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LONDON - Cadence Minerals (AIM:KDNC) announced Monday that its Amapá Iron Ore Project in Brazil has confirmed robust economics with a post-tax NPV of $1.97 billion and a 42% IRR according to an updated Pre-Feasibility Study completed in December 2024.
The company is implementing a staged development approach, beginning with the recommissioning of the Azteca Plant, which will target production of approximately 380,000 tonnes per annum of 65% Fe concentrate with only $3.5 million in pre-production capital expenditure.
Cadence has secured funding through a Heads of Terms agreement for a $4.6 million prepayment offtake facility with a global trading partner. The company will contribute 10-15% of the prepayment, targeting approximately 70% IRR on its share.
The Amapá Project has achieved significant cost reductions, with mining costs decreased by 36.7% to $11.17 per dry metric tonne, lowering overall FOB costs to $27.28/dmt and CFR costs to $55.46/dmt. This positions Amapá among the lowest-cost global producers.
The project is expected to generate average free cash flow of $342 million per year over a 15-year mine life. Cadence currently holds a 35.7% interest in the project.
Regarding permitting, the company reported substantial progress on installation license applications for the mine, railway, and port facilities, with the mine license nearing completion.
In its other major asset, the Sonora Lithium Project in Mexico, Cadence reported that its joint venture partner Ganfeng Lithium has initiated arbitration proceedings following the cancellation of concessions by Mexican authorities. Cadence plans to pursue its own international arbitration under the UK-Mexico Bilateral Investment Treaty.
For the six months ended June 30, 2025, Cadence reported a loss before taxation of £0.841 million, compared to £2.535 million in the same period of 2024. The company’s total assets decreased from £18.45 million at December 31, 2024, to £17.66 million.
The interim results were based on a press release statement issued by the company.
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