Shares of Horizonte Minerals experienced a 4% rise on the London Stock Exchange on Monday, due to progress in their Brazilian Araguaia project. The project has been moving forward without any construction delays, contributing to the uptick in share value.
Despite this recent rise, the company's shares have seen a significant drop of 87% since the beginning of the year. However, shares managed to reach a high of 20 pence on Monday, marking a slight recovery.
The Araguaia project has been a significant investment for Horizonte Minerals, with the company pouring $429 million into it by the end of Q3 2023. The primary goal of the project is to enhance the company's footprint in Brazil and expand its mineral extraction operations.
However, the company's share value suffered a dramatic fall earlier this year due to a delay in first production to Q3 2024 and an anticipated capital expenditure growth of at least 35%. This delay and projected increase in costs have raised concerns among investors and contributed to the significant decrease in share value since the start of the year.
Despite these challenges, the recent advancements in the Araguaia project and the absence of further construction delays have provided some respite for Horizonte Minerals' shareholders. As the project progresses, investors will be closely watching for further developments and their potential impact on share value.
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