TIDMHZM
RNS Number : 3892L
Horizonte Minerals PLC
03 October 2016
Horizonte Minerals plc / Index: AIM and TSX / Epic: HZM /
Sector: Mining
3(rd) October 2016
New Positive Pre-Feasibility Study
on Enlarged 100% Owned Araguaia Nickel Project, Brazil
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') the London and Canadian listed nickel development
company focussed in Brazil, is pleased to announce positive
economic results from its new Pre-Feasibility Study ('PFS')
prepared in accordance National Instrument 43-101 ('NI 43-101') on
its 100%-owned Araguaia project ('Araguaia' or 'the Project'),
which includes both the Araguaia Nickel project area ('HZMA') and
the Glencore Araguaia project area ('GAP'). The Project is located
south of the Carajás mining district in the State of Pará in
northern Brazil.
Highlights
-- Robust economics based on a 28 year life of mine ('LOM')
producing 14,500 tonnes per annum ('TPA') nickel in ferronickel
from a single line Rotary Kiln Electric Furnace Plant ('RKEF')
-- Post tax NPV8 of US$581 million at a nickel price of
US$14,000/t and an NPV8 of US$328 million at US$12,000/t Ni
-- Post tax IRR of 26.4% at US$14,000/t and 19.3% at US$12,000/t Ni
-- Project is expected to generate US$1.3 billion in free cash flow over LOM at US$12,000/t Ni
-- High grade ore with average nickel grade of 1.96% for the first 10 years of production
-- Project on the lower range of the global cost curve with C1
cash costs of US$3.15/Ib Ni (US$6,948/t Ni)
-- 43-101 Proven and Probable Mineral Reserve Estimate of 24.6 Mt grading 1.77% Ni
Commenting, Jeremy Martin, Horizonte's CEO said, "We are pleased
with the positive results from the PFS delivering a post-tax NPV of
U$328M and IRR of 19.3% based on a long term nickel price of
U$12,000/t. If we use the bank's consensus mid-term nickel price of
US$14,000/t, the NPV increases to US$581M with an IRR of 26.4%
showing the significant gearing that is available with any future
increase in nickel prices. Importantly the PFS demonstrates that
the Project is cash flow positive at today's nickel prices which
puts Araguaia within a limited group of global assets that are
considered viable in the current low price nickel environment.
"Our low-cost acquisition of the adjacent nickel project from
Glencore was a game-changer for Horizonte. The value is
demonstrated in this new PFS which now has an overall grade for the
first 10 years of mining averaging 1.96% nickel and the LOM grade
over 28 years averaging 1.77% nickel which places the Project
firmly in the upper quartile of the global grade curve for this
type of deposit. The Project is expected to generate US$1.3 billion
in free cash flow over the LOM with the planned operation producing
around 14,500 tonnes per year of nickel in ferronickel at a grade
of 30% utilising the proven RKEF process.
"The next major milestone in the development of Araguaia is the
Feasibility Study which we anticipate starting in 2017. In parallel
with this we will be looking at the development funding options
available as well as offtake partners. We believe that the timeline
for the development of Araguaia is well aligned with the market's
expectation of an increase in nickel price over the mid-term.
Future demand looks robust with predicted growth running between 2%
and 4% this year and demand is anticipated to outpace supply,
ensuring that Araguaia is a compelling project to generate value
for shareholders. This, combined with strong economic fundamentals,
confirms that Araguaia is well positioned to be one of the next
major nickel projects to be developed and we look forward to
providing updates as we advance the Project through
Feasibility."
The information communicated in this announcement includes
inside information for the purposes of Article 7 of Regulation
596/2014 (MAR).
