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Share Name Share Symbol Market Type Share ISIN Share Description
Horizonte Minerals Plc LSE:HZM London Ordinary Share GB00B11DNM70 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 7.55 7.40 7.70 7.55 7.55 7.55 6,000 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -3.2 -0.2 - 122

Horizonte Minerals PLC Quarterly Financial Results

12/11/2020 7:00am

UK Regulatory (RNS & others)


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Horizonte Minerals PLC

12 November 2020

NEWS RELEASE

12 November 2020

QUARTERLY FINANCIAL RESULTS FOR THE THREE MONTHSED 30 SEPTEMBER 2020

Horizonte Minerals Plc, (AIM: HZM; TSX: HZM) (the "Company" or "Horizonte"), the nickel development company focused on Brazil, announces its unaudited financial results for the three month period to 30 September 2020 and the Management Discussion and Analysis for the same period. Both of the aforementioned documents have been posted on the Company's website www.horizonteminerals.com and are also available on SEDAR at www.sedar.com .

Highlights for the Period

-- Horizonte remains well-funded to advance Araguaia towards being construction ready with strong cash position of GBP13.6m;

   --      Project financing process continues to progress with a number of key milestones delivered; 

-- A syndicate of five international financial institutions mandated for a US$325 million senior debt facility to part fund the development of Araguaia;

-- BNP Paribas, ING Capital LLC, Mizuho Bank, Ltd., Natixis (New York Branch), and Société Générale will act as the Mandated Lead Arrangers;

-- Inaugural Sustainability Report published on 17 August 2020. The Company recognises the importance of conveying its efforts and achievements around the areas of environmental stewardship, social responsibility and corporate governance to its various stakeholders as it moves towards construction at Araguaia;

-- The Company has continued to support local communities around the project through the provision of food parcels and health and hygiene guidance in response to the pandemic; and

-- Nickel market fundamentals remain strong and are expected to benefit from global stimulus measures, with nickel price returning to pre-Covid levels of approximately US$15,700/t.

Horizonte Minerals plc

Condensed Consolidated Interim Financial Statements for the nine and three months ended 30 September 2020

Condensed consolidated statement of comprehensive income

 
                                                                9 months ended                  3 months ended 
                                                                  30 September                    30 September 
                                                                  2020            2019            2020            2019 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
                                                             Unaudited       Unaudited       Unaudited       Unaudited 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
                                                 Notes             GBP             GBP             GBP             GBP 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 Continuing operations 
 Revenue                                                             -               -               -               - 
 Cost of sales                                                       -               -               -               - 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 
 Gross profit                                                        -               -               -               - 
 
 Administrative expenses                                  (2,342,989 )   ( 1,910,913 )    ( 777,847) )     ( 941,996 ) 
 Charge for share options granted                                    -     ( 290,833 )               -      ( 53,662 ) 
 Change in value of contingent consideration                ( 79,425 )         145,561         311,735        (46,640) 
 Gain/(Loss) on foreign exchange                               410,804        (21,706)       (716,018)        (17,657) 
 
 
 Loss from operations                                    ( 2,011,610 )   ( 2,077,891 )    (1,182,130 )    (1,059,955 ) 
 
 Finance income                                                122,907          50,085         32,17 7          16,294 
 Finance costs                                            (2,969,053 )     ( 222,788 )    (1,027,349 )        (75,951) 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 
 Loss before taxation                                      (4,857,756)    (2,250,594 )    (2,177,302 )   ( 1,119,612 ) 
 
 Taxation                                                    (51,071 )               -       (51,071 )               - 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 
 Loss for the year from continuing operations             ( 4,908,827)     (2,250,594)     (2,228,373)     (1,119,612) 
==============================================  ======  ==============  ==============  ==============  ============== 
 
