By In a recent development, Horizonte Minerals’ shares faced a significant decline as the company disclosed a substantial increase in the budget required to complete one of its key projects in Brazil. The mining company revealed that the expenditure for advancing its project has more than doubled, impacting its share value on the Toronto Stock Exchange and London Stock Exchange.
Budget Doubling for Araguaia Nickel Project
Preliminary findings from the review of estimates and schedules for the Araguaia nickel project suggested that the capital needed for project completion, commissioning, and initial metal delivery would amount to approximately $454 million. This surge brings the projected total cost for completing the project to slightly over $1 billion, marking an 87% escalation from the previously announced budget.
Project Timeline and Funding
Horizonte anticipated achieving mechanical completion of the Araguaia project within the first few months of 2026, contingent upon securing a successful financing agreement during the current year. The company had secured a $20 million interim funding package from its three key shareholders towards the end of last year to facilitate operations.
Operational Changes and Leadership Transition
Amidst these financial adjustments, Horizonte announced changes in its leadership structure. Interim Chief Operating Officer Maryse Belanger is set to step down, with Graham Crew poised to assume the role. Crew, who had been seconded to the company from La Mancha Resource Capital, will take over after relinquishing his executive responsibilities.
The mining company, boasting La Mancha Investments, Glencore, and Orion Mine Finance as major shareholders, is focused on developing the Araguaia and Vermelho nickel-cobalt projects. The Araguaia project is expected to produce an annual yield of 29,000 metric tons of nickel upon reaching full capacity, while Vermelho is currently undergoing feasibility studies.
Despite the revised budget raising concerns among investors, Horizonte’s interim Chief Executive Karim Nasr emphasized the solidity of the new cost-to-complete framework, highlighting improved methodologies employed by the company.
Investors will be closely monitoring Horizonte Minerals as it navigates through these financial challenges and operational adjustments in the pursuit of its strategic objectives.
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