The Nickel King! $8.9 Billion cash flow! Company Overview
Horizonte has two advanced 100% owned nickel projects located close to the Carajs mining district in northern Brazil.
Araguaia Ferro-Nickel Project (ANP)
ANP is an advanced nickel project being developed by Horizonte as the next ferronickel (FeNi) operation in Brazil. Araguaia has the following key characteristics:
- 100% owned by Horizonte
- Located south of the Carajs Mining district in northern Brazil, with good access to infrastructure Feasibility Study (IFS') issued Q4 2018, has demonstrated:
- Robust economics based on a 28-year life of mine ('LOM") producing ~14,000 tonnes per annum (TA) nickel in FeNi from a single line Rotary Kiln Electric Furnace ('RKEF")
- ANP is expected to generate over US$1.6 billion in free cash flow over LOM using a nickel price of US$14,000 per tonne ('/t'
- Net Present Value' (NPV,) of US$401M and Internal Rate of Return (IRR) of 20.1% using the base case of nickel price of US$14,000/t, increasing to US$740M and 28.1% using the consensus nickel price of US$16,800/t
- High-grade ore with an average nickel grade of 1.89% for the first 10 years of production
- C1 cost of US$8,193/t Ni positioning Araguaia in the lower quartile of Nickel Laterite cost curve, C1 cost of US$6,784/t Ni years 1-10
- Proven and Probable Mineral Reserve Estimate of 27.5 Mt grading 1.69% Ni
Vermelho Nickel-Cobalt Project (VNP)
The VNP was acquired from Vale in late 2017. It is 100% owned by Horizonte and is located in the eastern part of the Carajas Mining district and approximately 200 kilometres north-west of the ANP. A Pre-Feasibility study (PFS*) was released in October 2019 which confirms VNP as a low-cost, long-life nickel sulphate project.
The Study confirms VNP as a large, high-grade resource, with a long mine life and low-cost source of nickel sulphate for the battery industry
• The compelling economic and technical results from the study support further development
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A 38-year mine life estimated to generate total cash flows after taxation of US$7.3billion?;
An estimated Base Case post-tax NPV, of US$1.7 billion? and IRR of 26%
At full production capacity, the Project is expected to produce an average of 25,000 tonnes of nickel and 1,250 tonnes of cobalt per annum utilising the High-Pressure Acid Leach process
• The base case PFS economics assumes a flat nickel price of US$16,400/t for the 38-year mine life
C1 (Brook Hunt) cash cost of US$8,029/t Ni (US$3.64/Ib Ni), defines Vermelho as a low-cost producer VNP is set to deliver significant socio-economic benefits for communities in the Par state, including over 1,800 direct jobs in the construction phase, and over 600 jobs during operation, as well as additional economic and social development programs.