Horizonte Minerals has recently announced that construction at its Araguaia nickel project in Brazil is moving forward successfully. This positive update has resulted in a rise in the company’s shares.
As of 0723 GMT, Horizonte Minerals’ shares in London have increased by a significant 4%, amounting to 0.75 pence and reaching 18.5 pence. Earlier in the session, the shares had even reached 20 pence. However, it is worth noting that since the beginning of this year, the stock has faced a decline of 87%.
The nickel-development company has stated that it has been making strides on various vital aspects of the project. Importantly, they have also managed to avoid any interruptions to their ongoing construction activities. In terms of financials, Horizonte Minerals reveals that approximately $429 million has been invested in the project up until September 30.
Regarding funding, the London-listed group is currently engaged in discussions with both shareholders and lenders. These negotiations are progressing effectively. It is worth noting that on October 2, Horizonte Minerals stated that their overall capital-expenditure requirement is expected to increase by at least 35%. Consequently, the start of production has been delayed to the third quarter of 2024. This news had a substantial impact on the company’s shares, causing them to plummet by 60% initially and an additional 67% on the following day.