Horizonte Minerals Share Discussion Threads

[salmonn1] 25/4/2017 22:00

So to conclude. The Ni price is out of HZM's control, the plan is to push on with what is within the company's control, i.e. the FS. JM has said often enough before, the value of the company in terms of Ni in the ground is low but the experience of other Ni projects is that the value increases as the mine development proceeds, subject to Ni price of course.

As usual the above is subject to what I could remember/understand. I've tried to keep it accurate.

I mentioned that some of us SHs were intending to get together, and some had unfortunately not been able to attend the AGM. Jeremy said he would be happy to meet up with us to answer questions and give an up-date of progress. As he is busy at the moment it has been left provisionally that Jeremy and Katie Millar would be available to give shareholders an update at say a lunchtime meeting in June possibly. I suggest we discuss this when we meet. Raymund, I got you a hard copy of the latest presentation,

Regards, Robert. Ends.

[strow] 25/4/2017 21:57

Wow-thats all amazing stuff Salmonn1-thanks so much for your generosity in sharing and your time spent in obtaining.
I still cant believe the massive value that there is in this project for all of us with patience.
Thank you again and ill get back to you with dates for our meet.

[salmonn1] 25/4/2017 21:41

JM said the tour of the Barro Alto plant was very informative and useful.

The new FS manager has the Brazilian hands on RKEF experience HZM need.

General discussion, re FS process, points made that estimates of the costs for some of the Brazilian infrastructure from winning groups sometimes much lower. One eg 10th of the cost. OB made point that large miners had lost some of their key staff lot of expertise available. JM kick-off meeting good as it confirmed HZM are going in the right direction confirmed by consultants etc.

JM says they intend to revamp publicity, drone fly-overs, a new presentation as current one is a couple of years old. Presentation at an investor's evening booked and more.

Re the concessions, HZM is taking them as they become available. Idea is to fill in the gaps, especially in the North. Areas in the North not all looked at, or not previously accessible, eg near farms? Also OB, the economics have changed it is now cost effective to look at some areas near transport routes for example. Also taking concessions to stop others getting them.

Asked if there is further scope to cut cap-ex costs, JM said cost savings were being made but it is likely to even out so the projected cap-ex +/- stated parameters still stands. Cont....

[salmonn1] 25/4/2017 21:21

Re mine build date. This is dependant on finance and if the Ni price is still at 9k at the end of the year then there will probably need to be longer to put a finance package in place. Hence need to see 12k preferably by the end of the year. FS now underway, HZM team has gone from 8 to 50 plus 50 consultant staff. (my comment, as mentioned before most cost effective option, plus gets thing done quickly and in my view keeps control over the process. Hence FS will be a blue-print to build the complete mine from. I made the point that it is in my view important to not let the consultants control the process, they often ask the client and then just give back what they already knew. Owen Bavington said some of the large guys were indeed doing that at the tender stage!).

Question was asked whether TECK or Glencore might be a partner? JM said TECK has moved down the register over time but could see them as a possible partner (no Ni assets in their portfolio I think he said?). Could also see Glencore as a partner, and a more likely partner for a join venture I think he said? as they are looking to move back in to the asset. Cont...

[salmonn1] 25/4/2017 21:07

JM went on to say that the adjacent Barro Alto Ni mine is a working mine built on an inferior asset to HZM's. JM says he does not believe there is currently a mine using 2% grade ore at this time, HZM is a world class asset. The planned and mapped pits provide output for the first 28 years but if you include the ground immediately surrounding these pits that take the LOM up to 70/80 years.

JM pointed out that the UBS long term outlook for Ni is >$19k/t and is seen as the long term norm. HZM can make this work at $12k/t and one year at $18k/t would pay off the whole cap-ex. He said there is the potential to pay a very substantial dividend.

JM also spoke about the Morro Azul test facility, unique in the world in being able to take raw Ni saprolite ore, crush it, process and smelt it etc. This allows the FS to test the whole process from raw ore to FeNi and slag in one go. There is a lot of RKEF know-how in Brazil available to HZM. The FeNi product is what the Chinese steel makers are looking for. Again makes the point that if the Ni price is at 14-15k at the start of production, historically there is a big upside potentially.

HZM now has 100Km of land, stable co-operative state mining authorities and most of the infrastructure in place and ready to utilise. Cont....

[salmonn1] 25/4/2017 20:41

Regarding the FS, company decision to use the best consultants available. The other option was to go with a big company eg AMEC and buy the whole package. Wanted instead to construct a bespoke solution.

