Asia stocks edge higher as tech meanders on Nvidia; Hong Kong hit by soft earnings
LONDON - Cadence Minerals Plc (AIM:KDNC), an exploration and development company, has announced substantial progress in the environmental permitting and strategic development of its Amapá Iron Ore Project in Brazil. The company’s phased development strategy emphasizes a low-capital start with a small-scale processing plant, with plans to ramp up production of high-grade iron concentrate.
Cadence reported that the updated Pre-Feasibility Study, published on December 3, 2024, improved the project’s post-tax Net Present Value to US$1.97 billion, with an average annual free cash flow projection of US$342 million over a 15-year mine life. The project, which is to be powered entirely by renewable energy, aims to produce a 67.5% iron grade concentrate with competitive costs and a short payback period.
The company has completed most of the supplementary items required for the mining installation license, with a more detailed archaeological study pending. For the railway installation license, approximately 95% of the requirements have been fulfilled. The port installation license process has been extended due to historical incidents and redesign of loading mechanisms, but the company maintains close coordination with the Amapá State Environmental Agency (SEMA) and state government.
Cadence is also in active discussions with potential strategic partners to advance the project, with the aim of forming a joint venture or sale to complete development. As of the end of March 2025, Cadence’s investment in the Amapá Project totaled approximately US$14.7 million, with an equity stake of 34.9%.
Kiran Morzaria, CEO of Cadence Minerals, expressed satisfaction with the progress on environmental licensing and the phased development strategy, which targets near-term production and cash flow. He highlighted the project’s competitive projected margins and relatively short lead time to production as key value drivers.
The company will continue to update shareholders as milestones are reached in the licensing process and discussions with potential partners. The information in this article is based on a press release statement from Cadence Minerals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.