Horizonte losses widen as it inches Araguaia project forward

Brazil-focussed nickel company Horizonte Minerals reported a loss before tax of £0.95m in its first quarter on Friday, widening from £0.04m year-on-year.

The AIM-traded firm, which is still pre-revenue, said its basic and diluted losses per share for the three months ended 31 March came in at 0.06p, compared to 0.003p a year earlier.

During the quarter, the company completed an £18m fundraise with primarily new institutions, resulting in a strengthened cash balance of £26m.

It also began to reach the final stages of “multiple components” of the Araguaia project finance package, as it appointed BMO Capital Market as its joint broker, and Michael Drake as its head of projects.

Horizonte was awarded a power line licence to cover the full power requirement of the Araguaia project at nameplate capacity during the period, the board added.

“Horizonte Minerals is an AIM and TSX-listed nickel development company focused on Brazil,” the board explained in its statement.

“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 electric vehicle battery market.

“Both projects are 100% owned.”

At 1051 BST, shares in Horizonte Minerals were down 1.34% at 7.45p.