 Other comprehensive income 
 Items that may be reclassified subsequently 
 to profit or loss 
 Change in value of available for sale 
 financial assets 
 Currency translation differences on 
  translating foreign operations                         ( 9,232,975 )    (1,093,862 )   ( 1,165,298 )     (1,559,385) 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 
   Other comprehensive income for the period, 
   net of tax                                            ( 9,232,975 )     (1,093,862)   ( 1,165,298 )     (1,559,385) 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 Total comprehensive income for the period 
 attributable to equity holders of the Company            (14,141,802)    (3,344,456 )     (3,393,671)     (2,678,997) 
----------------------------------------------  ------  --------------  --------------  --------------  -------------- 
 
 Earnings per share from continuing operations 
 attributable to the equity holders of the 
 Company 
 
 Basic and diluted (pence per share)                 9         (0.339)         (0.157)         (0.154)         (0.078) 
 
 
 

Condensed consolidated statement of financial position

 
                                         30 September    31 December 
                                                 2020           2019 
                                            Unaudited        Audited 
------------------------------  ------  -------------  ------------- 
                                 Notes            GBP            GBP 
------------------------------  ------  -------------  ------------- 
 Assets 
 Non-current assets 
 Intangible assets                   6      8,241,277     39,317,506 
 Property, plant & equipment               24,924,599            483 
                                           33,165,876     39,317,989 
------------------------------  ------  -------------  ------------- 
 Current assets 
 Trade and other receivables                2,391,659      2,381,535 
 Cash and cash equivalents                 13,584,055     17,760,330 
------------------------------  ------  -------------  ------------- 
                                           15,975,714     20,141,865 
------------------------------  ------  -------------  ------------- 
 Total assets                              49,141,590     59,459,854 
==============================  ======  =============  ============= 
 Equity and liabilities 
 Equity attributable 
  to owners of the parent 
 Issued capital                      7     14,463,773     14,463,773 
 Share premium                       7     41,785,306     41,785,306 
 Other reserves                          (13,899,906)    (4,666,930) 
 Accumulated losses                      (24,743,918)   (19,835,092) 
------------------------------  ------  -------------  ------------- 
 Total equity                              17,698,255     31,747,057 
------------------------------  ------  -------------  ------------- 
 Liabilities 
 Non-current liabilities 
 Contingent consideration                   6,666,016      6,246,071 
 Royalty Finance                           23,594,661              - 
 Deferred tax liabilities                     155,692        212,382 
------------------------------  ------  -------------  ------------- 
                                           30,416,369      6,458,453 
------------------------------  ------  -------------  ------------- 
 Current liabilities 
 Trade and other payables                   1,026,966     21,254,344 
 Deferred consideration                             -              - 
------------------------------  ------  -------------  ------------- 
                                            1,026,966     21,254,344 
------------------------------  ------  -------------  ------------- 
 Total liabilities                         31,443,335     27,712,797 
------------------------------  ------  -------------  ------------- 
 Total equity and liabilities              49,141,590     59,459,854 
==============================  ======  =============  ============= 
 
 

Condensed statement of changes in shareholders' equity

 
                                      Attributable to the owners of the parent 
                        ------------------------------------------------------------------- 
                              Share        Share    Accumulated         Other 
                            capital      premium         losses      reserves         Total 
                                GBP          GBP            GBP           GBP           GBP 
----------------------  -----------  -----------  -------------  ------------  ------------ 
 