Pre-Feasibility Study Details
Summary of Key Results
Pre-Feasibility Study Value
key Indicators
-------------------------------- --------------------------
Nickel price $12,000/t $14,000/t
-------------------------------- ------------ ------------
NPV(8) post tax $328M $581M
-------------------------------- ------------ ------------
IRR post tax 19.3% 26.4%
-------------------------------- ------------ ------------
Initial mine life 28 28
-------------------------------- ------------ ------------
Capital costs - pre-production $354M $354M
-------------------------------- ------------ ------------
C1 costs $3.15/lb $3.15/lb
$6,948/t $6,948/t
-------------------------------- ------------ ------------
Free cash flow over LOM
(after capital payback) $1,259M $1,946M
-------------------------------- ------------ ------------
Payback period (After 4.5 years 3.4 years
taxation)
-------------------------------- ------------ ------------
Breakeven Ni price on $9,426/t $9,426/t
NPV(8) post tax
-------------------------------- ------------ ------------
Average annual production 14,500tpa 14,500tpa
of nickel
-------------------------------- ------------ ------------
Average Ni grade - Year
1 to 10 1.96% 1.96%
-------------------------------- ------------ ------------
Product grade quality 30% Ni 30% Ni
in in
FeNi FeNi
-------------------------------- ------------ ------------
The PFS is summarized in a Technical Report ('the Report')
prepared in accordance with NI 43-101 for the Project titled
"Prefeasibility Study for the Araguaia Nickel Project, Federative
Republic of Brazil" and prepared by Snowden Mining Industry
Consultants Pty Ltd ('Snowden') under the guidance of the Qualified
Persons. The PFS Report will be filed on SEDAR at www.sedar.com
later today.
The Project, which is 100% owned by Horizonte, is located on the
eastern margin of the State of Pará, north-eastern Brazil, to the
north of the town of Conceição do Araguaia (population of 46,206),
south of the main Carajás Mining District.
The Project has good regional infrastructure including a network
of Federal highways and roads, with access to low tariff
hydro-electric power. The Carajás Mining District, situated
approximately 200km northwest of the Project, is host to a number
of major iron and copper mines operated by mining major Vale
SA.
The Report considers open pit mining for the exploitation of
nickel laterite to establish the production of run of mine ('ROM')
from eight open pits to supply a targeted 0.9 million tonnes per
annum ('Mt/a') of ore to a processing and smelter facility. This
facility will use the proven RKEF process with the product being
sold at free on board ('FOB') at the selected port of export.
A Base Case of 0.9 Mt/a production throughput was selected
because of the Company's objective to minimise the capital
expenditure and overall capital intensity, and to optimise overall
cash flow, payback, and the economics of the Project. Opportunity
exists to increase production subject to further engineering and
there is potential to increase the mineral reserve base.
Mineral Resources
Mineral Resources reported for the Project deposits, which are
included in the PFS, were prepared under the supervision of Mr.
Andrew F. Ross BSc (Hons), MSc, FAusIMM, an Independent Qualified
Person as defined in NI 43-101.
A total of 46,000 meters (1,786 holes) of core drilling have
been completed to date on the HZMA and 28,860 meters (839 holes) of
core drilling completed on the Vale dos Sonhos deposit in the GAP.
Of this a total of 40,330 meters (1,494 holes) from HZMA and 28,860
meters (839 holes) from GAP were used in the Mineral Resource
Estimation reported in the PFS.
Updated Mineral Resources for the Araguaia Project effective as
at 30 September 2016 by material type (0.90% Ni cut-off grade)
Araguaia Category Material Tonnage Bulk Contained Ni Fe MgO SiO(2)
type (kT) density Ni metal
(t/m(3) (kT)
)
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
(%) (%) (%) (%)
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Measured Limonite 1,232 1.39 15 1.2 37.43 2 17.15
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Measured Transition 6,645 1.26 116 1.75 18.89 10.2 42.06
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Measured Saprolite 10,291 1.4 130 1.27 12.03 24.08 41.24
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Total Measured All 18,168 1.35 261 1.44 16.26 17.51 39.91
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Indicated Limonite 19,472 1.4 218 1.12 36.2 2.39 20.53
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Indicated Transition 31,143 1.2 444 1.43 21.39 11.24 38.92
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Indicated Saprolite 51,279 1.32 610 1.19 11.82 25.79 40.58
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Total Indicated All 101,893 1.3 1,272 1.25 19.4 16.87 36.24
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Measured
Total + Indicated All 120,061 1.3 1,533 1.28 18.93 16.97 36.8
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Inferred Limonite 2,837 1.37 31 1.08 34.8 2.97 23.05
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Inferred Transition 4,955 1.2 65 1.31 21.2 11.11 39.05
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Subtotal Inferred Saprolite 5,643 1.35 65 1.16 11.8 24.31 41.8
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Total Inferred All 13,435 1.3 161 1.2 20.12 14.94 36.83
---------- -------------- ------------ -------- --------- ---------- ----- ------ ------ -------
Note: Totals may not add due to rounding. Mineral Resources are
inclusive of Mineral Reserves. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
Mineral Reserves
Mineral Reserves reported for the Project deposits, which are
included in the PFS were established by Snowden in accordance with
the CIM Definition Standards using only Indicated and Measured
Resources, under the supervision of Mr. Frank Blanchfield B.Eng,
FAusIMM, an Independent Qualified Person as defined in NI
43-101.
