RE: BIG BREAKOUT23 Aug 2019 13:44
the figures are huge and will need a big miner or deep pockets but when this comes it will see £250 million mcap no problem imo:
https://horizonteminerals.com/news/en_20181122_fact_sheet.pdf
Resource quality: Horizonte owns 100% of two high grade and large nickel deposits. The Araguaia ferronickel project is a Tier 1 resource in terms of size and grade, one of the largest undeveloped saprolite resources globally – with the Feasibility Study (FS) completed. The Vermelho project acquired late 2017 contains 1.68 m tonnes of nickel and 94k tonnes of cobalt (0.90% NiEq Cut-Off). Market: With an outlook for nickel of structural shortage, deepening deficits and falling stocks, nickel prices are expected to continue to increase above their recently established range of US$12,500/t to US$15,000/t (US$5.90 to US$6.80/lb). Demand for nickel from the battery market will reshape the nickel industry over the next decade, however stainless growth is forecast to be 12% over the next 4 years. Supply growth is limited due to few new projects and mine closures after the downswing of the previous cycle. Valuation: At the short-term nickel price of US$14,000/t, over its LOM Araguaia alone predicts an NPV of US$401m (8% discount rate) and IRR of 20.1% (FS economics). Vale had originally approved US$1.2bn for the build of Vermelho project in 2005 prior to the Global Financial Crisis. Horizonte purchased late 2017 for a total US$8m, including deferred payments. Cash flow: Over the LOM, Araguaia is estimated to generate US$1.6bn of free cash (FS economics). Payback: The Araguaia ferronickel project predicts a 4.2 year payback period at U$14,000/t nickel and 3.3 year payback at the consensus price of U$16,800/t nickel (FS economic
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