Azteca Hot Commissioning Complete
Summary by AI BETAClose X
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 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 Hot Commissioning Complete
Commissioning completed in 30 days of a 45-day consent window; reports filed with SEMA/AP; Operating Licence pending
Cadence Minerals plc (AIM: KDNC) announces that DEV Mineração S.A. (“DEV”) completed hot commissioning of the Azteca processing plant at the Amapá Iron Ore Project 30 days into the 45-day period permitted by the Amapá State Environmental Secretariat (“SEMA/AP”). DEV filed the commissioning and Installation Licence compliance reports on 29 October 2026, completing the submissions requested for the Azteca operating licence application (Licença de Operação, the “Operating Licence”). Commissioning ran on lower grade accessible feed, and the grade of the commissioning concentrate is not yet known; assay results will be reported when received. The Operating Licence remains pending. Commercial operations and shipments remain subject to its grant and conditions.
Highlights
- Hot commissioning complete: DEV completed testing in 30 days of the 45-day consent window, in line with timing guidance. 164 operational items were checked. The plant ran at roughly a third of operational feed capacity, within the 25%–50% commissioning range.
- Commissioning results: Approximately 6,200 wet tonnes of feed processed and approximately 2,800 wet tonnes of concentrate produced: mass recovery (by weight) of approximately 45%.
- Assays and optimisation testwork: Feed and concentrate samples are with an accredited laboratory. Optimisation testwork on higher-intensity magnetic separation has been brought forward. Results are expected within four to six weeks.
- Reports filed; Operating Licence pending: The submissions requested by SEMA/AP are complete. The application relates to the Azteca plant only.
- On-site grade control: An XRF laboratory is expected to be operational by the end of November 2026, returning feed and product iron grades within hours so that feed selection and spiral settings can be adjusted during operation.
- Next steps; target unchanged: Operating Licence grant, access works to the higher-grade feed area, bridge completion (deck around a third refurbished) and preparation for commercial production and a first shipment before the year end, subject to regulatory approval, feed access, plant performance and logistics readiness. The target of approximately 380,000 tonnes per annum of approximately 65% Fe concentrate is unchanged.
Kiran Morzaria, Chief Executive Officer, commented:
“On 28 September I said we would get it running, prove it, then improve it, and that we would finish commissioning well inside the 45-day window.
“Against that: Running, done in 30 days, on lower-grade feed than the plant will see in production. Proving: the plant, yes; the product, not yet. We ran on the feed we could reach rather than wait for access to the higher-grade material, so we could file for the Operating Licence sooner. We expect to prove the product on design-grade feed once we are licensed. Improving: started earlier than I said in September, with optimisation testwork underway and the site laboratory due by the end of November, the work has begun.
“Commissioning is meant to find problems. Leaks and a failed pump motor cost us about five days. Both are fixed. The maintenance programme now underway deals with the rest.
“We are using the licence review period, not waiting on it. The bridge deck is a third done and the access works are planned. In production we will know the grade of what goes in and what comes out within hours, not weeks. Our aim remains commercial production and a first shipment before the end of the year, subject to the licence. My thanks to the DEV team and our contractors for delivering on time, and to SEMA/AP for its continued engagement.”
Commissioning and Licensing
Hot commissioning ran from 23 September to 23 October 2026 on weekdays: two days of water-only tests, then tests with feed. DEV checked 164 operational items and made adjustments where required. Commissioning was completed within SEMA/AP’s consent period.
The plant processed approximately 6,200 wet tonnes (approximately 5,700 dry) of feed and produced approximately 2,800 wet tonnes (approximately 2,600 dry) of concentrate: mass recovery of approximately 45%. Mass recovery is the proportion of feed reporting to concentrate by weight, not a measure of iron grade or iron recovery. Management expects it to move towards the approximately 53% of the July 2026 testwork on design-grade feed.
Over approximately 160 operating hours, feed averaged approximately 40 wet tonnes per hour, roughly a third of the plant’s operational feed capacity of approximately 110 tonnes per hour (set by the spiral circuit) and within the 25%–50% commissioning range. Tonnages are approximate wet weights recorded at the plant; dry tonnages assume approximately 8% moisture; capacity figures are engineering estimates for the plant as configured.
Water-supply leaks and a failed pump motor on the screen-washing system cost approximately five days. Both have been repaired.
DEV stopped processing on completion, as the consent requires. The plant is in planned maintenance covering the repairs and improvements identified. DEV is finalising haulage, port handling and related contracts for commercial operations.
