Horizonte Minerals PLC (LON:HZM) has maintained a strong cash position as it moves towards the construction phase of the Araguaia nickel mine in Brazil, the group revealed as it reported half-year results.
The miner said it had £15.6mln in the bank as at the end of June 2020 following the royalty arrangement with Orion Mining Finance signed at the end of 2019.
The AIM-listed group announced yesterday that it had signed up five banks to lead the arrangement of a US$325mln finance package for the first phase at Araguaia.
Progress at Araguaia has been unaffected by the significant coronavirus (COVID-19) outbreak in Brazil, the group added, although it said a delay to the process may occur should a further period of 'lock-down' be implemented.
The nickel market is forecast to remain robust, Horizonte said, with a consensus price of $16,133/t at the time Araguaia is forecast to commence production, driven by growth in the electric vehicle battery sector and steady growth in the stainless steel market.
In the half-year to June 30, 2020, Horizonte's losses rose to £2.7mln from £1.1mln.