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Last updated on April 16, 2014 at 1:21 EDT

Horizonte Minerals Announces Third Quarter Results

November 14, 2012

Horizonte Minerals plc / Index: AIM / TSX : HZM / Sector: Mining

( or “the Company”)

TORONTO, Nov. 14, 2012 /PRNewswire/ – Horizonte, the AIM and TSX quoted
exploration and development company focused in Brazil, announces that
it has today published its unaudited financial results for the 3 month
and 9 month periods to 30 September 2012. The Management Discussion and
Analysis for the same periods have also been published.

In addition to this document, both of the above have been posted on the
Company’s website at www.horizonteminerals.com and are also available on SEDAR at www.sedar.com.

Company Overview

        --  Nickel and gold exploration and development company focused in
            Brazil with the support of two mining majors Teck Resources and
            AngloGold Ashanti
        --  Fast-tracking development of flagship Araguaia nickel
            project in northern Brazil towards Pre Feasibility - major
            milestones achieved during nine months to 31 September  2012
        --  Increased and upgraded the NI 43-101 resource by 31% to 39.3
            million tonnes grading 1.39% nickel in the Indicated category
            and 60.9 million tonnes averaging 1.22% nickel in the Inferred
            category using a 0.95% nickel cut-off at Araguaia
        --  Completed preliminary metallurgical testwork at Araguaia -
            project amenable to the commercially proven Rotary Kiln
            Electric Furnace (RKEF) process
        --  Preliminary Economic Assessment finalised - demonstrates that
            Araguaia has the potential to be a significant nickel laterite
            project globally in terms of size, grade, economics, location,
            legal/fiscal code and infrastructure
        --  Entered into a share purchase agreement for the sale of the
            Company's Falcao gold project in northern Brazil to Guyana
            Frontier Mining Corp
        --  Successfully completed a £5.2m placing in June 2012 - strong
            cash position to fast-track the development of Araguaia
        --  Expanded management team with the appointment of Dr Philip
            Mackey, formerly member of Xstrata and Falconbridge and with
            over 40 years of experience, as Senior Metallurgical Advisor

Highlights for the Third Quarter of 2012

        --  On August 22nd 2012 the Company announced the results of its NI
            43-101-compliant Preliminary Economic Assessment of the
            Araguaia Project. These included a post tax Net Present Value
            ('NPV') of US$693M at an 8% discount rate and Internal Rate of
            Return ('IRR') of 15.4% based on an ore throughput of 1.75
            million tonnes per annum of mineralised material treated
            through a 90 MW Rotary Kiln Electric Furnace ('RKEF') process
            plant using US$8.60/lb long term nickel price. Assessment of
            the Atmospheric Tank Leach ('ATL') processing option gave a
            post tax NPV of US$554M at an 8% discount rate and an IRR of
            18.1%. Capital payback is estimated as being 7 years for RKEF
            and 6 years for ATL.

Financial Highlights

     ____________________________________________________________________
    |            |3 months    |9 months    |3 months ended|9 months ended|
    |            |ended       |ended       |30 September  |30 September  |
    |            |30 September|30 September|2011          |2011          |
    |            |2012        |2012        |£             |£             |
    |            |£           |£           |              |              |
    |____________|____________|____________|______________|______________|
    |Profit /    |(615,237)   |(1,872,757) |(549,689)     |(1,226,322)   |
    |(loss from  |            |            |              |              |
    |continuing  |            |            |              |              |
    |operations  |            |            |              |              |
    |____________|____________|____________|______________|______________|
    |Capitalised |869,942     |3,295,035   |1,779,117     |3,800,542     |
    |exploration |            |            |              |              |
    |expenditure |            |            |              |              |
    |____________|____________|____________|______________|______________|
    |Cash at end |7,572,289   |7,572,289   |7,051,095     |7,051,095     |
    |of          |            |            |              |              |
    |period      |            |            |              |              |
    |____________|____________|____________|______________|______________|
    |Total assets|34,598,023  |34,598,023  |33,657,645    |33,657,645    |
    |at end      |            |            |              |              |
    |of period   |            |            |              |              |
    |____________|____________|____________|______________|______________|

