The management of Brazil-focused nickel and gold miner Horizonte Minerals (LON:HZM) said today that it believes Horizonte’s investment case is now “stronger than ever”.
Reporting its interim results for the six months to the end of June 2011, Horizonte chairman David Hall said the firm had made exceptional progress in terms of developing its portfolio of assets in the world-class Carajas mining province in northern Brazil during the period. “We believe Horizonte’s investment case is currently stronger than ever,” he said. “The current value of Horizonte at time of writing... values our nickel resource at some US$0.02 per pound ignoring our gold projects. Our peers still trade in the range of US$0.06 to US$0.10 per pound. This positions Horizonte at a significant discount to the current market peer group.”
Horizonte said it delivered a number of significant milestones during its first half. At its flagship Araguaia nickel project it defined a maiden resource of 76.6 million tonnes grading at 1.35 per cent nickel. It also consolidated its position within the Araguaia region through the acquisition of the Vila Oito and Floresta nickel projects.
At its Falaco gold joint venture with AngloGold Ashanti it began a 3,000-metre drilling programme. And it also strengthened its balance sheet by raising £8.25 million, while also successfully listing on the Toronto Stock Exchange in June 2011 – a move that was part of management’s overall growth strategy to see Horizonte gain enhanced market exposure in North American capital markets.
Horizonte made a pre-tax loss of £676,533 during H1 2011, compared with a loss of £687,058 in H1 2010.