25th Feb 2015 08:45
LONDON (Alliance News) - Horizonte Minerals PLC Wednesday said it continues to progress its Brazilian nickel project using its strong cash balance, as it reported a narrowed loss in 2014.
The Brazil-focused mining explorer reported a pretax loss of GBP1.2 million for 2014, compared with a GBP2.7 million loss in 2013. The company does not currently generate any revenue and is focused on developing the Araguaia nickel project.
"Despite the challenging market conditions for the resource sector in 2014 and continuing into 2015, exemplary progress has been made by Horizonte throughout the year at its wholly owned Araguaia nickel project in Parà State, north central Brazil," said Chairman David Hall.
At the end of the year, Horizonte reported a cash balance of GBP5.0 million.
"With this and a solid cash position, we are well positioned to deliver on Araguaia's next development milestones as we take it through to the feasibility study stage during 2015," said Hall.
The feasibility study is the next major milestone to further de-risk the project, leading into the financing to the construction and production stage. The study will also provide a proven reserve for the project.
Horizonte said demand for nickel continues to grow at around 3.4% per year, and said nickel prices could climb to USD25,000 per tonne, or higher, in 2015. The current nickel price is looming at around USD14,200 to GBP14,500 per tonne. Horizonte said its pre-feasibility study was modelled on a USD19,000 nickel price, which it said "times well" with the timing of production starting.
The company filed its social and environmental impact assessment in 2014, and said it is expecting to receive the preliminary license for the project in 2015.
Horizonte shares were up 5.3% to 2.89 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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