Pre-tax loss rises at Horizonte Minerals; nickel development continues

22nd Feb 2013 08:09

Brazil-focused exploration and development company Horizonte Minerals has reported that its full year loss before taxation increased from 1.8m pounds to 2.5m pounds in the year ending December 31st.Total comprehensive income, which includes negative exchange rate effects, for the year was £5.6m compared to £4.2m a year earlier.Preliminary assessment of Araguaia nickel project completedHowever, the year saw a number of achievements for the company including the completion of a preliminary economic assessment for Araguaia, its Araguaia nickel project located south of the Carajas mining district in northern Brazil, which it said had produced "attractive results".Horizonte also published a new NI 43-101 Mineral Resource Estimate for Araguaia, comprising indicated resource of 39.3m tonnes grading, 1.39% nickel and an inferred resource of 60.9m tonnes averaging 1.22% nickel at 0.95% cut-off.The company consolidated its land position around Araguaia with completion of acquisition through all share transactions of the Vila Oito and Florestra projects from Lara Exploration.David Hall, Chairman of Horizonte Minerals, reported that the past year had seen the company continue to build its position as a leading nickel development company in Brazil. He said its primary focus was advancing towards the pre-feasibility study stage at its Araguaia nickel project."To this end I am pleased to report that we have made significant progress in terms of delivering on our key development milestones in Araguaia and continue to unlock its intrinsic value both on time and on budget," he added.With regard to company financing Hall said that Horizonte Minerals had completed a £5.2m placing in June 2012.In the case of Araguaia, the company's top executive emphasised that the most fundamental factor for the evaluation of a project is that it makes a profit taking the long-term price into account and has lower quartile operating costs. It is precisely due to this assessment, showing the viability of the project at a base case long term price, along with the other factors outlined in the statement, that they believe Araguaia is a very robust project and worthy of further development.The company's cash position at end-2012 was £5.9m - so that it was "well funded for Araguaia development work in 2013," the company announced.MF