Horizon Minerals: Strategic Pivot Towards Standalone Gold Production
- Noel Ong
- Jun 29
- 8 min read
Updated: 4 days ago
In this edition of Samso Insights, we revisit Horizon Minerals Limited (ASX: HRZ), a Western Australian gold mining company embarking on a new chapter. Horizon aims to become an independent, cash-generating gold producer, taking control of its destiny. What stands out is not just the scale of Horizon’s portfolio but also the assets, many of which are largely unseen by investors.
Current Market Position of Horizon Minerals
Horizon currently has a market cap of $125M AUD. The share price trajectory shown in the graph indicates a significant disconnect from its potential, especially with the gold price exceeding USD $3,382 as of June 13, 2025. To complicate the situation, it is priced at AUD $5,177, which reveals an astonishing margin for any gold producer.
For comparison, Meeka Metals Limited (ASX:MEK) boasts a market cap of over AUD $352M but is still at the commissioning stage. Meanwhile, Horizon is in the process of hauling ore for sale in the coming months, indicating an outlook for increased production.
Over the years, many companies have circled Kalgoorlie, each with ambitions of building a sustainable pipeline. However, the strategy Horizon is outlining appears different. It represents a realignment of asset strategy supported by operational cash inflows that lend credibility to its approach.
Navigating the Competitive Landscape
What is critical to Horizon's advancement is its cautious and incremental approach. The company is making smart moves that could strengthen its position in a competitive region.
The Horizon Snapshot: Numbers and Narrative of Gold Mining
Gold Resource Base:
- 1.8 million ounces across 30.5Mt @ 1.84 g/t Au.
- Covers multiple deposits within a 1,309 km² tenure across WA’s Goldfields.
Processing Infrastructure:
- 2.2Mtpa Black Swan facility (100%-owned, currently under care & maintenance).
- Located ~40km north of Kalgoorlie with grid power, water, and permitting in place.
Current Operations Generating Cash:
- Boorara and Phillips Find are producing under ore sale and toll milling agreements.
- Estimated ~$30M in free cash flow from Boorara (ASX: 6 May 2024).
Financial Position (as of 31 Mar 2025):
- Cash and cash equivalents: $9.1M and a recent capital raise of $30M.
- Debt: $8.0M.
- Market capitalization: $122M (share price $0.057 as of 6 May 2025).
- Enterprise value: ~$120.9M.
Exploration Strategy:
- ~50,000m of drilling planned for FY25/26.
- Key targets include Burbanks, Kalpini, Penny’s Find, Greater Boorara, and Wilsons.
Short-Term Production Outlook:
- Gold produced from Boorara and Phillips Find.
- First gold from Black Swan targeted by the end of 2026.
At a glance, Horizon presents a compelling resource-rich story. The early cash inflows, particularly from Boorara and Phillips Find, are funding upcoming exploration and feasibility work. This self-sustaining strategy is rare among junior companies. Very few juniors can claim their market capitalization mirrors cash inflows into their accounts.
Figure 1: Horizon Minerals – At A Glance (Source: Horizon Minerals Investor Presentation, May 2025)
The early-stage revenue generation without substantial dilution is a defining characteristic of Horizon. There are inherent risks, but the rising gold price is expected to support demand for HRZ. It's surprising to see this company under the radar, raising questions about market awareness.
Strategy with Teeth: Black Swan as a Foundation
The recent acquisition of the Black Swan processing facility, through the completed takeover of Poseidon Minerals, positions Horizon to control a 2.2Mtpa processing plant located just 40km north of Kalgoorlie. Currently under care and maintenance, Horizon plans a cost-effective refurbishment of the plant for future gold production. Studies are projected for completion by the end of 2025.
Figure 2: Black Swan Processing Facility (Source: Horizon Minerals Investor Presentation, May 2025)
This facility, estimated to hold a replacement value exceeding $150M, could initially support throughput of 1.0–1.5Mtpa, with room for expansion. GR Engineering has assumed responsibility for running the engineering studies for conversion. This includes adding a CIL circuit to the existing flotation configuration.
In discussions with Grant Haywood, the Managing Director of Horizon Minerals, we talked about optimal strategies for the Poseidon plant. There is considerable scope for growth, especially as the costs of manufacturing and construction continue to rise. Refurbishing the plant appears to be the most cost-effective path forward.
