REG - Cadence Minerals PLC - Azteca Restart Update

Cadence MineralsAnnouncement

28/05/2026 11:15

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RNS Number : 0761G  Cadence Minerals PLC  28 May 2026

 

 

The company deems the information contained within this announcement 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.

Cadence Minerals Plc

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

Azteca Restart Update

 

Initial construction funding received and contractor mobilisation now
progressing the Azteca restart into execution.

 

Cadence Minerals plc (AIM: KDNC) announces an update on the restart of the
Azteca Plant at the Amapá Iron Ore Project in Brazil following receipt of the
first construction funding tranche under the Azteca funding structure and
progression toward contractor mobilisation and execution activities.

 

Highlights

 

·      First construction funding tranche received on 25 May 2026
following completion of clarification documentation requested by the offtaker
regarding licence sequencing and funding drawdowns.

·      DEV has executed the primary contractor agreement, with
mobilisation activities expected to commence next week and full contractor
mobilisation expected during the second week of June 2026.

·      Approved refurbishment and installation works at Azteca are now
progressing into execution following grant of the Installation Licence ("LI")
announced on 5 May 2026.

·      DEV has continued to advance operational readiness activities,
including the appointment of senior operational leadership for the mine and
plant operations and the engagement of additional environmental and licensing
advisory support.

·      Commissioning activities are currently expected approximately 60
days from receipt of the initial funding tranche under an accelerated
execution schedule, or 90 days where standard operational contingency is
incorporated.

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 on
execution scheduling, critical path activities and operational readiness
planning. This included recruitment of senior operational personnel for the
mine and plant operations, strengthening the site management structure 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.

 

DEV has also continued to strengthen the operational and environmental
management workstreams supporting the Azteca restart, including the
appointment of senior operational leadership for the mine and plant operations
together with additional environmental and licensing advisory support.

 

Based on the current execution schedule, commissioning activities are expected
approximately 60 days from receipt of the first construction funding tranche
on 25 May 2026 under an accelerated schedule, or 90 days from that date where
standard operational contingency is incorporated, subject to completion of
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 Schedule and Timetable

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 incorporating operational contingency.

 

Although the LI was granted approximately one month later than originally
anticipated, DEV and Cadence continued to target end-June commissioning
through acceleration of the execution schedule. This effectively utilised the
operational contingency previously built into the programme.

 

Additional time was subsequently required to finalise clarification
documentation requested by the offtaker regarding licence sequencing and
funding tranche mechanics.

 

Based on the current execution schedule, DEV now expects commissioning
activities approximately 60 days from receipt of the first construction
funding tranche on 25 May 2026 under an accelerated execution schedule, or 90
days from that date where standard operational contingency is incorporated.

 

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.

 

Workstreams supporting progression toward the LO are already underway and are
focused on demonstrating compliance with the applicable LI conditions and
operational readiness requirements.

 

The Company will provide further updates as mobilisation and execution
activities progress.

 

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
(https://investormeet.cadenceminerals.com/page/announcements/3906354)
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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