Horizon Minerals Advances Major Gold Hub in Western Australia with New Funding
Horizon Minerals has positioned itself to become a significant gold producer in Western Australia, following the completion of scoping studies and a substantial funding initiative. The company has launched a fully underwritten institutional placement of A$175 million, complemented by a share purchase plan of up to A$10 million for existing holders, to fully finance the refurbishment of its Black Swan processing hub and associated mine development.
Compelling Blueprint for Gold Production
The scoping studies outline a robust plan to transform the former nickel plant into a gold processing hub with a capacity of 2.2 million tonnes per year. This facility is projected to produce approximately 102,000 ounces of gold annually over an initial five-year mine life. The strategy involves centralising ore from various open pit and underground deposits in the Kalgoorlie region, leveraging a hub-based approach to minimise capital intensity while enhancing operational flexibility.
About 75% of the proposed mine feed is classified in the measured and indicated categories, providing a solid foundation for the production profile. At an assumed gold price of A$5,500 per ounce, the economic projections are highly favourable. Horizon forecasts a pre-tax free cash flow nearing A$1 billion, a pre-tax net present value of about A$631 million, and an internal rate of return exceeding 80%. The payback period is estimated at around 18 months from commissioning.
Cost Efficiency and Infrastructure Advantages
All-in sustaining costs are estimated at A$3,350 per ounce, which leaves substantial margins given current gold prices. This cost efficiency is bolstered by the existing infrastructure at Black Swan, including crushers, mills, and site services, significantly reducing expenses compared to building a new plant from scratch.
Grant Haywood, Managing Director and CEO of Horizon Minerals, stated: "The study outcomes demonstrate the quality of our assets and show a robust economic case to support our vision of becoming a meaningful, independent WA gold producer. Our initial plans have been exceeded, with the plant study now upscaled to its nameplate capacity of 2.2Mtpa."
Reserves and Development Timeline
The updated ore reserve position for Horizon stands at 4.3 million tonnes grading 1.54 grams per tonne, containing 214,000 ounces of gold. Combined with a broader resource base of about 1.9 million ounces across the Kalgoorlie portfolio, this provides a reliable pipeline to sustain operations beyond the initial mine plan.
Board approval has been granted for early works, including front-end engineering design, procurement of long-lead items, and contractor engagement. The company aims to commence construction by mid-2026 and commission the Black Swan mill by mid-2027.
Additional Financial and Operational Strengths
In a joint venture with BML Ventures, Horizon currently holds about 15,000 ounces of gold in ore stockpiles at the Phillips Find project, located approximately 45km north-northwest of Coolgardie. At current gold prices around A$7,000 per ounce, this stockpile represents significant pre-processing value, providing additional financial leverage without reliance on future cash flows or debt markets.
There is also potential for upside, with several deposits, such as the high-grade Burbanks underground, undergoing resource upgrades and optimisation work. This could lead to increased plant throughput, extended mine life, or improved grades over time.
If executed as planned, the commissioning of Black Swan could mark Horizon's transition from a regional consolidator to a mid-tier gold producer. In a market eager for Australian gold stories with scale, funding certainty, and near-term production, this project stands out as a promising venture.
