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Cadence Minerals #KDNC – Evergreen Lithium (ASX: EG1) Commences Field Activities at Bynoe

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the commencement of the next round of field work at its highly prospective Bynoe Project directly east of Core Lithium’s Finniss Mine. The commencement of the 2024 field program follows the approval of its Mine Management Plan (MMP), enabling EverGreen to commence high impact exploration activities at its flagship Bynoe project.

This initial auger program will operate for approximately eight weeks with samples analyzed in the field by pXRF. RAB/AC drilling contractors have been secured and are expected to commence drilling shortly to test higher priority areas for prospective for LCT pegmatites.

Geochemical, geophysical and mapping activities completed to date demonstrate the potential for lithium bearing LCT pegmatite style mineralisation within EverGreen’s EL 31774 lease.

Highlights:

  • Following receiving approval for its Mine Management Plan (MMP) auger sampling has commenced at the Bynoe Project.
  • RAB/AC Drilling contractors have been secured and are scheduled to commence shortly.
  • Planned work programs for 2024 will include auger, RAB/AC and RC drilling, testing of geochemical and geophysical anomalies, with potential follow-up diamond drilling.

Link here to view the full Evergreen ASX announcement

Evergreen Exploration Manager Andrew Harwood commented: “Following the receipt of the approved MMP, our exploration team is now in the field undertaking the planned exploration program. The active auger program will help us explore under the thin cover layer and assist us to locate extensions of the pegmatite units identified by Core Lithium to our west.”

“With field conditions continuing to dry out following a record wet season, the team is also keen to get the RAB/AC drill rig into the field in the coming weeks. This drilling unit is quick and efficient at testing large areas of our high potential ground and will also be used to delineate shallow LCT pegmatite targets.”

Background to Cadence’s investment in Evergreen Lithium

Cadence Minerals received approximately 15.8 million shares in Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022.   A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.

 

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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 – Corporate Update – Evergreen Lithium (ASX: EG1) Fully Permitted to Commence Exploration at Bynoe

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the approval of its Mine Management Plan (MMP), enabling EverGreen to commence high impact exploration activities such as auger sampling and drilling at its flagship Bynoe project.

Geochemical, geophysical and mapping activities completed to date demonstrate the potential for lithium bearing LCT pegmatite style mineralisation within EverGreen’s EL 31774 lease, spanning 231 square Kilometers of tenure.

Highlights:

  • EverGreen has received approval for its Mine Management Plan (MMP) which will allow for drilling and other higher impact activities to commence at its Bynoe Project. These activities include auger sampling, AC/RAB, RC and diamond drilling.
  • Aboriginal Areas Protection Authority certificate (AAPA) has already been received in December 2023.
  • The Bynoe project is now fully permitted to commence exploration.
  • Auger sampling and drilling contractors have been secured and work is scheduled
  • to commence when field conditions are suitable.
  • Planned work programs for 2024 will include auger, RAB/AC and RC drilling testing of geochemical and geophysical anomalies, with potential follow-up diamond drilling.

Link here to view the full Evergreen ASX announcement

Evergreen Exploration Manager Andrew Harwood commented: “With all Bynoe exploration and drilling approvals now received and field conditions improving, it is expected that field activities will commence in the coming weeks. The Company looks forward to drilling on its 231Km2 lease at Bynoe, one of the largest land holdings in the Bynoe Pegmatite Field. The Company believes that its Bynoe Lithium Project hosts excellent and compelling drill-ready targets”.

Background to Cadence’s investment in Evergreen Lithium

Cadence Minerals received approximately 15.8 million shares in Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022.   A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.

 

For further information contact:

 

 
Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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 – Further Progress at the Amapa Iron Ore Project

Cadence Minerals (AIM: KDNC) is pleased to announce an increase in the rate of progress on the environmental applications and the ongoing development of the 67% ‘Green Iron’ processing flow sheet at the Amapá Ore Project (“Amapá”, “Project” or “Amapá Project”).

Highlights:

  • Submission of the Environmental Control Plan – “PCA” (Plano de Controle Ambiental) and an Environmental Control Report – “RCA” (Relatório de Controle Ambiental) submitted ahead of schedule for the Mine and Railway.
  • The PCA and RCA are part of the state environmental approval process required to obtain an Installation License (“LI”), which, once granted, allows construction at Amapá to commence.
  • The port’s environmental licensing is on schedule with the PCA and RCA and is due to be submitted in the third quarter of this year.
  • Sampling of two tonnes of iron ore representing the life of mine material is complete. This will be sent to an engineering firm in China to test the 67% Fe ”Green Iron” flow sheet.

