Azteca Execution Update

Cadence Minerals PLC

07 July 2026

 

The company deems the information contained within this announcement to constitute Inside Information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.

Cadence Minerals Plc

("Cadence Minerals", "Cadence", or "the Company")

Azteca Execution Update

Refurbishment ahead of current works schedule

Cadence Minerals plc (AIM: KDNC) announces that refurbishment works at the Azteca plant, part of the Amapá Iron Ore Project in Brazil, are ahead of the current works schedule.

The refurbishment programme had reached approximately 48% weighted physical progress, compared with 41% planned progress. The Company continues to target operational readiness by the end of August 2026, subject to completion of the remaining refurbishment, electrical installation, equipment connection, commissioning preparation and technical handover activities.

Commercial operations and shipments remain subject to receipt of the Operating Licence ("LO"). The related LO workstreams continue to progress as expected.

Highlights

·    Refurbishment ahead of plan: Azteca had reached approximately 48% weighted physical progress as at 2 July 2026, compared with 41% planned progress.

·    Works programme advancing: The current schedule tracks 64 activities, of which 21 have been completed, 10 are in progress and 33 have not yet started.

·    Key processing areas advanced: The hopper is approximately 83% complete, the conveyor system is approximately 79% complete and the screen is approximately 69% complete.

·    Critical workstreams remain: Magnetic separation is approximately 35% complete and the electrical system is approximately 23% complete.

·    Operating Licence workstreams continue: Commercial operations and shipments remain subject to receipt of the Operating Licence, with the related LO workstreams progressing as expected.

Kiran Morzaria, Chief Executive Officer of Cadence, commented:

"Azteca has moved from planning into measurable site execution. The current progress is encouraging and reflects the benefit of the preparation completed before mobilisation.

The plant is now advancing through the workstreams that matter: refurbishment, electrical installation, operational readiness and the regulatory pathway to commercial operations.

Azteca remains the practical first step in bringing Amapá back into production. The focus is on disciplined delivery, schedule control and converting execution progress into the operating platform for the wider project."

Current Status

The Azteca restart programme is being carried out under the approved refurbishment and installation programme authorised by the Installation Licence.

The current works schedule tracks 64 activities across the plant, including mobilisation, feed preparation, conveyors, screens, magnetic separation, spiral concentration, piping, tanks and electrical systems. As at 2 July 2026, 21 activities had been completed, 10 were in progress and 33 had not yet started.

The Company measures the refurbishment programme using weighted physical progress. This takes account of the relative size and importance of each activity and provides a clearer view of execution progress than a simple count of completed tasks.

On this basis, Azteca had reached 47.8% weighted physical progress as at 2 July 2026, compared with planned progress of 41.0%.

The Company continues to target operational readiness by the end of August 2026. This remains subject to completion of the remaining works and no material slippage in the remaining critical activities.

Progress by Area

The hopper, conveyor system and screen are the most advanced areas of the plant. The hopper is 82.9% complete. The conveyor system is 78.9% complete. The screen is 68.8% complete.

These areas include completed or advanced work relating to access, mechanical inspection, structural alignment, component refurbishment and industrial painting.

Magnetic separation is 35.0% complete and remains an important processing workstream. Electrical works remain a key workstream before operational readiness. The electrical system is 22.7% complete. Panel dismantling and lighting dismantling have been completed. Motor testing associated with the screen is underway.

Schedule Status

The current works status does not change the Company's target for Azteca to be operationally ready by the end of August 2026.

Operational readiness remains subject to completion of the remaining refurbishment activities, electrical installation, equipment connection, commissioning preparation and technical handover activities.

Management has not identified any material schedule slippage against the current works programme as at the date of this announcement. Commercial operations and shipments remain subject to receipt of the LO and completion of the related regulatory workstreams.

Operating Licence Workstreams

The Installation Licence authorises the approved refurbishment and installation works at Azteca. It does not authorise commercial operations or shipments. The Operating Licence ("LO") remains the regulatory approval required before commercial operations and shipments can commence.

The LO is assessed following completion of the relevant installation works and demonstration that the applicable Installation Licence conditions have been satisfied. These conditions include environmental monitoring, environmental management and implementation of applicable environmental control plans.

DEV Mineração S.A. ("DEV") continues to progress the LO process with the State of Amapá Environmental Authority, Secretaria de Estado do Meio Ambiente ("SEMA/AP"). Several of the workstreams required to support the LO process are being undertaken alongside the installation of the Azteca plant.

As at the date of this announcement, these workstreams are progressing as expected.

Strategic Context

Azteca remains Cadence's near-term operational focus within the staged redevelopment strategy for Amapá.

Subject to successful completion of refurbishment works, commissioning activities, completion of the related regulatory workstreams and receipt of the LO, Azteca is intended to establish the first operating platform at Amapá.

The broader Amapá development remains subject to further technical studies, financing, construction planning and regulatory approvals.

Cadence Ownership

As at the end of 31 May 2026, Cadence's total investment in the Amapá Project is approximately US$16.1 million, representing a 36.2% equity stake.

About the Amapá Project

The Amapá DR Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.

An updated Pre-Feasibility Study published on 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction ("DR") grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.

As part of a staged redevelopment strategy, Azteca is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of approximately 65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to successful commissioning, completion of related regulatory workstreams and receipt of the LO.

For further information, contact:
Cadence Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
Zeus (NOMAD & Broker)	[phone]
James Joyce
Darshan Patel Chris Wardley
Fortified Securities - Joint Broker	[phone]
Guy Wheatley
Public & Investor Relations - Brand Communications	[phone]
Alan Green

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Cautionary and Forward-Looking Statements

This announcement contains forward-looking statements. Such statements are based on the current expectations, assumptions and beliefs of the Directors and are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance and may often be identified by words such as "believe", "expect", "intend", "may", "plan", "should", "will", "could" and similar expressions. Actual results may differ materially from those expressed or implied by such statements due to a range of factors, many of which are outside the control of the Company, including changes in economic conditions, market conditions, regulatory developments, the actions of governmental authorities, the availability of funding and other risks affecting the Company's operations. Readers should not place undue reliance on forward-looking statements, which speak only as at the date of this announcement. Except as required by law or applicable regulation, the Company undertakes no obligation to update or revise any forward-looking statements.

 

END