Cadence Minerals plc (AIM: KDNC) announces an update regarding the restart of the Azteca Plant at the Amapá Iron Ore Project in Brazil.

Highlights 

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               
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