INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2023
LONDON, UK / ACCESSWIRE / August 17, 2023 / Horizonte Minerals Plc (AIM:HZM, Financial)(TSX:HZM, Financial) ("Horizonte" or the "Company"), a nickel company developing two Tier 1 assets in Brazil, announces it has today published its unaudited financial results for the six-month period to 30 June 2023.
Highlights of the period, as per the announcement on 3 August 2023:
· Araguaia Nickel Project Line 1 construction activities continued to make good progress with first metal production on-schedule for Q1 2024
o Strong safety performance, no lost time injuries with close to 3.8 million hours worked
o Approximately 65% of the overall construction of Araguaia was completed as of 30 June 2023, with physical site construction 53% complete
o Several major milestones were achieved during the period including the delivery of the Rotary Kiln and commencement of ore mining
o US$329 million has been spent on the Araguaia construction out of the budgeted capital requirement of US$537 million
· Araguaia Nickel Project Line 2 Feasibility Study ("FS"), which aims to double nickel production from 14,500 tonnes per annum to 29,000 tonnes per annum, to be published later this year
· Liquidity and funding sources of US$344 million as of 30 June 2023
· Published fourth consecutive standalone Sustainability Report for 2022
· A recent video of the project progress is available: https://horizonteminerals.com/uk/en/videos_and_audio/
This announcement has been posted on the Company's website www.horizonteminerals.com and is also available on SEDAR at www.sedar.com.
For further information, visit
www.horizonteminerals.com or contact:Horizonte Minerals plc
Jeremy Martin (CEO)
Simon Retter (CFO)
Patrick Chambers (Head of IR)
[email protected]
44 (0) 203 356 2901
Peel Hunt LLP (Nominated Adviser & Joint Broker)
Ross Allister
David McKeown
+44 (0)20 7418 8900
BMO (Joint Broker)
Thomas Rider
Pascal Lussier Duquette
Andrew Cameron
+44 (0)20 7236 1010
Barclays (Joint Broker)
Philip Lindop
Richard Bassingthwaighte
+44 (0)20 7623 2323
Tavistock (Financial PR)
Emily Moss
Cath Drummond
+44 (0) 20 7920 3150
ABOUT HORIZONTE MINERALS
Horizonte Minerals Plc (AIM/TSX: HZM) is developing two 100%-owned, Tier 1 projects in Pará state, Brazil - the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are high-grade, low-cost, with low carbon emission intensities and are scalable. Araguaia is under construction with first metal scheduled for 1Q 2024. When fully ramped up with Line 1 and Line 2, Araguaia is forecast to produce 29,000 tonnes of nickel per year. Vermelho is at feasibility study stage and is expected to supply nickel to the critical metals market. Horizonte's combined production profile of over 60,000 tonnes of nickel per year positions the Company as a globally significant nickel producer. Horizonte's top three shareholders are La Mancha Investments S.à r.l., Glencore Plc and Orion Resource Partners LLP.
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, the ability of the Company to complete any planned acquisition of equipment, statements with respect to the potential of the Company's current or future property mineral projects; the ability of the Company to complete a positive feasibility study regarding the second RKEF line at Araguaia on time, or at all, the ability of the Company to complete a positive feasibility study regarding the Vermelho Project on time, or at all, the success of exploration and mining activities; cost and timing of future exploration, production and development; the costs and timing for delivery of the equipment to be purchased, the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the realization of mineral resource and reserve estimates and achieving production in accordance with the Company's potential production profile or at all. 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: the inability of the Company to complete any planned acquisition of equipment on time or at all, the ability of the Company to complete a positive feasibility study regarding the implementation of a second RKEF line at Araguaia on the timeline contemplated or at all, the ability of the Company to complete a positive feasibility study regarding the Vermelho Project on the timeline contemplated or at all, 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, together with the risks identified and disclosed in the Company's disclosure record available on the Company's profile on SEDAR at www.sedar.com, including without limitation, the annual information form of the Company for the year ended December 31, 2022, and the Araguaia and Vermelho Technical Reports available on the Company's website https://horizonteminerals.com/. 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.