 As at 1 January 
  2019                   14,325,218   41,664,018   (16,990,291)   (2,039,991)    36,958,954 
----------------------  -----------  -----------  -------------  ------------  ------------ 
 Comprehensive income 
 Loss for the period              -            -    (2,250,594)             -   (2,250,594) 
 Other comprehensive 
  income 
 Currency translation 
  differences                     -            -              -   (1,093,862)   (1,093,862) 
----------------------  -----------  -----------  -------------  ------------  ------------ 
 Total comprehensive 
  income                          -            -    (2,250,594)   (1,093,862)   (3,344,456) 
----------------------  -----------  -----------  -------------  ------------  ------------ 
 Transactions with 
  owners 
 Issue of ordinary 
  shares                    138,555      121,288              -             -       259,843 
 Issue costs                      -            -              -             -             - 
 Share based payments             -            -        290,833             -       290,833 
----------------------  -----------  -----------  -------------  ------------  ------------ 
 Total transactions 
  with owners               138,555      121,288        290,833             -       550,676 
 As at 30 September 
  2019 (unaudited)       14,463,773   41,785,306   (18,950,052)   (3,133,853)    34,165,174 
======================  ===========  ===========  =============  ============  ============ 
 
 
                                       Attributable to the owners of the parent 
                        --------------------------------------------------------------------- 
                              Share        Share    Accumulated          Other 
                            capital      premium         losses       reserves          Total 
                                GBP          GBP            GBP            GBP            GBP 
----------------------  -----------  -----------  -------------  -------------  ------------- 
 
 As at 1 January 
  2020                   14,463,773   41,785,306   (19,835,092)    (4,666,930)     31,747,057 
----------------------  -----------  -----------  -------------  -------------  ------------- 
 Comprehensive income 
 Loss for the period              -            -    (4,908,827)              -    (4,908,827) 
 Other comprehensive 
  income 
 Currency translation 
  differences                     -            -              -    (9,232,975)    (9,232,975) 
----------------------  -----------  -----------  -------------  -------------  ------------- 
 Total comprehensive 
  income                          -            -    (4,908,827)    (9,232,975)   (14,141,802) 
----------------------  -----------  -----------  -------------  -------------  ------------- 
 Transactions with 
  owners 
 Issue of ordinary 
  shares                     30,000       63,000              -              -         93,000 
 Issue costs                      -            -              -              -              - 
 Share based payments             -            -              -              -              - 
----------------------  -----------  -----------  -------------  -------------  ------------- 
 Total transactions 
  with owners                30,000       63,000              -              -         93,000 
 As at 30 September 
  2020 (unaudited)       14,493,773   41,848,306   (24,743,919)   (13,899,905)     17,698,255 
======================  ===========  ===========  =============  =============  ============= 
 

Condensed Consolidated Statement of Cash Flows

 
                                                             9 months ended               3 months ended 
                                                               30 September                30 September 
----------------------------------------------------   --------------------------  --------------------------- 
                                                               2020          2019           2020          2019 
----------------------------------------------------   ------------  ------------  -------------  ------------ 
                                                          Unaudited     Unaudited      Unaudited     Unaudited 
----------------------------------------------------   ------------  ------------  -------------  ------------ 
                                                                GBP           GBP            GBP           GBP 
 Cash flows from operating activities 
 Loss before taxation                                   (4,908,827)   (2,250,594)   (2,228,373 )   (1,119,612) 
 Interest income                                          (122,907)      (50,085)       (32,177)      (16,294) 
 Finance costs                                            2,790,062       222,788        947,785        75,951 
 Exchange differences                                     (410,804)        21,706        716,018        17,657 
 Employee share options charge                                    -       290,833              -        53,662 
 Change in fair value of contingent consideration            79,425     (145,561)      (311,735)        46,640 
 Change in fair value of derivative asset                   178,991             -         79,564             - 
 Depreciation                                                     -             -              -             - 
----------------------------------------------------   ------------  ------------  -------------  ------------ 
 Operating loss before changes in working capital       (2,394,060)   (1,910,913)      (828,918)     (941,996) 
 Decrease/(increase) in trade and other receivables          50,742      (45,771)        (2,384)      (42,496) 
 (Decrease)/increase in trade and other payables            152,845       468,782        290,166       442,376 
-----------------------------------------------------  ------------  ------------  -------------  ------------ 
 Net cash outflow from operating activities             (2,190,473)   (1,487,902)      (541,136)     (542,116) 
=====================================================  ============  ============  =============  ============ 
 Cash flows from investing activities 
 Purchase of intangible assets                          (2,006,910)   (1,944,388)      (680,325)     (655,180) 
 Purchase of property, plant and equipment                (605,603)             -      (198,360)             - 
 Interest received                                          122,907        50,085         32,177        16,294 
-----------------------------------------------------  ------------  ------------  -------------  ------------ 
 Net cash used in investing activities                  (2,489,606)   (1,894,303)      (846,508)     (638,886) 
-----------------------------------------------------  ------------  ------------  -------------  ------------ 
 Cash flows from financing activities 
 Proceeds form issue of ordinary shares                      93,000             -         93,000             - 
 Issue costs                                                      -             -              -             - 
----------------------------------------------------   ------------  ------------  -------------  ------------ 
 Net cash used in financing activities                       93,000             -         93,000             - 
-----------------------------------------------------  ------------  ------------  -------------  ------------ 
 Net decrease in cash and cash equivalents              (4,587,079)   (3,382,205)    (1,294,644)   (1,181,002) 
 Cash and cash equivalents at beginning of period        17,760,330     6,527,115     15,594,717     4,322,699 
 Exchange gain/(loss) on cash and cash equivalents          410,804      (20,870)      (716,018)      (17,657) 
-----------------------------------------------------  ------------  ------------  -------------  ------------ 
 Cash and cash equivalents at end of the period          13,584,055     3,124,040     13,584,055     3,124,040 
=====================================================  ============  ============  =============  ============ 
 