Condensed Consolidated Interim Financial Statements
for the nine months ended 30 September 2012

Condensed consolidated statement of comprehensive income


                                  9 months ended          3 months ended
                                      Sep 30                  Sep 30

                                   2012        2011        2012        2011

                              Unaudited               Unaudited   Unaudited

                      Notes           £                       £           £

    Continuing
    operations                                                             

    Revenue                           -           -                       -

    Cost of sales                     -           -                       -

    Gross profit                                  -                       -

    Administrative
    expenses                (1,280,067) (1,222,883)   (370,084)   (420,605)

    Charge for Share
    Options Granted           (349,133)   (145,209)   (116,378)    (52,091)

    Toronto Stock
    Exchange
    listing fees and
    associated costs           (88,084)   (234,863)    (25,102)    (44,510)

    (Loss)/gain on
    foreign
    exchange                  (181,097)         133    (95,900)    (82,497)

    Other operating
    income               5       92,402     407,369      18,467      47,607

    Loss from
    operations              (1,805,979) (1,195,453)   (588,997)   (552,096)

    Gain on sale of
    fixed
    asset                             -      10,876           -      10,876

    Finance income               59,116      95,199      15,725      37,179

    Finance costs             (125,894)   (136,944)    (41,965)    (45,648)

    (Loss)/Profit
    before                  (1,872,757) (1,226,322)   (615,237)   (549,689)
    taxation

    Taxation                          -           -           -           -

    (Loss)/Profit for
    the
    period from             (1,872,757) (1,226,322)   (615,237)   (549,689)
    continuing
    operations

    Other
    comprehensive
    income                                                                 

    Exchange
    differences on
    translating
    foreign
    operations              (2,730,901) (2,085,951)   (746,386) (2,743,512)

    Total
    comprehensive
    income for the
    period                                                                 

    attributable to
    equity
    holders of the
    Company                 (4,603,658) (3,312,273) (1,361,623) (3,293,201)

    Earnings per
    share
    from continuing
    operations
    attributable
    to the equity
    holders of
    the Company                                                            

    Basic and diluted
    (pence per share)    9      (0.593)     (0.451)     (0.171)     (0.197)

Condensed consolidated statement of financial position


                                               30 September 31 December
                                                       2012        2011

                                                  Unaudited     Audited

                                         Notes            £           £

    Assets                                                             

    Non-current assets                                                 

    Intangible assets                        6   20,405,263  19,355,457

    Property, plant & equipment                     167,369     139,264

    Deferred taxation                             6,409,305   7,243,524

                                                 26,981,937  26,738,245

    Current assets                                                     

    Trade and other receivables                      43,797     172,906

    Cash and cash equivalents                     7,572,289   5,856,949

                                                  7,616,086   6,029,855

    Total assets                                 34,598,023  32,768,100

    Equity and liabilities                                             

    Equity attributable to owners of the
    parent

    Issued capital                           7    3,600,462   2,795,600

    Share premium                            7   24,384,527  18,772,797

    Other reserves                                5,802,383   8,533,284

    Accumulated losses                          (5,223,639) (3,700,015)

    Total equity                                 28,563,733  26,401,666

    Liabilities                                                        

    Non-current liabilities                                            

    Contingent consideration                      2,841,259   2,715,365

    Deferred taxation                             2,785,616   3,148,185

                                                  5,626,875   5,863,550

    Current liabilities                                                

    Trade and other payables                        407,415     502,884

                                                    407,415     502,884

    Total liabilities                             6,034,291   6,366,434

    Total equity and liabilities                 34,598,023  32,768,100

Condensed statement of changes in shareholders’ equity


                               Attributable to the owners of the parent

                       Share      Share Accumulated       Other       Total
                     capital    premium      losses    reserves           £
                           £          £           £           £

    As at 1        2,465,605 11,283,355 (2,184,252)  10,933,292  22,498,000
    January 2011

    Comprehensive
    income

    Loss for the           -          - (1,226,322)           - (1,226,322)
    period

    Other
    comprehensive
    income

    Currency               -          -           - (2,085,951) (2,085,951)
    translation
    differences

    Total                  -          - (1,226,322) (2,085,951) (3,312,273)
    comprehensive
    income

