By Hotstockrockets | Sunday 3 October 2021
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Horizonte Minerals (HZM) is pleased to announce that it has received further credit approvals for a project finance facility of up to $346.2 million towards the construction and development of its Araguaia ferro-nickel project in Brazil and the shares have responded up to 8.6p leaving us c20% ahead on this 7 month old share tip.
We recently noted approvals for $146.2 million from Denmark’s Export Credit Agency (EKF) and Finland’s Export Credit Agency (Finnvera), with the company emphasising Araguaia its “100% owned tier 1 ferro-nickel project”. That is further supported today by approvals from BNP Paribas, ING Capital, Natixis, Société Générale and Swedish Export Credit Corporation – with the first tranche at LIBOR plus 1.80% (guaranteed by the Export Credit Agencies in relation to a number of key equipment and service provider contracts) and second tranche at LIBOR plus 4.25-4.75%.
It is noted this latest follows “an intensive due diligence process” and “is the catalyst for finalising the other components of the overall financing requirement… the process with the offtake partner and strategic investor is well advanced, and we look forward to updating the market on its conclusion, alongside financial close of the Senior Debt Facility in the coming months”.
We noted on 7.2p offer price March recommendation the potential here seeing us targeting a 10p+ share price and, with a current £146 million market cap, the above potential catalysts and sector sentiment with stainless steel and EV battery demand, see us remain optimistic of getting there. Hold on for 10p+ by Christmas.
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