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Cadence Minerals #KDNC – Azteca Restart Update
Cadence Minerals plc (AIM: KDNC) announces an update regarding the restart of the Azteca Plant at the Amapá Iron Ore Project in Brazil.
Highlights
- Installation Licence (“LI”) was granted by SEMA/AP and announced on 5 May 2026, authorising approved refurbishment and installation works at Azteca.
- Following grant of the LI, the offtaker requested clarification on the LI / Operating Licence (“LO”) sequencing and construction funding tranches. Clarification documentation was agreed, and the first construction funding tranche was cleared on the 25 May 2026.
- DEV has executed the primary contractor agreement, with mobilisation activities expected to commence next week and full contractor mobilisation expected during the second week of June 2026.
- The previous end-June commissioning target was based on an approximately 90-day restart programme from the originally anticipated licence timing, including operational contingency.
- Due to a combination of the licensing timeline and the request for clarification by the offtaker, commissioning activities are now expected approximately 60 days from receipt of the first construction funding tranche on 25 May 2026 under an accelerated schedule, or approximately 90 days from that date where normal operational contingency is incorporated.
Kiran Morzaria, Chief Executive Officer of Cadence, commented:
“Having just returned from site, I remain encouraged by the practical progress being made at Azteca and the level of operational readiness across the project.
During the visit, I worked closely with our JV partners and technical teams reviewing execution scheduling, critical path activities and operational readiness planning, including recruitment of key operational personnel and implementation of site control systems.
With the LI granted, funding now progressing and contractor mobilisation expected to commence shortly, Azteca recommissioning is progressing rapidly into the execution phase.”
Current Status
The LI granted by SEMA/AP authorises the approved refurbishment, construction and installation works associated with the Azteca restart programme.
Due to a combination of the licensing timeline and the above request for clarification by the offtaker and based on the current execution schedule, commissioning activities are now expected approximately 60 days from receipt of the first construction funding tranche on 25 May 2026 under an accelerated schedule, or approximately 90 days from that date where normal operational contingency is incorporated, subject to completion of the approved works and receipt of the LO.
DEV has executed the primary contractor agreement and expects mobilisation activities to commence next week with full contractor mobilisation expected during the second week of June 2026.
Execution Programme
As previously disclosed, management’s end-June commissioning target was based on anticipated receipt of the LI by the end of March 2026 and an approximately 90-day execution programme which incorporated operational contingency for execution slippage or unplanned works.
The LI was granted later than originally anticipated at the end of April, materially utilising the operational contingency previously built into the programme. DEV and Cadence continued to believe the end-June commissioning target remained achievable following receipt of the LI under an accelerated execution programme.
The additional time required to finalise the clarification documentation means that, based on the current execution schedule, DEV currently expects commissioning activities approximately 60 days from receipt of the first construction funding tranche on 25 May 2026 under an accelerated schedule, or approximately 90 days from that date where normal operational contingency is incorporated. This subject to normal satisfaction of applicable LI conditions and receipt of the LO for commercial operations. Accordingly, given the licensing timeline and the request for clarification by the offtaker, the stated commissioning target for end June 2026 has now moved to end of July under an accelerated development timeline and end of August 2026, if we include normal contingencies.
Licensing and Remaining Approvals
In accordance with the standard Brazilian environmental licensing sequence, an LO is required for commercial operations and is expected to be granted following completion of the approved construction and refurbishment works authorised under the LI and implementation of the relevant operational and environmental control measures.
Progression toward the LO has already commenced and will focus principally on demonstrating compliance with the applicable LI conditions and operational readiness requirements, rather than a new project design approval process.
The Company will provide further updates as mobilisation progresses.
Cadence Ownership
As of the end of March 2026, Cadence’s total investment in the Amapá Project is approximately US$16.1 million, representing a 36.2% equity stake.
About the Amapá Project
The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.