Horizonte Minerals Plc
Unaudited Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2023
Condensed Consolidated Statement of Comprehensive Income
6 months ended
30 June
2023
2022
Unaudited
Unaudited
Amended (Note 2)
Notes
US$'000
US$'000
Administrative expenses
(10,453)
(7,326)
Share based payments
11
(1,196)
-
Gain/(loss) on foreign exchange
10,987
9,383
(Loss)/profit before interest and taxation
(662)
2,057
Net finance (costs)/income
5
(2,144)
(2,984)
Loss before taxation
(2,807)
(927)
Taxation
-
-
Loss for the period
(2,807)
(927)
Other comprehensive income items that may be reclassified subsequently to profit or loss
Cash flow hedges - foreign forward contracts
9
9,291
(4,638)
Currency translation differences on translating foreign operations
28,019
(9,789)
Other comprehensive income / (loss) for the period, net of taxation
37,310
(14,427)
Total comprehensive income / (loss) for the period attributable to equity holders of the Company
34,503
(15,354)
Earnings per share attributable to the equity holders of the Group
Basic & Diluted earnings per share (pence per share)
20
(1.045)
(0.487)
Condensed Consolidated Statement of Financial Position
30 June
2023
31 December
2022
Unaudited
Audited
Notes
US$'000
US$'000
Assets
Non-current assets
Intangible assets
6
19,714
13,209
Property, plant & equipment
7
449,880
277,902
Right of use assets
1,033
958
Trade and other receivables
21,015
9,966
Derivative financial assets
9
-
62
491,642
302,097
Current assets
Trade and other receivables
36,253
48,774
Derivative financial asset
9, 13b
25,220
15,342
Cash and cash equivalents
8
138,682
154,028
200,155
218,144
Total assets
691,797
520,241
Equity and liabilities
Equity attributable to owners of the parent
Issued capital
10
70,423
70,333
Share premium
10
306,946
306,720
Other reserves
(1,919)
(29,938)
Cash flow hedge reserve
10,379
1,088
Share options reserve
11
2,612
1,416
Accumulated losses
(52,994)
(50,188)
Total equity
335,446
299,430
Liabilities
Non-current liabilities
Contingent consideration
12
7,131
6,896
Royalty Finance
13a
96,661
89,745
Deferred consideration
12
3,815
4,808
Convertible loan notes liability
14
64,123
59,448
Cost overrun facility
15
23,872
23,810
Senior debt facility
16
128,317
4,328
Environmental rehabilitation provision
1,158
635
Lease liabilities
669
715
Trade and other payables
363
723
326,109
191,109
Current liabilities
Trade and other payables
28,760
28,481
Deferred consideration
12
1,061
950
Lease liabilities
421
272
30,242
29,703
Total liabilities
356,351
220,811
Total equity and liabilities
691,797
520,241
Condensed Statement of Changes in Shareholders' Equity
Attributable to the owners of the parent
Share
capital
US$'000
Share
premium
US$'000
Accumulated
losses
US$'000
Other
reserves
US$'000
Cash flow
hedge
reserve
US$'000
Share
options
reserve
US$'000
Total
US$'000
As at 1 January 2022
52,215
245,388
(45,078)
(23,273)
-
-
229,253
Comprehensive income
Loss for the period
-
-
(927)
-
-
-
(927)
Other comprehensive income
Cash flow hedges - foreign forward contracts
-
-
-
-
(4,638)
-
(4,638)
Currency translation differences
-
-
-
(9,789)
-
-
(9,789)
Total comprehensive loss
-
-
(927)
(9,789)
(4,638)
-
(15,354)
Transactions with owners
Issue of ordinary shares
78
261
198
-
-
-
537
Total transactions with owners
78
261
198
-
-
-
537
As at 30 June 2022 (amended note 2 and unaudited)
52,293
245,649
(45,807)
(33,062)
(4,638)
-
214,436
Attributable to the owners of the parent
Share
capital
US$'000
Share
premium
US$'000
Accumulated
losses
US$'000
Other
reserves
US$'000
Cash flow hedge reserve US$'000
Share options reserve US$'000
Total
US$'000
As at 1 January 2023
70,333
306,720
(50,188)
(29,938)
1,088
1,416
299,430
Comprehensive income
Loss for the period
-
-
(2,807)
-
-
-
(2,807)
Other comprehensive income
Cash flow hedges - foreign forward contracts
-
-
-
-
9,291
-
9,291
Currency translation differences
-
-
-
28,019
-
-
28,019
Total comprehensive income / (loss)
-
-
(2,807)
28,019
9,291
-
34,503
Transactions with owners
Issue of ordinary shares
90
226
-
-
-
-
316
Share options granted
-
-
-
-
-
1,196
1,196
Total transactions with owners
90
226
-
-
-
1,196
1,512
As at 30 June 2023 (unaudited)
70,423
306,946
(52,995)
(1,919)
10,379
2,612
335,446
Condensed Consolidated Statement of Cash Flows
6 months ended
30 June
2023
2022
Amended
(Note 2)
Unaudited
Unaudited
US$'000
US$'000
Cash flows from operating activities
Loss before taxation
(2,807)
(927)
Net finance costs
5
2,144
2,984
Share based payment
11
1,196
-
Exchange differences
(10,987)
(9,383)
Operating loss before changes in working capital
(10,453)
(7,326)
Decrease/(increase) in trade and other receivables
(16,799)
(3,057)
(Decrease)/increase in trade and other payables
(80)
(11,841)
Net cash outflow from operating activities
(27,332)
(22,224)
Cash flows from investing activities
Purchase of intangible assets
6
(5,396)
(639)
Purchase of property, plant and equipment
7
(140,178)
(67,047)
Interest received
5
4,368
2,394
Net cash outflow from investing activities
(141,205)
(65,292)
Cash flows from financing activities
Net proceeds from issue of ordinary shares
10
317
537
Proceeds from issue of convertible loan notes
14
-
61,263
Issue costs
14
-
(950)
Proceeds from royalty finance arrangement
13a
-
25,000
Issue costs
13a
-
(848)
Proceeds from senior debt facility
16
135,000
-
Lease liability payments
(222)
-
Commitment fees payments
(4,219)
-
Loan facilities interest payments
15,16
(2,024)
-
Net cash inflow from financing activities
128,852
85,001
Net decrease in cash and cash equivalents
(39,685)
(2,515)
Cash and cash equivalents at beginning of period
154,028
210,492
Exchange gain/(loss) on cash and cash equivalents
24,340
