The report dives into Horizon’s gold projects in Western Australia, their recent acquisitions, and plans to refurbish the Black Swan plant to become a standalone gold producer.
Management Strategy...Horizon has shifted gears from being a toll-treating explorer to pursuing standalone gold production. This pivot was catalyzed by two major acquisitions in 2024: Greenstone Resources and Poseidon Nickel, which brought in the Burbanks gold mine and the Black Swan processing plant.
Their strategy now revolves around:
Refurbishing the Black Swan plant to process gold (it previously handled nickel).
Executing a five-year mine plan targeting up to ~100,000oz per year, with a base case of ~85,000ozpa at 1.5Mtpa throughput.
Running a 50km+ drilling program through mid-2026 to upgrade and expand resources.
Generating near-term cash flow from toll treatment and ore sales at Boorara and Phillips Find to help fund exploration and feasibility studies.
This approach allows them to reduce reliance on external equity while building toward long-term production autonomy.
Key Differentiators from peers...
Size vs. Flexibility: Horizon is much leaner but has room for outsized upside if it executes well.
Exploration Upside: With over 50km of drilling planned, there's genuine resource growth potential.
Control of Infrastructure: Owning the processing route could give it a cost and speed edge over toll-milling rivals.
Market Comparison...
According to Simply Wall St, Horizon’s Price-to-Book ratio is 2.4x, which is below the peer average of 3.8x—suggesting it may be undervalued relative to similar companies. However, this assumes the standalone strategy succeeds.
Gold Price v Net present value (NPV)... Horizon becomes significantly more valuable as gold prices rise—every $200/oz adds ~$20 million in NPV, assuming all else stays on track.
This is my 'cut and paste' based upon questions I raised by me via AI, for insights. So just my researched view based upon the announcement from RaaS, esp
The report dives into Horizon’s gold projects in Western...
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