Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I will reiterate
A reminder that the only focus the company has is A1, which happens to be a mine targeted at producing ferronickel for the stainless steel industry.
A2 again Ferronickel.
V not yet certain.
Also to say we have nothing unless a mine is built no matter what the future products are produced.
EVs are the future, the government has spoken.
The population will just have to adjust accordingly.
How the EV market will develop and what the technologies will be in play in ten or twenty years, is anyone’s guess.
I like you wanted a range of 600 miles so when I was travelling for work I didn’t need to fill up from leaving home for the week to getting back. The question is how many people really need the range? I can’t remember the statistics but most people don’t go that far. Range is just a fixation generated by the industry just like you need a Range Rover for the school run. In the future you may get an infinite range by have sections of roads having wireless charging, who knows!
I didn’t buy into Horizonte for an EV.
When I posted the article last night I just knew that the usual subjects would not be able to resist the opportunity to comment. I saw the article and chose to disclose it for transparency without commenting myself.
I’ve done a bit more research on this. Easy to find by searching ‘Horizonte PA-449’.
As in any construction project you will always have a NIMBY or two or a few as in this case. I do have sympathy for them as they have had to put up with a lot of disruption. The problem is the unpaved roads in the area and in the dry construction season are extremely dusty. The company has let themselves down by not dealing with the problems. I wouldn’t have thought it difficult, just a few water bowsers at the peak times. Most of the problems will disappear once construction is complete. The company had budgeted for road upgrades, but these were mainly for the operational aspects, so was for the road north for transport to the port. They did have some budget for the road south to the town for the construction element. Lots of workers having to be transported to site. Probably about 100 coach movements per day not to mention the amount of lorries. They did start to pave about 2km in town just before all this happened.
The main issue for me is the damage the roads are sustaining and the upgrade and maintenance costs. Roads are not cheap and the budget seems small. It maybe a contributor factor in suspension of work for the wet season.
I could go on but I’ll leave it for you to DYOR
Just a link to the author of the piece for background.
https://amazoniareal.com.br/author/bianca-levy/
I thought twice about posting this, because it’s not positive, but wtf.
Please don’t shoot me!
https://mpabrasil.org.br/noticias/por-que-a-mineradora-horizonte-minerals-deixou-o-para/
Another use for nickel and cobalt, or is it just another p1sstake.
https://www.mining.com/nickel-cobalt-may-help-produce-hydrogen-from-urea/
A picture came to mind this morning of a vile monster who feeds off negativity, and the most powerful of that negativity is the one directed at it. The only way to deal with it is to starve it until it withers. I suggest putting that into practice.
Let’s have a flood of positivity and dream.
Stow,
Curiosity really.
It was following on from some exchange rate observations. Firstly I have no idea in what currency the banks lent the money to Horizonte in. Secondly I don’t know how Horizonte hedged this money. The line of thought is that all the financials are quoted in dollars. If 48% of the CAPEX costs are local currency then the fluctuations could be significant if not managed correctly. If the banks are releasing the money in dollars then $100 million buys 500 million Reals now rather than the 350 million Reals previously when the Feasibility Study was completed.
I was just trying to prompt some discussion to try and make sense of how this would be achieved.
Initially a couple of things I picked up from that is a figure of $250 million was being bandied about. The other was they couldn’t meet a deadline for some work before the rainy season and that partly explains the delay until March. Only my interpretation, which is a bit shaky.
It got me thinking what proportions of the project were costed in which currency.
For the CAPEX 48% costed on Brazilian Reals at 3.5 per US$.
Most of the build has been done when the exchange rate has been about 5 Reals per US$
https://horizonteminerals.com/news/20210401_HZM-Araguaia-Project-NI-43-101.pdf#page295
I’m here to save you from yourself. Not really! BUT I am.
Everyone on this chat has made their own decisions in their individual investments with the information they have chosen to gather. It is also their responsibility as to which information they give credence to. This chat should only be used as an informative discussion with absolutely no credence given to it until you yourself have verified what’s said through your own research. No one on this chat has any actual evidence of what’s going to happen. That’s all behind closed doors which are shut very tightly.
I, like a lot on here, have speculated about the potential outcomes. I choose to be positive, because like others I am in deep,however do recognise that ALL outcomes are still possible.
I write this to restore perspective. All any of use can do is be diligently in our research and believe in our convictions. Reevaluate as new information arrives. The only information that is available about the company finances is what the company chooses to share. You choose to believe it or not. Horizonte is not a two bit organisation that’s working in isolation, it has major investors and banks to inform.
The possible outcomes, without comment, are:-
Lose all thought the company going bust and being liquidated.
Funds raised by current management and mine built.
Someone with deep pockets comes in to buy the whole lot.
To save yourself, by that I mean your mental state, choose what you read, dismiss those posts by the midnight keyboard insomniac, and do not take the bait and respond. It will only embolden them.