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Developing the next major nickel project in Brazil
Slide 1

Horizonte’s updated Pre-Feasibility Study demonstrates that its enlarged, 100% owned Araguaia Project is one of the largest and highest grade undeveloped nickel saprolite resources globally. It will generate US$1.3 billion in free cash flow over the life of the mine. Having combined Glencore’s adjacent nickel project with its own Araguaia project in a low-cost acquisition which completed this year, the new compelling economics highlight a post-tax NPV of U$328 million and IRR of 19% based on a long term nickel price of U$12,000/t. Using the bank’s consensus of a mid-term nickel price of US$14,000/t, the NPV increases to US$581 million with an IRR of 26.4% showing the significant gearing that is available with any future increase in nickel prices. This clearly represents a significant disconnect from Horizonte’s current market cap, although the Company’s strong institutional shareholder structure, which includes Teck Resources Limited (17.9%), Lombard Odier Asset Management (14.1%) JP Morgan (8.4%), Hargreave Hale (6.4%) and Glencore (6.4%),demonstrates that institutions recognise the true potential of the asset and back the high calibre team behind it.

Araguaia, which will produce around 14,500 tonnes of nickel per year, is now a Tier 1 asset in terms of size and grade, sitting firmly in the upper end of the global grade curve. Araguaia is targeting nickel production by 2019 which aligns the project ideally with a predicted increase in nickel price over the mid-term, offering leveraged exposure to one of the world’s next major nickel mines. A Feasibility Study is now underway, due for completion in 2017, which will set the scene for future project funding and construction. This will involve infill drilling over the trial mining site, trial mining to convert Probable Reserve to Proven Reserve, and the advancement of off take discussions.

Asset Overview

Project Location:

Araguaia 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.

Project Location

Main project features




Ore throughput

Mt/a (dry)


Ore grade — design (average first 10 years)

% Ni


Overall nickel recovery



Final metal Ni production — design capacity

t/a Ni


Furnace power (one furnace)



Ni grade in the final product metal



Plant configuration


One RKEF line

Refining system


Ladle furnace

Final FeNi product


Granulated FeNi