Horizonte Minerals looking at sale of Brazilian nickel mine as investors fear Indonesia is flooding the market
Glencore-backed Horizonte Minerals has failed to secure financing to complete its nickel mine in Brazil following soaring costs and rising investor concern that Indonesia is flooding the market for the electric vehicle battery and steelmaking ingredient.
The London-listed group said in a statement on Monday that it was now exploring a sale, liquidation, or raising financing at the subsidiary level, following an 87 per cent increase in the estimated cost to build the Araguaia nickel mine, to more than $1bn.
However, the company warned that it “does not believe that any of these options are likely to recover any value for the company’s shareholders”.
Shares in the company sank a further 84 per cent to 0.4p in early trading on Monday, having been worth more than £1.30 in September, before the cost overruns and delays were announced the following month. At that time the group had a market capitalisation of more than £400mn.
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