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Horizonte Minerals Plc
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Developing the next major nickel project in Brazil
Slide 1

New Pre Feasibility Study demonstrates robust economics for 28 year mine, producing ~14,500 tonnes per annum nickel.

Key Indicators

Value

Nickel price

US$12,000/t

US$14,000/t

NPV8 post tax

US$328M

US$581M

IRR post tax

19.3%

26.4%

Initial mine life

28

28

Capital costs — pre-production

US$354M

US$354M

C1 costs

US$3.15/lb

(US$6,944/t)

US$3.15/lb

(US$6,944/t)

Free cash flow over LOM (after capital payback)

US$1.3B

US$1.9B

Payback period (after taxation)

4.5 years

3.4 years

Breakeven Ni price on NPV8 post tax

US$9,426/t

US$9,426/t

Average annual production

~ 14,500tpa

~ 14,500tpa

Average Ni grade – Year 1 to 10

1.96%

1.96%

Product grade quality

30% Fe Ni

30% Fe Ni

Capital Cost Estimates

Capital Cost Estimates

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 pro-cess plant. To minimise capital, the PFS also assumes contractor mining which in-cludes 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.

Capital Costs by Item

The economic analysis contained in the Report is based on Probable Mineral Reserve esti-mates. 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


Araguaia C1 Costs

Tier 1 Project: Low Cost & High Grade

Araguaia C1 cost of US$3.15/lb (US$6,944/tonne)

Tier 1 Project: Low Cost and High Grade

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

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

NVP8

$M

699.3

400.6

IRR

%

28.9

21.0

Production payback period

years

3.1

4.2


Economic model headline results after taxation.

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

LOM Ni Price

$/t

14,000 & 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 NPV8

Geared for Growth graph

The sensitivity analysis determines how the NPV8 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


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