A Mineral Reserve estimate of 24,646.6 kt (dry) at an average
grade of 1.77% Ni was estimated. The detailed breakdown of the
Mineral Reserve allocated by deposit is presented in the following
table:
Mineral Reserves for the Araguaia Project effective as at
September 30, 2016
Class Deposit Ore dry Ni Fe Al(2) SiO(2)
mass (kt) O(3) /MgO
------------- --------------- ----------- ----- ----- ------ -------
(%) (%) (%)
------------- --------------- ----------- ----- ----- ------ -------
Probable Baião 2,381 1.8 18.7 4.93 2.52
------------- --------------- ----------- ----- ----- ------ -------
Probable Pequizeiro 11,828 1.73 16.8 5.91 2.83
------------- --------------- ----------- ----- ----- ------ -------
Pequizeiro
Probable West 165 1.67 19.7 4.47 3.58
------------- --------------- ----------- ----- ----- ------ -------
Probable Jacutinga 1,198 1.82 16.7 3.16 2.16
------------- --------------- ----------- ----- ----- ------ -------
Vila Oito
Probable East 1,190 1.64 15 3.74 1.99
------------- --------------- ----------- ----- ----- ------ -------
Probable Vila Oito 2,449 1.79 14.2 3.62 2.05
------------- --------------- ----------- ----- ----- ------ -------
Vila Oito
Probable West 549 1.73 20.3 5.04 3.65
------------- --------------- ----------- ----- ----- ------ -------
Probable VDS 4,886 1.85 22.7 6.28 2.72
------------- --------------- ----------- ----- ----- ------ -------
Total Probable 24,646 1.77 17.9 5.39 2.58
------------------------------ ----------- ----- ----- ------ -------
Proven - - - - -
------------------------------ ----------- ----- ----- ------ -------
Total Proven and Probable 24,646 1.77 17.9 5.39 2.58
------------------------------ ----------- ----- ----- ------ -------
A nickel spot price of US$12,000/tonne was used in the Mineral
Reserve estimate. The Mineral Reserve estimate resulted in a
marginal cut-off grade of 1.28% Ni.
Mining
Seven shallow open pits were designed for HZMA and one for GAP
through a process of pit optimisation using costs and process
recoveries. All eight pits are designed using smoothed pit shells
with the removal of small satellite pits through a standard process
of pit optimisation, waste dump design and pit design. To minimise
capital, the Base Case also assumes contractor mining using typical
truck and excavator fleet which includes ore haulage to the plant.
This fleet is supported by the usual array of support and ancillary
equipment. Grade and mineralogy will be closely monitored in the
mining process using close spaced grade control drilling ahead of
mining.
High grade nickel feed is targeted in the early years of
production. The average nickel grade of the feed to the plants is
as follows:
-- Years 1 to 5 - average grade 2.0% Ni
-- Years 6 to 10 - average grade 1.9% Ni
-- Years 11 to 28 - average grade 1.7% Ni
A number of processing constraints were applied to the schedule.