 

Notes to the Financial Statements

1. General information

The principal activity of the Company and its subsidiaries (together 'the Group') is the exploration and development of precious and base metals. There is no seasonality or cyclicality of the Group's operations.

The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange (AIM) and on the Toronto Stock Exchange (TSX). The Company is incorporated and domiciled in the United Kingdom. The address of its registered office is Rex House, 4-12 Regent Street, London SW1Y 4RG.

2. Basis of preparation

The condensed consolidated interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The condensed consolidated interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 31 December 2019 were approved by the Board of Directors on 7 April 2020 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.

The condensed consolidated interim financial statements of the Company have not been audited or reviewed by the Company's auditor, BDO LLP.

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended 30 September 2020. Please refer to note 2.2 in the annual report for 2019 for the assessment of the current Covid-19 pandemic on the operations of the Group.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2019 Annual Report and Financial Statements, a copy of which is available on the Group's website: www.horizonteminerals.com and on Sedar: www.sedar.com The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.

Critical accounting estimates

The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2019 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

3. Significant accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the revaluation of certain of the subsidiaries' assets and liabilities to fair value for consolidation purposes.

The same accounting policies, presentation and methods of computation have been followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group's Financial Statements for the year ended 31 December 2019.

4 Segmental reporting

The Group operates principally in the UK and Brazil, with operations managed on a project by project basis within each geographical area. Activities in the UK are mainly administrative in nature whilst the activities in Brazil relate to exploration and evaluation work. The reports used by the chief operating decision maker are based on these geographical segments.

 
 
   2020                                  UK          Brazil           Other           Total 
                             9 months ended        9 months        9 months        9 months 
                               30 September           ended           ended           ended 
                                       2020    30 September    30 September    30 September 
                                        GBP            2020            2020            2020 
                                                        GBP             GBP             GBP 
--------------------------  ---------------  --------------  --------------  -------------- 
 Revenue                                  -               -                               - 
--------------------------  ---------------  --------------  --------------  -------------- 
 Administrative expenses        (1,636,689)       (407,779)       (298,521)     (2,342,989) 
 Loss0020on foreign 
  exchange                          731,429       (338,984)          18,359         410,804 
 (Loss) from operations 
  per reportable segment          (905,260)       (746,763)       (280,162)     (1,932,185) 
 Inter segment revenues                   -               -               -               - 
 Depreciation charges                     -               -               -               - 
 Additions and foreign 
  exchange movements 
  to non-current assets                         (6,482,508)               -     (6,482,508) 
 Reportable segment                                                2,573,55 
  assets                          7,303,457      39,264,577               6      49,141,590 
 Reportable segment                                  763,18 
  liabilities                     7,076,456               1      23,603,698       31,443,33 
 