Cadence CEO Kiran Morzaria commented: “The Cadence Board and Management team are thrilled with the recent uptick in the pace of developments at the Amapá Iron Ore Project.  The early submission of our environmental reports underscores the Project’s commitment to sustainability and efficient project management, and this along with the anticipated approval of our installation license for the current year, is paving the way for the rehabilitation and commissioning of the Amapá Project. Our dedication to the ‘Green Iron’ initiative reflects our vision for an environmentally lower carbon iron ore product. I look forward to reporting further progress to you in the coming weeks and months.”  

Licensing

As announced in September 2023, Amapá Project Management had agreed with the Amapá State Environmental Agency (“SEMA”) to an expedited environmental process, given the Project had previously been granted all its Operational Licenses (“LO”).

The PCA and RCA for the mine and railway were submitted to SEMA last week. SEMA will now review the application. The RCA and PCA for the wholly-owned port continue progressing, with the final reports due for submission in the third quarter of this year. Our understanding from SEMA is that based on the current timeline, the LI will be granted by the end of 2024. The LI allows the rehabilitation and construction of the Amapá Project, and once this is completed, the LO is granted, and mining operations can commence.

67% ‘Green Iron’ Flowsheet

The Amapá Project Management team continue to develop the ‘green iron’ flowsheet. Part of the work entails carrying out a mineralogical and multi-elemental analysis of run-of-mine ore, concentrate, and tailings, along with testing the full circuit at a pilot-scale level. To this end, the Project has completed a life-of-mine sampling, collecting approximately two tonnes of material, which will now be shipped to our independent processing engineers in China.

About the Amapá Project and Cadence Ownership

The Amapá Project is a brownfield integrated iron ore project in the Amapá State of Brazil. It has Mineral Resources of 276 million tonnes (Mt) at 38.33% Iron (Fe) and Ore Reserves of 196 Mt at 39.34%. The Project consists of the mine, processing plant, wholly owned port and a 194km railway, all operated by PBA. A Pre Feasibility Study (“PFS”) was published in January 2023, which delivered a post-tax net present value of US$949 million at a discount rate of 10% and a post-tax internal rate of return of 34%, with an average annual life of mine EBITDA of US$235 million annually. In the PFS, after ramp-up, the planned yearly average production was forecast to be 5.3 Mtpa of Fe concentrate, consisting of 4.4 Mtpa at 65.4% Fe and 0.9 Mtpa at 62% Fe concentrate. Over the life of the mine, Amapá is forecast to deliver free on-board C1 Cash Costs of US$35.53 / dry metric tonne.

As of March 28th 2024, Cadence’s total investment in the Amapá Project had increased by approximately US$1.1 million to approximately US$13.2 million, and consequently, the equity stake in the project now stands at 33.6%.

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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 – European Metals Holdings #EMH – Successful production of lithium hydroxide at Cinovec

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note the announcement by European Metals Holdings Limited (“European Metals” or “EMH”) (ASX & AIM: EMH, OTCQX: EMHXY, ERPNF and EMHLF) in regard to the Cinovec Lithium Project (“Cinovec” or the “Project”).

EMH has announced the successful production of lithium hydroxide monohydrate from pregnant leach solution manufactured during the recent larger scale Cinovec pilot programme.

Highlights:

  • The pilot programme has confirmed viability of the Lithium Chemical Plant (“LCP”) process flowsheet for the industrial scale production of either lithium carbonate or lithium hydroxide.
  • Crude lithium carbonate from the pilot programme has been converted into exceptionally clean battery-grade lithium hydroxide monohydrate at laboratory scale.
  • The pilot programme processed ore is fully-representative in all respects of the run-of-mine for the first seven years of mining planned at Cinovec, including average grade and expected rock-type mix from the bulk mining.

The Cinovec LCP flowsheet produces a high purity lithium sulphate solution which is capable of being used to produce either lithium carbonate or lithium hydroxide. The first stage (un-reprocessed) crude lithium carbonate produced is very close to battery grade and easily upgraded to battery grade in a single bicarbonation step (see the Company’s ASX/ AIM announcement of 9 November 2023 “Successful Battery-Grade pilot programme for Cinovec Lithium Project”).