A Regional Presence with Real Resource Depth
Horizon’s consolidated position includes multiple established and advancing projects, all within trucking distance to the Black Swan hub:
Boorara Project
First gold pour: Jan 2025.
Ore sale agreement (1.24Mt) to the Paddington mill through Q2 2026.
First parcel produced: 1,163oz @ A$4,256/oz → Revenue: ~$4.95M.
Current gold price exceeds A$5,000/oz.
Figure 3: Boorara Gold Project (Source: Horizon Minerals Investor Presentation, May 2025)
Phillips Find JV
A low-risk joint venture with BML Ventures.
First pour: Feb 2025, generating ~$7.9M.
Further ore treatment contracts secured for late 2025.
Additional ore treatment capacity of 80kt available.
Figure 4: Phillips Find JV Project (Source: Horizon Minerals Investor Presentation, May 2025)
Both projects serve as cash flow contributors and are priming the funding runway for the Black Swan refurbishment. This aspect is of particular importance to investors looking for growth that does not overly depend on dilution.
Exploration: Sharpening the Drill Bit
Horizon’s 30Mt of existing gold resources includes a 50,000m drilling program planned for FY25/26 (Figure 5):
Burbanks (465.5koz @ 2.8 g/t Au).
Wilsons.
Greater Boorara.
Coote-Crake.
Penny’s Find.
Kalpini.
Figure 5: Strong Pipeline Supporting Black Swan (Source: Horizon Minerals Investor Presentation, May 2025)
Burbanks Project: Scale, Grade, and Untested Depth
The Burbanks project is particularly intriguing. Situated on a granted mining lease 9km from Coolgardie, Burbanks features a large open-pit resource along with a high-grade underground target (167.9koz @ 4.4 g/t Au). Currently, only 30% of the upper 500m has been tested, with 20,000m of the upcoming drill program devoted to this asset.
Figure 6: Burbank's Project – Mineral Resource Estimate (Source: Horizon Minerals Investor Presentation, May 2025)
After three decades in this industry, I’ve realized that successful mining businesses focus on simplicity in their operations. Each project must be evaluated on its own merits. Projects in proximity to each other can be integrated, while distant projects must be assessed independently.
Burbanks stands out as a major highlight for Horizon. The existing resource presents a strong case, but the real allure lies in the unexplored regions. If Horizon executes its exploration strategy effectively, the entire narrative surrounding Burbanks could change rapidly.
Penny’s Find: Small Footprint, High Margin
Penny’s Find is one of the few WA juniors actively developing underground mining. The project shows strong financial promise, with a Pre-Feasibility Study (PFS) already completed:
Life-of-mine: ~23 months.
Total ore reserve: 329.9kt @ 3.2 g/t Au.
Recovery: 88.9% → 29.8koz of gold.
Free cash flow projected at $24M (at A$3,600/oz).
Figure 7: Penny’s Find (Source: Horizon Minerals Investor Presentation, May 2025)
This project has received all necessary approvals, which significantly reduces the risks associated with its development.
Infrastructure Advantage: Unlocking Regional Potential
Horizon’s core message emphasizes the importance of controlling processing infrastructure, a growing competitive asset in WA’s Goldfields. With over 1Moz of stranded gold resources in the region lacking processing solutions, Horizon is positioning itself as a regional facilitator. This can take the form of joint ventures, toll milling, or ore purchase arrangements.
Figure 8: Platform for Regional Consolidation (Source: Horizon Minerals Investor Presentation, May 2025)
Such strategies could evolve into secondary revenue streams or avenues for growth through corporate partnerships. As discussions progress, Horizon remains focused on maintaining optionality.
Management and Board
Grant Haywood – Managing Director
Over 30 years of mining engineering experience.
Previously held operational roles with Saracen, Phoenix Gold, and Goldfields Ltd.
Proven track record transitioning projects from feasibility to production.
Stephen Guy – Chief Geologist
Over 25 years in exploration and production.
Experience with BHP, FMG, Newcrest, Gindalbie Metals.
Background includes multiple commodities: gold, copper, base metals, iron ore.
Julian Tambyrajah – CFO & Company Secretary
Over 30 years of finance expertise within resource companies.
Experienced in project evaluation, feasibility, operations, and logistics.
Chartered Company Secretary, Certified Practising Accountant.
