Centaurus Metals (CTM AU), Horizonte Minerals (HZM LN) UK
Materials
GMR weighs up the investment case for these two project developers with assets based in northern Brazil - each control large scale nickel deposits that leave them potentially attractive as corporate targets. Both have types of projects that a +US$9/lb nickel spot price should incentivise. However, CTM is GMR's preferred choice on near term news flow. It trades on 0.7x NPV and has the advantage of pursuing a lower cost nickel sulphide mine with attractive economic returns. HZM (rated Hold) has better leverage / scale, but technical risks dominate.
Edition: 144
- 16 September, 2022