Home » Cadence Minerals (KDNC)

Category Archives: Cadence Minerals (KDNC)

Cadence Minerals – Macarthur Minerals (TSX-V:MMS) CEO Joe Phillips updates Proactive Investors on recent preliminary economic assessment results at its Lake Giles Iron Ore Project

Macarthur Minerals Limited (TSX-V:MMS) chief executive officer Joe Phillips updates Proactive Investors on recent preliminary economic assessment results at its Lake Giles Iron Ore Project in Western Australia.

Phillips notes the company reduced its operational expenditure as well as overall capital costs for the project.

“Over the last 10 years Macarthur has produced two preliminary economic assessments and a pre-feasibility study,” says Phillips. “They were both standalone projects for hematite and magnetite – over the last 6 weeks we’ve actually combined those two studies together.”

Iron ore hits new five-year high – Kallanish

June 12th via Kallanish

Seaborne iron ore prices broke another new high on Wednesday as they extended Tuesday’s surge a little further. Supply concerns have continued to spread and iron ore has now increased by $6.69/tonne in three days.

The Kallanish KORE 62% Fe index gained another $1.25/t to $104.94/dry metric ton cfr Qingdao, the highest level since 6 May 2014. On COREX, 170,000 tonnes of Brazilian Blend sold at $111.1/t with a laycan in 10-19 July, while 90,000t of Jimblebar sold at a floating price.

On the Dalian Commodity Exchange, September iron ore settled at CNY 769.5/t ($111.25/t), up another CNY 24.5/t, while on the Singapore Exchange July 62% Fe futures settled down $0.56/t at $102.29/t. In Tangshan, billet prices slipped CNY 10/t to CNY 3,500/t.

Iron ore port markets continue to be constrained by low arrivals. Continuing unconfirmed rumours that Rio Tinto would cancel some shipments of PB fines have added to the sense of tightness.

As if that was not enough, the Development and Reform Bureau of Zunhua in Hebei issued a notice that it would cut power to 86 beneficiation plants for 45 days starting this week. That will take out 600,000t of concentrate from the local market.

Cadence Minerals (KDNC) – Auroch Minerals (ASX: AOU) – Gravity Survey Provides Compelling Drill Target at Arden.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Auroch Minerals Limited (ASX: AOU) (“Auroch”) that it has successfully completed a detailed ground-gravity survey at its Arden Project (Arden) near Port Augusta, South Australia. The survey successfully delineated an intense gravity anomaly extending over 2km at the Ragless Range prospect. The anomaly may be indicative of thickened mineralised horizons of the high-grade zinc mineral smithsonite that was identified in drill-hole RRDD007, which has a very high density and hence contrasts greatly with the relatively low-density sedimentary host rocks of the area.

Highlights:

  • A detailed ground-gravity survey was completed at the Arden Zinc Project in South Australia
  • The high-resolution survey delineated a significant gravity anomaly extending over 2km at the Ragless Range prospect, coincident with areas of anomalous zinc values at surface
  • The gravity anomaly may be indicative of thickened mineralised horizons of the high-density, high-grade zinc mineral smithsonite that was identified in drill-hole RRDD007, and provides a direct targeting tool for the next phase of drilling
  • The Company continues to advance the Horn and Saints Nickel Projects in Western Australia towards a maiden drilling programme in the coming month  

Located some 335km north of Adelaide, the Arden Project boasts a large relatively unexplored exploration area of 1,664km2 and is highly prospective for sedimentary-exhalative (SEDEX) mineralisation. Within the Arden Project, up to three horizons of SEDEX zinc mineralisation were identified from the recent drilling programme at the Ragless Range Prospect extending over 3km of strike and open in every direction.

Cadence currently owns approximately 6.5% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

The full release can be found at: https://www.investi.com.au/api/announcements/aou/7851ea69-490.pdf

Cadence Minerals CEO Kiran Morzaria commented: “Under the guidance of Aidan Platel and his team, the Auroch investment case continues to build. Cadence Minerals look forward to the next phase of developments.”

– Ends –

 

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Cadence Minerals (KDNC) – Macarthur Minerals (TSX-V: MMS) Files Technical Report for Lake Giles Iron Ore Project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Macarthur Minerals (TSX-V: MMS) (“Macarthur”) regarding the results of the Preliminary Economic Assessment (“PEA”) undertaken by independent consultants Engenium Pty Ltd (“Engenium”) for its 100% owned Lake Giles Iron Ore Project (“the Project”) in Western Australia.

The PEA was completed for a 2.5 to 3.4 Mtpa operation incorporating the Moonshine Magnetite and Ularring Hematite Mineral Resources to produce a high-grade blended concentrate in excess of 65% Fe. The technical and financial evaluation in the PEA indicates the Project is potentially economically viable and further project development is justified.  

