£23m Mcap2 Mar 2019 22:35
if you take off the cash. Its just silly....
Over $50billion of proven up Nickel in the ground.
Two 100% owned tier one projects:
- Araguaia fully permitted, derisked and proven up, construction ready low cost Nickel mine. One of the largest lowest cost new nickel mines to be coming on stream at a time when some of the larger mines are winding down. Onca Puma near identical mine to Araguaia in Brazil sold for $850m immediately after feasibility study delivered in 2005 at similar nickel prices. Glecore like nickel and they are a significant holder of HZM...
- Vermelho acquired by HZM from Vale at bottom of the Nickel cycle. An asset with $200m work done by Vale in the early 2000's. Full FS completed. HZM are now completing a PEA for a higher grade operation for the Battery/EV market.
All fully underpinned by the compelling fundamentals of Nickel which to me is the number 1 single resource/element that investors should be looking to gain exposure to at these times. Nickel stock levels dropping very quickly, break even prices of the major producers are at or higher than the current price so its unsustainably low at the moment and the demand is set to increase significantly from both Stainless Steel (growing 5% year on year) and the new addition of the EV market. The Nickel price is so depleted that no investment has been made in to new Nickel mines to supply the ever increasing demand, ...pointing towards a huge squeeze is coming at some point in the next year or so. There is a 5-10 year cycle to get a patch of dirt with Nickel mineralisation shows to a mine ready phase and HZM are positioned perfectly at the start of the next Nickel bull run.
Also worth noting, HZM are not in any rush to build the mine if the terms are not favourable, they have another 18months cash on their balance sheet to sit on the asset and wait for the Nickel price come to them if they so wish.. you would have thought though some of the majors will be starting to snap up the few construction ready assets available to position themselves.
An exciting time and a stonking buy opportunity!
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