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  • Nickel developer, Horizonte Minerals Plc (TSX:HZM) remains confident in its Araguaia and Vermelho projects, despite nickel performing poorly in recent months
  • Chairman of Horizonte, David J Hall noted that the US-China trade war, coupled with the COVID-19 pandemic, will likely impact the nickel price in the short term
  • However, the company believes that sustained demand for the resource will continue to be driven by stainless steel construction and the new electric vehicle market
  • Although the nickel price performed well at the beginning of last year, it is currently at its lowest price since 2018
  • Horizonte Minerals Plc (HZM) is holding steady, with shares trading at C$0.04 and a market cap of $57.9 million

Nickel developer, Horizonte Minerals Plc (TSX:HZM) remains confident about its current projects, despite difficult market conditions for the industry overall.

In a lengthy address to shareholders, the company’s Chairman, David J Hall noted the challenges currently facing the nickel industry.

“Late 2019 and early 2020 has thrown up a number of global challenges: Firstly, the continuation of the US China trade war; and secondly, the more serious challenge of the Covid-19 virus.

“This will all have a knock-on effect in the short term for nickel markets and in the mining project finance arena,” he said.

As a result of these knock-on effects, the price of nickel is currently at its lowest point since 2018.

However, despite the poor nickel price, David remains excited about the company’s Araguaia project in Brazil. Horizonte finalised feasibility for the project in 2018 and by the end of 2019 the site was ready to commence construction.

The proposed mine at Araguaia could produce 14,500 tonnes of nickel a year and run for up to 28 years. Currently, Horizonte is in another funding stage for the Araguaia project, while the site awaits construction.

The company’s other Brazilian development project, Vermelho recently released its own pre-feasibility study. The study found the site could produce nickel and cobalt for up to 38 years.

With these two long-life projects in the works, Horizonte seems unperturbed by the resource’s short term woes.

The company believes that, despite the current environment, demand for the resource will continue to be driven by stainless steel construction and the new electric vehicle market.

With these factors in mind, Horizonte believes that when Araguaia and Vermelho finally commence production, the nickel price will have substantially improved.

Horizonte Minerals Plc (HZM) is holding steady, with shares trading at C$0.04 at 11:37am EST.

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