An updated Pre-Feasibility Study published on the 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction (“DR”) grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
As part of a staged redevelopment strategy, the Azteca Project is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.
| For further information, contact:
|
||
| Cadence Minerals plc | +44 (0) 20 3582 6636 | |
| Andrew Suckling | ||
| Kiran Morzaria | ||
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 | |
| James Joyce | ||
| Darshan Patel
Chris Wardley |
||
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 | |
| Guy Wheatley | ||
| Public & Investor Relations – Brand Communications | +44 (0) 7976 431608 | |
| Alan Green | ||
Edison Research – Cadence Minerals: Azteca moves into execution phase
The broader Amapá project remains Cadence’s main long-term value driver. It is a fully integrated iron ore operation with established mine, rail, port and beneficiation infrastructure, a JORC-compliant resource of 276Mt at 38% Fe and a proven and probable reserve of 195.8Mt at 39.3% Fe. The updated pre-feasibility study in 2024 confirmed the potential to produce 5.5Mtpa of 67.5% Fe direct reduction grade concentrate over a 15-year mine life.
In our January report, we valued Amapá at US$458m on an unrisked basis at 35.7% ownership to Cadence. Including Azteca at US$10m and deducting Cadence’s pro rata share of joint venture creditor obligations, our total attributable valuation was US$432m. Adjusting for Cadence’s increased 36.2% ownership gives a valuation of US$437m, or £322m (approx 73p).
We view the LI grant as a significant de-risking event and positive catalyst, although the LO, commissioning, execution and broader project financing remain key sensitivities. We expect the next key milestones to be site mobilisation, refurbishment progress and receipt of the LO ahead of first production and shipments.
Cadence Minerals #KDNC – Amapá – Installation Licence Granted
Key regulatory approval unlocks approved site works and advances fully funded Azteca restart toward production, cash flow and the broader Amapá development pathway.
Cadence Minerals plc (AIM: KDNC) is pleased to announce that DEV Mineração S.A. (“DEV”), owner and operator of the Amapá Iron Ore Project in Brazil (“Amapá” or the “Project”), has received the Installation Licence from the State of Amapá Environmental Authority, Secretaria de Estado do Meio Ambiente (“SEMA/AP”).
The Installation Licence (“LI”) authorises refurbishment, construction and installation works within its scope at the Amapá site, including those required for the restart of the Azteca Plant (“Azteca”) and the larger US$1.9bn NPV Amapá Project. This represents a key transition for the Project from planning and permitting into execution.
The immediate operational focus remains the restart of Azteca as a low-capital reprocessing operation, intended to provide the first operating platform and near-term cash flow for Amapá.
Highlights
- Installation Licence granted: DEV has received Installation Licence No. 006/2026 from SEMA/AP, enabling approved works at the Amapá site.
- Execution gateway: Azteca now moves from engineering, funding and regulatory preparation into site mobilisation and delivery.
- Azteca restart in focus: The initial phase targets the processing of partly processed material to establish operations and early cash flow.
- Fully funded restart pathway: The binding US$4.6 million prepayment offtake facility provides funding for licensing, refurbishment, commissioning and initial working capital.
- Cash-flow platform: Subject to successful commissioning and operation, Azteca is expected to generate early cash flow to support working capital, ongoing operations and the funding of the DFS.
- Broader development retained: The LI also supports the staged pathway toward the larger 5.5 Mtpa DR-grade Amapá Project, which remains subject to further studies, financing and operating licenses.
Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:
“The grant of the Installation Licence is a major milestone for DEV and for Amapá. It marks the transition of the Project into its next phase — from preparation into approved execution and then production.
Azteca is positioned as the practical first step in bringing Amapá back into production. It is supported by a fully funded structure, benefits from existing plant, and is designed to establish the initial cash-flow platform for the wider Project.
Our focus is now on disciplined delivery — mobilisation, procurement, licence compliance, refurbishment and commissioning.
On behalf of Cadence, I would like to congratulate the DEV team, our JV partners and advisers for their continued focus and execution, and to recognise the efficiency and constructive engagement of SEMA and the State of Amapá in advancing this important regulatory milestone. Azteca provides a clear pathway to near-term production and cash flow, while supporting the longer-term development of the Amapá Project and the enduring benefits it can bring to the State.”
Installation Licence
DEV has received Installation Licence No. 006/2026 from SEMA/AP. The LI authorises approved installation works within its scope at the Amapá site, including refurbishment and replacement of existing operational structures, construction of new processing components (including magnetic separation, ball mill and screening circuits), and associated site infrastructure.
