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Horizonte Minerals' Araguaia project faces delay, shares drop

Published Oct 02, 2023 14:56
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Horizonte Minerals' Araguaia nickel project has been hit by a delay and a significant cost review, leading to a sharp drop in the company's share value. The project, initially set for completion in the third quarter of 2024, is now facing a more complex financial landscape as additional civil works and quantities necessitate a 35% increase in capital expenditure.

The announcement of these challenges on Monday was followed by a 59.76% plunge in the company's share price. In response to the mounting challenges, Horizonte Minerals, its shareholders, and financial institutions are collaboratively exploring financing solutions to ensure the project's completion.

Despite the increase in capital requirements, Horizonte Minerals remains confident in the profitability of the Araguaia project. CEO Jeremy Martin maintains that Araguaia continues to be a profitable Tier 1 asset, forecasting robust margins over its projected 28-year lifespan.

The Araguaia nickel project is one of Horizonte Minerals' key ventures and this recent development has put a spotlight on the company's strategic planning and risk management capabilities. As investors closely monitor the situation, the company's ability to secure adequate financing for the increased capital expenditure will be central to its success moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Horizonte Minerals' Araguaia project faces delay, shares drop
 

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