Azteca Refurbishment Update

Cadence Minerals PLC

27 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 Refurbishment Update

Refurbishment progresses from 48% to 77%; operational readiness target maintained

Cadence Minerals plc (AIM: KDNC) announces that refurbishment of the Azteca processing plant at the Amapá Iron Ore Project has progressed from 48% to 77% weighted physical completion since the Company's previous operational update and continues to run ahead of schedule, exceeding the planned 72% completion at the reporting date.

Highlights

•       Refurbishment continues ahead of plan: Weighted physical completion has increased from 48% to 77% since the previous operational update, exceeding planned progress and maintaining the targeted operational readiness schedule.

•       Key processing circuits nearing completion: The hopper, transfer conveyor and process tank installation have been completed, while screen refurbishment is approximately 98% complete, progressively reducing execution risk across the processing plant.

•       Critical workstreams progressing: Magnetic separation has reached approximately 69% completion and electrical installation approximately 43% completion, with electrical works representing the principal remaining execution focus.

•       Metallurgical programme completed: Test work has confirmed the proposed processing flowsheet for production of approximately 65% Fe iron ore concentrate from feed material grading approximately 48% Fe, establishing the operating parameters for commissioning.

•       Operating Licence workstreams continue: Installation Licence workstreams continue to progress as planned. Commercial operations and shipments remain subject to receipt of the Operating Licence.

Kiran Morzaria, Chief Executive Officer, commented:

"Projects create value through execution. Advancing from 48% to 77% completion while remaining ahead of schedule demonstrates that the Azteca refurbishment is moving through its critical execution phase as planned.

With the metallurgical programme complete, the technical pathway to commissioning is now established. Our focus is increasingly shifting from rebuilding the plant to preparing it for reliable operations, while refining the infrastructure required to support long-term production.

Management's priority is straightforward: complete the remaining execution work, secure the Operating Licence and transition Azteca into commercial operations. Achieving that will establish the first operating platform within the wider Amapá Project and position the Company for its next phase of development."

Execution Update

The refurbishment programme continues to perform ahead of the approved execution schedule. Weighted physical completion has increased from 48% to 77%, compared with planned progress of 72%, with 43 of the 64 identified work packages now complete.

Completion of the principal mechanical workstreams has progressively shifted the execution focus towards electrical installation, integrated commissioning and Operating Licence readiness. The feed hopper, transfer conveyor and process tank installation have been completed, while screen refurbishment is substantially complete.

Electrical installation remains the principal execution activity during the final phase of refurbishment. Management's immediate priority is completion of the remaining electrical systems, commissioning of the magnetic separation circuit and preparation for integrated plant commissioning.

The Company recorded no lost time injuries or reportable safety incidents during the reporting period.

Technical Update

The planned metallurgical programme has been completed. The programme confirmed the proposed processing flowsheet required to produce approximately 65% Fe iron ore concentrate from the planned feed material and established the operating parameters for commissioning.

The test work demonstrated approximately 53% mass recovery and 72.8% iron recovery, with feed material grading approximately 48% Fe required to achieve the target concentrate specification.

Completion of the programme provides technical validation of the proposed processing route and further reduces execution risk ahead of commissioning

Infrastructure and Funding

As engineering work has progressed, the Company has refined the infrastructure required to support sustained commercial operations.

These requirements principally comprise road infrastructure together with additional Tailings Storage Facility ("TSF") works identified following completion of the dam break assessment. These infrastructure requirements are separate from the Azteca refurbishment programme and do not affect the Company's current refurbishment activities or targeted operational readiness.

The existing prepayment facility continues to fund refurbishment and commissioning of the Azteca plant. The Company is assessing the scope, timing and funding of these longer-term infrastructure investments and will provide further updates as those assessments progress.

Operating Licence Workstreams

The Installation Licence authorises the approved refurbishment and installation works at Azteca. Commercial operations and shipments remain subject to receipt of the Operating Licence.

The Operating Licence process continues to progress alongside completion of the refurbishment programme. Environmental monitoring, environmental management and implementation of the applicable licence conditions continue in accordance with the approved work programme.

DEV Mineração S.A. continues to engage with the State of Amapá Environmental Authority (SEMA/AP) and, as at the date of this announcement, the associated Operating Licence workstreams are progressing as expected.

Next Milestones

Management's immediate focus is completion of the remaining electrical installations, integrated plant commissioning and completion of the Operating Licence workstreams.

Subject to successful commissioning and receipt of the Operating Licence, the Company continues to target operational readiness by the end of August 2026.

The refurbishment programme continues to be undertaken under the previously granted Installation Licence. Commercial operations and shipments remain subject to receipt of the Operating Licence.

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