Horizonte Minerals Share Discussion Threads

[babbler] 20/2/2024 08:02

3p ... Ouch

[strow] 19/2/2024 21:25

You are wrong again Nigel ?

[kirk 6] 19/2/2024 19:14

Nasty that just after close aswell

[luckyabbeygale] 19/2/2024 18:02

Lucky I pulled out at 9.5p for a 800 pound loss after paying 10.75p. It was just too much after what RENE did to me.

[mcpaulas] 19/2/2024 17:53

This is going to fall tomorrow before open.Funding is going to be near impossible.They always give bad news after close.

[waterloo01] 19/2/2024 17:05

Wow. 87% cost overrun and time added. There will be nowt for current holders given the amount needed.

[jaknife] 19/2/2024 17:05

WOW! That is an incredible additional cost. Is it even worth it now given the massive drop in the Nickel price?

[nigelpm] 19/2/2024 17:01

Ouch - that might be mothball time.

Poor old Strow - think I'm unlikely to be "wrong" - that looks pretty bad for debtholders let alone equity.

[mirabeau] 19/2/2024 17:01

19 February 2024



HORIZONTE PROVIDES UPDATED CAPEX AND SCHEDULE ESTIMATE





HIGHLIGHTS:



· Horizonte announces preliminary Cost-to-Complete estimate and achievable schedule for Araguaia Line 1

· Estimate prepared by specialized mining construction and engineering firm G Mining Services

· Graham Crew appointed as interim Chief Operating Officer (iCOO)

· Actively engaging existing and new potential investors on a full financing solution



Horizonte Minerals Plc (AIM/TSX: HZM) ("Horizonte" or the "Company") announces the preliminary results of a review of the Cost-to-Complete ("CTC") estimate and schedule for its 100%-owned Araguaia Nickel Project ("Araguaia" or "the Project"). The preliminary results of the review indicate that the estimated capital required to complete the construction of Araguaia, commission the project and deliver first metal is approximately US$454 million. As a result, the Estimate at Completion ("EAC") currently stands at US$1,004 million, approximately 87% higher than the previously disclosed capex budget of US$537 million (prior to October 2023). The Company anticipates achieving mechanical completion in Q1 2026.



G Mining Services ("GMS"), a specialized mining construction and engineering firm, were engaged by the Company to undertake the review process, delivering the re-estimated CTC and achievable schedule estimates. GMS is currently constructing the Tocantinzinho gold project located in Pará state and have notable accomplishments in the successful construction of other mining projects including Lundin Gold's Fruta del Norte Project in Ecuador, Newmont Mining's Merian Mine in Suriname and IAMGOLD's Greenstone project in Ontario.



The Company will continue to work closely with its major shareholders and senior lenders on a full funding solution, targeted for Q2 2024. As part of these conversations and given the increase in the CTC estimate, discussions to restructure the Company's debt facilities are being held in conjunction with actively engaging existing and new potential investors. The Company notes that additional interim funding will be required to implement such full funding solution.





Interim CEO Karim Nasr commented,



"Since our last update, a significant volume of work has been completed to develop a new Project Execution Plan, develop a realistic mine plan and business plan, all while continuing to proactively engage with the Company's cornerstone shareholders, senior lenders, vendors and contractors as well as the community and local authorities.



"While the new Cost-to-Complete is higher than previously announced by the company, it is now built on solid methodologies, which is a testament to the hard work undertaken to date by the whole Horizonte team. The Company is pleased to partner with G Mining Services, who have a track record of success in the region and are currently building the Tocantinzinho project with G Mining Ventures in Para state. The Company is now in a position to properly assess its ability to finance and complete the Araguaia Nickel Project (Line 1) and bring it into production.



"It is important to note that while completing the Cost-to-Complete estimate is a significant milestone, resuming and completing construction activities at Araguaia are still subject to the successful completion of a full financing solution, which the company will seek to develop in the coming weeks, but with no guarantee of success. Further, the CTC estimate is the capital required to complete the construction of Araguaia, commission the project and deliver first metal. The final financing amount will be higher and will depend on a variety of factors including discussions with Senior Lenders, suppliers, cornerstone investors and other third parties."





BASIS OF COST TO COMPLETE ("CTC") ESTIMATE



Based on the work to date, a total of around 4.7 million work-hours are required to finish construction of Araguaia Line 1. The current optimized plan assumes a smaller workforce which drives a revised construction schedule of approximately 18 months.



The EAC currently stands at US$1,004 million, of which a total of US$479 million has been spent up to the end of 2023, US$52 million is outstanding to trade creditors, US$15 million for critical activities during the slowdown period and US$4 million pre-first metal mining costs, resulting in a CTC of US$454 million. The capex estimate includes all the direct and indirect costs, local taxes and duties and US$54 million contingency deemed to be required to complete the construction of Line 1, commission the project and deliver first metal. This estimate is based on the Association for the Advancement of Cost Engineering (AACE) Class 3 standard, with an accuracy range between -10% and +30%, of the final project cost. The Company intends to work with GMS over the refinancing period to refine this to a control estimate, AACE Class 1 with an accuracy range of -3% to +15%.



The costs for these items have been derived from vendor quotes for the equipment and materials. The capex estimate is after tax, including growth and contingency and excluding escalation. The CTC excludes the owner's costs incurred during the slow-down phase between 10 November 2023 and June 2024, which are being funded with current cash and the aforementioned additional interim funding requirement. The CTC also excludes working capital, capitalized ramp-up costs and financing costs which will be included in the full funding solution.





