Tag Archives: Amapá Iron Ore Project

Cadence Minerals (AIM: KDNC) is pleased to announce its final results for the year ending 31 December 2025. The full Annual Report and Audited Financial Statements will be available on the Company’s website at https://www.cadenceminerals.com/  and will be posted to shareholders shortly.

Chairman’s Statement

Dear Shareholders,

I present the Company’s Annual Report and Audited Financial Statements for the year ended 31 December 2025.

The year under review was one of measured progress for Cadence, set against continued uncertainty in commodity and capital markets. The Company remained pre-production at year end, and I recognise that progress has taken longer than shareholders would have wished. During the year the Board made one important strategic decision. Rather than pursuing the full redevelopment of Amapá as a single project, we prioritised Azteca as the first operating stage. That decision reduced initial capital requirements and established a more practical route toward operating cash flow.

Commodity conditions were mixed. Iron ore proved relatively resilient, particularly where product quality was higher, while lithium experienced a more pronounced correction. These cycles are part of the sector. The Board’s response was to concentrate capital on assets with clearer near-term value drivers and to maintain financial discipline. On those measures, I believe Cadence ended the year in a stronger position than it began.

For reporting purposes, Amapá is presented as two related stages: Azteca, the near-term restart project, and the Amapá DR Project, the larger redevelopment opportunity. 

During the year, Cadence completed several defined Azteca milestones. We defined the production plan, agreed heads of terms for a prepayment offtake structure and subsequently executed a binding agreement. Cadence funded its participation in the Azteca restart through equity while the balance of project funding is provided through the binding prepayment offtake structure. The Board remains mindful of dilution; however, this funding enabled the Company to maintain momentum at a critical stage of the Azteca restart and moved the project from planning toward refurbishment.

At the period end, Azteca had a defined production plan, secured funding structure and identified feed material. Commercial production remained dependent upon completion of refurbishment, commissioning and receipt of the Operating Licence. For the Amapá DR Project, work during the year strengthened the longer-term development case, including reductions in projected mining costs. This was a significant achievement, improving the cost framework for the larger development while preserving the pathway toward a 5.5 Mtpa direct reduction grade operation. That development remains dependent on further technical work, financing and regulatory approvals.

Post-period, Azteca received both the Preliminary Environmental Licence and Installation Licence. These approvals allow execution of the approved refurbishment programme and represent an important step in the restart pathway. The remaining critical-path items are refurbishment, commissioning and receipt of the Operating Licence required before commercial operations can commence.

The Sonora Lithium Project remained subject to concession cancellation and legal proceedings. No operational progress was recorded during the year, and the Company’s focus remains on pursuing legal remedies. Post period, non-recourse litigation funding was made available to support the Company’s claims, subject to the terms of the relevant funding agreement.

Cadence has stated its intention to pursue claims under the UK-Mexico BIT. This provides a funded route to pursue the claim, although the timing and outcome of the arbitration process remain uncertain.

Looking ahead, Cadence enters the new financial year with a defined set of near-term milestones at Amapá. The immediate priority is to complete Azteca refurbishment, commission the plant and obtain the Operating Licence. Subject to completion of refurbishment, commissioning activities, satisfaction of licence conditions and receipt of the required operating approvals, Azteca is intended to provide the initial step toward production. 

Progression of the Amapá DR Project will continue in parallel, but remains dependent on further study, financing and regulatory approvals. The Board’s priority is straightforward: complete the Azteca restart steps, preserve funding flexibility and maintain risk control.

Finally, I would like to thank my fellow Board members, our partners and advisers, and all shareholders for their continued support and patience during the year.

Andrew Suckling

Non-Executive Chairman

26 June 2026

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.

Cautionary and 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.

Chief Executive Officer’s Commentary

At the beginning of 2025, Amapá had a clear technical case but an uncertain route to production. During the year we changed the development sequence. We prioritised Azteca because it provides a lower-capital route to initial production and the opportunity to establish operating cash flow before committing capital to the larger Amapá DR Project. Those steps did not eliminate execution risk, but they reduced uncertainty around how the project moves toward operations.

Timelines did move. Additional regulatory and technical work was required, particularly around archaeological clearance, water-related approvals and tailings permitting. This extended the path to commissioning beyond earlier expectations. These items extended the timetable and increased the importance of disciplined cash and funding management during the restart phase. The important distinction is that, over the period and post-period, the nature of the remaining risk changed. The workstreams became more defined, the regulatory pathway narrowed, and the immediate focus moved from project definition to execution readiness.

Post-period, receipt of the Preliminary Environmental Licence and Installation Licence completed the principal permitting milestones required before execution of the refurbishment programme. These approvals do not remove all remaining risk. Azteca still requires licence-compliant refurbishment, commissioning and receipt of the Operating Licence before commercial operations can commence.

The objective remains straightforward: complete refurbishment, commissioning and operating approval, establish Azteca as the first operating platform at Amapá and, subject to successful execution, use that platform to support the broader Amapá development pathway. 

Executive Summary

·    We prioritised Azteca as the first operating phase within the Amapá development strategy.

·    We established the funding and regulatory pathway required to move Azteca into refurbishment.

