Cadence Minerals

Cadence Minerals (AIM: KDNC)

Currency in GBP

Last close As at 22/09/2023

GBP0.08

▲ −0.50 (−6.06%)

Market capitalisation

GBP15m

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 lithium in Mexico and a 30% 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

Metals & Mining |
Flash note

31.08.23

Cadence Minerals — Sonora project update

Metals & Mining |
Initiation

06.07.23

Cadence Minerals — A mispriced miner

Metals & Mining |
QuickView

18.02.22

Cadence Minerals — Moving ahead with Amapa

Metals & Mining |
Update

10.05.17

Cadence Minerals — Steadily cantering through

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Sector

Metals & Mining

Equity Analyst

Andrew Keen

MD - Head of Content, Energy & Resources, Industrials

Key Management

Kiran Morzaria

CEO

Balance Sheet

Forecast net debt (£m)

0.3

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	0.0	(4.9)	(22.7)
Relative	(5.6)	(6.6)	(27.3)
52 week high/low	16.6p/6.5p

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 accounts for £10.2m of its c £14m market cap, leaving an implied combined value of £3.8m for its 30% stake in the Amapá iron ore project and its minority stake in the Sonora lithium project. In our view each of these is worth more than this, and we believe a conservative base-case valuation of both to be £45m or 26p/share at their current stages of development. This values Cadence at 32.2p/share, more than four times its current valuation. Our high-case valuation is 57p/share.