Horizonte Minerals Share Discussion Threads

[maverick247] 14/10/2017 22:51

Would recommend reading that note its as clear as you can get the upside from here is pretty phenominal

[rapiddave] 14/10/2017 21:33

Evening All,I wanted to share the note I put together on HZM, link below:http://www.mediafire.com/file/hy82cgn1xzdj865/HZM+Research+Note+12.10.2017.pdfThe numbers for the Araguaia project valuation are simply fantastic in my view and I would recommend that any interested party have a read of the note and take a view for themselves. The intention is to paint the opportunity that I see in HZM against the backdrop of the unfolding Nickel demand story.The numbers (PFS & projected) are based on RNS'd information and industry expert forecasts. The numbers are so good that even at £100m Market cap HZM could still be trading at ~90% discount to the Araguaia PFS NPV given UBS Nickel price forecast of $19,621 in 2020 - just as Araguaia is forecast to go into production.In other words at £100m market cap (8.55p share price) the company share price may have to rise 10x to reach the intrinsic value of the Araguaia project. The company believes that they could double the mine reserves / mine life on top of this through further exploration. Currently only ~28% of the measured and indicated Nickel tonnage is included in the Araguaia PFS.In addition there is the Limonite Nickel / Cobalt tailings resource. Read the note above for my views on how this additional resource may add even further significant value.Anyone interested in asking questions directly please follow me on twitter and say hello at @rapidDave_uk

[raymund] 14/10/2017 21:08

Now that the limonite ore has been recognised as a valuable resource we need to see the value reflected in share price At current stage when we are nearing DFS for saprolite, will it be necessary for the limonite to go through a PEA; PFS; and its own DFS in order to properly value. Or can we use info from previous PEA, PFS to work straight to DFS on limonite?

May seem a silly question but it would be good to hear from those who know.

[jailbird] 13/10/2017 21:02

This is new guys Not seen it yethttp://horizonteminerals.com/news/20171013_investor_presentation.pdf

[salmonn1] 13/10/2017 19:52

Strow, no problem, all part of getting the message out. Hope you can make a meeting with JM. Regards. PS Raymund I've got you the latest hard copy of the investor presentation.

[strow] 13/10/2017 19:39

Thanks again salmonn1-much appreciated

[x54v] 13/10/2017 15:18

Nickel price very strong today.

[maverick247] 13/10/2017 15:06

Guys i think there might be an investor call being arranged shortly ill keep you updated if of interest

[raymund] 13/10/2017 14:20

salmonn1, phew! You have given us a very professional summary and many thanks for covering all the ground so comprehensively.

A shareholder meeting with JM would be good now: when you, I and strow talked about the suggestion a while ago, we judged it a little early; certainly now, with so much in the frame leading to DFS would be a good time to accept JM's offer. With Christmas diaries now starting to fill, finding a date for all will be near impossible but your suggestion asking JM to propose three or four dates is the best way forward. I await hearing further.

For those who have been amassing a holding over several years, it is good to have the prospect of seeing a profit which will be at 6p for me, although I suspect you may be there (or nearly so) by now!

[cgequityinvest] 13/10/2017 14:04

salmonn1 - thanks for the helpful update.

I would be interested in attending a meeting with JM, subject to diary.

[uapatel] 13/10/2017 13:42

Yes Maverick, that's what got me, the story just gets better.

[maverick247] 13/10/2017 13:20

Remember limonite and cobalt not factored into current pea economics!

[uapatel] 13/10/2017 11:57

Salmonn1. Awesome update on the meeting yesterday, especially liked the 2nd paragraph on Limoite.

