Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) swung to a pretax profit in the first quarter as the nickel developer made a large foreign exch
Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) swung to a pretax profit in the first quarter as the nickel developer made a large foreign exchange gain after the Brazilian Real strengthened against the US dollar.
The company is developing two Tier 1 projects in Brazil – the Araguaia nickel project and the Vermelho nickel-cobalt project – and does not yet generate any revenue.
It moved to a pretax profit of US$4.4mln, boosted by a US$7.0mln forex gain, from a restated loss of US$1.3mln in the year-earlier quarter. It switched to reporting in dollars from pounds ahead of first revenue expected in 2024.
Its Araguaia project is fully funded and in construction after Horizonte concluded a US$633mln funding package in December 2021. The project is expected to produce an annual 29,000 tonnes of nickel to the stainless steel market.
“Project development work is running in line with the project execution schedule with a significant ramp-up in activity expected over the coming months as we move into the dry season,” the company said in its results statement.
It ended the quarter with cash and cash equivalents of US$252mln.
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