Key points:
- Horizonte Minerals (HZM) shares fell 3.69% on the Araguaia update.
- Investors ignored the update since it lacked an immediate impact.
- The nickel miner’s shares are falling and could soon hit support.
The Horizonte Minerals Plc (LON: HZM) share price fell 3.69% after an update about its Araguaia Nickel Project in Brazil, which is under development. The company told investors that the Brazilian Federal Government recently classified the project as a Strategic Minerals Project.
The mover will see the project treated as a priority by multiple government agencies involved in its construction and operations, which should speed up the construction phase. However, it appears that investors were unbothered by the announcement.
Also read: The Best Nickel And Nickel Mining Stocks To Buy.
Araguaia’s designation as a Strategic Minerals Project is based on Brazil’s Strategic Minerals Policy, which aims to prioritise the development of mineral projects critical to Brazil’s economic growth.
The Investment Partnership Programme is a government entity dedicated to expanding and accelerating the implementation of projects involving the private sector’s participation in Brazil. The body will supervise the implementation of the Araguaia project.
Horizonte was honoured to be selected by the Inter-ministerial Committee for the Analysis of Strategic Mineral Projects (CTAPME), given that not all mineral projects are deemed worthy of being classified as Strategic Minerals projects.
Jeremy Martin, Horizonte Minerals CEO, commented: “The selection of the Araguaia Nickel Project as a Strategic Minerals Project further demonstrates the global importance of nickel as a critical metal of the future as well as the project’s strategic importance to Brazil. We recognise the positive steps the Brazilian Government are taking to help expedite these strategically important projects, and we look forward to working closely with them as we advance Araguaia towards production.”
Investors were unbothered by the announcement since it did little for the project today. However, the classification might prove helpful in the future when certain aspects of the project that require government involvement are being executed.
Horizonte Minerals (HZM) shares are falling towards the 99p support level previously held. However, we could get a rally higher if the level holds over the coming days and weeks.
*This is not investment advice.
Horizonte Minerals (HZM) share price.
Horizonte Minerals (HZM) share price plunged 3.69% to trade at 104.5p, falling from Friday’s closing price of 108.5p.
