Cadence Minerals plc (LSE:KDNC) has announced that DEV Mineração has obtained an Installation Licence from the State of Amapá’s environmental regulator. The approval clears the way for refurbishment and construction work at the Amapá Iron Ore Project, including the restart of the Azteca processing plant.
This milestone marks a transition from planning into execution for the project, which carries an estimated net present value of US$1.9bn and forms the foundation of a phased development strategy.
Initial Focus on Low-Capital Azteca Restart
The immediate priority will be recommissioning the Azteca plant as a relatively low-cost reprocessing operation. The facility is expected to produce around 380,000 tonnes per year of 65% iron concentrate using existing material.
This phase is supported by a fully funded US$4.6m prepayment offtake facility, which is intended to enable an early restart and generate initial cash flow. These proceeds could help fund further studies, including the completion of a definitive feasibility study, while advancing the broader Amapá project toward its planned 5.5 Mtpa direct reduction-grade development.
Outlook: Strong Project Momentum but Financial Constraints
Cadence’s longer-term outlook is tied to the successful execution of the Amapá project, which could significantly enhance its cash generation and positioning in the high-grade iron ore market.
However, the company continues to face challenges from a weak financial track record, including sustained losses, declining revenues, and negative free cash flow. On the positive side, its balance sheet remains relatively low in debt, and technical indicators show supportive momentum, with the share price trading above key moving averages.
Valuation remains constrained by negative earnings and the absence of dividend support, despite the improving operational outlook.
More About Cadence Minerals plc
Cadence Minerals plc is a UK-listed mining investment and development company focused on iron ore and related mineral assets.
The group holds a 36.2% interest in DEV Mineração’s Amapá Iron Ore Project in Brazil, targeting the production of high-grade direct reduction iron ore concentrate. The project benefits from integrated infrastructure, including mining, rail, port, and processing facilities, positioning it to serve both traditional steelmaking and energy transition markets.
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