The licence is subject to conditions including environmental management, monitoring and reporting obligations, and health, safety and site-management requirements during the works programme. The LI does not replace or remove the requirement for any additional licences or consents that may be required under federal, state or municipal legislation, such as the Termo de Ajustamento de Conduta with Instituto do Patrimônio Histórico e Artístico Nacional. DEV will continue to manage all approvals in accordance with applicable statutory processes.
Azteca Execution Plan
Detailed mechanical and electrical engineering has been completed, and the refurbishment execution programme is in place. Certain preparatory activities were undertaken within the scope permitted prior to LI issuance; the LI now enables the wider approved refurbishment, construction and installation programme.
DEV is progressing into mobilisation and execution for the approved works. Initial activities will focus on contractor mobilisation, sequencing of work programmes, activation of funding drawdowns and commencement of approved works in accordance with licence conditions and applicable environmental, health and safety requirements.
Operating Licence and Timetable
Following completion of the approved works and commissioning activities, DEV will progress the Operating Licence (“LO”) process required for commercial operations and shipments at Azteca.
The LO process is expected to be principally focused on demonstrating satisfaction of the applicable LI conditions and implementation of the approved environmental control measures, rather than a new project design approval process.
Subject to licence-condition compliance, execution progress and receipt of the LO, commissioning remains targeted for the end of June 2026. The Company will update shareholders should there be any material variation to this timetable.
Funding Structure
As previously announced, the Azteca restart is supported by a binding US$4.6 million prepayment and working capital facility provided by Cadence and its offtake partner.
The facility comprises approximately US$3.45 million allocated to licensing, refurbishment and commissioning activities, together with approximately US$1.15 million of working capital to support logistics and the first shipment.
With the grant of the LI, the remaining funds from the US$3.45 million is available to support the approved works programme. The working capital component becomes available upon commencement of production and is intended to support logistics and the first shipment.
Repayment of the facility is linked to future iron ore shipments, aligning funding with operational cash flow generation. As previously disclosed, the structure is intended to fund the full restart of Azteca, with no further equity currently expected to be required from Cadence to bring the plant into production.
Strategic Context
Azteca remains Cadence’s near-term operational focus within its staged redevelopment strategy. Subject to successful commissioning and operation, Azteca is expected to provide an initial operating platform and near-term cash flow, supporting ongoing operations and the advancement of the broader development pathway, including the DFS and early-stage works for the 5.5 Mtpa DR-grade project.
The broader Amapá development remains a longer-term pathway subject to further technical studies, financing, construction planning and regulatory approvals. Cadence will provide further updates as material milestones are achieved.
Cadence Ownership
As of the end of March 2026, Cadence’s total investment in the Amapá Project is approximately US$16.1 million, representing a 36.2% equity stake.
About Amapá
Amapá is formed of two distinct developments: the Azteca Project, and the larger Amapá Iron Ore Project.
Azteca is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing partly processed material. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.
The much larger Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.
An updated Pre-Feasibility Study published on the 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction (“DR”) grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
| For further information, contact:
|
|
| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 |
| James Joyce | |
| Darshan Patel | |
| Fortified Securities (Joint Broker) | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| (Public & Investor Relations) | |
| Alan Green |
Zeus Capital – Cadence Minerals #KDNC Azteca project update
We are tantalizingly close to successful permitting at Azteca. Funding is in place and the technical team to complete the re-commissioning of the plant are on standby. Cadence is confident that commissioning could take place as early as June this year. Azteca will use its free cash flow to fund the full Amapá project through feasibility studies – this should be sufficient to take Amapá to an investment decision without recourse to further equity dilution. Assuming favourable licencing and permitting outcomes for Azteca, we see reduced risk in the restart of the full Amapá project, once the DFS is completed. Full note here
Cadence Minerals #KDNC – Amapá Project Update – Licensing and Azteca Progress
Cadence Minerals plc (AIM: KDNC) is pleased to provide an update on progress towards the grant of the Installation Licence (“LI”) for the Amapá Iron Ore Project in Brazil (“Amapá” or the “Project”), and on continuing execution readiness at the Azteca Plant (“Azteca”).
