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Investor Presentation Q3 2012
Investor Presentation Q4 2013
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Horizonte is a well funded leading AIM and TSX-quoted resources
company focussed in Brazil. It is developing the wholly-owned
Araguaia nickel project, a world leading asset in terms of size and
grade. The Company is mid way through a Pre-Feasibility Study
planned for completion in Q1 2014. Horizonte has a clear path to
generate significant value uplift for shareholders over the next 12
to 24 months.
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Highlights
• 100% ownership of the Araguaia Nickel Project located south of the producing Carajás mineral
district, Brazil – significant evolution over the past 10 years
• Global resource of >100 million tonnes defined – potential for >20 year mine life at Araguaia
• Pre-Feasibility Study (‘PFS’) is underway - running on budget and on schedule (delivery Q1 2014) • Two processing plant options:
• Option A: Twin line - 2.7 MTPA
• Option B: Single line – 900 KTPA
• Completed PFS work to date includes:
• Basis of Design for Options A & B; preliminary pit optimisation; plant site selection; preliminary plant mass
and energy balances; geotechnical drilling; and environmental and social studies are progressing on
schedule
• Well funded – circa £4.5 million cash plus potential royalty payment and £8 million optional Equity
Finance Facility with Darwin Strategic
• Cornerstone investors – Teck Resources 42.5%, Henderson Global Investors 15.1%, Anglo Pacific Group 9.2% and LGA 7.5%
• Short and mid term value drivers as Araguaia is developed as Brazil’s next major nickel project
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Key Data
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November 2013*
Ticker HZM Cash c. £4.5 M
Share Price
(AIM)
6.5p
Market
cap
(AIM)
£26.07 M
Share Price
(TSX) 0.12c
Market
Cap
(TSX)
$48.1 M
Shares in
Issue AIM
401.1
million
52 week
trading
AIM
5.88p
(9.5c)
12.13p
(19.7c)
Teck Resources42.5%
Henderson 15.1%
Anglo PacificGroup 9.2%
Quantom Holdings7.5%
Richards Griffiths4.1%
Other 21.6%
*28 November 2013
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Management Team
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Board
David J. Hall, Msc, EuroGeol
Executive Chairman
30 years in exploration & development on projects and mines in over 50 countries. Extensive South America and Brazil
experience. All aspects of project development with majors including Minorco, AngloAmerican & AngloGold. Founded
Horizonte with JM
Jeremy J. Martin, Msc, ASCM
Chief Executive Officer
Extensive exploration experience in South America, the Caribbean. Involved in the formation of a number of AIM and TSX
listed companies and has completed several high value mineral project transactions.
Owen Bavinton
Non Executive Director
Previously Group Head of Exploration and Geology at Anglo American, overseeing and advising on acquisitions and
exploration programmes of Anglo’s key projects, including Barro Alto and Morro sem Bone nickel projects, both in Brazil.
Alexander N. Christopher
Non Executive Director
Over 25 years’ experience in mineral exploration and mining. His is currently Vice President of Exploration for Teck,
having previously been General Manager New Ventures and for the last 10 years has been focussed on the junior mining
sector.
William Fisher P.Geo
Non Executive Director
Extensive industry experience in both exploration and mining positions worldwide, including Karmin Exploration, Boliden
AB, GlobeStar Mining and Aurelian Resources and is currently on the Boards of PC Gold, Goldquest and Treasury Metals.
Allan M. Walker, MA
Non Executive Director
Over 25 years of energy & natural resource banking experience, focussed in Latin America. Currently running a private
Clean Energy fund and previously ran the energy and project finance groups for Standard Bank and CSFB Garantia.
Senior Management
Antonio José de Almeida P.Geo
General Manager in Brazil
Mr de Almeida is a Brazilian national and qualified geologist with over 30 years of experience in mineral exploration. Has
held a number of senior positions with both major and junior mining groups including country manager for Phelps Dodge.
F. Roger Billington P. Geo
Technical Director Nickel
Ex head of Falconbridge nickel laterite exploration worldwide. Also senior roles in the discovery and evaluation of the
Koniambo nickel laterite deposit (New Caledonia) and the GlobeStar nickel laterite deposit (Dominican Republic).
Jeffrey Karoly BSc ACA
Chief Financial Officer
Mr Karoly has degree in geology and is a Chartered Accountant with over 15 years experience in the mining industry. He
was with Anglo American for 11 years and previously CFO of South American Ferro Metals which in 2010 listed on the
ASX.
Dr Philip Mackey
Senior Metallurgical Advisor
Consulting Metallurgical Engineer with 40+ years experience in non-ferrous metals processing including a focus on nickel
laterite processing. Previously at Falconbridge and Xstrata.