The Cinovec LCP flowsheet lends itself to producing battery-grade lithium hydroxide monohydrate either directly, or indirectly via re-processing the first stage crude lithium carbonate. The project team has assessed the relative industrial process risks of manufacturing battery-grade lithium hydroxide monohydrate using both methods. It was concluded the indirect method was regarded as the lower-risk method, when considering process risks and costs.

This method of production of lithium hydroxide monohydrate has been tested as part of the pilot programme and has successfully produced battery-grade lithium hydroxide monohydrate at a laboratory scale.

Link here to view the full EMH announcement

EMH Executive Chairman, Keith Coughlan commented: We are extremely pleased with the results from the lithium hydroxide test program.  The lithium hydroxide produced was of the highest grade possible and exceptionally clean. This, when combined with the ability to produce either battery grade lithium carbonate or hydroxide enables a wider range of offtakers for the Cinovec product.”

Cadence CEO Kiran Morzaria added: “The Cadence management team are delighted to see EMH achieve another milestone step at Cinovec. In producing this high grade lithium hydroxide, the EMH team have opened up new offtake opportunities for the end product.”

Cinovec Lithium/Tin Project

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Geomet has been granted a preliminary mining permit by the Ministry of Environment and the Ministry of Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and 335.1kt of tin.

Cadence Minerals holds approximately 3.2% per cent of the equity in European Metals Holdings.

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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 – Corporate Update – Evergreen Lithium (ASX: EG1) Uncovers Additional Large Lithium Pegmatite Targets at Bynoe

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced that the last of its Phase 3 geochemical soil sampling results from the Bynoe Project in the Northern Territory have been received. The results further confirm the likely presence of LCT pegmatites within the Bynoe lease. Of further interest is another anomalous zone to the east of those outlined in previous announcements (14/03/24 & 30/11/23). The latest new target area in the east of the tenement further demonstrating the potential for additional lithium spodumene mineralisation in the Bynoe pegmatite field, and within EverGreen’s 231 square km of tenure.

Highlights:

  • EverGreen’s final Phase 3 geochemical sample results continues to build on positive results at Central Bynoe.
  • Assay results from 1,174 soil samples received reflect similar large-scale lithium trends to those previously identified.
  • Additional large scale lithium pegmatite targets identified.
  • Planned work programs for 2024 include auger, RAB/AC and RC drilling testing geochemical and geophysical anomalies with potential follow-up diamond drilling.

Link here to view the full Evergreen ASX announcement

Evergreen Exploration Manager Andrew Harwood commented: “These final soil results add to the picture that the Bynoe Project has great LCT pegmatite potential. Yet another soil anomalous area to the east is a significant outcome for the company. Using a variety of proven exploration tools such as auger, RAB and RC drilling, the team is looking forward to the upcoming exploration season to further test the potential of the project.”

Background to Cadence’s investment in Evergreen Lithium

Cadence Minerals received approximately 15.8 million shares in Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022.   A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.

 

 

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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 – Placing to raise £500,000 and Issue of Warrants to Advance the Amapa Iron Ore Project

Cadence Minerals (AIM: KDNC; OTC: KDNCY) announces that it has successfully raised, subject to Admission, £500,000 before expenses (the “Fundraise”)  through the placing of 16,666,667 new ordinary shares (the “New Ordinary Shares”) in the capital of the Company at a price of 3 pence per Ordinary Share (the “Issue Price”) and the issue of warrants to the subscriber of the New Ordinary Shares in the ratio of one warrant to each one New Ordinary Share subscribed for (the “Warrant”). The Fundraise was with a single institutional investor.

The Issue Price represents a discount of approximately 43 per cent. to the closing price of 5.25 pence per ordinary share on 4 April 2024, being the latest practicable business day prior to the publication of this Announcement.

The Warrants in the Fundraise grant rights to subscribe for one additional Ordinary Share for each Warrant held in the ratio of one Warrant for every one New Ordinary Share issued to the investor. The Warrants are exercisable at a price of 5 pence per Ordinary Share and expire on 31 March 2025.

