Edison Research Note: Cadence Minerals #KDNC – A mispriced miner?
Cadence Minerals #KDNC is a mining-focused investment company with unlisted investment assets that the market appears to be clearly mis-pricing.
Its portfolio of public equities accounts for £10.2m of its £12.7m market cap, leaving an implied combined value of £2.5m for its 30% stake in the Amapá #ironore project and its minority stake in the Sonora #lithium project. In our view each of these is worth more than this, and we believe a conservative base-case valuation of both to be £45m or 26p/share at their current stages of development.
This values Cadence at 32.2p/share, more than four times its current valuation. Our high-case valuation is 57p/share.
Full research note here