CEO Interview: Horizonte Minerals - Profitable even at current low Nickel prices

Jeremy Martin, CEO of Horizonte Minerals (LON:: HZM), says that the present cash cost in Nickel Production of Horizonte, implies that the company will remain profitable even at the current $10,500/ton price of Nickel, and there’’s “significant upside” for the company from current levels.

Having acquired Glencore’s Araguaia Nickel assets, Martin notes that it has only led the company to the upper quartile in the global markets, and with Nickel’s fundamentals looking ripe for a future boost, the future looks bright for the firm.

When quipped about the political threats in Brazil, Martin noted that their presence in the biggest mining district in the country, the infrastructure support, stabilising Rial and inflow in investment suggests the the political stability is building.

With an IRR at around 19%, and the NPV at $320 million+, the company remains profitable even at the current Nickel prices. The C1 or the cost at 3.15$ which is $6,500/ton Nickel price suggests that the company enjoys high competitive strength.