    Transactions
    with owners

    Issue of         329,995  7,919,880           -           -   8,249,875
    ordinary
    shares

    Issue costs            -  (430,438)           -           -   (430,438)

    Share based            -          -     145,209           -     145,209
    payments

    Total            329,995  7,489,442     145,209           -   7,964,646
    transactions
    with owners

    As at 30       2,795,600 18,772,797 (3,265,365)   8,847,341  27,150,373
    September 2011

    As at 1        2,795,600 18,772,797 (3,700,015)   8,533,284  26,401,666
    January 2012

    Comprehensive
    income

    Loss for the                        (1,872,757)             (1,872,757)
    period

    Other
    comprehensive
    income

    Currency                                        (2,730,901) (2,730,901)
    translation
    differences

    Total                               (1,872,757) (2,730,901) (4,603,658)
    comprehensive
    income

    Transactions
    with owners

    Issue of         804,862  5,710,387           -           -   6,515,249
    ordinary
    shares

    Issue costs                (98,657)           -           -    (98,657)

    Share based                             349,133           -     349,133
    payments

    Total            804,862  5,611,730     349,133           -
    transactions
    with owners

    As at 30       3,600,462 24,384,527 (5,223,639)   5,802,383  28,563,733
    September 2012

Condensed Consolidated Statement of Cash Flows


                                  9 months ended          3 months ended
                                   30 September            30 September

                                   2012        2011        2012        2011

                              Unaudited   Unaudited   Unaudited   Unaudited

                                      £           £           £           £

    Cash flows from
    operating activities

    Profit / (Loss)         (1,872,757) (1,226,322)   (615,237)   (549,689)
    before taxation

    Interest income            (59,116)    (95,199)    (15,724)    (37,179)

    Finance costs               125,894     136,945      41,965      45,649

    Exchange differences        161,462     (1,688)      95,859      10,134

    Employee share              349,134     145,209     116,378      52,089
    options charge

    Profit on sale of                 -    (10,876)           -    (10,876)
    property, plant and
    equipment

    Depreciation                  4,368       4,109       1,192       1,465

    Operating profit /      (1,291,015) (1,047,822)   (375,567)   (488,407)
    (loss) before changes
    in working capital

    (Increase) / decrease     (217,407)     (6,429)     (3,915)     293,308
    in trade and other
    receivables

    Increase /                   74,268     138,894    (37,478)   (746,183)
    (decrease)  in trade
    and other payables

    Net cash inflow/        (1,434,154)   (915,357)   (416,960)   (941,282)
    (outflow) from
    operating activities

    Cash flows from
    investing activities

    Net purchase of         (1,767,140) (3,743,580)   (694,827) (1,758,952)
    intangible assets

    Purchase of property,     (101,322)    (62,511)    (37,309)       1,832
    plant and equipment

    Proceeds from sale of             -      10,876           -      10,876
    property, plant and
    equipment

    Interest received            59,116      95,199      15,724      37,179

    Net cash used in        (1,809,346) (3,700,016)   (716,412) (1,709,065)
    investing activities

    Cash flows from
    financing activities

    Proceeds from issue      5,218,999    8,249,875           -           -
    of  ordinary shares

    Share issue costs          (98,657)   (430,438)           -           -

    Net cash inflow from      5,120,342   7,819,437           -           -
    financing activities

    Net increase/             1,876,842   3,204,064 (1,133,372) (2,650,347)
    (decrease) in cash
    and cash equivalents

    Cash and cash             5,856,949   3,847,031   8,801,564   9,701,372
    equivalents at
    beginning of period

    Exchange                  (161,502)           0    (95,903)          70
    (losses)/gains on
    cash and cash
    equivalents

    Cash and cash             7,572,289   7,051,095   7,572,289   7,051,095
    equivalents at end of
    the period

Major non-cash transactions

On 7 February 2012 the Company issued 8,500,000 new ordinary shares of 1
pence per share each to Lara Exploration Limited at a premium of 14
pence per share in consideration for the acquisition of the Vila Oito
and Floresta nickel laterite projects.

