ASX: HRZ - Horizon Minerals
- Matt Birney
- 19 hours ago
- 4 min read
Horizon Minerals: It’s game on with a $175m cap raise, 100k gold oz’s a year and … a lazy billion in free cash
Horizon Minerals Managing Director Grant Haywood on 6PR Bulls N' Bears Report
Listen to ASX-listed Horizon Minerals Managing Director Grant Haywood talk to Matt Birney on the Bulls N’ Bears Report about Horizon’s huge leap from gold explorer to developer with a monster capital raise and a set of financials that will make your milk curdle!
TO LISTEN TO THE HORIZON MINERALS AUDIO INTERVIEW - CLICK BELOW
Horizon Minerals has been quietly stitching together a Kalgoorlie‑centric gold exploration portfolio and the moment of truth has just arrived — the company has launched a $175 million capital raise to fully fund the refurbishment of its 100%‑owned mothballed Black Swan processing hub near Kalgoorlie. The company has now switched from study mode to build mode, with first ore processing targeted for mid‑2027. So let’s go to the numbers — the raise, the spend, the schedule and the feeder zones.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears, brought to you today by gold developer, Horizon Minerals
Matt Birney - ASX code: HRZ.
Matt Birney - I'm Matt Birney, and I'm joined now by the Managing Director of Horizon Minerals, Grant Haywood.
Matt Birney - Hi, Grant.
Grant Haywood - Hi, Matt.
Matt Birney - So, Horizon Minerals has been quietly stitching together a Kalgoorlie‑centric gold exploration portfolio and the moment of truth has just arrived — the company has launched a $175 million capital raise to fully fund the refurbishment of its mothballed Black Swan processing hub near Kalgoorlie. The company has now switched from study mode to build mode, with first ore processed and targeted for mid‑2027. So let’s go to the numbers — the raise, the spend, the schedule and the feeder zones.
Matt Birney - Okay, Grant, who's raising this 175 million for you and at what price? And what price was your share price immediately before the announcement?
Grant Haywood - Yeah, we have Petra Capital who has raised the money for us with Euros Hartley's as co-managers. So, the price of the raise was $1.08 which was a 12% discount to our last close of $1.23 and a half cents.
Matt Birney - Is it done or is it in process?
Grant Haywood - It is done as it is fully underwritten.
Matt Birney - How many shares will Horizon have on issue immediately post the capital raise?
Grant Haywood - We'll have approximately 375 million shares on issue.
Matt Birney - All right. Very quickly, give me the breakdown of how that $175 million will be spent. Just dot points will do.
Grant Haywood - Yeah. $101 million is to refurbish and repurpose that Black Swan plant to a gold plant, $45 million on other infrastructure, $31 million on pre-production and operational readiness, and around $35 million for working cap and contingency.
Matt Birney - All right. Well, let's get to the numbers, the exciting stuff with some rapid fire questions. Firstly, what gold price did you assume in your scoping study on the project? And what's the spot price today?
Grant Haywood - We used $5,500 Australian dollars per ounce and a spot price is just under $7,000 an ounce.
Matt Birney - Yeah, plenty of fat there. How much will it cost you to produce an ounce of gold from the project? All in sustaining cost.
Grant Haywood - All in sustaining is $3,350 an ounce.
Matt Birney - What grade will you mine at? Average grade?
Grant Haywood - Average grade is 1.63 grams a tonne over the 5 years.
Matt Birney - And what's the projected mine life? And how many ounces a year will you produce on average?
Grant Haywood - Yeah, so we'll average 102,000 ounces over a 5 and a quarter year mine life.
Matt Birney - All right, the big question. How much free cash is this thing going to spit out over those 5 years?
Grant Haywood - Yeah, just under a billion dollars. $979 million.
Matt Birney - And the expected internal rate of return on that capital?
Grant Haywood - Very good rate of return at 83%.
Matt Birney - And the net present value?
Grant Haywood - $631 million.
Matt Birney - All right. Almost out of time. Where are you going to draw the ore from? Because you got lots of projects around Kalgoorlie, right?
Grant Haywood - Yeah, it'll be our larger Burbanks and Boorara projects will provide most of the feed for the plant.
Matt Birney - Grant Haywood from Horizon Minerals.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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