Horizonte Minerals makes progress at Araguaia

Brazil-focused nickel development company Horizonte Minerals announced its unaudited financial results for the six months ended 30 June 2016 on Tuesday.

The AIM-traded firm once again reported nil revenue, and a loss from operations of £786k, widening from the £538k loss at the same time last year.

Its total loss before tax for the period was £956k, compared with £624k.

During the half, Horizonte was issued with its Preliminary Environmental Licence for the Araguaia Project by the Parà State government, which its board described as “a significant milestone”.

Following the award of the licence, Horizonte can now work towards the Installation Licence, which will permit construction of the project.

It also completed the acquisition of the Glencore Araguaia Project, and the combination of the two Araguaia projects created one of the largest nickel saprolite projects globally.

Horizonte said it was in the final stages of delivering a new pre-feasibility study on the combined Araguaia Project with the aim of demonstrating the project will be one of the most competitive advanced nickel projects in the marketplace.

It was continuing to consolidate land position with award of additional licence areas south of GAP totalling around 20,000 hectares.

A cost reduction plan was completed to lower the overall operating costs while maintaining project development.

Horizonte reported a “strong cash position” of £1.6m at period end.

“In the last six months despite the very tough market conditions for the resource sector, the company has delivered a number of significant milestones at Araguaia which we are developing as the next major nickel project in Brazil,” said chairman David Hall.