The net proceeds of the Fundraise will solely be used to fund Cadence’s investment in the Amapá Iron Ore Project in Brazil (“Amapá”, “Project” or “Amapá Project”), specifically:

  • Prepare a revised mine schedule, up to a Pre-Feasibility Study (“PFS”) level, to reflect an increased production of 5.5 million tonnes per annum (“Mtpa”), with 4.51 Mtpa at 65% Fe and 0.99 Mtpa at 62% Fe.
  • Prepare and publish a revised PFS economic model that reflects the production increase and the 33% lower plant capital expenditure, which we announced on March 22, 2024.
  • The sampling and testing of the 67% Fe “Green Iron” product flow sheet, to a PFS level or accuracy.
  • If the testing of the “Green Iron” flow sheet is successful, the preparation and publication of a revised PFS economic model to reflect the higher product quality increased production.
  • Working capital at the Amapá Project to fund ongoing licensing requirements, with the expectation that all the required licensing for construction will be granted by the end of 2024.

Application will be made for the admission to trading on the AIM market (“AIM”) of London Stock Exchange plc (“LSE”) for the New Ordinary Shares (“Admission”). Admission is expected to occur at 8.00 a.m. on or around 11 April 2024. The New Ordinary Shares will represent approximately 8.4 per cent. of the Company’s issued share capital immediately following Admission.

Following Admission, the Company’s issued and fully paid share capital will consist of 197,637,704 Ordinary Shares, all of which carry one voting right per share. The Company does not hold any Ordinary Shares in treasury. The figure of 197,637,704 Ordinary Shares may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.

The New Ordinary Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.

Cadence CEO Kiran Morzaria commented: “I am pleased that we have been able to raise this money from a single investor at a pivotal time for the development and evolution of Amapá. This will enable completion of the revised PFS and fund the licensing process through to a license for construction at the end of 2024. I look forward to reporting back with further updates.”

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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

 

Edison Research – Cadence Minerals #KDNC Amapa Optimisation Adds Value

This year will be important for Cadence Minerals’ major asset, the Amapá iron ore project in Brazil. Cadence recently announced the results of an optimisation study that points to the potential to increase production by 4.8% and lower processing plant commissioning costs by 33%. An updated pre-feasibility study (PFS) level NPV will be published in the near future and we explore some of the sensitivities in this report. We have adjusted our valuation to reflect portfolio changes and the rise in Cadence’s stake in Amapá, although we have yet to include the value uplift of the optimisation of Amapá.

View the full Edison Research note – cadence-minerals_33430_20240404

Quoted Micro 1 April 2024

AQUIS STOCK EXCHANGE

Incanthera (INC) has published an update on its distribution deal with Marionnaud. The first order for Skin + CELL products will generate revenues of £2m with 50,000 bottles of skin cream to be supplied for sale in Austria and Switzerland. A second order will be even bigger. The management projects revenues of £10m for the year to March 2025 and this would make it profitable. The range is being increased to five products and they are all part of the initial launch.  Revenues could grow to £33m the following year. There is potential for licence deals in other countries.

Watchstone Group (WTG) says a subsidiary’s VAT appeal was dismissed even though it satisfied four out of five elements. A decision will be made on whether to appeal the judgement.

TruSpine Technologies (TSP) intends to issue a conversion notice to loan note holders. The conversion price is a 130% premium to the share price prior to the convertible loan note approval by the directors. A £200,000 debenture has been used to subscribe for convertible loan notes. Geoffrey Miller has increased his stake from 6.88% to 7.24%.

Quantum Exponential Group (QBIT) has announced a further adjournment of its a general meeting to gain shareholder approval for leaving Aquis. Investors have approached the quantum technology investment company and offered to make a substantial investment. Stuart Woods has stepped down from the board.

Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the Cinovec project in the Czech Republic is in the process of completing a definitive feasibility study, but it will not be completed in the first quarter. There is potential to improve the lithium processing. Cadence Minerals has increased its stake in the Amapa iron ore project in Brazil to 34%. A study should reduce costs and improve productivity of the proposed mine.

S-Ventures (SVEN) increased interim revenues from £8.4m to £9.6m but reported a higher loss from continuing operations. The bakery business was profitable, but this did not offset losses and impairment costs for other businesses. There is no further news on the proposed sale of operations to AIM-quoted Riverfort Global Opportunities.

KR1 (KR1) had net assets of 134.6p/share at the end of February 2024. There was income generated of £1.63m.