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Nickel Uses
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Stainless Steel (typically 8-12% Ni)
• Construction: strong, corrosion-
resistant structural and
architectural components;
• High efficiency heating systems;
Food and beverage storage and
production;
• Surgical Instruments
Electronics • Critical component of
rechargeable batteries including
hybrid cars;
• Layering of hard drives;
• Electromagnetic shielding:
aircraft / hospitals
Transport • Nickel alloys in jet engines and
airframes;
• Batteries in hybrid cars;
• Passenger rail cars;
• High strength nickel cobalt steels
in gears and drives
Energy • Coal scrubbing systems
• Gearing in wind turbines (500 kg
Ni per turbine)
• Power station turbine blades and
pipework
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Why Brazil / Nickel
• Brazilian iron ore projects will generate US$45 billion by 2015
• Brazil has established infrastructure
• Excellent record of recent nickel, iron ore and copper discoveries - many areas of the country are
largely under explored – upside potential
• With an output of more than 85,000 t of nickel in 2012, Brazil is currently a global top 10 producer
of the base metal
• It is predicted that nickel production in Brazil will grow by around 40% by 2016
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Pára & Carajás– Brazil
• NE region of Brazil has seen rapid development over the past ten years including the building of
ports, railways, refineries and mines
• Principle new mining projects include Vale’s S11D iron project and Votorantim’s Rondon do Pára
and Hydro’s Alunnorte Projects
• Vale’s S11D iron project cost US$19.7 billion and produces circa 90Mtpa with total Vale
production in Pára up to 230 Mtpa. The project is high grade, 66.7% iron, with production costs of
US$15 per tonne and forms part of the Vale Northern Logistics Corridor programme
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Araguaia Project Location & Infrastructure
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
PFS
• PFS contract awarded to Snowden Mining Industry Consultants
• As lead contractors Snowden will be managing a group of selected third party consulting
groups to deliver the PFS including:
• IGEOLOGIA (IGEO)
• Walm and Integratio
• Total drilling to date 35,200 metres (1,412 holes) of HQ drilling
• Geotechnical drilling and trial pitting on the mines, plant and tailings sites completed, together with development of geotechnical mine models
• Preliminary pit optimisation and feed scheduling for both options are complete
• Preliminary mining schedules completed on Options A & B and the mining Capex and Opex cost models now established
• Social and Environmental study SEIA-EIA/RIMA is making solid progress, with consultants
Walm and Integratio working to schedule
• Gap Analysis baseline study near completion and final Flora and Fauna report expected to
be completed by the end of Q4 2013
• Preliminary mass and energy balances for the plant have been completed
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Project Targets & Resource
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Proposed
Plant site
Location
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Pequizeiro Target
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Pequizeiro Sector
Drilling May 2011
Thickness (m) 1.0% Ni
COG
2.0m minimum intersect 2.0m maximum internal waste
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Plant Site and Slag Dump Locations
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Araguaia RKEF Proven Process
• Araguaia ore confirmed as suitable for the proven RKEF
process – PFS will be based on RKEF (H2 2013)
• 14 operational RKEF plants worldwide in 2013
• Two 185 metre long rotary kilns in the process of calcing
the ore which removes the moisture and water crystals
indicating the start of the metallurgical process
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Anglo American Barro Alto Project, Brazil
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Metallurgical Testwork Summary
• The Batch smelting tests conducted at 1520°C were
successful in producing a FeNi alloy at around 30 wt %
nickel for the transition, saprolite and two blends
• Market study has confirmed the targeted grade (20%) for
Araguaia ferronickel meets requirements of stainless
steel plants
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Morro Azul pilot plant test facility for Araguaia pilot run
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Regional Potential
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Market Comparables
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Deal structure Resources at time of
transaction
Price paid
$/lb
Sherrit acquisition of 40% of Ambatovy from Dynatec for
$1.6B
125Mt at 1.04% Ni (2007) $1.67
Vale acquisition of Canico Resources Onca Puma
Project
82.7Mt at 1.73% Ni (2005) $0.23
HudBay acquisition of Skye Resources for $476M 108.8Mt at 1.379% Ni (2008) $0.14
Solway Group acquires 98% of Fenix ferro-nickel project
in Guatemala from Hudbay for $170M
45.9 Mt at 1.85% Ni (2011) $0.09
Skye Resources acquires Fenix Nickel for 70% issue
25% equity, raise $20M and complete Feasibility Study
and $5M cash
31Mt at 1.8% Ni (2004) $0.06
Anfield Nickel completed PFS on Mayaniquel Project,
Guatemala
Global reserves of 69.9Mt at
1.41% Ni (Nov 2013)
$0.04
“Current Horizonte in-situ valuation approximately 0.01 $/lb”
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
The Nickel Market
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Planned Araguaia
Production
Mid-term over supply - Long term shortage
AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
The Nickel Market
• For the period 2014-2018, global nickel demand growth is projected at 5.2% p.a.
• Estimated average annual growth of 7.4% p.a. in China and 3.0% p.a. in the rest of the world
• Nickel consumption in stainless steel is projected to increase 6.0% p.a. throughout outlook period,
while primary nickel usage in non-stainless steel applications is forecast to increase by 3.5% p.a.
• Will Indonesia ban ore exports? – The principle source of NPI. There is huge uncertainty around
the ban and/or disruptions to exports and the general availability of high grade ores
• After the current batch of new projects finally ramp up (Koniambo, Ambatovy, Ramu, Barro Alto,
Onca Puma) there is limited funding anticipated for the next generation of nickel projects
The nickel life cycle is compelling: demand has been strong and outlook remains strong
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Conclusion
• Araguaia has sound economics based on low strip ratio, excellent infrastructure, large mineral
resource (100Mt) as shown in the PEA with two viable alternatives for processing
• Pre-Feasibility looking at two operating scenarios (2.7Mtpa and 900Ktpa – the latter offering
lower Capex and improved returns)
• Post tax PEA outlines NPV8 of US$693M with IRR of 15.4% using the proven RKEF process
route, with 14 operations globally (Araguaia ore confirmed as suitable for RKEF process)
• Project de-risked: geology, metallurgy and social/ environmental
• Completed 3rd phase drilling in May 2013: 9,300m Infill resource drill programme completed –
resource upgrade due as part of PFS
• Well funded with c. £4.5 million and support from Teck 42.5% shareholder (current market cap
circa CAD$16 billion)
• Designed to come on-line in nickel market deficit and produce at the lower end of the cost curve
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AIM: HZM TSX: HZM Developing the next major nickel project in Brazil
Contacts
Horizonte Minerals Plc
26 Dover Street, London, UK
www.horizonteminerals.com
Jeremy Martin, Chief Executive Officer
Tel: 020 77637157
j.martin@horizonteminerals.com
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