Highlights
- Permitted early works and procurement activities continue at the Azteca Plant
- Remaining Installation Licence workstreams with Instituto do Patrimônio Histórico e Artístico Nacional (“IPHAN”) and State of Amapá Environmental Authority SEMA/AP continue to advance
- IPHAN has confirmed that no additional archaeological field studies are required in the previously impacted areas
- The remaining archaeological workstream is now focused on finalisation of the Termo de Ajustamento de Conduta (“TAC”) process as the route to IPHAN clearance to SEMA
- The Project remains in execution readiness for Azteca refurbishment and commissioning activities, subject to receipt of the required permits
Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:
“The path to licence is now clearer, narrower and lower risk than before. The outstanding workstreams are now well identified and continue to advance through the regulatory process
Importantly, IPHAN has confirmed that no additional archaeological field studies are required in the previously impacted areas. In practical terms, this moves the remaining archaeological workstream onto a defined regulatory pathway through the TAC process, rather than a broader technical process, which we view as an important step in de-risking the path to LI.
Alongside this, permitted early works and procurement continue at Azteca, preserving execution readiness and supporting a rapid move into refurbishment activity once permitting is in place. Subject to permitting and execution, we believe commissioning by the end of June 2026 remains achievable, with Azteca representing the first stage in unlocking near-term cash flow and the broader value of the Amapá Project.”
Azteca Plant Progress
As announced on 13 March 2026, detailed mechanical and electrical engineering for the Azteca Plant has been completed, and the refurbishment execution package remains in place.
Permitted early works and procurement activities continue. These activities are intended to maintain execution readiness pending receipt of the LI and to support efficient mobilisation once permitting is in place.
Based on contingency within the current execution programme, the Company believes commissioning by the end of June 2026 remains achievable, subject to permitting and execution.
Installation Licence Progress
As previously disclosed, progression to the Installation Licence remains subject to completion of a small number of defined regulatory items, principally:
- archaeological clearance from IPHAN and
- water abstraction and tailings-related permitting issued by SEMA/AP.
IPHAN – Archaeological Workstream
Following submission of the archaeological material previously requested by IPHAN, and subsequent engagement with the federal authority, IPHAN has confirmed that no additional archaeological field studies are required in the previously impacted areas of the Project, including locations affected by legacy mining activities. This is an important development, as it narrows the remaining archaeological workstream to a defined regulatory pathway, rather than further technical fieldwork in those previously disturbed areas.
As a result of historic impacts that predate the Company’s involvement in the Project, IPHAN has indicated that the appropriate mechanism for progressing the archaeological workstream, and for supporting clearance to SEMA for issuance of the Installation Licence, is the execution of a Termo de Ajustamento de Conduta (“TAC”).
IPHAN has indicated proposed measures for inclusion in the TAC, centred on cultural heritage publication, exhibition materials and studies, and project work associated with a community museum / exhibition initiative.
Amapá continues to engage with IPHAN to finalise the TAC and once agreed and executed, the TAC is expected to form the basis for IPHAN’s clearance to SEMA in respect of archaeological matters for the Installation Licence.
Water Abstraction & Tailings Disposal Permitting (SEMA/AP)
SEMA requested some further information in late March 2026. All documentation and information requested was submitted last week, and the application has progressed back to the Coordination of Water Resources Management (CGRH/SEMA/AP) we understand the applications are progressing through final administrative review, with no further studies requested.
Strategic Context
As previously announced on the 1 December 2025, Cadence and its partners have established a funding structure to support licensing, refurbishment, and initial working capital for the Azteca Plant . The Company continues to view Azteca as the first stage of its broader redevelopment strategy at Amapá.
Subject to receipt of the required licences, recommissioning of Azteca is intended to provide an initial production platform and near-term operational cash flow, while supporting the continued advancement of the wider 5.5 Mtpa DR-grade development.
In this context, the Company believes the current regulatory workstreams are important not only for the restart of Azteca, but also for unlocking the next stage of value at Amapá.
Issue of shares to EBT and Total Voting Rights
View the separate announcement here
Cadence Ownership
As of the end of March 2026, Cadence’s total investment in the Amapá Project is approximately US$16.1 million, representing a 36.2% equity stake.