 
   2019                                  UK          Brazil           Other           Total 
                             9 months ended        9 months        9 months        9 months 
                               30 September           ended           ended           ended 
                                       2019    30 September    30 September    30 September 
                                        GBP            2019            2019            2019 
                                                        GBP             GBP             GBP 
--------------------------  ---------------  --------------  --------------  -------------- 
 Revenue                                  -               -               -               - 
--------------------------  ---------------  --------------  --------------  -------------- 
 Administrative expenses        (1,433,182)       (477,731)               -     (1,910,913) 
 Loss on foreign exchange           (6,655)        (15,051)               -        (21,706) 
 (Loss) from operations 
  per reportable segment        (1,439,837)       (492,782)               -     (1,932,619) 
 Inter segment revenues                   -               -               -               - 
 Depreciation charges                     -               -               -               - 
 Additions and foreign 
  exchange movements 
  to non-current assets                   -         774,255               -         774,255 
 Reportable segment 
  assets                          2,767,328      36,932,142               -      39,699,470 
 Reportable segment 
  liabilities                     5,172,502         361,794               -       5,534,296 
 
 
 
 
 
   2020                                 UK          Brazil           Other           Total 
                                  3 months        3 months        3 months        3 months 
                                     ended           ended           ended           ended 
                              30 September    30 September    30 September    30 September 
                                      2020            2020            2020            2020 
                                       GBP             GBP             GBP             GBP 
--------------------------  --------------  --------------  --------------  -------------- 
 Revenue                                 -               -               -               - 
--------------------------  --------------  --------------  --------------  -------------- 
 Administrative expenses         (609,868)       (158,942)         (9,037)       (777,847) 
 Loss on foreign exchange        (334,566)       (374,326)         (7,126)       (716,018) 
 (Loss) from operations 
  per                            (944,434)       (533,268)        (16,163)     (1,493,865) 
 reportable segment 
--------------------------  --------------  --------------  --------------  -------------- 
 Inter segment revenues                  -               -               -               - 
 Depreciation charges                    -               -               -               - 
 Additions and foreign 
  exchange movements to 
  non-current assets                     -       (230,005)               -       (230,005) 
 
 
 
 2019 
                                        UK                       Brazil           Other           Total 
                                  3 months                     3 months        3 months        3 months 
                                     ended                        ended           ended           ended 
                              30 September                 30 September    30 September    30 September 
                                      2019                         2019            2019            2019 
                                       GBP                          GBP             GBP             GBP 
--------------------------  --------------  ---------------------------  --------------  -------------- 
 Revenue                                 -                            -               -               - 
--------------------------  --------------  ---------------------------  --------------  -------------- 
 Administrative expenses         (794,076)                    (147,920)               -       (941,996) 
 Profit/(Loss) on foreign 
  exchange                           5,689                     (23,346)               -        (17,657) 
 (Loss) from operations 
  per                            (788,387)                    (171,266)               -       (959,653) 
 reportable segment 
--------------------------  --------------  ---------------------------  --------------  -------------- 
 Inter segment revenues                  -                            -               -               - 
 Depreciation charges                    -                            -               -               - 
 Additions and foreign 
  exchange movements to 
  non-current assets                     -                    (969,007)               -       (969,007) 
 
 
 

A reconciliation of adjusted loss from operations per reportable segment to loss before tax is provided as follows:

 
                                      9 months        9 months        3 months        3 months 
                                         ended           ended           ended           ended 
                                  30 September    30 September    30 September    30 September 
                                          2020            2019            2020            2019 
                                           GBP             GBP             GBP             GBP 
------------------------------  --------------  --------------  --------------  -------------- 
 Loss from operations 
  per reportable segment           (1,932,185)     (1,932,619)     (1,493,865)       (959,653) 
 - Change in fair value 
  of contingent consideration         (79,425)         145,561         311,735        (46,640) 
 - Change in fair value 
  of derivative asset                (178,991)                        (79,564) 
 
 - Charge for share options 
  granted                                    -       (290,833)               -        (53,662) 
 - Finance income                      122,907          50,085          32,177          16,294 
 - Finance costs                   (2,790,062)       (222,788)       (947,785)        (75,951) 
 Loss for the period from                           (2,250,594 
  continuing operations            (4,857,756)               )     (2,177,302)     (1,119,612) 
==============================  ==============  ==============  ==============  ============== 
 
 
 
 

5 Change in Fair Value of Contingent Consideration

Contingent Consideration payable to Xstrata Brasil Mineração Ltda.

The contingent consideration payable to Xstrata Brasil Mineração Ltda has a carrying value of GBP3,176,017 at 30 September 2020 (30 September 2019: GBP4,640,847). It comprises US$5,000,000 consideration in cash as at the date of first commercial production from any of the resource areas within the Enlarged Project area. The key assumptions underlying the treatment of the contingent consideration the US$5,000,000 are based on the current rates of tax on profits in Brazil of 34% and a discount factor of 7.0% along with the estimated date of first commercial production.

As at 30 September 2020, there was a finance expense of GBP162,240 (2019: GBP 222,788 ) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.

The change in the fair value of contingent consideration payable to Xstrata Brasil Mineração Ltda generated a loss of GBP37,842 for the nine months ended 30 September 2020 (30 September 2019: GBP145,561 debit) due to changes in the exchange rate of the functional currency in which the liability is payable.

Contingent Consideration payable to Vale Metais Basicos S.A.

The contingent consideration payable to Vale Metais Basicos S.A. has a carrying value of GBP3,489,996 at 30 September 2020 (2019: GBPnil). It comprises US$6,000,000 consideration in cash as at the date of first commercial production from the Vermelho project and was recognised for the first time in December 2019, following the publication of a PFS on the project. The key assumptions underlying the treatment of the contingent consideration the US$6,000,000 are the same as those for the Xstrata contingent consideration and are based on the current rates of tax on profits in Brazil of 34% and a discount factor of 7.0% along with the estimated date of first commercial production.

As at 30 September 2020, there was a finance expense of GBP178,280 (2019: GBPnil ) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.

The change in the fair value of contingent consideration payable to Vale Metais Basicos S.A. generated a loss of GBP41,583 for the nine months ended 30 September 2020 (2019: GBPnil) due to changes in the value of the functional currency in which the liability is payable (USD).

6 Finance income and costs

 
                                                     9 months        9 months 
                                                        ended           ended 
                                                 30 September    30 September 
                                                         2020            2019 
                                                          GBP             GBP 
---------------------------------------------  --------------  -------------- 
 Finance income 
 - Interest income on cash and short-term                                   - 
  deposits                                            122,907 
 Finance costs                                                              - 
 - Contingent and deferred consideration:                                   - 
  unwinding of discount                             (340,520) 
 - Amortisation of Royalty Finance                (2,449,542)               - 
 - Royalty Fair Value Adjustment                    (178,991)               - 
 - Movement in fair value of derivative asset               -               - 
 Total finance costs                               (2,969,053               - 
                                                            ) 
 Net finance costs                                (2,846,146)               - 
=============================================  ==============  ============== 
 

7 Intangible assets

Intangible assets comprise exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise internally generated and acquired assets.