Notes to the Financial Statements

1 General information

The principal activity of Horizonte Minerals Plc (‘the Company’) and its
subsidiaries (together ‘the Group’) is the exploration and development
of precious and base metals. There is no seasonality or cyclicality of
the Group’s operations.

The Company’s shares are listed on the Alternative Investment Market of
the London Stock Exchange (AIM) and on the Toronto Stock Exchange
(TSX). The Company is incorporated and domiciled in the United Kingdom.
The address of its registered office is 26 Dover Street London W1S 4LY.

2 Basis of preparation

The condensed interim financial statements have been prepared using
accounting policies consistent with International Financial Reporting
Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31
December 2011, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the
European Union.

The condensed interim financial statements set out above do not
constitute statutory accounts within the meaning of the Companies Act
2006. They have been prepared on a going concern basis in accordance
with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS) as adopted by the European Union.
Statutory financial statements for the year ended 31 December 2011 were
approved by the Board of Directors on 2 February 2012 and delivered to
the Registrar of Companies. The report of the auditors on those
financial statements was unqualified.

The condensed interim financial statements of the Company have not been
audited or reviewed by the Company’s auditor, Littlejohn LLP.

Going concern

The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational existence for
the foreseeable future and that, therefore, it is appropriate to adopt
the going concern basis in preparing the condensed interim financial
statements for the period ended 30 September 2011.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the
business. The key risks that could affect the Group’s medium term
performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group’s 2011 Annual
Report and Financial Statements, a copy of which is available on the
Group’s website: www.horizonteminerals.com. The key financial risks are liquidity risk, foreign exchange risk,
credit risk, price risk and interest rate risk.

Critical accounting estimates

The preparation of condensed interim financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in the Group’s 2011 Annual Report
and Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period.

3. Significant accounting policies

The condensed interim financial statements have been prepared under the
historical cost convention as modified by the revaluation of certain of
the subsidiaries’ assets and liabilities to fair value for
consolidation purposes.

The same accounting policies, presentation and methods of computation
have been followed in these condensed interim financial statements as
were applied in the preparation of the Group’s Financial Statements for
the year ended 31 December 2011, except for the impact of the adoption
of the Standards and interpretations described below.

The preparation of condensed interim financial statements in conformity
with IFRS requires the use of certain critical accounting estimates. 
It also requires management to exercise its judgement in the process of
applying the Group’s Accounting Policies.  The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the condensed interim financial
statements, are disclosed in Note 4 of the Group’s 2011 Annual Report
and Financial Statements.

3.1 Changes in accounting policy and disclosures

(a) New and amended standards adopted by the Group

Amendments to IFRS 7 “Financial Instruments: Disclosures” are designed
to help users of financial statements evaluate the risk exposures
relating to transfers of financial assets and the effect of those risks
on an entity’s financial position.

(b) New and amended standards, and interpretations mandatory for the
first time for the financial year beginning 1 January 2012 but not
currently relevant to the Group.

The following standards and amendments to existing standards have been
published and are mandatory for the Group’s accounting periods
beginning on or after 1 January 2012 or later periods, but not
currently relevant to the Group:

A revised version of IAS 24 “Related Party Disclosures” simplified the
disclosure requirements for government-related entities and clarified
the definition of a related party.

Amendments to IFRS 1 “First-time Adoption of International Financial
Reporting Standards” replace references to a fixed date of 1 January
2004 with “the date of transition to IFRSs”, thus eliminating the need
for companies adopting IFRSs for the first time to restate
derecognition transactions that occurred before the date of transition
to IFRSs, and provide guidance on how an entity should resume
presenting financial statements in accordance with IFRSs after a period
when the entity was unable to comply with IFRSs because its functional
currency was subject to severe hyperinflation.

(c) New standards, amendments and interpretations issued but not
effective for the financial year beginning 1 January 2012 and not early
adopted

The Group’s assessment of the impact of these new standards and
interpretations is set out below.

IFRS 10 “Consolidated Financial Statements” builds on existing
principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated
financial statements of the parent company. The standard provides
additional guidance to assist in the determination of control where
this is difficult to assess. This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group’s Financial Statements.

