Horizon Minerals Breaks Ground to Lift Share Price (ASX:HRZ)
It’s a tough time for many businesses. Most are struggling to get their operations back up and running, let alone think about new projects.
Not Horizon Minerals Ltd [ASX:HRZ] though. They were lucky enough to announce that their gold mine (Boorara) in WA is now officially up and running.
A much welcome development that has helped lift the HRZ share price today amidst a falling market.
Timed to perfection
While Horizon is certainly a junior miner, getting to the production stage is a massive feat.
It has taken a lot of time and money to get to where they are today. But even more impressive, is the timing of this opening.
As their Managing Director, Jon Price, commented:
‘The commencement of mining at Boorara is a signifcant milestone for the Company enabling gold production and cash generation in 2020 at a time of record high Australian dollar gold prices.’
Horizon couldn’t have picked a better time to get the greenlight to mine. Finding a way to not only make money during a pandemic, but also at record gold prices.
If all goes to plan, they could see free cash flow of $7.1 million over the upcoming financial year. That is if gold prices hold out at their current level.
Given the wider macroeconomic situation, that could be a very real possibility. In fact, we could even see gold prices edge even higher if the pandemic and/or markets take a turn for the worse.
No doubt that would have shareholders rubbing their hands with glee. And they wouldn’t be the only ones.
Investing guru Jim Rickards has turned very bullish on gold. Detailing why he believes smart investors need to be aware of the potential of the precious metal. Not only to protect wealth, but generate it.
You can read all about it, for free, in this report here.
For The Daily Reckoning Australia