The independent technical report, entitled “NI43-101 Technical Report, Macarthur Minerals Limited, Preliminary Economic Assessment Lake Giles Iron Project, Western Australia, (the “2019 Technical Report”) with an issue date of June 13, 2019, was prepared in accordance with the requirements of National Instrument 43-101 (“NI 43-101”).  The 2019 Technical Report is filed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website at www.sedar.com (filing date: June 17, 2019) and on the Company’s website at www.macarthurminerals.com.

Cadence holds approximately 9.8% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

Macarthur Announcement. PEA Highlights

The key financial outcomes are summarised below:

  • Project after-tax real Net Present Value (“NPV”) of US$375 million at an 8% discount rate, based on a discounted cash flow model with:
    • a project life of 31 years with saleable product of 2.5 to 3.4 million tonnes per annum (“Mtpa”)
    • total sales of 83 million tonnes; and
  • Total Life of Mine (“LOM”) free cash flow of US$1,465m.
  • Total direct operating costs (excluding royalties) are estimated at US$3.1 billion (rounded).
  • Total project costs (direct and indirect operating costs, capital spend including contingency, rehabilitation and sustaining capital) are estimated at US$4.5 billion (rounded).
  • The project is potentially highly profitable with a discounted payback (based on NPV) in 3 years.
  • Average operating costs of US$37.62 including US$31.30/t Free on Board (“FOB”) for hematite and US$37.43/t FOB for magnetite.
  • Total revenue estimated at US$6.8 billion (rounded).
  • Total capital cost estimated at US$326 million including contingency of US$44 million.
  • Rehabilitation costs of US$38 million and sustaining capital expense over LOM of US$54 million.

Note: The outcomes of the economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realised.

Revised Project Strategy

In February 2011, Macarthur released its Preliminary Economic Assessment (“2011 PEA”) for the Moonshine Magnetite Project for the production of 10 Mtpa of high-grade magnetite concentrate (press release dated February 7, 2011). The 2011 PEA outlined several logistical and port scenarios including slurry transport 110 km to a dewatering plant and rail siding south of the town of Menzies.

Similarly, in September 2012, Macarthur released its Prefeasibility Study (“2012 PFS”) (press release dated August 16, 20122) for the Ularring Hematite Project, which focused on mining 2 million tonnes per annum (“Mtpa”) of hematite/goethite iron ore. The 2012 PFS outlined a wet beneficiation process that would produce a +60% Fe sinter fines product.  

Since the release of those studies, the iron ore market has undergone a dramatic shift where low grade iron ore <60% Fe is currently heavily discounted while the high-grade market, including magnetite concentrate, is attracting premium pricing.  

In response, Macarthur has revised its strategy to align the Projects with the robust current and forecast market conditions, capital markets and available capacity of regional infrastructure. The major impediment to development of the Moonshine Magnetite Project envisaged by the 2011 PEA, was the substantial capital cost and access to export capacity at the Port of Esperance. The revised project strategy targets an initial production rate of 3 Mtpa of high grade, low impurity concentrate, along with streamlined project infrastructure, significantly reducing capital cost.  

The revised Projects will see a combined hematite and magnetite operation where the product will be a high grade, blended magnetite and hematite concentrate. This strategy allows low grade hematite (~56% Fe) to be blended with a high-grade magnetite concentrate (~68%) in a ratio to achieve a final concentrate grading 65% Fe.

Operating and Capital Costs

The operating strategy for the Lake Giles Project is to export high-grade (+65% Fe) magnetite concentrate via the existing Port of Esperance (“Port”) owned and operated by the Western Australian Government. Magnetite concentrate will be processed on site, road hauled 90km to the existing open access rail network operated by Arc Infrastructure and then railed to the Port of Esperance.

As reported on April 8, 2019, access to the existing rail network has been confirmed and Macarthur has entered into an Exclusive Negotiation Agreement with Aurizon for rail haulage services. The Company is in advanced discussions with the Western Australian Government for access to the Port and the capital estimate includes infrastructure upgrades at the Port.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=7834524061311745&qm_symbol=MMS 

Cadence Minerals CEO Kiran Morzaria commented: “The PEA undertaken by Macarthur on the Lake Giles Iron Ore project confirms quality, potential profitability and long term revenue potential for the Lake Giles iron Ore project, driven, as the company points out, by a dramatic shift in high grade magnetite concentrate pricing.”

“As shareholders, Cadence are delighted to continue to support Cameron McCall and the Macarthur Minerals team.”

 

This news release is not for distribution to United States Services or for Dissemination in the United States. 

