Azteca Execution Update
The company deems the information contained within this announcement to constitute Inside Information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK 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.
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Azteca Execution Update
Mobilisation Completed and Refurbishment Programme Remains on Schedule
Cadence Minerals plc (AIM: KDNC) announces that mobilisation of the Azteca restart programme at the Amapá Iron Ore Project in Brazil has been completed and refurbishment works are underway across the principal processing, infrastructure and electrical workstreams.
Execution activities are progressing on schedule against the current refurbishment programme, advancing the project towards commissioning and operational readiness.
Highlights
• Mobilisation of personnel, equipment and site resources completed on schedule, enabling execution of the approved refurbishment programme.
• Refurbishment activities are underway across the principal processing and electrical systems, progressing the project towards commissioning.
• Execution activities remain on schedule against the current programme, with no material slippage reported.
• Based on progress to date, the Company expects the Azteca plant to be operationally ready by the end of August 2026. Commencement of commercial operations remains subject to receipt of the Operating Licence ("LO").
Kiran Morzaria, Chief Executive Officer of Cadence, commented:
"The significance of the progress made since receipt of the Installation Licence is not simply that refurbishment activities have started. It is that the project has transitioned from planning into delivery.
Mobilisation is complete, contractors are active on site and progress is increasingly being measured against execution, commissioning and operational readiness milestones.
Our focus remains on completing the refurbishment programme safely, maintaining schedule discipline and progressing the requirements necessary to support operational readiness and commercial operations."
Execution Progress
The Azteca restart programme is being executed under the approved refurbishment and installation programme authorised by the Installation Licence.
Mobilisation activities were completed on schedule, including deployment of personnel, equipment, lifting resources and refurbishment materials to site.
Refurbishment works are progressing across key processing systems, including plant feeding and magnetic separation. Electrical works have also commenced and remain the critical-path activity within the execution programme.
Activities completed or underway include structural inspections, access rehabilitation, equipment inspection, refurbishment of mechanical components, electrical panel works and associated infrastructure preparation.
The remaining workstreams principally comprise completion of refurbishment activities, electrical installation, equipment connection and commissioning activities.
With the Installation Licence granted, funding received and mobilisation completed, the principal focus of the project has shifted towards execution, commissioning and operational readiness.
As at the date of this announcement, management has not identified any material schedule slippage against the current execution programme. Based on progress to date, the Company expects the Azteca plant to be operationally ready by the end of August 2026. Commencement of commercial operations remains subject to receipt of the LO.
Operational Readiness
Alongside physical refurbishment activities, the Company and its joint venture ("JV") partners continue to advance operational readiness activities required to support future commercial operations.
These activities include environmental compliance workstreams, operational planning and preparation for commissioning activities.
The Company and its JV partners continue to assess infrastructure, environmental and operational requirements associated with the transition to commercial operations. These assessments form part of the ongoing preparation required to support future commissioning and commercial operations.
Strategic Context
The Azteca Project remains the first operational phase within the broader Amapá development strategy.
Subject to successful completion of refurbishment works, commissioning activities and receipt of the Operating Licence, Azteca is intended to establish an initial operating platform from which the JV partners can evaluate subsequent development opportunities across the wider Amapá Project.
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 DR 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 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
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
This announcement contains forward-looking statements. Such statements are based on the current expectations, assumptions and beliefs of the Directors and are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance and may often be identified by words such as "believe", "expect", "intend", "may", "plan", "should", "will", "could" and similar expressions. Actual results may differ materially from those expressed or implied by such statements due to a range of factors, many of which are outside the control of the Company, including changes in economic conditions, market conditions, regulatory developments, the actions of governmental authorities, the availability of funding and other risks affecting the Company's operations. Readers should not place undue reliance on forward-looking statements, which speak only as at the date of this announcement. Except as required by law or applicable regulation, the Company undertakes no obligation to update or revise any forward-looking statements.
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