Ashok Parekh – Non-Executive Chairman
Chartered Accountant with over 40 years in Kalgoorlie.
Recipient of the Centenary Medal; awarded the Meritorious Service Award by the Institute of Chartered Accountants.
Warren Hallam – Non-Executive Director
Both a metallurgist and mineral economist with 25 years of experience.
Previous roles at Metals X and Westgold; currently on the board of Poseidon Nickel.
Rob Waugh – Non-Executive Director
Over 35 years in gold and base metals exploration and development.
Former Managing Director of Musgrave Minerals (acquired by Ramelius for $200M in 2023) and held senior roles at BHP and WMC Resources.
Samso Concluding Comments
It's surprising that the Horizon story has not been on my radar since I discovered its existence several years ago. Investors looking for opportunities on the ASX often have limited options to follow, especially with restricted funding. When I revisited Horizon, I was intrigued by its low market capitalisation as a gold mining entity.
The undervaluation likely stems from market perceptions regarding Horizon's Enterprise Valuation compared to its gold resources. To put it simply, at the end of the day, what defines the company is its ability to produce as promised. Enterprise value comparisons seem like justifications for analysts’ existence.
Considerations for Investors
For retail investors, the goal should be to focus on the company's future resources. Yet this line of thought can feel intangible, leading to a dilemma: to believe in what the company projects or not.
Horizon Minerals is navigating a path that many aspire to but few succeed—transitioning from asset holder to independent producer. The company’s strategy revolves around real cash flow from its operations that are channeled into exploration and infrastructure. This avoids reliance on speculative forecasts and aims for a methodical approach rooted in current operations.
For observers of the WA gold sector, the Black Swan facility represents a strategic opportunity. As the cost of constructing a new plant rises, refurbishing seems increasingly viable. Discussions with Grant indicate that these options have been considered.
With processing infrastructure in its possession, Horizon has an effective lever to unlock value, not only from its own assets but also from potential third-party opportunities throughout the region. Such assets are becoming scarce, and their inherent value as a regional solution may become increasingly crucial.
If you are an investor seeking rational progress in gold development, Horizon is a company to watch. The coming 12–18 months will challenge its ability to transform planning into actual production, particularly as refurbishment studies are finalized and drilling targets advance. These pivotal moments can truly differentiate companies.
Ultimately, this story is about patience and execution. For investors preferring short-term gains, Horizon likely won’t meet their needs. However, the lack of overpromising is refreshing. With the combination of producing ounces and owned infrastructure, they are building a strong case for their standalone future.
Still, there’s work to be done. What’s currently unfolding is grounded and incremental—traits that often indicate longer-term success.
The Samso Way - Seek the Research
At Samso, we pride ourselves on providing independent content for investors, informed by over three decades of industry experience. We constantly ask questions that may seem simple but are often the most insightful.
Our mission is straightforward: cut through noise, spotlight genuine narratives, grounded insights, and real opportunities. We only create well-researched content if we see merit in discussing a company or concept. Investors can explore our three core platforms:
Success in investing takes many paths, but a common attribute among achievers is their commitment to informed decision-making. Equip yourself with knowledge, and you're on your way to achieving financial success.
Understand your risk-reward balance. Never take on what you cannot handle. As the saying goes, "Rome wasn’t built in a day," and the Great Wall took centuries to construct.
The Samso Philosophy:
Stay curious. Stay sharp. Digging deeper unveils real value.
In life, there’s no such thing as a free lunch.
Happy Investing! Remember, the only four-letter word you need to know is DYOR.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase, or sell the investment product(s) mentioned herein. It does not take into consideration your specific investment objectives, financial situation, risk profile, tax position, and unique needs and constraints.
Share to Grow: Your Bonus
Samso has just released an eBook: How to Add Value to your Share Portfolio
A lesson on geological models that offers insight into which mining portfolios present better and potentially more lucrative investment opportunities. Click here to download this eBook.
If you find this article informative, please help share it. Writing about valuable topics is a challenge, especially in identifying stories that fit investment interests. If you or your organization recognize the value of Samso's work and have a journey to share, contact me at noel.ong@samso.com.au.
Samso is a trusted platform providing dedicated investors with up-to-date industry knowledge and insights from leading CEOs and thought leaders. By remaining informed on business advancements and market trends, investors can enhance their financial decisions through expert guidance and independent research.
Kommentarer