 
                                                     Exploration 
                                                             and 
                            Goodwill   Exploration    evaluation       Total 
                                          licences         costs 
                                 GBP           GBP           GBP         GBP 
-------------------------  ---------  ------------  ------------  ---------- 
 Cost 
 At 1 January 2020           210,585     4,534,392     2,312,467   7,057,444 
 Additions                         -             -     1,893,618   1,893,618 
 Exchange rate movements    (56,209)        95,439     (749,015)   (709,785) 
 Net book amount at 
  30 September 2020          154,376     4,629,831     3,457,070   8,241,277 
=========================  =========  ============  ============  ========== 
 

8 Share Capital and Share Premium

 
 Issued and fully                          Ordinary 
  paid                       Number of       shares   Share premium        Total 
                                shares          GBP             GBP          GBP 
----------------------  --------------  -----------  --------------  ----------- 
 At 1 January 2020       1,446,377,287   14,463,773      41,785,306   56,249,079 
 Issue of equity             3,000,000       30,000          63,000       93,000 
 At 30 September 2020    1,449,377,287   14,493,773      41,848,306   56,342,079 
----------------------  --------------  -----------  --------------  ----------- 
 

9 Dividends

No dividend has been declared or paid by the Company during the nine months ended 30 September 2020 (2019: nil).

10 Earnings per share

The calculation of the basic loss per share of 0.339 pence for the 9 months ended 30 Sept 2020 (30 Sept 2019 loss per share: 0.157 pence) is based on the loss attributable to the equity holders of the Company of GBP (4,908,827) for the nine month period ended 30 Sept 2020 (30 Sept 2019: (2,250,594)) divided by the weighted average number of shares in issue during the period of 1,446,643,856 (weighted average number of shares for the 9 months ended 30 Sept 2019: 1,435,584,489).

The calculation of the basic loss per share of 0.154 pence for the 3 months ended 30 Sept 2020 (30 Sept 2019 loss per share: 0.078 pence) is based on the loss attributable to the equity holders of the Company of GBP (2,228,373) for the three month period ended 30 June 2020 (3 months ended 30 Sept 2019: (GBP1,169,612) divided by the weighted average number of shares in issue during the period of 1,447,217,722 (weighted average number of shares for the 3 months ended 30 Sept 2019: 1,435,866,256).

The basic and diluted loss per share is the same, as the effect of the exercise of share options would be to decrease the loss per share.

Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group's Annual Report and Financial Statements for the year ended 31 December 2019 and in note 10 below.

11 Issue of Share Options

On 12 February 2019, the Company awarded 2,000,000 share options to leading members of the Brazilian operations team. All of these share options have an exercise price of 4.80 pence. One third of the options are exercisable from August 2019, one third from February 2019 and one third from August 2020.

12 Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

13 Related party transactions

The nature of related party transactions of the Group has not changed from those described in the Group's Annual Report and Financial Statements for the year ended 31 December 2019.

14 Events after the reporting period

There are no events which have occurred after the reporting period which would be material to the financial statements.

Approval of interim financial statements

These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors on 10 November 2020.

* *S * *

For further information contact:

 
 
   Horizonte Minerals plc 
 Jeremy Martin (CEO)                       +44 (0)203 356 2901 
  Anna Legge (Corporate Communications)    a.legge@horizonteminerals.com 
 
 Peel Hunt (NOMAD & Joint Broker) 
 Ross Allister 
  David McKeown                            +44 (0)207 418 8900 
 
 
 

About Horizonte Minerals:

Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company's current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company's lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company's future payment obligations; potential disputes with respect to the Company's title to, and the area of, its mining concessions; the Company's dependence on its ability to obtain sufficient financing in the future; the Company's dependence on its relationships with third parties; the Company's joint ventures; the potential of currency fluctuations and political or economic instability in countries in which the Company operates; currency exchange fluctuations; the Company's ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company's plans to continue to develop its operations and new projects; the Company's dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

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November 12, 2020 02:00 ET (07:00 GMT)

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