– Ends –

 

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Cadence Minerals Plc (KDNC) – European Metals (AIM: EMH) PFS Update Confirms Potential of Low Cost Lithium Hydroxide Production at Cinovec

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the results published today by European Metals Holdings Limited (“European Metals” or “EMH”) from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O).  This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore. EMH states that the results significantly enhance the forecast economics of the Cinovec Project.

Highlights:

  • Net estimated overall cost of production post credits:  $3,435 / tonne LiOH.H2O
  • Project Net Present Value (“NPV”) increases 105% to:  $1.108B (post tax, 8%)
  • Internal Rate of Return (“IRR”) increased 37% to 28.8% (post tax)
  • Total Capital Cost:  $482.6M
  • Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes
  • Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore
  • The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand

Cadence holds approximately 19.1 percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec.

The full release can be found at:  

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/14112338.html

Cadence Minerals CEO Kiran Morzaria commented: “Great work from Keith Coughlan and the EMH team. This important update to the PFS has increased the project NPV and once again highlighted the strategic importance of the Cinovec project for the European lithium market.”

– Ends –

 

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Mining Journal – Iron ore price to incentivise swing production, says BMO

Current iron ore prices of US$100/tonne should be enough to spark activation of about 60 million tonnes of swing production to “balance the market”, according to BMO, with perhaps 40Mt of that coming from China.

BMO director, equity research, metals & mining – international, Edward Sterck, said a restart of Vale’s stalled 30Mtpa Brucutu mine in Brazil could restore 15Mt of production in the second half of this year. But there was no sign of a restart yet.

Global iron ore production has been impacted in the first half of 2019 by Vale’s dam failure at Brumadinho in Brazil, and the continuing legal issues around Brucutu, as well as weather and fire disruptions affecting Rio Tinto and BHP in Western Australia. BMO says shipping data suggests Rio Tinto and BHP are back on track, but Vale continues to struggle.

A need for 60Mt of swing production – US$6 billion of iron ore sales – could open up opportunities for Australian and other producers, though Sterck suggested to Mining Journal that higher production and earnings were “already baked in” to valuations.

“The iron ore price remains above our forecasts, suggesting upside potential to estimates,” he said.

“The high price should outweigh the supply disruption/shortfall [in the first half].”

Cadence Minerals #KDNC – Yangibana Rare Earth Joint Venture Partner signs Second Offtake MOU Agreement with Schaeffler AG

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana Project”), has signed a Second Offtake MOU Agreement with Schaeffler AG (“Schaeffler”).

Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.

Hastings Announcement Highlights:

  • Hastings announces its second German offtake MOU and investment with Schaeffler for the future supply of Mixed Rare Earth Carbonate (MREC) from the Yangibana Project.
  • Schaeffler supported Hastings in its eligibility for the Euler Hermes German Government UFK loan scheme.

Schaeffler is a global automotive and industrial supplier of high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, primarily focussed on the automotive industry.  In 2018 it generated sales of approximately Euro 14.2 billion with around 92,500 employees, Schaeffler is one of the world’s largest family companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales offices.

Under the MOU, the parties have outlined their intent to enter into a binding commercial offtake agreement within the next 6 months for the sale and purchase of MREC, which will be produced from Yangibana, Western Australia. The framework for the commercial offtake agreement is set out in the MOU, and the final terms and conditions will be formalised in a contract. Schaeffler’s intention in entering into an offtake agreement is to ensure reliable supplies of rare earth material in the future.

The Parties have undertaken to negotiate in good faith to reach agreement for a 10 year commercial offtake contract to supply MREC which contains the critical raw materials of neodymium (Nd) and praseodymium (Pr).  NdPr is a critical raw material used in the manufacture of permanent magnets, the key component in electric motors.

Schaeffler is also supporting Hastings in its eligibility for the German government’s untied loan guarantee scheme (known as UFK) in its project financing for the construction of its mine and processing plant in the Upper Gascoyne of Western Australia.

The full release can be found at: https://www.asx.com.au/asxpdf/20190611/pdf/445qzvlt14cb9w.pdf

Cadence Minerals CEO Kiran Morzaria commented: “This second offtake agreement announced with Schaeffler provides further validation of the Yangibana Project potential and our joint venture strategy with Hastings Technology Metals. We look forward to further developments.”

– Ends –

 

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to beforward-lookingstatements. Forward-lookingstatements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-lookingstatements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.

Cadence Minerals #KDNC – CEO Kiran Morzaria discusses the acquisition of the Amapá iron ore mine with BRR Media

Cadence Minerals #KDNC – Binding Investment to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that further to its announcement on the 21 May 2019  it has entered into a binding investment agreement (“the  Agreement”) with Indo Sino Pte. Ltd. (“Indo Sino”) to invest in and acquire up to a 27% interest in the former Anglo American plc (“Anglo American”) and Cliffs Natural Resources (“Cliffs”) Amapá iron ore mine, beneficiation plant, railway and private port (“Amapá Project”) owned by DEV Mineração S.A. (“Amapá”).

