Announcement • Jul 08
Cadence Minerals plc Provides Update on Azteca Plant Refurbishment and Operational Readiness
Cadence Minerals plc announced 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. The current schedule tracks 64 activities, of which 21 have been completed, 10 are in progress and 33 have not yet started. The hopper is approximately 83% complete, the conveyor system is approximately 79% complete and the screen is approximately 69% complete. Magnetic separation is approximately 35% complete and the electrical system is approximately 23% complete. 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. 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. 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. 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. 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. As at the end of 31 May 2026, Cadence's total investment in the Amapá Project is approximately USD 16.1 million, representing a 36.2% equity stake. 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 USD 1,970 million 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.
