Horizonte Minerals (AIM:HZM) is a London-listed nickel development company focused on Brazil, where it owns two assets based south of the world-renowned Carajás mineral district. Horizonte plans to profit from the forecast adoption of electric vehicles and energy storage, which it expects to increase demand for raw battery materials.
The most advanced of Horizonte’s projects is Araguaia, which it is developing as Brazil’s next ferronickel mine. Production is targeted for 2022. A feasibility study gave Araguaia a 26-year mine life, generating $2.6bn of cash with an NPV of $741m and an IRR of 23.8pc against an upfront capital cost of $443m. This figure was reached using a conservative nickel price forecast of $14,000/t and assumed the construction of a second process line that would double production capacity at the site to 29,000t/a of nickel.
Meanwhile, a full feasibility study completed on Vermelho, which Horizonte acquired from Vale in 2017, demonstrated nameplate capacity of 46,000ts of nickel and 2,500ts of cobalt per year.