Arbuthnot Banking Group (ARBB) increased its pre-tax profit from £20m to £47.1m and the total dividend was raised from 42p/share to 46p/share. Bad debts were lower than forecast. NAV is 1547p/share. The profit is likely to fall this year.

Global Connectivity (GCON) is amending the terms of warrants issued when it floated and extending them by two years to 20 April 2026. The exercise price is being reduced to 1.5p. Management is exploring potential investments.

Marula Mining (MARU) has commenced exploration at the Larisoro manganese mine in Kenya.

Valereum (LON: VLRM) has raised £300,000 at 6p/share from its chairman and is planning a larger fundraising in the third quarter of 2024.

Jenny Hanlon has been appointed as chief executive of brewer Adnams (ADB). She is currently finance director.

Tap Global Group (TAP) generated trading payment volumes of £181.6m in 2023. That generated revenues of £2.02m, but the loss was still £1.07m.

EPE Special Opportunities (EO.P) had net assets of 324p/share at the end of January 2024. There was £15.3m in cash offset by £4m in loan notes repayable on 23 July.

Gunsynd (GUN) investee company Aberdeen Minerals is raising £3m at 8.5p/share from Central Asia Metals with a further £2m that could be raised from the exercise of warrants at 11p/share. This deal requires regulatory approval.

Lift Global Ventures (LFT) investee company Trans-Africa Energy has received funding of £12m from an African investor. The first energy infrastructure investment is in Ghana. Lift Global Ventures’ core investor relations business generated cash in the first half, although there was a cash outflow for the group as a whole.

Aiden Keegan has been appointed chief executive of Cooks Coffee Company (COOK).

Philip Blows reduced his stake in Supernova Digital Assets (SOL) from 10.6% to 7.98%. There was £68,000 in the bank and £1.95m in investments at the end of October 2023. NAV was £2.93m.

Daniel Thwaites (THW) director RAJ Bailey bought 15,000 shares at 71p each.

AIM

Marine technology developer Windward (WNWD) has cut its loss and is heading towards profitability. The 2023 revenues were $28.3m, up from $21.6m. Windward started 2023 with an annual contract value of $25.5m and that has risen to $34.5m, while the 2024 forecast revenues have been edged up from $34.5m to $35.1m. Requirements for tracking cargo and ensuring that sanctions are complied with are helping to increase demand, particularly from commercial clients. Commercial revenues increased to 30% of the total for 2023, but government revenues are also growing.

Grocery distributor Kitwave Group (KITW) has made its latest acquisition, and this will be earnings enhancing. Total Foodservice Solutions is a food wholesaler with two depots based in the north of England. The customer base includes pubs, restaurants, universities and care homes. The gross cost is £21m and that is reduced to £17m when cash in the business is taken into account.

Strong growth at the Billi filtration systems helped Strix (KETL) have a better second half, but the limited recovery in kettle controls and lower consumer goods sales meant that pre-tax profit was slightly lower at £21.9m. There is no dividend. There should be an improvement in profit this year, but it will still be well down on the 2021 figure. Net debt was £83.7m and could fall below £79m by the end of 2024.

Good Energy (GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile.

Floorcoverings manufacturer Airea (AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients.

Revolution Bars Group (RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising.

Semiconductor designer CML Microsystems (CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years.

Horizonte Minerals (HZM) published the latest financing estimate for the Araguaia nickel project. The cost to complete is $454m, but the full funding required is $567m-$592m, including pre-production and transaction costs. Existing liabilities are $418, and they require restructuring. More cash will be required by mid-April. Interest payments are being deferred. Existing shareholders are not in a strong position.

A more positive trading statement from film and video translation services provider ZOO Digital (ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024.  A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood.

Boilers developer Inspirit Energy (INSP) is near to completing the four electronic updates for its waste heat recovery system. The team is relocating back to the UK. The cash outflow was stemmed in the six months to December 2023.

Infrastructure India (IIP) shares returned from suspension when the interims to September 2023 were published. The board is proposing a winding-up of the company as it disposes of its assets and the share quotation will be cancelled if the proposals are passed at the AGM. Net liabilities are £217.4m.

