Update 29th October 2018:
The BFS for Araguaia was released today, link here.
Merger & Acquisition Potential
– In a recent interview with Jeremy Naylor at Momentous Events Jeremy Martin was asked whether Horizonte is a takeover target.
JM: “What’s really played into our favor is that there is no new money going into the next generation of Nickel projects. So we are one of the largest, one of the highest grade projects at the most advanced stage of development. So I think going forward if we see the Nickel price do what the consensus is saying I think we will be very well placed to take advantage of any M&A activity”
A Clear Value Proposition
Mr Naylor also inquired about the value of the metal that has been uncovered by the company and the response was:
JM: “At that valuation of 4p we’re trading at around 1.5-2¢/lb of Nickel in the ground which is a very low range. The last big Nickel transaction which was very similar to our project, same type of deposit, same jurisdiction. That was taken through the feasibility study, where we will be Q1 next year and that was acquired for $850m which valued that at 25¢ [per lb of Nickel in the ground]”
At time of writing, 8th November 2017, Horizonte Minerals share price is 4.95p valuing the company at £57.72m market.
Written By David Marshall
Disclaimer: The author holds one or more investments / positions in one or more of the companies / commodities mentioned and therefore this note cannot be viewed as independent research. This note does not constitute investment advice or a recommendation to buy or sell or otherwise engage in any related activity / action with regard to any company or commodity mentioned or any other entity. All information is provided for entertainment purposes only and may be incorrect or outdated.