Concentrate produced during commissioning is stored on site. It cannot be sold or dispatched until the Operating Licence is granted.
Feed Grade, Assays and Optimisation
The plant uses magnetic separation followed by gravity spirals. Testwork announced on 28 July 2026 confirmed this flowsheet produces approximately 65% Fe concentrate from feed grading approximately 48% Fe (“design-grade feed”), at approximately 53% mass recovery and 72.8% iron recovery.
The higher-grade feed area requires access works before mining. DEV chose not to wait. It commissioned on accessible material expected to grade below design-grade feed, so the commissioning report could be filed, and the Operating Licence application progressed without delay. Part of the run deliberately tested the circuit on this lower-grade feed. Grade and mass recovery from commissioning are therefore not expected to be representative of commercial production. DEV expects to complete the access works once the Operating Licence is granted.
Commissioning feed and concentrate samples are at an accredited laboratory in Belo Horizonte, with control samples from defined areas of Dykes 3 and 4. They will be assayed and used for testwork on higher-intensity magnetic separation, to assess whether iron and mass recovery can be increased.
This is the first stage of the optimisation studies funded by the September 2026 fundraising, brought forward to use the Operating Licence review period. Plant modifications would follow a period of commercial operation. The scale of any improvement and the investment required remain to be established. Results are expected over the next four to six weeks and will be reported when received.
Readiness Investment
DEV has approved and budgeted an on-site XRF laboratory, expected to be operational by the end of November 2026. It will return feed and product iron grades within hours, allowing feed selection and spiral settings to be adjusted during operation.
DEV has also approved and budgeted an additional dewatering screen to reduce product moisture and transport cost; installation timing will be confirmed on contract award. Both items are funded from the optimisation allocation of the September 2026 fundraising.
Regulatory Position
The 29 October 2026 filings included the evidence requested by SEMA/AP and outlined on 28 September 2026: dam instrumentation maintenance, slope repairs and erosion control, environmental monitoring records and a dam stability declaration. They complete the submissions requested for the Operating Licence application, which relates to the Azteca plant only.
Infrastructure: Preparing the Route to Market
As at 30 October 2026, contractors had refurbished approximately one-third of the timber deck of the Pedra Branca do Amapari bridge and completed the walkway and fencing. The bridge remains in use under temporary controls. Completion is targeted before first road haulage.
Next Milestones and Wider Development
Priorities for the remainder of 2026 are the Operating Licence, access works to the higher-grade feed area, the site laboratory, bridge completion, and preparation for commercial production with the aim of first shipment before the year end, subject to timing of the Operating Licence. Feed access, plant performance and logistics readiness also can bear on timing. The Company expects to update the market on the Operating Licence, the assay and testwork results, and the bridge works.
The production target of approximately 380,000 tonnes per annum of approximately 65% Fe concentrate is unchanged. Both the tonnage and the grade assume design-grade feed.
Commercial operation at Azteca would give Amapá an operating track record for shareholders, partners and financiers to assess, and is intended to generate cash for the larger project after operating needs and funding obligations are met.
Preparation for the Definitive Feasibility Study, planned to commence in 2027, continues alongside the Azteca programme. The larger Amapá redevelopment remains subject to further technical studies, financing, construction planning and regulatory approvals.
Cadence Ownership
As at 31 May 2026, Cadence’s total investment in the Amapá Project was approximately US$16.1 million. Cadence holds a 36.2% equity interest in Pedra Branca Alliance Pte Ltd (“PBA”), which owns 100% of DEV, the owner and operator of the Amapá Project.
About the Amapá Project
The Amapá DR Iron Ore Project comprises established mine, rail, port and beneficiation infrastructure in Brazil. The Project hosts a JORC-compliant Mineral Resource of 276.2 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 grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.
For further information, contact:
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Cadence Minerals plc |
+44 (0) 20 3582 6636 |
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Andrew Suckling |
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Kiran Morzaria |
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Zeus (NOMAD & Broker) |
+44 (0) 20 3829 5000 |
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James Joyce |
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Darshan Patel Matthew Diaz-Rainey |
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Fortified Securities - Joint Broker |
+44 (0) 20 3411 7773 |
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Guy Wheatley |
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Public & Investor Relations – St Brides Partners /Spire |
+44 (0) 20 7236 1177 |
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Alan Green |
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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.
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