Horizonte Minerals PLC (LON:HZM)(TSE:HZM) continues to look “well-funded to see through the global Covid-19 crisis”, said broker Shore Capital.
Following the Brazil-focused companys first-quarter report, the broker issued a short note to clients highlighting that medium-term nickel market fundamentals remain strong, with analyst consensus prices of US$16,150 per tonne versus US$16,188/t in December.
For analyst Yuen Low, the key takeaway from the quarterly report were that the period-end cash balance was £17mln compared to £17.8mln at the end of last year.
Low noted that the project financing process for the flagship Araguaia ferronickel project in Brazil was reported to be “currently running to schedule with no negative effects” from coronavirus, albeit Horizonte cautioned that there could be a delay if lockdowns continue “for a longer period of time”.
Work on Araguaia continues to be focused on advancing the level of engineering from Feasibility stage level to being implementation-ready.
The analyst said he and many other industry watchers “have long shared the view that nickel prices should be significantly higher in the medium term, the billion dollar question being exactly how much higher”.
Re-capping, he noted that after October 2018s feasibility study on Araguaias Stage 1 and scoping-level esRead More – Source
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