IFRS 11 “Joint Arrangements” provides for a more realistic reflection of
joint arrangements by focusing on the rights and obligations of the
arrangement, rather than its legal form (as is currently the case). 
The standard addresses inconsistencies in the reporting of joint
arrangements by requiring a single method to account for interests in
jointly controlled entities.  This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group’s Financial Statements.

IFRS 12 “Disclosure of Interests in Other Entities” is a new and
comprehensive standard on disclosure requirements for all forms of
interests in other entities, including joint arrangements, associates,
special purpose vehicles and other off balance sheet vehicles.  This
standard is effective for periods beginning on or after 1 January 2013,
subject to EU endorsement. The Directors are assessing the possible
impact of this standard on the Group’s Financial Statements.

IFRS 13 “Fair Value Measurement” improves consistency and reduces
complexity by providing, for the first time, a precise definition of
fair value and a single source of fair value measurement and disclosure
requirements for use across IFRSs.  It does not extend the use of fair
value accounting, but provides guidance on how it should be applied
where its use is already required or permitted by other standards. 
This standard is effective for periods beginning on or after 1 January
2013, subject to EU endorsement. The Directors are assessing the
possible impact of this standard on the Group’s Financial Statements.

IAS 27 “Separate Financial Statements” replaces the current version of
IAS 27 “Consolidated and Separate Financial Statements” as a result of
the issue of IFRS 10 (see above). This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group’s Financial Statements.

IAS 28 “Investments in Associates and Joint Ventures” replaces the
current version of IAS 28 “Investments in Associates” as a result of
the issue of IFRS 11 (see above).  This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group’s Financial Statements.

Amendments to IAS 1 “Presentation of Financial Statements” require items
that may be reclassified to the profit or loss section of the income
statement to be grouped together within other comprehensive income
(OCI).  The amendments also reaffirm existing requirements that items
in OCI and profit or loss should be presented as either a single
statement or two consecutive statements.  These amendments are
effective for periods beginning on or after 1 July 2012, subject to EU
endorsement. The Directors are assessing the possible impact of these
amendments on the Group’s Financial Statements.

Amendments to IAS 19 “Employment Benefits” eliminate the option to defer
the recognition of gains and losses, known as the “corridor method”
streamline the presentation of changes in assets and liabilities
arising from defined benefit plans, including requiring remeasurements
to be presented in other comprehensive income; and enhance the
disclosure requirements for defined benefit plans, providing better
information about the characteristics of defined benefit plans and the
risks that entities are exposed to through participation in those
plans.  These amendments are effective for periods beginning on or
after 1 January 2013, subject to EU endorsement, and are not expected
to have an impact on the Group’s Financial Statements.

IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”
clarifies when stripping costs incurred in the production phase of a
mine’s life should lead to the recognition of an asset and how that
asset should be measured, both initially and in subsequent periods.
This interpretation is effective for periods beginning on or after 1
January 2013, subject to EU endorsement. The Directors are assessing
the possible impact of this standard on the Group’s Financial
Statements.

Amendments to IFRS 7 “Financial Instruments: Disclosures” require
disclosure of information that will enable users of financial
statements to evaluate the effect or potential effect of netting
arrangements, including rights of set-off associated with the entity’s
recognised financial assets and recognised financial liabilities, on
the entity’s financial position.  This interpretation is effective for
periods beginning on or after 1 January 2013 and interim periods within
those annual periods, subject to EU endorsement. The Directors are
assessing the possible impact of this amendment on the Group’s
Financial Statements.

Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial
Instruments: Disclosures” require entities to apply IFRS 9 for annual
periods beginning on or after 1 January 2015 instead of on or after 1
January 2013, subject to EU endorsement.  Early application continues
to be permitted.  The amendments also require additional disclosures on
transition from IAS 39 “Financial Instruments: Recognition and
Measurement” to IFRS 9. The Directors are assessing the possible impact
of this amendment on the Group’s Financial Statements.

Amendments to IAS 32 “Financial Instruments: Presentation” add
application guidance to address inconsistencies identified in applying
some of the criteria when offsetting financial assets and financial
liabilities.  This includes clarifying the meaning of “currently has a
legally enforceable right of set-off” and that some gross settlement
systems may be considered equivalent to net settlement. This
interpretation is effective for annual periods beginning on or after 1
January 2014, subject to EU endorsement, and is not expected to have an
impact on the Group’s Financial Statements.

