Black Swan Conversion and Capital Raise: What Risks Lie Ahead for Horizon Minerals?
Horizon Minerals reported steady gold output from Boorara and Phillips Find projects, generating nearly A$39 million in revenue for the June quarter, while progressing a major plant conversion study and securing $30 million in new funding.
- Steady gold production at Boorara and Phillips Find yielding combined revenue of ~$38.8 million
- Initiation of resource drilling at Burbanks to enhance future reserves
- Pre-feasibility study underway to convert Black Swan plant from nickel to gold processing
- Successful $30 million two-tranche placement with shareholder approval secured
- Experienced mining executive appointed to Horizon’s board
Steady Gold Production Drives Revenue Growth
Horizon Minerals Limited (ASX, HRZ) has delivered a solid operational and financial performance for the June 2025 quarter, maintaining steady gold production from its Boorara and Phillips Find projects in Western Australia. The Boorara operation mined approximately 298,000 dry tonnes at an average grade of 0.952 grams per tonne, producing 6,446 ounces of gold sold at an average price of A$5,104 per ounce, generating around A$33 million in revenue. Meanwhile, the Phillips Find joint venture contributed an additional 1,132 ounces from 18,676 dry tonnes at 1.97 grams per tonne, yielding roughly A$5.8 million in revenue.
Exploration and Resource Development Progress
Beyond production, Horizon has commenced a resource definition drilling program at its Burbanks project south of Coolgardie. This program aims to improve resource confidence and expand high-grade lodes, underpinning future reserve conversions. The company is also advancing life of mine planning studies for the Black Swan project, engaging external consultants to refine mine feed strategies and infrastructure requirements.
Black Swan Plant Conversion Study Advances
A significant development during the quarter is the awarding of a pre-feasibility study to GR Engineering Services to refurbish and repurpose the Black Swan processing plant from nickel to gold. The study is progressing on schedule, focusing on upgrading the comminution circuit and designing a new gravity and carbon-in-leach circuit to optimize gold processing. This strategic pivot leverages Horizon’s expanded asset base following its merger with Poseidon Nickel Limited, positioning the company for sustainable long-term gold production.
Capital Raising and Corporate Developments
To support its growth initiatives, Horizon successfully completed a two-tranche placement raising a total of A$30 million, with shareholder approval for the second tranche secured at a general meeting in July. The company’s cash position stood at A$15.7 million at quarter-end, supplemented by investments valued at approximately A$2.1 million. Additionally, Horizon strengthened its leadership team with the appointment of Rob Waugh, a seasoned mining executive with over 35 years’ experience, to its board.
Outlook and Strategic Focus
Horizon Minerals is clearly focused on consolidating its gold production base while unlocking value from its diversified resource portfolio, including silver-zinc and nickel assets. The ongoing studies and drilling programs, combined with a robust balance sheet, provide a solid foundation for advancing the Black Swan project and expanding resource conversion efforts. The company’s commitment to environmental and social governance further underpins its strategy to maintain a strong social license to operate.
Bottom Line?
Horizon Minerals is poised to translate its steady production and strategic investments into sustained growth, with the Black Swan gold conversion study a key catalyst to watch.
Questions in the middle?
- How will the Black Swan plant conversion impact production timelines and costs?
- What are the expected outcomes and timelines for the Burbanks drilling program?
- How will the recent $30 million placement be allocated across Horizon’s projects and operations?