These included a 13--month processing feed quantity ramp-up period,
and specific process feed grade constraints throughout the life of
the Project:
-- Fe grade between 15.0% and 18.0%
-- Al(2) O(3) grade between 4.0% and 5.5%
-- SiO(2) /MgO ratio between 2.2 and 2.6
Processing
The Company completed Laboratory scale test work between 2011
and 2013 which included batch smelting test, slag testing,
agglomeration behaviour of the ore, Liquidus measurement of FeNi
slag under conditions corresponding to electric furnace smelting,
performance of the nickel laterite in rotary kiln processing and
evaluation of briquetting behavior. These laboratory tests carried
out showed that the ore was suitable for processing using the RKEF
process.
Pilot plant testing of the drying and agglomeration step and
piloting of the full RKEF process flowsheet (excluding refining) to
confirm final operating characteristics were recommended in the
2014 PFS report. This pilot testing was carried out in the first
and second quarters of 2015.
Pilot plant
A fully integrated pilot test of the RKEF process comprising ore
preparation, drying and agglomeration, calcination and electric
furnace smelting, including slag and metal granulation, was carried
out in April/May 2015. The pilot test work facility at the Morro
Azul plant in the State of Minas Gerais, Brazil was used for the
test. A total of 160 wet tonnes of ore, representative of the
planned operational feed, were processed. This ore was collected
from selected sites within the Pequizeiro deposit in a bulk
sampling exercise in early 2015 using wide diameter auger
drilling.
Highlights from the pilot plant campaign include:
-- Production of high grade commercial FeNi from representative ore
-- Drying and agglomeration produced excellent feed for calcination
-- Good quality calcine continuously produced with very low dust
generation and good pre-reduction of iron and nickel
-- High quality FeNi produced over the target range of commercial Ni grades
-- No critical flaws were identified in the process flow sheet
-- A full set of technical data was produced and included in the PFS process study
Main project features
Item Unit Value
--------------------------------------------- ------------ ----------------
Ore throughput - Year 1 to Year 10 Mt/a (dry) 0.9
Ore grade - design (average first 10 years) % Ni 1.96
Overall nickel recovery % 93
Final metal Ni production - design capacity t/a Ni 16,400
Furnace power (one furnace) MW 50
Ni grade in the final product metal % 30
Plant configuration One RKEF line
Refining system Ladle furnace
Final FeNi product Granulated FeNi
----------------------------------------------------------- ----------------
Capital Cost Estimates
The Base Case for the study assumes an ore processing rate of
0.9 Mt/a after a two-year initial ramp up period. A plant
construction period of two years has been assumed and the
pre-production capital construction costs for the plant have been
divided 30%, in Year 1, and 70%, in Year 2. In addition, sustaining
capital has been provided for over the LOM and process plant. To
minimise capital, the Base Case also assumes contractor mining
which includes ore haulage to the plant. Supply chain factors have
also been considered for inbound and outbound logistics for key
consumables such as coal for smelter requirements.
The economic analysis contained in the Report is based on
Probable Mineral Reserve estimates. All dollar values are in United
States Dollars (US$).
Item $ million
------------------------ ----------
Plant direct 202.4
------------------------ ----------
Plant indirect 22.5
------------------------ ----------
Owners costs 21.4
------------------------ ----------
Infrastructure 35.3
------------------------ ----------
Slag storage facility 5.2
------------------------ ----------
Social 1.9
------------------------ ----------
Mining 2.9
------------------------ ----------
Environmental 2.9
------------------------ ----------
Land Acquisition &
Resettlement 11.5
------------------------ ----------
Contingency at 15% 46.3
------------------------ ----------
First fills and spares 1.2
------------------------ ----------
Total pre-production
capital costs 353.5
------------------------ ----------
The capital cost estimates have been complied with an accuracy
level of +/-25%.
