Horizonte Minerals (AIM:HZM ) announced in financial results for the three month period to 31 March 2020 that it is well funded to advance its wholly-owned Araguaia mining project.
The Brazil-focused nickel developer said it was in a position to progress the tier 1 project towards being construction ready after it finished the quarter with a strong cash position of £17m.
Horizonte previously reported a strong cash balance of £17.8m for the year ended 31 December 2019 following a $25m cash injection from Orion Mine Finance in October 2019.
The group said that work on the Araguaia project is currently focused around advancing the level of engineering from feasibility stage level through to being implementation ready.
Shares in Horizonte Minerals opened flat at 2.775p on Tuesday morning.
Both in Brazil and the UK, the group said it has adapted well to the change in circumstances due to Covid-19, including remote working, with all major workstreams continuing as planned.
Meanwhile, the group said nickel market fundamentals ‘remain strong’ with an analyst consensus process of $16,150 at the time Araguaia is forecast to commence production.
The previous consensus forecast price of nickel was observed at $16,188 on 31 December 2019 before the effects of Covid-19, this morning’s statement added.
Last month, the group donated 300 food parcels to Conceição do Araguaia, Floresta do Araguaia and Xinguara, in light of the socio-economic impact caused by Covid-19.
The group committed to delivering the parcels across the three municipalities throughout April and May with the first going out to families in mid-April.
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