Horizon Minerals raising $175 million to develop Black Swan processing hub near Kalgoorlie-Boulder

Kalgoorlie Miner

Written by Neil Watkinson

Gold miner Horizon Minerals has taken the plunge to develop its own processing capacity, announcing a $175 million capital raising to fund the development of the Black Swan hub north-east of Kalgoorlie-Boulder.

Horizon told the market on Tuesday it had produced scoping studies which estimated Black Swan could process 2.2 million tonnes per annum for average annual gold production of 102,000 ounces.

The Ashok Parekh-chaired company said ore would be sourced from its 10 deposits around Kalgoorlie-Boulder and Coolgardie, with total production across five years of about 10.9 million tonnes at 1.65g per tonne for 536,000oz.

Horizon said it was aiming to start ore processing at Black Swan by the middle of next year.

The company said its total mineral resource estimate stood at 1.88 million ounces, allowing for potential future ore feed beyond the five-year mine plan.

Horizon acquired Black Swan when it took over Poseidon Nickel in October 2024, with the plant to be converted to process gold.

The company said total pre-production capital expenditure was estimated at $160.5m, including estimated plant refurbishment and conversion costs of $101m, site establishment and infrastructure refurbishment costs of $45.6m, and mine development costs of $13.8m.

Horizon said across the five years it could generate pre-tax free cash flow of about $959m at a gold price of $5500/oz, with the project estimated to have a net present value of $631m, an internal rate of return of 83 per cent, and a payback period from commissioning of 18 months.

All-in-sustaining costs were estimated at $3353/oz.

Horizon managing director and chief executive Grant Haywood said the study outcomes showed a robust economic case for the company to become a meaningful, independent WA gold producer.

“Our initial plans of achieving a throughput of 1.5Mtpa through the Black Swan processing facility with a minimum five-year life of mine plan have well and truly been met, with the plant study having now being upscaled to its nameplate capacity of 2.2Mtpa, while remaining at a five-year mine life and achieving our aspirational target of production of 100,000 ounces per annum,” he said.

“Our cornerstone Burbanks project only includes open pit production and as we continue drilling to infill this project and increase the resource confidence, we are excited by the prospect of generating a maiden ore reserve and bringing this high-grade asset earlier into the mine plan, which will further enhance the project financials.

“The project’s solid economic outcomes and capital efficiency highlights the project’s leverage to the current gold price environment while remaining resilient under conservative gold price assumptions.

“We look forward to executing the plan, with construction at Black Swan estimated to commence mid-2026.

“In parallel, we will prepare the mines for operational readiness and carry out other infrastructure works with the aim of being online for mill commissioning in mid-2027.”

Horizon said the capital raising comprised a fully underwritten two-tranche placement, with the ability to accept oversubscriptions, of about 162 million new fully paid ordinary shares at an issue price of $1.08 per new share.

The company will also offer eligible shareholders the opportunity to participate in a share purchase plan at the same price as the placement’s new shares.

Horizon said the offer price of $1.08 represented a 12.6 per cent discount to the closing price of the company’s shares on February 16 and a 14.4 per cent discount to the five-day volume-weighted average trading price up to and including February 16.

The company said Petra Capital was acting as sole lead manager, sole bookrunner and sole underwriter to the placement, with Euroz Hartleys acting as a co-manager to the placement.

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