Operating Cost Estimates
Item $ million $/tonne
- ore
--------------------- ---------- --------
Mining (contractor) 815.3 33.1
--------------------- ---------- --------
Processing 2,187.1 88.7
--------------------- ---------- --------
Total operating
costs 3,002.4 121.8
--------------------- ---------- --------
Economic Analysis and Sensitivities
Base Case economic model headline results before taxation
Item Unit Value - $14,000/t Value - $12,000/t
-------------------- ------- ------------------ ------------------
Net Cashflow $M 2,293.4 1,482.7
-------------------- ------- ------------------ ------------------
NVP(8) $M 699.3 400.6
-------------------- ------- ------------------ ------------------
IRR % 28.9 21.0
-------------------- ------- ------------------ ------------------
Production payback
period years 3.1 4.2
-------------------- ------- ------------------ ------------------
Base Case economic model headline results after taxation
Item Unit Value - $14,000/t Value - $12,000/t
----------------- ------- ------------------ ------------------
Net Cashflow $M 1,945.8 1,258.7
----------------- ------- ------------------ ------------------
NVP(8) $M 581.3 328.0
----------------- ------- ------------------ ------------------
IRR % 26.4 19.3
----------------- ------- ------------------ ------------------
Production year
payback years 3.4 4.5
----------------- ------- ------------------ ------------------
Base Case economic model inputs
Item Unit Value
--------------------- ------- ---------
Pre-Production
period Years 2.0
--------------------- ------- ---------
Life of project
production Years 27.6
--------------------- ------- ---------
LOM ore mined and
processed kt 24,646
--------------------- ------- ---------
LOM waste mined kt 59,061
--------------------- ------- ---------
LOM Average Ni
grade % 1.77
--------------------- ------- ---------
LOM Average Fe
grade % 17.90
--------------------- ------- ---------
LOM Average Ni
recovery % 93.0
--------------------- ------- ---------
LOM Average Fe
recovery % 21.4
--------------------- ------- ---------
LOM Average product
Ni grade % 30.0
--------------------- ------- ---------
LOM Average product
Fe grade % 70.0
--------------------- ------- ---------
Plant throughput Mtpa 0.9
--------------------- ------- ---------
14,000 &
LOM Ni Price $/t 12,000
--------------------- ------- ---------
LOM Fe price $/t 85
--------------------- ------- ---------
The LOM Ni price of US$12,000 (Base Case) and US$14,000
(Consensus Case) were adopted following a review of multiple
information sources including; price forecasts from Consensus
Economics together with analysis of average nickel prices over the
past 10 years combined with industry benchmarking.
Pre Tax Sensitivity table for NPV(8)
The sensitivity analysis determines how the NPV(8) is affected
with changes to one variable at a time while holding the other
variables constant. The pre-tax results of the Base Case
sensitivity analysis are presented in the table below.
-20% -10% -5% 0% 5% 10% 20%
---------------- ----- ----- ---- ---- ---- ---- ----
Grade
Ni 36 182 255 328 401 474 619
---------------- ----- ----- ---- ---- ---- ---- ----
Grade
Fe 323 326 327 328 329 330 333
---------------- ----- ----- ---- ---- ---- ---- ----
Mining
reserves 303 315 327 328 336 346 363
---------------- ----- ----- ---- ---- ---- ---- ----
Recovery
Ni 36 182 255 328 401 438 438
---------------- ----- ----- ---- ---- ---- ---- ----
Recovery
Fe 323 326 327 328 329 330 333
---------------- ----- ----- ---- ---- ---- ---- ----
Price
Ni 23 176 252 328 404 480 632
---------------- ----- ----- ---- ---- ---- ---- ----
Price
Fe 323 326 327 328 329 330 333
---------------- ----- ----- ---- ---- ---- ---- ----
Pre-production
capital 386 357 342 328 314 299 270
---------------- ----- ----- ---- ---- ---- ---- ----
Production
capital 333 330 329 328 327 326 323
---------------- ----- ----- ---- ---- ---- ---- ----
Mining
cost 378 353 340 328 302 277 225
---------------- ----- ----- ---- ---- ---- ---- ----
Processing
cost 430 379 354 328 302 277 225
---------------- ----- ----- ---- ---- ---- ---- ----
Overhead
cost 361 345 336 328 319 310 292
---------------- ----- ----- ---- ---- ---- ---- ----
All figures in the table above are expressed in US$M
Social and Environmental
The areas within the Project are located 100% within the Pará
State, therefore the Project will continue to be permitted by the
State Environmental Agency. The Brazilian mine permitting process
with environmental agencies has three key stages:
1. The recently obtained preliminary licence ('LP');
2. The installation licence ('LI'), which permits the start of
construction;
3. Finally the licence to operate once construction is complete
('LO').