About the Amapá Project
The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.
An updated Pre-Feasibility Study published on the 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction (“DR”) grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
As part of a staged redevelopment strategy, Azteca is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.
| For further information, contact:
|
||
| Cadence Minerals plc | +44 (0) 20 3582 6636 | |
| Andrew Suckling | ||
| Kiran Morzaria | ||
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 | |
| James Joyce | ||
| Darshan Patel | ||
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 | |
| Guy Wheatley | ||
| Public & Investor Relations – Brand Communications | +44 (0) 7976 431608 | |
| Alan Green | ||
Cadence Minerals #KDNC – Amapá Project Update – Azteca Plant Progress and Licensing Update
Detailed engineering completed and execution package now in place at Azteca, with early works due to commence in March as key Installation Licence workstreams continue to advance.
Cadence Minerals plc (AIM: KDNC) is pleased to provide an update on progress at the Azteca Plant within the Amapá Iron Ore Project in Brazil (“Amapá” or the “Project”), together with progress on the remaining workstreams associated with the Project’s Installation Licence (“LI”).
Highlights
- Execution package in place: procurement requests for critical refurbishment items were launched in March 2026, with contractor mobilisation readiness established for a 90-day execution programme.
- Early works commencing: certain permitted preparatory activities are scheduled to commence in March, enabling selected workstreams to progress ahead of the main refurbishment programme.
- Critical path supported: together, these steps are intended to add flexibility across key execution activities and help preserve the current development timetable.
- Licensing workstreams progressing: remaining Installation Licence requirements, including IPHAN, water abstraction and tailings-related permitting, continue to advance in parallel.
- The Azteca plant remains a key component of Cadence’s phased redevelopment strategy at Amapá,
Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:
“Completion of the detailed engineering studies marks an important step in moving Azteca towards refurbishment and recommissioning. The work programme is now supported by an active procurement and mobilisation package, with procurement requests already launched for critical refurbishment items and the contractor team prepared for mobilisation.”
“This is important because it moves Azteca beyond engineering readiness and into practical execution planning, while adding flexibility to the critical path as the remaining Installation Licence workstreams continue to progress. Subject to permitting and execution, Azteca remains central to our phased redevelopment strategy at Amapá, with commissioning targeted by the end of June.”
Azteca Plant Advancement
Following the grant of the Preliminary Licence announced on 6 January 2026, Amapá has adopted a structured approach to progressing those activities at Azteca that can be undertaken ahead of the main refurbishment programme.
The detailed mechanical and electrical engineering studies for the Azteca Plant have now been completed. In parallel, the Azteca work programme is now supported by an active procurement and mobilisation package, with critical refurbishment items already requested and contractor mobilisation planning aligned to the execution schedule.
Planned early activities include structural steel repairs, removal of motors, pumps and other components for refurbishment, and procurement of long-lead items required for recommissioning. Certain of these activities are scheduled to commence in March. These activities fall within the scope of works permitted before LI issuance, including maintenance, preservation, inspection, component removal for off-site repair and long-lead procurement.
Together, these steps are intended to add flexibility to the critical path and help preserve the current development timetable, with commissioning targeted for the end of June, subject to receipt of the required permits and execution.
Installation Licence Progress
As previously outlined, following the grant of the Preliminary Licence (“LP”) announced on 6 January 2026, progression to the Installation Licence remains subject to completion of defined technical and regulatory requirements. The principal remaining items include: (i) archaeological clearance from the Instituto do Patrimônio Histórico e Artístico Nacional (“IPHAN”), (ii) water abstraction permitting, and (iii) tailings-related permitting to be issued by the State of Amapá environmental authority, the Secretaria de Estado do Meio Ambiente (“SEMA/AP”).
Late last year, the Company submitted the archaeological report recommended by the State IPHAN branch to Federal IPHAN. The report evaluates previously identified archaeological locations and concludes that, in several cases, no further study is required or that additional work is not possible due to historic mining activity or areas now covered by legacy tailings or waste material. The Company continues to engage constructively with Federal IPHAN as part of the LI process.
