The Horizonte Minerals Plc (LON: HZM) share price was trading sideways after issuing an update on the construction of its Araguai mine in Brazil. The operational update’s key theme was that the project was on track to start producing nickel in Q1 2024 and was still within budget.
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Generally, many engineering projects tend to go over budget, so Horizonte Minerals keeping that the Araguaia nickel project is within the allocated budget is commendable. The firm also noted that the construction of the Araguaia Nickel Project Line 1 was almost 50% complete.
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Investors muted reaction to the news was expected, given the sour investor sentiment towards mining stocks. The company also revealed that it had awarded up to 90% of the total project capital for the Araguaia Nickel Project Line 1 and was waiting to receive some long-lead items.
Horizonte Minerals confirmed that it had completed 50% of the construction of the Araguaia Nickel Project Line 1 by 30 March 2023. The 90% of capital awarded to various contractors was worth US$485 million.
The company noted that it had completed all the necessary earthworks and that detailed engineering works were about 95% done. The firm was still progressing with the electro-mechanical installations.
Horizonte is waiting to receive two long-lead items, a rotary kiln and a dryer, already in Brazil and being transported to the project site. The company is also working on the Araguaia Line 2 Feasibility Study to double nickel production from 14,500 tonnes per annum to 29,000 tonnes per annum.
Horizonte Minerals’ CEO Jeremy Martin commented: “We are pleased to confirm we remain on schedule for first metal at Araguaia, targeting Q1 2024, most importantly with a strong safety culture installed across the project. There is currently a key focus on operational readiness as we build out the operational team and establish the systems, processes and training required for the start-up phase.
Adding:
“Alongside the construction progress at Araguaia Line 1, with the award of the Line 2 Feasibility Study contracts, we are one step closer to delivering on this low capex project that will double nickel production.”
*This is not investment advice.
Horizonte Minerals (HZM) share price.
Despite today's announcement, Horizonte Minerals (HZM) shares traded sideways at press time.
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