The granting of the LP is often regarded as the most important
licence as it outlines the parameters of the Project as agreed upon
by all stakeholders and is the only environmental licensing process
that requires approval of the State Government Environmental
Council. The LP was awarded to Horizonte Minerals for HZMA earlier
in 2016.
The Company will now focus on obtaining the LI, which once
awarded, in parallel with the mining concession, allows
construction to start. The Company will also work in partnership
with the State Government of Pará to undertake studies identifying
possibilities for use of the slag product from Araguaia and
potential local industries, which could benefit from the final
ferronickel product.
The objective of the Company's Sustainability Department in 2016
and 2017 will be to collect new baseline data, particularly for the
recently acquired GAP project area, and integrate the environmental
and social data for the project, to provide one holistic analysis
of combined social and environmental impacts. The Feasibility Study
will be conducted to international standards, such as the
International Finance Corporations Environmental and Social
Performance Standards.
Report Filing
The Report will be filed on SEDAR at www.sedar.com later
today.
**S**
For further information visit www.horizonteminerals.com or
contact:
Jeremy Martin Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
David Hall Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
Joanna Scott finnCap Ltd (Corporate Tel: +44 (0)
Christopher Broking) 20 7220 0500
Raggett finnCap Ltd (Corporate Tel: +44 (0)
Finance) 20 7220 0500
Lottie Brocklehurst St Brides Partners Tel: +44 (0)
Elisabeth Ltd (PR) 20 7236 1177
Cowell St Brides Partners Tel: +44 (0)
Ltd 20 7236 1177
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil, which wholly owns the
advanced Araguaia nickel laterite project located to the south of
the Carajás mineral district of northern Brazil. The Company is
developing Araguaia as the next major nickel mine in Brazil, with
targeted production by 2019.
Horizonte has a strong shareholder structure including Teck
Resources Limited 26.1%, Henderson Global Investors 15.7% and
Glencore 10.3%.
Qualified Persons
Mr Frank Blanchfield, B.Eng, FAusIMM,
Mr Andrew Ross, BSc (Hons), MSc, FAusIMM,
Mr Francis Roger Billington, BSc (Hons), P.Geo. (APGO), and
Mr Nicholas Barcza, BSc (Eng.), MSc (Eng.), PhD, Pr.Eng. (ECSA),
HLFSAIMM
are the Qualified Persons under NI 43-101, and have reviewed,
approved and verified the technical content of this press
release
For readers to fully understand the information in this press
release, they should read the Report in its entirety when it is
available on SEDAR later today, including all qualifications,
assumptions and exclusions that relate to the PFS. The Report is
intended to be read as a whole, and sections should not be read or
relied upon out of context.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements derived from the PFS, including, without
limitation: estimated capital costs, operating costs, and other
various other costs, estimated net present value (NPV), initial
rate of return (IRR), anticipated construction period, expected
life of mine (LOM), production schedule, recoveries, estimated
reserves and resources, expected sensitivity to prices, expected
production and other economic and operational parameters inherent
to a pre-feasibility study for a mineral project; statements with
respect to targeted milestones going forward, including, without
limitation, the expected timing for a definitive feasibility study,
commencement of construction, potential to extend LOM and the
timing of exploration activities. In addition, this press release
includes forward-looking statements with respect to the potential
of the Company's current or future property mineral projects; the
success of exploration and mining activities; and cost and timing
of future exploration, production and development. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: exploration and mining risks,
competition from competitors with greater capital; the Company's
lack of experience with respect to development-stage mining
operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements.
The Company undertakes no obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents management's and/or its
Qualified Persons best judgment based on information currently
available. No forward-looking statement can be guaranteed and
actual future results may vary materially. Accordingly, readers are
advised not to place undue reliance on forward-looking statements
or information.
Non-IFRS Measures
This press release refers to expected cash cost, free cash flow,
and certain other non-IFRS measures. These measurements have no
standardized meaning under IFRS and may not be comparable to
similar measures presented by other companies. These measurements
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
This information is provided by RNS
The company news service from the London Stock Exchange
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