Thanks again for posting

[salmonn1] 13/10/2017 11:27

When I spoke to JM at the event he said, It's exciting times for Ni and HZM, the company is "full-on" with the DFS which is taking up most of the company's time and resources at the moment. Regarding share selling, JM said he is in touch with the key shareholders and re Lombard Odier he feels it is not outside their normal trading practices if they are selling some HZM shares into the market. He said he has noticed growing interest in HZM and good support from our major shareholders. JM said he had been in touch with them all in the last month. He said he can if necessary pick-up the 'phone and talk to any of the shareholders individually if required. And whilst Lombard are just doing normal trading, for them, he is not concerned. And although he has to wait for the TR1s to see the share sale picture, he is able to speak to these shareholders at any time to get a feel for what is happening.

JM said we were a bit slow on seeing the potential with batteries, but are now looking at limonite as a separate item. The first 8m of ore is limonite, which will be graded, set-aside in separate piles by grade, in sheltered conditions with an adjacent power supply ready to process. I asked if the lowest tech heap leach would be the preferred process route, JM said yes that would be likely. I made the point that this ore has to be dug out anyway to get to the saprolite and is therefore essentially zero cost. JM said we are fully committed to the DFS at the moment, we almost need another team to look in detail at the battery side of things. Regarding a limonite buy-out JM thinks we almost need to get to the "next level" to make this happen.

On the share price, JM thinks the recent rise is good and hopes for a break out. HZM would benefit from a market cap' of c. £100m for a deal, but doesn't think it would get there to the end of the year.

Looking at the costs estimates coming in from the DFS JM said the capex is likely to come in at 10% plus or minus of the estimate (US$354m) but more on the plus side. [Please note the +/-10% refers to the DFS NOT the PFS which is +/-25% in line with the industry norm]. But there would be an improvement on the opex front, due to different equipment supply options, I said including for example leasing, JM agreed.

Returning to the share price, JM, yes up at 4p today, good to see but can't expect a constant increase. In fact an inflated share price peak followed by a large fall would not be useful. But a steady rise would be with regard to a finance deal.

JM also mentioned Ni miner suppliers for batteries (not sure what he said) the gist was, only four or five Ni sulphide? suppliers coming on line? mostly in Australia and all have lower grades than HZM's limonite?

Later after the interview I asked about progress on the Installation Licence (LI). JM, we have some good connections with the Para State region officials He has names of the key people who can be spoken to directly. HZM have a licence team permanently up in Belem. The licence application is on course, Para State are very keen. JM pointed out that there will be 500 local jobs during the mine process phase (28 years plus) with at least two extra jobs per mine job created in the local economy. And that doesn't include the jobs created during the construction phase.

Talking about EVs and batteries again, JM made the point that the Ni price forecast by banks of $14k/tonne is, "for stainless steel alone" based on annual growth estimates, this doesn't take into account any demand for Ni for battery use! I asked if there are two separate Ni markets, steel and battery? JM said there are five or so separate Ni markets, but with regard to Ni in batteries Ni will be diverted from SS to battery supply, so FeNi demand, which is only suitable for steel, will increase in line with any increase in demand from increased battery use.

Hope the above is of interest. JM has offered to meet any shareholders who might be interested for a question and answer meeting. I have emailed JM to ask for three of four dates and times. I'll let you all know as soon as I have them to find out if there is any interest. I think it's important we take him up on this offer, it would be mutually beneficial I think, it's a chance for us to ask our own questions. With in the public domain of course. And for anyone living at distance maybe combine the trip with some Christmas shopping.

Cheers.

[raymund] 13/10/2017 10:57

Thanks again salmonn1, re-affirms the confidence in HZM. I must admit that when I posted couple of days ago, I did not expect yesterdays rapid spike up past 4p; I suggested last chance saloon at 3.5p and hope that now proves to be the case, particularly as BUYS continue to show red.

Look forward to further update.

[twigs3] 13/10/2017 10:54

Well worth a read if you haven't already.
hxxp://www.mining-journal.com/featured-company-profiles/horizonte-ready-to-ascend/

[johncb] 13/10/2017 10:15

Buys showing up as sells on here !!

[soundbuy] 13/10/2017 08:58

Cheers for the update

[strow] 13/10/2017 07:45

Thanks salmonn1-looks like the Horizonte investors group is growing :-)