Cadence Minerals (AIM: KDNC) is pleased to announce its final results for the year ending 31 December 2024. 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,

As we reflect on the year 2024 and the first half of 2025, Cadence Minerals has demonstrated resilience and strategic clarity amidst a volatile global environment.

Despite challenges across markets, we achieved critical milestones, made tangible progress at our flagship projects, and continued to position the Company for long-term value creation. 

Amapá Iron Ore Project – Advancing a Strategic Asset

Our Amapá Iron Ore Project in Brazil remains the cornerstone of our strategy. During 2024, metallurgical testing confirmed the project’s capability to produce high-grade, Direct Reduction (“DR”) quality iron concentrate with a Fe content of 67.5%, accompanied by low impurities. This is a significant milestone-not only technically, but commercially.

Global demand for DR-grade iron ore is accelerating, driven by the decarbonisation of steel production. DR-grade feedstock is crucial for direct reduced iron (DRI) and electric arc furnace (EAF) steelmaking, both of which produce significantly fewer emissions compared to traditional blast furnaces. As steelmakers transition to lower-carbon processes, the premium for DR-grade material has widened considerably. In 2024, premiums for DR-grade concentrate ranged from $15 to $45 per tonne over the benchmark 62% Fe fines, depending on location and purity. Analysts project that global demand for DR-grade products could rise more than fivefold by 2050, and availability remains constrained. 

Cadence’s ability to deliver a reliable source of DR-grade concentrate from Amapá places us in a unique position to serve this growing market. Our development activities have focused on progressing licensing, advancing engineering studies, and preparing for phased production. These efforts align with our strategy to create a vertically integrated, sustainable iron ore business. 

Iron Ore Market Dynamics

The iron ore market demonstrated resilience in 2024, with benchmark 62% Fe prices trading between US$100 and US$130 per tonne. As we entered 2025, prices hovered near $100 per tonne, and while sentiment remains cautious, structural demand for higher-grade ores-including DR-grade-remains firm. Major producers adjusted guidance downward, and cost pressures became a dominant theme. 

In this context, Cadence’s emphasis on quality over volume has been validated. Our focus on producing premium-grade material aligns with where value and margin are migrating in the industry.

UK Equity Market Pressures

Cadence continues to operate against a backdrop of systemic headwinds in the UK equity market. In 2024, UK equity markets experienced continued outflows, with approximately £13.1 billion withdrawn from UK-focused funds, marking the third consecutive year of significant redemptions. This sustained capital flight contributed to a sharp contraction in the junior AIM market, which saw a net loss of 74 companies and fell to its smallest size in over two decades.

While challenging, this environment has reinforced our focus on delivering clear, long-term shareholder value. Cadence remains committed to transparent governance, prudent financing, and project development driven by progress-qualities we believe will be rewarded over time. 

Lithium Market Stabilisation

The lithium market experienced significant price corrections in 2024, with spot prices falling nearly 85% from their 2022 peaks. However, by late 2024 and into early 2025, signs of stabilisation began to emerge. Temporary mine closures and improving electric vehicle (EV) sales-particularly in China-helped rebalance supply and demand. Analysts now anticipate a more stable pricing environment in 2025, with growing downstream demand from electric vehicles (EVs) and energy storage systems supporting medium- and long-term fundamentals.

Looking Ahead

Our operational focus remains firmly on advancing the Amapá Iron Ore Project and unlocking its full potential. With a high-grade, DR-capable resource, supportive long-term trends, and a strategic location, Amapá represents a cornerstone for our future growth. We continually evaluate new opportunities within our core competencies and jurisdictions that complement our strategic direction. 

I want to thank our shareholders for their continued support, as well as our team and partners for their dedication throughout a transformative year. Cadence enters 2025 with momentum, clarity, and a deep commitment to building sustainable value for all stakeholders. 

Andrew Suckling

Non-Executive Chairman, 18 June 2025

 

For further information, contact:
Cadence Minerals plc	+44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
Zeus Capital Limited (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

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.

CHIEF EXECUTIVE OFFICER’S COMMENTARY

I am pleased to present the audited results for the year ended 31 December 2024, along with the Strategic Report, which comprehensively reviews our business activities. These results reflect the historical position of the Company’s progress and financial standing. We have included additional information on key post-year-end events in the Strategic Report. 

At the core of our efforts in 2024 was the continued advancement of the Amapá Iron Ore Project in Brazil. We successfully completed an optimisation study that significantly enhanced the project’s economics, delivering a 33% reduction in beneficiation plant capex and lifting post-tax NPV to US$1.97 billion based on our 67% Fe “Green Iron” flowsheet. The development of this Direct Reduction (DR) grade product positions Amapá to serve the expanding low-carbon steel market, which increasingly demands high-purity iron ore for use in Electric Arc Furnace (EAF) and hydrogen-based Direct Reduced Iron (“DRI”) steelmaking.

The global iron ore market demonstrated resilience in 2024, with benchmark 62% Fe prices trading between US$100 and US$130 per tonne. Pricing was supported by steady Chinese steel production, infrastructure stimulus, and the tight supply of high-grade ore. Notably, premiums for DR-grade material remained elevated throughout the year, reflecting growing demand from decarbonisation-driven steelmaking. This price dynamic reinforced the strategic importance of our “Green Iron” initiative and underpinned the robust economics of the updated Amapá Project PFS.

Our lithium investments also advanced. Evergreen Lithium advanced exploration at the Bynoe Project, intersecting pegmatites proximal to known resources and expanding its exploration footprint into gold-prospective zones. While lithium prices softened over the period due to oversupply and destocking in the battery supply chain, we believe the structural outlook remains intact, with long-term demand growth driven by the adoption of electric vehicles and stationary storage.

We divested from Hastings Technology Metals and European Metals Holdings, realising 30% and 174% returns, respectively. These divestments were made in line with our strategy to recycle capital into high-conviction, near-development stage assets-particularly Amapá-while minimising exposure to public equity volatility. UK equity markets continued to suffer from persistent outflows in 2024, with investor appetite shifting offshore. This broader market trend negatively impacted valuations across our listed holdings, but our proactive approach to capital management helped preserve and redeploy value effectively.

Post-period, we progressed permitting for Amapá, responded to additional regulatory requests, and continued efforts to secure a construction partner and financing solution that minimises dilution. Our investment to date-approximately US$15.5 million for a 35.7% stake-reflects our deep commitment to bringing this project into production and capturing the full value of its extensive infrastructure and resource base.

Regarding our investment in the Sonora Lithium Project, Cadence is engaged in legal and diplomatic processes following the Mexican government’s cancellation of lithium concessions. In November 2023, we submitted a formal Request for Consultations under the UK-Mexico Bilateral Investment Treaty. We believe that our rights under Mexican and international law have been breached, and we will pursue all available remedies.

Looking ahead, Cadence remains focused on unlocking long-term shareholder value by advancing our core assets, securing non-dilutive funding, and actively managing our portfolio in line with market cycles. We are confident that our strategy, anchored by a world-class iron ore project, positions us well for the year to come.

Kiran Morzaria

Chief Executive Officer, 18 June 2025