Cadence Minerals — Azteca refurbishment complete; commissioning next

Cadence Minerals (AIM: KDNC)

Last close As at 07/09/2026

GBP0.06

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Market capitalisation

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Research: Metals & Mining

Cadence Minerals — Azteca refurbishment complete; commissioning next

Cadence Minerals has completed refurbishment of the Azteca processing plant at its 36.2%-owned Amapá iron ore project in Brazil, with mechanical completion achieved on 4 September. Cold commissioning is scheduled to begin in the week commencing 7 September. Azteca targets c 380ktpa of 65% Fe concentrate from existing tailings, providing early cash flows to support Amapá’s staged redevelopment. Commercial operations and shipments remain subject to successful commissioning and receipt of the operating licence (LO). We will review our project-level estimates and valuation once the LO is granted.

Written by

Andrey Litvin

Energy and Resources Analyst

Metals and mining

Project update

8 September 2026

Price 5.60p
Market cap £24m

Net cash/(debt) at end FY25

£1.0m

Shares in issue

431.8m
Code KDNC
Primary exchange AIM
Secondary exchange N/A
Price Performance

Business description

Cadence Minerals is an early-stage investment and development company in the mining space. Its main asset is a 36.2% interest in the integrated Amapá iron ore project in Brazil.

Analyst

Andrey Litvin
+44 (0)20 3077 5700

Cadence Minerals is a research client of Edison Investment Research Limited

Note: PBT and EPS as reported.

Year end Revenue (£m) PBT (£m) EPS (£) DPS (£) P/E (x) Yield (%)
12/23 0.0 (3.0) (0.02) 0.00 N/A N/A
12/24 0.0 (3.3) (0.02) 0.00 N/A N/A
12/25 0.0 (1.7) (0.01) 0.00 N/A N/A

The completion of Azteca’s refurbishment marks further progress in Cadence’s staged redevelopment of Amapá, following receipt of the installation licence in May. All eight plant systems are now complete, with the refurbishment advancing from c 48% completion on 2 July to mechanical completion on 4 September. Cadence reported no safety incidents during the period.

DEV Mineração, Amapá’s owner and operator, is permitted to undertake cold and wet commissioning and has submitted its LO application to the state environmental agency, SEMA/AP. Hot commissioning will test concentrate grade and recovery, subject to completion of the applicable regulatory requirements. Any concentrate produced will be stockpiled until commissioning is complete and the LO is granted. Management indicated on the recent investor call that commercial production and a first shipment could be achieved within approximately one month of the licence grant, subject to successful commissioning.

Azteca is intended to process existing tailings and provide the first operating cash flows within the broader Amapá redevelopment. The restart was funded through the previously announced US$4.6m prepayment and working capital facility provided by Cadence and its offtake partner, with repayment linked to future shipments. Successful operations would provide funds for Amapá’s permitting, feasibility studies and engineering, reducing reliance on further equity funding.

The broader Amapá project remains Cadence’s principal long-term value driver, with the updated pre-feasibility study outlining production of 5.5Mtpa of 67.5% Fe direct reduction grade concentrate over a 15-year mine life. The longer-term market outlook for the project’s premium product remains positive, with steel industry decarbonisation expected to support demand for DR-grade iron ore. Our last published unrisked attributable valuation was US$437m, including Azteca and deducting Cadence’s pro rata share of joint venture creditor obligations. We will review our estimates and valuation once the LO is granted, taking account of changes in market conditions and the latest operating outlook. The project’s wider redevelopment remains subject to further technical work, permitting and project financing. Mechanical completion is a positive development, with successful commissioning and the LO grant the key near-term share price catalysts.

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