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

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
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