- Horizonte Minerals said a feasibility study indicated its Araguaia nickel project in Brazil had an estimated capital cost of $443m.

The estimate included $65.3m of contingencies, equating to 17.2% of the total capex budget.

The study also indicated an initial 28-year mine life, generating cash flows after tax of $1.6bn, with sufficient mineral resources to extend beyond 28 years.

The project had an estimated post-tax net present value of $401m and internal rate of return of 20.1%, the company said.

It was expected to produce an average of 14,500 tonnes of nickel contained within approximately 52,000 tonnes ferronickel per annum.

Horizonte chief executive Jeremy Martin acknowledged that completion of the feasibility study had taken longer to complete than originally forecast.

'The schedule change was to ensure that the quality of the engineering and other deliverables were to a high standard, and to include the option, within the design, to add a second line that would double the capacity to 29,000 tonnes per year of nickel,' he said.

'With the completion of the feasibility study the priority now is to secure project funding and to advance the early works packages.'

'The project is unleveraged and is in a strong position with no agreed offtake, royalty or nickel streams, giving maximum value and flexibility going into the financing process.'

At 2:24pm: [LON:HZM] Horizonte Minerals PLC share price was -0.38p at 3.3p

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