Horizonte Minerals (HZM) is a company that I’ve written about a number of times in recent years, and is also one where I’ve been patiently holding shares myself for a long time. When it comes to AIM mining stocks it is quite a rarity that they either actually make it into production, or get taken out by a larger predator prior to that stage, and for many of them the resource in the ground sounds far better than the reality of actually extracting it commercially.
It always surprises me how impatient investors can be and how much a missed deadline can sometimes be punished, even when that event has the potential to unlock significant amounts of value, if and when it finally happens. I’ve been invested in Horizonte Minerals (HZM) for several years now and during that time have seen lots of ups and downs, including disappointment when ‘deadlines’ have been missed.
Horizonte Minerals (HZM) has announced 2020 calendar year results and emphasised that it “has made significant progress in advancing the project financing for Araguaia… The completion of this funding will be transformational for Horizonte, and we look forward to updating the market on our progress later in the year”. So what’s the detail?
Shares in Horizonte Minerals (HZM) reached circa 10p last month as confidence in its ability to fund its projects increased. Sentiment has recently turned to see the shares now available at a 7.2p offer price. However, its proposition still looks compelling and there are clear potential upcoming catalysts which could re-spark the shares materially higher.
It probably shouldn’t do, but it still sometimes amazes me at just how short a term outlook some PIs seem to take these days, especially when it comes to companies in the natural resources sector.
When it comes to small mining companies, lots of them appear to have a great story and if you listen to those doing calculations based on resources in the ground, most are worth billions!
Regular readers of ShareProphets will know that I’ve been a fan of Horizonte Minerals (HZM) since 2016 - as well as tipping it on the ShareProphets Podcast last week - and it is also a company where I hold some shares myself, so it is good to see that it is continuing to progress in the right direction and has had some good news today.
The market seemed to have been disappointed with the recently released results of a feasibility study from Horizonte Minerals (HZM), but for me nothing has really changed in terms of the long term potential of the project.
I have been a big fan of Horizonte Minerals (HZM) for some time now, and am even more so following an acquisition announcement. The market didn’t take the news that this AIM listed mining company, with operations in Brazil, had acquired a further nickel-cobalt project particularly well - the shares down by over 6% to 4p on the ask, but I suspect that was largely as a result of an issue of equity coming at the same time, rather than a reflection of what people think of the newly acquired Vermelho project, which Horizonte now owns 100% of.
Nickel prices have performed strongly in recent months and are currently up around 30% from the lows which they hit during the early part of the summer.
As many experts continue to get it wrong on a regular basis, it is very hard to predict where commodity prices could go in the next few years, but I can see upside for nickel miners.
John Meyer of SP Angel this morning comments on Anglo American (AAL) and Horizonte Minerals (HZM) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond.
Horizonte Minerals (HZM), the AIM-quoted nickel hopeful focused on Brazil, is drawing encouragement from progress with the rotary kiln pilot plant for its Araguia project in the country’s north-central Para state, holding an estimated resource of nearly 100 million tonnes with 1.33% and 1.21% nickel. The company, whose shares languish at 1.92p between a 12-month high of 3.88p and a 1.5p low, says its rotary kiln pilot plant campaign there has ‘produced high-grade ferronickel on a continuous and sustained basis’ and has ‘confirmed production of high-grade commercial ferronickel.’
Did Horizonte Minerals (HZM) tell the truth to investors on 28 September? At best it misled them. Will Nomad Finncap resign in disgust? Is the Pope a spiritual leader of ISIS?
Mining shares are at a nasty low at the mo because the Chinese are not buying as many raw materials as they used to. Their GDP has been slowing down just as their shares have tumbled on the Chinese stock exchange.
Out-of-favour nickel hopeful Horizonte Minerals (HZM) has agreed to buy financially-strapped mining giant Glencore’s Araguia nickel project in north-central Brazil, near to its own Araguia venture, in a deal which chief executive officer Jeremy Martin says will create a combined operation able to produce 3,000 tonnes a year at a grade of 2% for the first 10 years. Backed by Canadian mining heavweight Teck Resources with a 38% stake, Horizonte, whose shares at 1.65p have fallen from 2006’s AIM float price of30p and a 12-month high of 5.12p, has agreed to pay $8 million (£5.3 million) in stages for the Glencore Araguia Project (GAP) in Brazil’s Para State.
Faced with a near-six year low in the nickel price and still arctic financial markets, unloved Horizonte Minerals (HZM) is going slow with the publication of a bankable feasibility study (BFS) on its flagship $580 million (£390 million) Araguia nickel project in Brazil. Following encouraging results from its 10,200-metre infill drilling programme at the project in north central Brazil’s Para State, entrepreneurial chief executive officer Jeremy Martin says the AIM and Toronto-quoted company is likely to delay the study, originally planned for this year to coincide with a resource update for wholly-owned Araguia, until 2016, because ‘the market sucks and we shall probably delay the BFS until we can do some funding.’
Jeremy Martin, chief executive officer of unloved nickel hopeful Horizonte Minerals (HZM,) says latest drill results from bulk sampling at the AIM and Toronto-quoted company’s Araguia nickel project in Brazil ‘confirm high nickel grades that are scheduled for the early stages of Araguia’s mine life.’ He is also celebrating what London-based Horizonte describes as ‘positive support’ for the project, south of the Carajas mining district in north central Peru’s Para State, shown at a public meeting with the local community and government representatives, a development Martin dubs ‘a major milestone towards receiving our preliminary licence’ to develop Araguia.
Left-leaning Brazilian President Dilma Rousseff’s recent re-election does not unduly concern Jeremy Martin, chief executive officer of Horizonte Minerals (HZM), which hopes to take its wholly-owned Araguia nickel project in the north of the country into production in 2017 at a rate of 15,000 tonnes a year. Based in London and quoted on AIM and Toronto, the company, which raised £6 million in July in Canada and London at 6p, has begun a six-month drilling programme at Araguia, following a pre-feasibility study, which suggested $580 million (£362.5 million) capital spending would be needed to start the mine envisaged at Araguia.
Nickel, a crucial ingredient of stainless steel, may have lost two thirds of its value in seven years and the share price of ambitious aspirant nickel producer Horizonte Minerals (HZM) may have dropped some 70% since its AIM flotation in the heady days of 2006, but chief executive officer Jeremy Martin exudes optimism.
Jeremy Martin, CEO of Horizonte Minerals, speaks at the UK Investor Show 2013.
Horizonte Minerals (HZM) has served up an update on its Araguaia nickel project. The shares have not responded much and trade at 7.625p. But brokers seem enthused.
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