Amendments to IAS 12 “Income Taxes” introduce a presumption that
recovery of the carrying amount of an asset measured using the fair
value model in IAS 40 “Investment Property” will normally be through
sale. This interpretation is effective for annual periods beginning on
or after 1 January 2012, subject to EU endorsement, and is not expected
to have an impact on the Group’s Financial Statements.

IFRS 9 “Financial Instruments” specifies how an entity should classify
and measure financial assets, including some hybrid contracts, with the
aim of improving and simplifying the approach to classification and
measurement compared with IAS 39. This standard is effective for
periods beginning on or after 1 January 2015, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group’s Financial Statements.

Amendments to IFRS 10 “Consolidated Financial Statements”, IFRS 11
“Joint Arrangements” and IFRS 12 “Disclosure of Interests in Other
Entities” clarify the IASB’s intention when first issuing the
transition guidance in IFRS 10, provide similar relief in IFRS 11 and
IFRS 12 from the presentation or adjustment of comparative information
for periods prior to the immediately preceding period, and provide
additional transition relief by eliminating the requirement to present
comparatives for the disclosures relating to unconsolidated structured
entities for any period before the first annual period for which IFRS
12 is applied. The amendments are effective for periods beginning on or
after 1 January 2013, subject to EU endorsement. The Directors are
assessing the possible impact of this standard on the Group’s Financial
Statements.

“Annual Improvements 2009 – 2011 Cycle” sets out amendments to various
IFRSs and provides a vehicle for making non-urgent but necessary
amendments to IFRSs:

An amendment to IFRS 1 “First-time Adoption of International Financial
Reporting Standards” clarifies whether an entity may apply IFRS 1:
(a) if the entity meets the criteria for applying IFRS 1 and has applied
IFRS 1 in a previous reporting period; or
(b) if the entity meets the criteria for applying IFRS 1 and has applied
IFRSs in a previous reporting period when IFRS 1 did not exist.
The amendment also addresses the transitional provisions for borrowing
costs relating to qualifying assets for which the commencement date for
capitalisation was before the date of transition to IFRSs.

An amendment to IAS 1 “Presentation of Financial Statements” clarifies
the requirements for providing comparative information:
(a) for the opening statement of financial position when an entity
changes accounting policies, or makes retrospective restatements or
reclassifications; and
(b) when an entity provides financial statements beyond the minimum
comparative information requirements.

An amendment to IAS 16 “Property, Plant and Equipment” addresses a
perceived inconsistency in the classification requirements for
servicing equipment.

An amendment to IAS 32 “Financial Instruments: Presentation” addresses
perceived inconsistencies between IAS 12 “Income Taxes” and IAS 32 with
regard to recognising the consequences of income tax relating to
distributions to holders of an equity instrument and to transaction
costs of an equity transaction.

An amendment to IAS 34 “Interim Financial Reporting” clarifies the
requirements on segment information for total assets and liabilities
for each reportable segment.

The amendments are effective for periods beginning on or after 1 January
2013, subject to EU endorsement. The Directors are assessing the
possible impact of this standard on the Group’s Financial Statements.

4  Segmental reporting

The Company operates in three geographical areas, UK, Brazil, and Other,
with operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative in
nature whilst the activities in Brazil and Peru relate to exploration
and evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.


    2012                      UK         Brazil        Other          Total

                        9 months 9 months ended     9 months 9 months ended
                           ended   30 September        ended   30 September
                    30 September           2012 30 September           2012
                            2012                        2012

                               £              £            £              £

    Revenue                    -              -            -              -

    Administrative     (761,412)      (496,490)     (22,165)    (1,280,067)
    expenses

    Profit / (Loss)    (106,048)       (75,049)            -      (181,097)
    on foreign
    exchange

    Other operating       92,402              -            -         92,402
    income

    Loss from          (775,058)      (571,539)     (22,165)    (1,368,762)
    operations per

    reportable
    segment

    Inter segment              -        264,866       49,012        313,878
    revenues

    Depreciation         (1,440)        (2,928)            -        (4,368)
    charges

