Have to say, Jeremy and team are really putting together something special here.
Buying Glencores asset was good, but also getting Vales asset is incredible.
Now they have two Tier 1 nickel projects in close proximity.
The combined metal in the ground at current nickel and cobalt prices are:
$31.3 Billion (nickel)
$8.4 Billion (cobalt)
The current market cap is still substantially undervalued and can be many multiples.
FS due out in early 2018.
A list of prime shareholders on the register.
Investment case is a solid buy.
Check out the latest presentation, very impressive. http://horizonteminerals.com/news/20171219_investor_presentation.pdf
i think some of you did not read the rns correctly .two majore share holders increased there stakes significantly ,showing an increace in confedence ,and the sp drops.this is total nonsence .you to should be increaseing your holding .at the preasent time mine life is expected to be 28 years
the seller has declared this reduction of position by 1%so we could get get a buyer declaring there position over a week or so ,but if it is some one new taking a position then they need not declare un till they reach 3% holding in the company
grants for local schools to educate the mines tomorrows employees . that is forward thinking and yet the sp dropped .people can be bloody stupid and just see the short term expenditure and not the long term gain
What's the chances that the big buyer is Glencore? They have tweeted today about being well positioned to exploit the government led push for electric vehicles, with their reserves of nickel, cobalt and copper. I thought Horizonte now held most of what was Glencore's reserves of nickel?
Maybe they think its time they bought it back, work away I say!
Horizonte, a company that I regularly bang on. I do hold stock in this company. Horizonte announce the issuance of a Request for Proposals to engage consulting firms to prepare a definitive Feasibility Study.
This announcement comes following a successfully undertaken pre-feasibility study. The pre-feasibility study confirmed the low capex of the project stating it will be: Òon the lower range of the global cost curveÓ, while proving high-grade Nickel. The project is expected to generate $1.3 billion in free cash flow over LOM at $12,000/t. The company also has assembled an impressive array of intuitional investors.
The company have issued RFPs to a range of Engineering firms. Tender will close in January 2017 with work due to commence in February 2017.
"We are confident that the project milestones going forward are well aligned with nickel fundamentals. 2017 will be a very active year for the Company and we look forward to keeping the market updated with our progress".
 Robust economics based on a 28 year life of mine (LOM) producing ~14,500 tonnes per annum (TPA) nickel in ferronickel from a single line Rotary Kiln Electric Furnace Plant (RKEF)
 Post tax NPV8 of US$581 million at a nickel price of US$14,000/t and an NPV8 of US$328 million at US$12,000/t Ni
 Post tax IRR of 26.4% at US$14,000/t and 19.3% at US$12,000/t Ni
 Project is expected to generate US$1.3 billion in free cash flow over LOM at US$12,000/t Ni
 High grade ore with average nickel grade of 1.96% for the first 10 years of production
 Project on the lower range of the global cost curve with C1 cash costs of US$3.15/Ib Ni (US$6,948/t Ni)
 43-101 Proven and Probable Mineral Reserve Estimate of 24.6 Mt grading 1.77% Ni
Commenting, Jeremy Martin, Horizontes CEO said, We are pleased with the positive results from the PFS delivering a post-tax NPV of U$328M and IRR of 19.3% based on a long term nickel price of U$12,000/t. If we use the banks consensus mid-term nickel price of US$14,000/t, the NPV increases to US$581M with an IRR of 26.4% showing the significant gearing that is available with any future increase in nickel prices. Importantly the PFS demonstrates that the Project is cash flow positive attodays nickel prices which puts Araguaia within a limited group of global assets that are considered viable in the current low price nickel environment.
Our low-cost acquisition of the adjacent nickel project from Glencore was a game-changer for Horizonte. ThevalueisdemonstratedinthisnewPFSwhichnowhasanoverallgradeforthefirst10 years of mining averaging 1.96% nickel and the LOM grade over 28 years averaging 1.77% nickel which places the Project firmly in the upper quartile of the global grade curve for this type of deposit. The Project is expected to generate US$1.3 billion in free cash flow over the LOM with the planned operation producing around 14,500 tonnes per year of nickel in ferronickel at a grade of 30% utilising the proven RKEF process.
The next major milestone in the development of Araguaia is the Feasibility Study which we anticipate starting in 2017. In parallel with this we will be looking at the development funding options available as well as offtake partners. We believe that the timeline for the development of Araguaia is well aligned with the markets expectation of an increase in nickel price over the mid-term. Future demand looks robust with predicted growth running between 2% and 4% this year and demand is anticipated to outpace supply, ensuring that Araguaia is a compelling project to generate value for shareholders. This, combined with strong economic fundamentals, confirms that Araguaia is well positioned to be one of the next major nickel projects to be developed and we look forward to providing updates as we advance the Project through Feasibility.
This is starting to look like a compelling story, while the valuation per pound is still very low.
As soon as the nickel market starts to pick up, which looks like it may have already started, this will re-rate.
we'll learn about the combined project economics fairly soon, this quote is from the last RNS:
"I look forward to updating the market with results from our new Pre-Feasibility Study which is due imminently." Jeremy Martin CEO
Not surprising to think that in buying shares of the company that bought with perfect timing
Glencores divested asset - after all they had spent $80m & sold to Horizonte for a couple
Of million and some shares - best for both party's.
As this goes forward and the project is integrated with HZM's own holdings - don't be surprised to find this asset re visited by either Glencores themselves, or, another major miner.
It's a massive holding of well over 100,000 hectares ( times 2.2 for those still in acres!) already
proven up a lot of area & expect a decent resource and maybe a Partner to join in this, one of the last giant Nickel projects.
The play here is on the Nickel price, and attractiveness to Miners as conditions normalise( ish)
Certainly at present with some environmental licences coming in the Management are doing the right things, expect a few people to visit the project & see a bit of the Olympic atmosphere in Brazil. Good timing.
See : http://horizonteminerals.com/uk/en/araguaia_project/
FinnCap reaffirmed their corporate rating on shares of Horizonte Minerals Plc (LON:HZM) in a research report sent to investors on Tuesday. FinnCap currently has a GBX 15 ($0.20) price target on the stock.
finnCap published a note this morning, this is taken from Research Tree: "Horizonte has has announced that it has been granted a Preliminary Environmental Licence for the proposed mining and beneficiation plant for its Araguaia nickel project in Brazil. The licence has been issued by the Pará State Environmental Agency and demonstrates the continuing approval by the Brazilian state for the project. The Araguaia project is seen as a key driver for the economic development of the southern part of the state of Pará."
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