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Cadence Minerals (AIM: KDNC)

Currency in GBP

Last close As at 09/12/2023

GBP0.06

▲ −0.07 (−1.20%)

Market capitalisation

GBP10m

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’s commodity exposure is favourable in our view, with exposure to rare earth minerals and lithium, which both have strong structural end-use demand, and iron ore, where we see continued need for projects such as Amapá. Cadence is a relatively small investment company in a large sector so has been overlooked by investors.

Latest Insights

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Metals & Mining | Update

Cadence Minerals — Real progress, real value

Metals & Mining | Flash note

Cadence Minerals — Sonora project update

Metals & Mining | Initiation

Cadence Minerals — A mispriced miner

Metals & Mining | QuickView

Cadence Minerals — Moving ahead with Amapa
Cadence Minerals_resized
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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 debt (£m)

0.3

Forecast gearing ratio (%)

2

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (17.9) (14.8) (36.1)
Relative (19.4) (15.7) (36.1)
52 week high/low 16.6p/4.8p

Financials

Cadence Minerals is a mining-focused investment company with unlisted investment assets that the market appears to be clearly mis-pricing. Its portfolio of public equities at end-October 2023 accounts for £5.8m (3.4p/share) of its c £12m market cap, leaving an implied combined value of £5.8m for the increased stake of 32.6% we have applied to its stake in Amapá iron ore project to reflect Candence’s continued earn-in rate and its minority stake in the Sonora lithium project. In our view Amapá is worth more than this alone, and we believe a conservative base-case valuation for the asset to be £41.3m or 23.9p/share at its current stage of development. We have reduced our group valuation to 29.5p/share from 32.2p/share.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 1.2 (0.6) (0.1) (0.10) N/A N/A
2022A (4.0) (5.5) (5.5) (3.36) N/A N/A
2023E 0.0 (1.8) (1.8) (1.10) N/A N/A
2024E N/A N/A N/A N/A N/A N/A

Research

Cadence Minerals_resized

Flash note

Metals & Mining

Cadence Minerals — Sonora project update

Initiation

Metals & Mining

Cadence Minerals — A mispriced miner
Cadence Minerals_resized

Metals & Mining

Update

Cadence Minerals — Real progress, real value

Cadence Minerals_resized

QuickView

Metals & Mining

Cadence Minerals — Moving ahead with Amapa

Update

Metals & Mining

Cadence Minerals — Steadily cantering through

ADR Update

Metals & Mining

Rare Earth Minerals — Update 14 January 2016

Update

Metals & Mining

Rare Earth Minerals — Update 14 January 2016

Flash note

Metals & Mining

Rare Earth Minerals — Update 23 November 2015

Thematics

thematic

Metals & Mining

Shades of the 1970s

thematic

Metals & Mining

Critical minerals: The investment vacuum
samuel-scrimshaw-kp_87tExCwI-unsplash

thematic

Metals & Mining

Lithium’s adolescence

thematic

Metals & Mining

Lepidico: Offer closes, oversubscribed
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