SCHEDULE ESTIMATE



The project schedule has been re-estimated by GMS following a complete review of the quantities remaining, the procurement packages and logistics, and re-estimation of the work-hours required to complete construction and commissioning. GMS have been working with key equipment suppliers including Hatch Ltd and FLSmidth to fully assess the remaining work. The current project schedule estimate anticipates approximately 18 months of construction from re-mobilisation to the projected first metal date. Remobilisation is currently planned for Q3-2024 with a first metal date of Q1-2026, subject to successful refinancing and restart decision.



One of the key inputs for the new schedule was the productivity assumptions that drive the estimated progress for the principal project workstreams. GMS provided updated productivity figures based on their experience at the Tocantinzinho gold project located in Pará state, Brazil and therefore has recent, first-hand experience of achievable productivity rates for the main trades.



Further, as part of the review exercise, the Company reviewed the production ramp-up schedule and associated working capital and capitalized operating costs requirements. The original schedule assumed a 12-month ramp up to nameplate capacity; while achievable, this was considered to be a best-case scenario and has since been replaced by a more conservative 18-month ramp-up.





PROJECT EXECUTION PLAN



GMS have also re-developed the Project Execution Plan (PEP) as a self-perform model as employed at Tocantinzinho and other projects GMS have been involved in. Under this model the Company will directly employ the owner's team and construction employees with expertise and support from GMS. GMS employees brought into the project will be seconded directly to Araguaia Nickel Project with objectives, salaries and any incentives set and paid by the Company.



The benefits of this model include a simplified management structure, a reduction in the number of contractors and consultants, and full alignment of the owner's team and construction team. Specialist contractors and OEMs will continue to be critically important partners in the project execution.





SENIOR MANAGEMENT CHANGES



Maryse Bélanger, interim Chief Operating Officer ("COO") of the Company will step down as COO effective 21 February 2024, following a period of handover to Graham Crew, who is appointed as new interim COO. The Company wishes to thank Mrs. Belanger for her invaluable assistance in this challenging period.



Mr Crew was Chief Technical Officer of La Mancha Resource Capital LLP ("La Mancha"), which advises La Mancha Resource Fund SCSp, one of the Company's major shareholders. Mr Crew has been on a period of secondment to the Company in recent months having stepped down from his day-to-day executive role within La Mancha. He was previously a Non-executive Director at Golden Star Resources Limited before becoming Chief Operating Officer. He has extensive operational experience in Australia, Africa and Asia and was previously Operations Manager for La Mancha Resources Australia, including the development and construction and ramp up of the Mungari processing facility, prior to the divestment of those assets to Evolution Mining. He began his career with Western Mining Corporation at Olympic Dam and Leinster Nickel Operations. He holds a B.Eng (Mining Engineering) from the West Australian School of Mines, is a Member of the Australian institute of Corporate Directors and a Fellow of the Australasian Institute of Mining & Metallurgy.





Completion of construction activities at Araguaia will be subject to successful completion of a full financing solution in 2024. There can be no certainty at this stage that the full financing solution will be achieved and further updates will be provided in due course.



This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, as retained in the UK pursuant to the European Union (Withdrawal) Act 2018.

[stansmith1] 16/2/2024 14:10

stroware you still averaging in from higher prices, all getting set up here for the final reaming

[jedi k] 12/2/2024 11:44

Koniambo Nickel to Transition to Care and Maintenance The shareholders of Koniambo Nickel SAS (KNS) - a joint venture between Société Minière du Sud Pacifique SA (SMSP) and Glencore plc - have made the decision to transition KNS into care and maintenance.Glencore will fund the operation according to an agreed budget as it begins an orderly transition to a state of care and maintenance. The furnaces will remain hot for six months, and the KNS team will support the critical activities required to maintain the integrity of the asset and keep the site secure.Glencore will shortly initiate a process to identify a potential new industrial partner for KNS.All local KNS employees will be retained for a period of six months to aid in the transition.This decision follows several months of extensive discussions and negotiations with relevant government and other key stakeholders. Even with the French government's proposed assistance, high operating costs and current very weak nickel market conditions means KNS remains an unprofitable operation.Glencore has been a responsible custodian of KNS since acquiring the operation as part of the Xstrata transaction in 2013. More than US$4 billion has been funded by Glencore since 2013, and a total of US$9 billion since project inception. For over ten years, Glencore has been the primary funder of KNS without ever realising a profit. KNS has contributed c.US$5.6 billion in economic benefits to New Caledonia since 2012 from construction (US$1.7 billion) and operations (US$3.9 billion), including US$3.0 billion spent on goods and services and the payment of US$950 million in local salaries.

[luckyabbeygale] 05/2/2024 19:34

I mean the buy being 50 grand in money.
Them trades after hours do look very interesting.
Let’s hope it has something to do with the rescue deal.

[andyalbi71] 05/2/2024 19:32

How about the 4x half million trades after hours ... interesting to see what's coming tomorrow perhaps

[andyalbi71] 05/2/2024 14:53

You mean 500k

[luckyabbeygale] 05/2/2024 14:21

A buy of over £50,000 just went through. It can now only be positive news.

[luckyabbeygale] 05/2/2024 11:22

I just had the last fill before the price increased.
Very short term easy 100 percent plus from here.

[apotheki] 31/1/2024 10:11

LOL [suggest you take another look]

But on a more serious note that was in response to Kirk 6 who did exactly the same on the HEMO thread

[andyalbi71] 31/1/2024 09:54

Don't think so ...... looks pretty flat to me

[apotheki] 31/1/2024 09:46

Everyone moving to HEMO

[rover62] 31/1/2024 09:45

Or, unfortunately, it could just be another pump and dump

[kirk 6] 31/1/2024 09:27

Looks like some kind of leak

[luckyabbeygale] 30/1/2024 12:53

This looks like the next HE1. Just need an update about the loan.