    Additions to               -      3,295,035            -      3,295,035
    non-current
    assets

    Reportable         7,773,803     26,004,448      819,771     34,598,022
    segment assets

    Reportable         2,997,758      3,036,533            -      6,034,291
    segment
    liabilities

    2011                      UK         Brazil        Other          Total

                        9 months 9 months ended     9 months 9 months ended
                           ended   30 September        ended   30 September
                    30 September           2011 30 September           2011
                            2011                        2011

                               £              £            £              £

    Revenue                    -              -            -              -

    Administrative     (940,570)      (262,368)     (19,945)    (1,222,883)
    expenses

    Profit / (Loss)          133              -            -            133
    on foreign
    exchange

    Other operating    (234,863)              -            -      (234,863)
    income

    Acquisition          407,369              -            -        407,369
    costs expensed

    Loss from          (767,931)      (262,368)     (19,945)    (1,050,244)
    operations per

    reportable
    segment

    Inter segment              -        179,041       39,120        218,161
    revenues

    Depreciation           (611)        (3,498)            -        (4,109)
    charges

    Additions to               -      2,587,490            -      2,587,490
    non-current
    assets

    Reportable         6,922,127     25,956,482      779,036     33,657,645
    segment assets

    Reportable         3,155,212      3,352,060            -      6,507,272
    segment
    liabilities

    2012                      UK         Brazil        Other          Total

                        3 months 3 months ended     3 months 3 months ended
                           ended   30 September        ended   30 September
                    30 September           2012 30 September           2012
                            2012                        2012

                               £              £            £              £

    Revenue                    -              -            -              -

    Administrative     (243,000)      (125,646)      (1,438)      (370,084)
    expenses

    Profit/(loss)       (77,343)       (18,557)            -       (95,900)
    on foreign
    exchange

    Other operating       18,467              -            -         18,467
    Income

    Loss from          (301,876)      (144,203)      (1,438)      (447,517)
    operations per

    reportable
    segment

    Inter segment              -         98,077       16,474        114,551
    revenues

    Depreciation           (339)          (939)            -        (1,278)
    charges

    Additions to               -        869,942            -        869,942
    non-current
    assets

    2011                      UK         Brazil        Other          Total

                        3 months 3 months ended     3 months 3 months ended
                           ended   30 September        ended   30 September
                    30 September           2011 30 September           2011
                            2011                        2011

                               £              £            £              £

    Revenue                    -              -            -              -

    Administrative     (274,810)      (135,298)     (10,497)      (420,605)
    expenses

    Profit/(loss)       (82,497)              -            -       (82,497)
    on foreign
    exchange

    Acquisition         (44,510)              -            -       (44,510)
    costs expensed

    Other operating       47,607              -            -         47,607
    Income

    Loss from
    operations per

    reportable         (354,210)      (135,298)     (10,497)      (500,005)
    segment

    Inter segment              -         99,034       13,199        112,233
    revenues

    Depreciation           (247)        (1,218)            -        (1,465)
    charges

    Additions to               -        501,721            -        501,721
    non-current
    assets

A reconciliation of adjusted loss from operations per reportable segment
to profit/(loss) before tax is provided as follows:


                            9 months     9 months     3 months     3 months
                               ended        ended        ended        ended
                        30 September 30 September 30 September 30 September
                                2012         2011         2012         2011

                                   £            £            £            £

    Profit /(Loss) from  (1,368,762)  (1,050,244)    (447,517)    (500,005)
    operations per
    reportable segment

    - Charge for Share     (349,133)    (145,209)    (116,378)     (52,091)
    Options Granted

    Toronto Stock           (88,084)                  (25,102)
    Exchange fees and
    associated costs

    - Gain on sale of              -       10,876            -       10,876
    fixed asset

    - Finance income          59,116       95,199       15,725       37,179

    - Finance costs        (125,894)    (136,944)     (41,965)     (45,648)

    Profit/(Loss) for    (1,872,757)  (1,226,322)    (615,237)    (549,689)
    the period from
    continuing
    operations

5 Other operating income

Included in other operating income for the nine months ended 30
September 2011 is US$500,000 (30 September 2012: nil) relating to an
option payment received from Anglo Pacific Group plc (“Anglo”). On 12
January 2011 the Company signed an option agreement with Anglo whereby
Anglo received the option to acquire a Net Smelter Royalty (“NSR”) on
future nickel revenues of the Araguaia project in exchange for the
option payment.

