IRR’) of 23.8% using the FS base case nickel price forecast of US$14,000/t3. In January 2019, following completion of the FS, the Company was awarded the Construction Licence for the project, which subject to funding, allows development to commence on the RKEF process plant and associated infrastructure. It is important to note that Araguaia does not produce tailings and does not have a tailings dam so is not affected by the recent ban on new upstream tailings dams in Brazil.
“Work recently commenced on the PFS for our Vermelho nickel cobalt project. Snowden Mining Industry Consultants have been contracted to produce the mining schedules and act as overall study manager, in addition the Simulus Group based in Perth will provide detailed design information and costings for the Vermelho process flow sheet and together with our local Brazilian engineering partners, will deliver associated infrastructure to the project. In parallel we have our teams working on the environmental and social permitting, and new terms of reference have been submitted to SEMAS, the Brazilian Pará State Environmental Agency to advance Vermelho’s Environmental Impact Assessment. “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.
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