REG - Cadence Minerals PLC - Update on Amapá Project investment & Equity Stake

Cadence MineralsAnnouncement

28/03/2024 10:00

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RNS Number : 7021I  Cadence Minerals PLC  28 March 2024

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence", or "the Company")

 

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 28(th) 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

 

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.

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be considered
forward-looking. Forward-looking statements are identified by their use of
terms and phrases such as "believe", "could", "should", "envisage",
"estimate", "intend", "may", "plan", "will", or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the company's
future growth results of operations performance, future capital, and other
expenditures (including the amount, nature, and sources of funding thereof)
competitive advantages business prospects and opportunities. Such
forward-looking statements reflect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.  Many factors could cause actual results to differ materially from
the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that results will
be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

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