Cadence Advances Azteca Plant Works as Amapá Licensing Progresses

Cadence Minerals (LSE:KDNC) has completed detailed mechanical and electrical engineering work for the Azteca plant at its Amapá Iron Ore Project in Brazil and has begun procuring key refurbishment components ahead of a planned 90-day execution phase. Initial site activities, including structural repairs, the removal of equipment for off-site refurbishment and the procurement of long-lead items, are scheduled to begin in March under existing authorisations.

These preparations are intended to provide greater flexibility within the project’s development schedule while maintaining the current timetable, with commissioning of the Azteca plant targeted for the end of June, subject to the finalisation of remaining permits. Several Installation Licence requirements—including archaeological approvals, water abstraction permissions and tailings-related authorisations—are progressing concurrently. Once operational, Azteca is expected to serve as the first production centre, generating early cash flow from tailings while supporting the broader redevelopment of the Amapá project into a 5.5 million tonne per year direct-reduction grade iron ore operation.

The company’s outlook remains constrained by weak financial fundamentals, including several years of losses, declining revenue and continued negative free cash flow, although the balance sheet carries relatively low debt. Technical indicators provide a positive counterbalance, with the share price trading above key moving averages and showing upward momentum. Valuation metrics remain limited due to negative earnings and the absence of dividend support.

More about Cadence Minerals

Cadence Minerals is a UK-listed resources investment company focused on the development and financing of mining assets, with a particular emphasis on iron ore. Its principal investment is a 35.9% stake in the Amapá Iron Ore Project in Brazil, an integrated operation combining mine, rail, port and beneficiation infrastructure designed to produce high-grade direct reduction concentrate for global steel markets.