With respect to the SEMA/AP workstreams, a technical inspection was conducted recently, following which SEMA/AP requested a minor amendment to the relevant application. That amendment has now been incorporated, submitted, and is being reviewed by SEMA/AP.
Strategic Context
As previously announced, Cadence and its partners have established a funding structure to support licensing, refurbishment, and initial working capital for the Azteca Plant. The Company continues to view Azteca as the first stage of its broader redevelopment strategy at Amapá.
Subject to receipt of the required licences, recommissioning of Azteca is intended to provide an initial production platform and near-term operational cash flow, while supporting the continued advancement of the wider 5.5 Mtpa DR-grade development.
Cadence Ownership
As of the end of December 2025, Cadence’s total investment in the Amapá Project is approximately US$15.5 million, representing a 35.9% equity stake.
About the Amapá Project
The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.
An updated Pre-Feasibility Study confirmed the potential to produce 67.5% Fe direct reduction (“DR”) grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
As part of a staged redevelopment strategy, Azteca is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.
| For further information, contact:
|
|
| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 |
| James Joyce | |
| Darshan Patel | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
Cadence Minerals Green iron champion – Edison Research
Cadence is advancing the past-producing, integrated Amapá iron ore project in Brazil, where it has so far earned a 35.7% interest. The project was brought through a PFS and has recently been granted a preliminary environmental licence. It is expected to deliver a premium direct reduction (DR) grade pellet feed concentrate aimed at the fast-growing and undersupplied ‘green iron’ market. In a recent change of strategy, Cadence has pivoted towards staged development, looking to restart the small-scale Azteca plant, which will provide vital cash flows to further advance Amapá. View full note here
Cadence Minerals #KDNC CEO Kiran Morzaria discusses the grant of Amapa’s preliminary environmental license agreement with Alan Green
Cadence CEO Kiran Morzaria discusses the grant of the preliminary environmental license agreement at the Amapa iron ore project in Brazil. We look at how events at Amapa have accelerated over the past few months and the significance of the LP issue for both Azteca and the wider Amapa project. Kiran discusses the likely timeframe for the grant of the remaining Installation Licences, and we ask whether Trump’s actions in Venezuela are likely to have any impact on the iron ore market ahead of Azteca commencing first production. We wrap up by looking at the steps required to bring the Amapa mine into production once Azteca is up and running, including the range of financing, partnering and funding options to trigger the restart.
Cadence Minerals #KDNC – Grant of Preliminary Environmental Licence – Amapá Iron Ore Project
Cadence Minerals plc (AIM: KDNC) (“Cadence” or the “Company”) is pleased to announce that the State of Amapá environmental authority, the Secretaria de Estado do Meio Ambiente (“SEMA/AP”), has granted a Licença Prévia (“LP”) for the Amapá mine in Brazil (the “Project”).
Highlights
- Major regulatory milestone achieved with the grant of Preliminary Environmental Licence (“LP”) for the Amapá mine
- LP confirms environmental feasibility for the full mine capacity of 5.5 Mtpa of DR-grade iron ore concentrate
- Approval covers the entire mine development envelope, including the Azteca processing plant, enabling progression toward first-stage refurbishment and production
- Represents a material de-risking event and establishes a clear regulatory pathway toward construction and production
- Installation Licence requirements are advancing as planned, supporting continued momentum toward refurbishment and production
Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:
“This is a highly significant regulatory milestone for Amapá. The grant of the Preliminary Licence confirms environmental acceptance of the mine at its full intended scale and marks a decisive step forward in the project’s redevelopment.
Importantly, the LP validates the complete mine plan and provides the regulatory foundation to advance the Azteca processing plant as the first step toward production. With this key de-risking milestone achieved, our focus now turns to securing the Installation Licence and progressing refurbishment activities in line with our staged development strategy.
The remaining Installation Licence requirements are advancing well, and we remain on track as we move the Project toward refurbishment and production.”
Regulatory Update
The LP confirms the environmental feasibility, location and design of the mine at its full planned capacity of 5.5 million tonnes per annum (“Mtpa”) of DR-grade iron ore concentrate. The approval covers open-pit mining, mineral processing, waste rock handling and associated tailings storage infrastructure across the Project’s existing mining concessions.