So broke the FS into four work packages and asked four to six specialist groups to tender for each package. This way get the best people. Worley Parsons world class with the right experience. Snowden, have worked with HZM on PFS etc. Again, ERM the best for this project and the last using in-country groups with the local expertise. JM said the single consultant option would not be so specific to the needs of the mine development and expensive. The way chosen keeps costs down and the completed FS is, "a study we can use to build a mine off the back of".

JM also said the trial mining is also important to prove that we can produce the 2% Ni as modelled in the PFS. Other mines promise then fail to deliver two years down the line! Also want mine material to test crushing to ensure correct equipment is bought and calibrated.

Drilling the ground where the foundations are to go is also critical to ensure accurate costings for foundations etc. In addition there will be close drilling to 5m2 (Where others go for 12m2) to ensure Ni grade matches what has been modelled. In fact there is enough Ni ore for an 80y LOM and if a Major becomes involved up to 40m/t per yr Ni. Cont...

[salmonn1] 25/4/2017 20:21

Hi everyone. The following is from my notes so apologies in advance for the fact it is a little disjointed. It includes some of JM's presentation, things said in answer to questions and conversations as I remember them. In general everyone was very positive not only that the Feasibility Study (FS) is underway but how it is going already just weeks in.

JM went through the latest presentation (See HZM PDF)some of the points he made as follows:

The key figure is the C1 cash cost $6.9k/t, means we make money at the current Ni price. The project is massively cash generative, at $12k/t the asset base is equivalent of something like (I think he said) a gold mine with 13.8m oz Au. The aim is to minimise the cap-ex and maximise the free cash flow.

Ni cycles 8-10 years and HZM is not behind the curve, stainless steel growth is there, Ni is a late stage material, we have not reached peak Ni usage, China is still building, eg air-con, transport etc. However Ni price is volatile hence where share price is. But, worth noting 50% of Ni mines are sub-economic even with cost savings, producers are not investing in new capacity.

HZM will not be producing until 2019/20 so Ni price is not crucial until then and UBS's three year Ni projection is >$19k/t. to cont....

[salmonn1] 25/4/2017 12:28

Will do Raymund. 7th OK for me at the moment, agree on somewhere quiet, hearing not 100%.

[raymund] 25/4/2017 11:34

strow, thanks, all investigatory for my wife at present.

Friday 7th May good for me, difficult to suggest a venue; sometimes use Wetherspoons to meet friends but they will be busy on a Fri night and difficult to find quiet corner! So hope you know somewhere better.

salmonn1, if you read this in time, could you pick up spare copy of JM's presentation today? Although will be same as on website quite nice to have hard copy.

[strow] 25/4/2017 09:46

ok thanks-ill take a look and see if i can come up with a decent venue too

[salmonn1] 25/4/2017 09:01

I can't make this Friday, but week after should be fine.

[strow] 25/4/2017 07:19

Hope your wife is ok Raymund-sorry to hear that-most Friday evenings are good for me guys.Anyone know of a good place to go for a drink ? West end way

[salmonn1] 23/4/2017 17:10

No problem Raymund I will be there. Hope your wife is OK. I'll report back after AGM.

[raymund] 23/4/2017 14:40

salmonn1, despite blocking date in diary I now find that I shall have to miss AGM on Tue, most unfortunate! My wife has just been given an urgent hospital appointment and I must support her for this. I am pretty sure that you are going so any report you can give will be much appreciated; JM should have an interesting presentation to update further on progress with FS, also hopefully news on permits promised for H1.

[strow] 20/4/2017 14:02

probably all have shares in the mines

[jailbird] 20/4/2017 10:45

It is a mess... will find out whether the lobbying corrupt win or Lopez... she seems to up against too much opposition in control

[strow] 20/4/2017 10:15

hxxp://www.sharenet.co.za/news/Philippine_environment_minister_blasts_cabinet_colleague_over_mine_closure_delays/7c8c12d24fbe530a65d625433e6cb58f

[jailbird] 19/4/2017 16:21

Media turning bearish on metals today.



Lopez may not be re-appointed either. Corrupt ppl in the Govt ( families members withing the panel apparently)

[donald trumpton] 13/4/2017 12:47

I'm Buying again now.

Be a fool not to!

[strow] 11/4/2017 20:24

Bed and isas showing as sells traded at bottom end

[salmonn1] 08/4/2017 10:27

Well spotted jb