·    Post-period, refurbishment commenced following receipt of the Preliminary Environmental Licence and Installation Licence.

·    The remaining critical-path items are refurbishment, commissioning and receipt of the Operating Licence required before commercial operations.

·    Capital was directed toward activities expected to shorten the path to first production rather than expanding project scope.

·    The commissioning timetable moved beyond the earlier end-June 2026 target, extending the period before Azteca is expected to contribute operating cash flow.

·    We advanced Sonora into a funded arbitration process, moving it into a legal recovery track. 

What Changed During the Year

Strategy changed from full redevelopment to staged restart | At the start of the year, Amapá was technically defined but still broad in scope and dependency. By year end, the focus had narrowed to Azteca and the steps required to restart operations.

Regulatory uncertainty reduced | Licensing took longer than expected. However, the remaining work became better defined, with a clearer regulatory pathway and fewer unknowns.

Funding aligned to development milestones | We moved away from a single large funding requirement toward a staged approach, with Azteca funded through a defined structure linked to milestones.

Capital and management focus concentrated on Amapá | The Company’s effort is now concentrated on Amapá. Other assets are being managed appropriately, but near-term delivery is focused on Amapá.

Amapá Iron Ore Project

The Amapá Project remains the cornerstone of Cadence’s strategy. The immediate focus is Azteca. The larger Amapá DR Project remains the longer-term redevelopment opportunity. For clarity, Amapá should now be considered as two related but distinct development projects.

Azteca is the near-term restart project. It is based on the refurbishment of the existing plant and the processing of already mined or partly processed material stored on site. Its purpose is to create the first operating platform at Amapá, subject to completion of works, commissioning and operating approval.

The Amapá DR project is the larger, long-term redevelopment project. It is based on the mine, beneficiation plant, rail and port infrastructure and targets production of 5.5 Mtpa of DR-grade concentrate. It remains subject to further studies, financing, infrastructure work and additional approvals.

Azteca is not a substitute for the larger Amapá DR project. It is the first stage in the pathway toward it. During the year, Azteca progressed from concept toward an execution-ready project. It now has a defined feed source, production plan and funding framework, subject to completion of the remaining steps required for operation. These include licence-compliant works, plant refurbishment, commissioning and the receipt of the relevant operating licence.

The larger Amapá DR project continues to be supported by prior technical work, including the updated PFS and cost optimisation initiatives. During the period, revised mining cost assumptions improved the project’s cost position. However, progression of this larger project remains dependent on further studies, financing and additional approvals.

Subject to successful commissioning, Azteca is intended to establish the Company’s first operating cash flow and provide a platform from which the broader DR Project can be advanced.

Funding and Capital Structure

A key development during the year was the establishment of a binding funding structure for Azteca.

The Company entered into a binding prepayment offtake arrangement to support the restart of the plant, together with securing its own participation funding. This structure is intended to fund licensing, refurbishment, commissioning and initial working capital requirements, while reducing, but not eliminating, the need for additional equity funding.

The objective was to fund only those activities that moved Azteca closer to production while limiting further shareholder dilution.

Current Status

At the date of approval of this report, Azteca has moved beyond project definition and permitting into execution. Mobilisation has been completed; refurbishment activities are underway and execution workstreams are progressing across the plant. The commissioning timetable moved beyond the earlier targeted end-June 2026 date and is now dependent on completion of the refurbishment programme, commissioning works and receipt of the Operating Licence required before commercial operations can commence. In parallel, DEV continues to assess infrastructure, environmental and operational readiness requirements associated with the transition toward commercial operations.

The principal milestones that remain are execution of the refurbishment programme, successful commissioning and receipt of the Operating Licence. Subject to successful completion of these activities, Azteca is intended to become the first operating stage within the broader Amapá development strategy.

Sonora Lithium Project

Cadence continues to hold a 30% interest in the Sonora Lithium Project. During the period, Sonora remained subject to concession cancellation and associated legal proceedings. There was no change to the operational status of the project. 

Subsequent to the period end, arbitration funding was secured, providing access to non-recourse funding to support the Company’s legal claims, subject to the terms of the funding arrangements. Any outcome remains dependent on legal process and determination.

Risk and Outlook

The Company’s principal risks are now operational rather than developmental. The key remaining milestones are completion of refurbishment, commissioning and receipt of the Operating Licence.

Additional environmental, tailings, infrastructure or operating requirements may arise during refurbishment and commissioning. These could increase costs, defer first production or require additional funding.. Delays to commissioning or ramp-up would defer the point at which Azteca contributes operating cash flow and may increase the Company’s reliance on additional equity funding.

At Sonora, risks relate to the outcome and duration of legal proceedings.

Looking ahead, the Company’s immediate priority is to progress Azteca through refurbishment, commissioning and operating approval, subject to completion of the required steps. Beyond this, the focus remains on advancing the longer-term Amapá DR Project in a disciplined manner. The priorities are clear: complete refurbishment, commission the plant, obtain the Operating Licence and establish operating cash flow.

Kiran Morzaria

Chief Executive Officer

26 June 2026

Full financial statements here