Cadence Minerals (LSE:KDNC) has reported further progress with the refurbishment of the Azteca processing plant at the Amapá Iron Ore Project in Brazil, with weighted physical completion increasing from 77% to 87%. Work remains on schedule to meet the targeted completion date of 31 August 2026.
Several major components of the plant have now been completed, including the hopper and feed system, transfer conveyor, screen and process tank. Electrical installation has reached 69%, while the outstanding refurbishment programme is primarily focused on the magnetic separation circuit, piping and completion of the remaining electrical connections. Once these activities are finished, the plant will move towards integrated commissioning.
Commercial production and shipments from Azteca will be dependent on the successful completion of commissioning and receipt of the required operating licence. The licensing process is progressing alongside the refurbishment programme, with continued engagement taking place with the relevant state environmental authority.
Azteca is planned as the first production facility within the wider Amapá redevelopment strategy. The plant is expected to process existing tailings and produce approximately 380,000 tonnes per year of iron ore concentrate grading around 65% Fe. This initial operation is intended to establish an early source of cash flow that could contribute towards the development of the broader project.
The wider Amapá project is supported by a substantial JORC-compliant mineral resource and a pre-feasibility study outlining the potential economics of restoring the integrated mining operation. However, Cadence continues to face financial constraints, including the absence of revenue during 2025, ongoing losses and persistent cash consumption, which leave the company dependent on external funding despite relatively low debt. Technical indicators also remain subdued, with bearish momentum and the shares trading below important short-term moving averages.
More about Cadence Minerals
Cadence Minerals is a London-listed mining investment company focused on advancing mineral resource projects, with particular exposure to iron ore development in Brazil. Its principal asset is a 36.2% interest in the Amapá Iron Ore Project, an integrated mining operation with existing mine, railway, port and beneficiation infrastructure. The longer-term development strategy is focused on producing high-grade iron ore concentrate suitable for the direct reduction market.
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