Notably, the LP applies to the whole mine development plan and is not limited to an initial or interim operating phase, providing regulatory confirmation for the long-term mine configuration underpinning the Company’s staged redevelopment strategy.
The LP also provides the regulatory foundation for permitting the Azteca processing plant, which forms part of the mine complex and is intended to be recommissioned as the initial production facility within the staged redevelopment sequence. Ore produced during the Azteca restart phase is expected to be transported by road and shipped through an existing public port facility and therefore does not require completion of the rail and private port licensing for initial production.
Regulatory Significance
The LP represents the first statutory stage of Brazil’s environmental licensing process for the mine and marks a material de-risking milestone for the Project. The next stage is the Installation Licence (Licença de Instalação – “LI”), which authorises construction, refurbishment and installation of mine infrastructure, including processing facilities and tailings structures.
Pathway to Installation Licence
Progression to the LI remains subject to completion of defined technical and regulatory requirements, consistent with matters previously disclosed by the Company. The principal outstanding items include:
- submission of supplementary technical studies requested by regulators, including archaeological and engineering works, with archaeological studies now completed and submitted to the Instituto do Patrimônio Histórico e Artístico Nacional (“IPHAN”), Brazil’s federal authority for cultural heritage; and
- completion of water abstraction and effluent discharge authorisations.
These workstreams are advancing in parallel, and the Company continues to engage constructively with the relevant authorities as part of the LI process.
The LI represents the key permitting gateway for commencement of refurbishment and installation works at the mine, including the Azteca processing plant, and for execution of the Company’s staged development strategy.
Strategic Context
The grant of the LP confirms regulatory alignment for the full mine capacity, underpins the near-term recommissioning of the Azteca processing plant, and establishes a clear, structured and de-risked pathway toward refurbishment and production, subject to receipt of the Installation Licence.
The railway and port components of the wider Amapá Iron Ore Project continue to progress through their respective licensing processes, as previously disclosed.
Cadence will continue to work closely with its partners and the relevant authorities to advance all components of the Project through their respective permitting pathways in accordance with Brazilian law.
Cadence Ownership
As of the end of June 2025, Cadence’s total investment in the Amapá Project is approximately US$15.5 million, representing a 35.7% equity stake in the Project.
About the Amapá Project
The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.
An updated Pre-Feasibility Study confirmed the potential to produce 67.5% Fe direct reduction (“DR”) grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
As part of a staged redevelopment strategy, the fully funded Azteca processing plant is planned to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.
| For further information, contact:
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| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 |
| James Joyce | |
| Darshan Patel | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
Cadence Minerals #KDNC – Amapá Project Update and Technical Visit Relating to the Amapá Iron Ore Project
Cadence Minerals Plc (“Cadence” or the “Company”) confirms that, together with its joint-venture partner DEV (“PBA”), it is hosting a technical visit by Wandenberg Pitaluga Filho, President of the Economic Development Agency of Amapá, Brazil.
The visit provides an opportunity to outline the development pathway for the 5.5 Mtpa integrated DR-grade iron ore operation, including the associated rail and port upgrades. Meetings will be introductory and non-binding and are intended only to support the State’s understanding of the Project’s long-term scale and capital formation framework.
Azteca Licensing Update
Following the completion of the prepayment offtake financing earlier this month, Cadence and PBA have advanced the technical workstreams required for the environmental licensing of the Azteca (Dyke 3) plant.
The Azteca facility represents the first stage of the Amapá redevelopment strategy, providing early production capability and a platform to generate cash flow to fund the Definitive Feasibility Study (“DFS”) and other capital projects and subsequent phases of the project. The Company will update the market as material milestones are achieved.
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For further information, contact:
|
|
|
Cadence Minerals plc |
+44 (0) 20 3582 6636 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
Zeus (NOMAD & Broker) |
+44 (0) 20 3829 5000 |
|
James Joyce |
|
|
Darshan Patel Gabriella Zwarts |
|
|
Fortified Securities – Joint Broker |
+44 (0) 20 3411 7773 |
|
Guy Wheatley |
|
|
Brand Communications |
+44 (0) 7976 431608 |
|
Public & Investor Relations |
|
|
Alan Green |