Drug discovery company C4X Discovery (C4XD) also plans to cancel its AIM quotation and re-register as a private limited company if it gains shareholder approval at a general meeting on 15 April. Shareholders owning 57% of the shares are in favour. Management believes that it will be easier to raise funds as a private company and it will save money. C4X Discovery has raised £63m on AIM. In August 2022, £5.7m was raised at 25p/share. There is still £20.8m in the bank. In the six months to January 2024, revenues were £24.6m, due to milestone payments, compared with £1.7m in the first half of the previous year. The company is generally loss-making without substantial milestone payments.

Oil and gas producer Molecular Energies (MEN) is cancelling its AIM quotation because it does not believe it is worth the cost. The company should save £500,000/year. Chairman Peter Levine, who owns 29.2%, suggests that he may offer to buy shares of some other investors in the future, but there are no immediate plans to offer an exit prior to the cancellation. Green House Capital will no longer be spun off on AIM.

Infection protection technology developer Byotrol (BYOT) has been quoted for nearly 19 years and it has decided to leave AIM. Revenues from continuing products could improve from £3.7m to £3.9m this year. No further IP revenues are expected this year. Some IP was sold to Tristel (TSTL) and along with an early termination of another licence generated cash of £800,000, but minimum guaranteed royalties will be written down by £550,000 in the balance sheet. Even before that, there will be a higher loss in 2023-24. The business needs to be restructured and reduce costs and believes there will be more flexibility as a private company.

MAIN MARKET

Quantum dots developer Nanoco (NANO) generated interim revenues of £4m, including the recognition of £3m of Samsung licence income, up from £1.6m. Net cash was £54.5m at the end of January 2024. Second half non-Samsung revenues should be higher.

First Tin (1SN) had a cash outflow from operations of more than £2m in 2023. There was also £6.4m spent on exploration activities. There is £4.66m left in the bank.

Cizzle Biotechnology (CIZ) has raised £620,000 via a placing at 2p/share. This will fund the first proposed commercial test for its lung cancer test. The £500,000 loan facility with E3 Fund will be terminated.

Andrew Hore

Cadence Minerals #KDNC CEO Kiran Morzaria talks to StockBox Media

Stockbox Media interview with Cadence CEO Kiran Morzaria, where he discusses the successful cost savings & increased production at Amapá Iron Ore Project

Cadence Minerals #KDNC – Update on the Cadence Amapá Project investment and Equity Stake

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to announce details of its increased equity stake in the Amapa Iron Ore Project (“Amapá”, “Project” or “Amapá Project”). The Amapá Project is an integrated iron ore project in the Amapá State of Brazil, with Mineral Resources of 276 million tonnes (Mt) at 38.33% Iron (Fe) and Ore Reserves of 196 Mt at 39.34% Fe.

The Amapá PFS delivered a post-tax net present value of US$949 million at a 10% discount rate and a post-tax internal rate of return of 34%, with an average annual life of mine EBITDA of US$235 million. With the planned production of 5.3 Mtpa of Fe concentrate, the Project is forecast to deliver free on-board C1 Cash Costs of US$35.53 per dry metric tonne.

The Project is about to undergo an amended economic assessment at a PFS level based on the positive results from the optimisation studies released earlier this month. This study will include lower capital expenditure, higher production rate and a possible reduction in mining costs.

Moreover, the Project is fully committed to advancing the development of the 67% Fe product flow sheet, as previously outlined in the announcement on 7 March 2024. It is anticipated to be at a production rate of 5.5 Mtpa.

Cadence Interest in the Amapá Project

At the end of September 2023, Cadence’s total investment in the Amapá Project stood at approximately US$12.1 million, with the equity stake in the project standing at 32.6%. As of March 28th 2024, Cadence’s total investment in the Amapá Project had increased by approximately US$1.1 million to a total investment of approximately US$13.2 million, and consequently the equity stake in the project now stands at 33.6%.

Cadence CEO Kiran Morzaria commented: “As our involvement and commitment to the Amapá Project increases, we’re ever more excited and enthused by the potential and promise that the newly recommissioned mine and infrastructure is set to deliver. With robust Mineral Resources and Ore Reserves, coupled with solid financial projections, we stand poised to unlock substantial value, and our increased equity stake reflects our confidence in the Project’s potential.”

“The forthcoming economic assessment builds upon our recent optimisation efforts, underscoring our commitment to maximising the project’s delivery potential wherever possible. Moreover, our commitment to advancing the 67% Fe product flow sheet underscores our proactive approach to meet evolving market demands in green steel.”

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 20 7220 1666
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
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