If Anglo chooses to exercise the option, which is exercisable upon
completion of a pre-feasibility study of the Araguaia project, it will
pay Horizonte US$12.5m and shall receive a NSR. The NSR will be at a
rate of 1.5% of nickel revenue produced up to 30,000 tonnes per annum,
reduced by 0.02% for every 1,000 tonnes per annum above this rate. The
rate will be fixed at a minimum rate of 1.1% for production of 50,000
tonnes per annum and above.

6  Intangible assets

Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise internally
generated and acquired assets. Additions are net of amounts payable by
the Group’s strategic partners under various joint venture agreements,
amounting to £ 796,168.


    Group                                     Exploration and            

                                    Goodwill evaluation costs       Total

                                           £                £           £

    Cost                                                                 

    At 1 January 2012                387,378       18,968,079  19,355,457

    Additions                              -        3,295,035   3,295,035

    Exchange rate movements         (44,613)      (2,200,616) (2,245,229)

    Net book amount at 30 September  342,765       20,062,498  20,405,263
    2012

7  Share Capital


    Issued and fully    Number of Ordinary shares Share premium      Total
    paid                   shares               £             £          £

    At 1 January 2012 279,559,980       2,795,600    18,772,797 21,568,397

    Issue of ordinary  80,486,190         804,862     5,710,387  6,515,249
    shares

    Issue costs                 -               -      (98,657)   (98,657)

    At 30 September   360,046,170       3,600,462    24,384,527 27,984,989
    2012

8  Dividends

No dividend has been declared or paid by the Company during the nine
months ended 30 September 2012 (2011: nil).

9  Loss per share

The calculation of the basic loss per share of 0.593 pence for the 9
months ended 30 September 2012 (30 September 2011 loss per share: 0.451
pence) is based on the loss attributable to the equity holders of the
Company of £1,872,757 for the nine month period ended 30 September 2012
(30 September 2011: £1,226,322) divided by the weighted average number
of shares in issue during the period of 315,618,569 (weighted average
number of shares for the 9 months ended 30 September 2011:
272,084,955).

The calculation of the basic loss per share of 0.171 pence for the 3
months ended 30 September2012 (30 September 2011 earnings per share:
0.197 pence) is based on the loss attributable to the equity holders of
the Company of £615,237 for the three month period ended 30 September
2012 (3 months ended 30 September 2011:   £549,689) divided by the
weighted average number of shares in issue during the period of
360,046,710 (weighted average number of shares for the 3 months ended
30 September 2011:  279,559,980).

Details of share options that could potentially dilute earnings per
share in future periods are disclosed in the notes to the Group’s
Annual Report and Financial Statements for the year ended 31 December
2011.

10  Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

11 Related party transactions

The nature of related party transactions of the Group has not changed
from those described in the Group’s Annual Report and Financial
Statements for the year ended 31 December 2010.

12 Commitments

The Group had capital expenditure contracted for at the end of the
reporting period but not yet incurred of £ 1,035,564 relating to
intangible exploration assets and operating lease commitments of £
58,575. All other commitments remain as stated in the Group’s Annual
Financial Statements for the year ended 31 December 2011.

13  Events after the reporting period

On November 6(th) 2012 the Company announced that it had subscribed through a private
placement for 8,000,000 new shares in Guyana Frontier Mining Corp.
(“Guyana”) at a price of C$ 0.05 per share, with an additional
8,000,000 warrants with an exercise price of C$ 0.10 per share and
valid for 24 months and on the same date had entered into an agreement
with Guyana Frontier whereby upon completion Guyana would acquire the
subsidiary holding the Falcao project in consideration for 84,000,000
new shares in Guyana. Completion of the transaction with regard to
Falcao is subject to approval by the shareholders of Guyana Frontier.

14 Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of
Directors on 13(th) November 2012.

 

SOURCE Horizonte Minerals plc


Source: PR Newswire