Cadence Minerals

Overview
Price performance
Financials
Research
Thematics

Cadence Minerals is an early-stage investment and development company in the mining space. Its public equity holdings include rare earths and lithium developers, and its non-listed interests include a 32.6% interest in the Amapá iron ore restart project in Brazil.

Cadence continues to de-risk and optimise Amapá, with recent work indicating a potential 33% (US$63.2m) reduction in capital costs for the beneficiation plant and a 4.8% increase in forecast production of product. Studies are continuing to reduce mining costs and potentially upgrade the main product from 65% Fe to 67% Fe, which attracts a premium.

Latest Insights

Metals & Mining |
Update

04.04.24

Cadence Minerals — Amapá optimisation adds value

Metals & Mining |
Update

03.11.23

Cadence Minerals — Real progress, real value

Metals & Mining |
Flash note

31.08.23

Cadence Minerals — Sonora project update

Metals & Mining |
Initiation

06.07.23

Cadence Minerals — A mispriced miner

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Sector

Metals & Mining

Equity Analyst

Andrew Keen

MD - Head of Content, Energy & Resources, Industrials

Andrey Litvin

Energy and Resources Analyst

Harry Kilby

Analyst

Key Management

Kiran Morzaria

CEO

Balance Sheet

Forecast net cash (£m)

0.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(35.5)	(32.4)	(64.9)
Relative	(37.2)	(36.7)	(66.5)
52 week high/low	10.2p/3.2p

Financials

Cadence Minerals is a mining-focused investment company with unlisted investment assets that the market appears to be clearly mis-pricing. It holds a portfolio of public investments, but its major non-public asset is a 33.6% stake in the Amapá iron ore project in Brazil; we believe a conservative base-case valuation for the asset to be £41.2m at its current stage of development, significantly above the valuation for Cadence in its entirety. We see significant further de-risking of the project in 2024, including licensing and further engineering and optimisation work, with this progress increasing the value of Candence’s stake.