Cadence Minerals advances Amapá Iron Ore Project

Published 10/06/2025, 12:02
Cadence Minerals advances Amapá Iron Ore Project

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.