Further information on the project is available in the Company’s announcement of the heads of terms in relation to the investment on 21 May 2019 and the terms of the binding investment agreement are consistent with the heads of terms.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html

Details of the Agreement with Indo Sino

The Agreement with Indo Sino is to invest in and acquire up to a 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”).  On approval of the Judicial Review Process (“JRP”) and the transfer of equity of Amapá to the JV Co the JV Co will own 99.9% of the Amapá Project. Should Indo Sino seek further investors or an investment in the JV Co the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.

To acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.

Cadence’s investment is conditional on several material pre-conditions, which include the grant of key operating licences and the release of bank securities over the asset. On completion of Cadence’s investment (not including the first right of refusal) our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case Cadence’s shareholding in the JV Co will not go above 49.9%.

On completion of the US$ 6 million investment Cadence will have the right to appoint two members to a five-member board with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.

– Ends –

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 

For further information:

Cadence Minerals plc

                                                   +44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

                                +44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Novum Securities Limited (Joint Broker)

                                +44 (0) 207 399 9400

Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

The Age: Even if it all turns sour, 2019 is already a vintage year for iron ore

The Age 30th May 2019

On Tuesday the market watched in awe as the iron ore price was elevated to eye watering levels of $US108. By Wednesday, fresh speculation over marginal additions to supply caused the Chinese iron ore futures to wobble – the price dropped 2.3 per cent.

When a commodity has soared to a five-year high in a matter of months, wild swings are not surprising.

But make no mistake 2019 will go down in history as a vintage year for iron ore.

The rally that analysts find hard to predict.
The rally that analysts find hard to predict.

Even if the price dropped significantly in the second half of this calendar year to the $US80 levels it traded at towards the end of last year, the high prices for the first five months of this year would have already bolstered the profitability of the major Australian producers and the coffers of the federal and West Australian governments.

We haven’t seen iron ore prices at this level since 2014.

If the current spot price was factored into 2020 financial year earnings for our major miners, their profits would spike 60 per cent, according to analysts.

And a year at these prices would add about $4 billion to federal government coffers.

Already this calendar year Rio shares have risen 38 per cent, Fortescue stock has doubled in price, and BHP’s shares are 12 per cent higher.

How much is left in the tank for the iron ore price run and how long it can be sustained at levels above $US100 has left forecasters at a loss; they have had to revisit their assumptions as the price trajectory regularly leapfrogs over their targeted iron ore prices.

Back in February, CBA commodities analyst Vivek Dhar predicted the iron ore price could hit $US100 – a view that at the time was seen by some as outlandish.

Three months on and the product that feeds Chinese steel mills is in even higher demand, Chinese stockpiles are at a dangerously low level, supply in the first three months of the year from Australian producers was curtailed by weather events and most importantly the production issues that have plagued Brazil are not not getting any better.

Since the mine tailings dam burst in Brazil in January, the ripple effect and the actions of regulators and courts have forced suspensions of various operations – including dams and mines.

It has resulted in a roller-coaster ride for the iron ore price.

In May, Brazil’s major producer, Vale, told prosecutors in the state of Minas Gerais that a dam was at risk of rupturing at its Gongo Soco mine, about 60 kilometres from where its Brumadinho dam collapsed in January, killing more than 230 people.

The Brumadinho dam disaster and subsequent mine and dam closures in Brazil had prompted Vale, the world’s biggest iron ore miner, to slash its iron ore sales estimate for this year.

Hopes that Vale could increase its shipments were dashed early in May after a court ordered a halt to its operations at its Brucutu iron ore mining complex, reversing a lower court decision that had allowed the mines’ activities to resume.

Analysts have generally underestimated the lengthy regulatory fallout and the repercussions associated with industrial disasters. This time is no different.

And they certainly misread the strength of China’s steel output this year – which, on an annualised basis, topped 1 billion metric tonnes.

Few have been willing to formally predict how long this iron ore boom will continue because it is not a cyclical one.

Analysts have misread the strength of China’s steel output this year.
Analysts have misread the strength of China’s steel output this year.CREDIT:QILAI SHEN

However, the general consensus is that markets should not factor in the resumption of much additional supply from Vale this year.

And this should put a floor under the price.

Some new supply (from marginal producers in India and China) may come on stream later this year – but new entrants will also be waiting to hear about the length of supply disruptions in Brazil.

Currently there are a raft of estimates for 2019 at between $US90 and $US95 and most projections fall back to $US80 levels in 2020.

For investors with iron ore stocks, 2019 is the year they hit the jackpot.

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.