8th Apr 2020 12:41
(Alliance News) - Brazil-focused nickel developer Horizonte Minerals PLC on Wednesday said it remains well-funded to see through current global Covid-19 crisis, after reporting a widened annual loss on increased costs.
For 2019, the company recorded a pretax loss of GBP3.2 million versus a GBP1.9 million loss a year ago. No revenue was generated in either financial period
Administrative expenses jumped year-on-year to GBP2.6 million from GBP1.3 million.
The company's cash and cash equivalents at 2019-end totalled GBP17.8 million versus GBP6.5 million a year ago.
The company, which is developing the Araguaia and Vermelho nickel projects, said US-China trade war, Covid-19 pandemic and record low oil prices will likely have a short term knock-on effect on nickel markets and in the mining project finance arena. However, nickel fundamental in the longer term remain favourable, it added.
Chair David Hall said: "Our team remains focused on the execution of our plans to begin construction at Araguaia and complete the next stage of the feasibility study at Vermelho. The company will continue to monitor the situation closely and adapt its business strategy to the market conditions."
Horizonte Minerals shares were down 3.5% at 1.93 pence each in London on Wednesday afternoon.
By Tapan Panchal; [email protected]
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