Cadence Minerals Now Less than Two Months From Production

Why It Matters

The licence and imminent Aztec production give Cadence a near‑term, non‑dilutive cash engine, de‑risking its $1.9 bn flagship project and offering investors a tangible proof‑point in a capital‑intensive mining sector.

Key Takeaways

• Installation license granted for Cadence's Amappa iron ore project in Brazil.
• Aztec plant to start commercial production by end of June, shipping July.
• Project will process 380k tons, yielding ~738k tons of 65% Fe concentrate.
• Three-year, 3‑million‑ton resource to fund larger 5.5Mt DR project.
• Low processing costs; road transport drives non‑dilutive cash flow.

Summary

Cadence Minerals announced that Brazil’s regulatory authority has issued an installation licence for its Amappa iron‑ore complex, clearing the way to build the mine’s tailings storage, processing plant and the smaller Aztec early‑cash‑flow facility.

The Aztec plant, a modest 380,000‑ton capacity conveyor‑screen‑magnetic separator‑spiral system, is slated for dry commissioning by the end of June and first commercial output in July. It will treat roughly 700,000 tons of material to produce about 738,000 tons of 65 % Fe concentrate, generating an estimated 45,000 tons of product for shipment within 45 days of start‑up.

Management highlighted that the ore has already been partially processed, eliminating the most energy‑intensive crushing and grinding steps and keeping operating costs low. A conservative 3 million‑ton resource will sustain production for about three years, funding the definitive feasibility study (DFS) for the larger 5.5 Mt DR‑grade project, which carries a $1.9 billion NPV and $353 million annual free cash flow.

By delivering cash flow without diluting shareholders, Cadence aims to prove execution capability, win stakeholder confidence, and secure debt‑equity financing for the flagship project. The milestone therefore de‑risks the path to a substantially larger, higher‑margin operation and could reshape Brazil’s mid‑tier iron‑ore supply landscape.

Original Description

Cadence Minerals has received the Installation Licence for its Amapa iron ore project in Brazil. The granting of the licence allows the company to move towards production from the Azteca plant, and this is expected to be up and running at the rate of 380,000 tonnes per year within two months time. Production from Azteca will generate cashflow to enable funding of the development of the wider Amapa project, which is slated to produce 5.5 million tonnes of DR-grade product per year. Cadence's chief executive Kiran Morzaria joins Vox to tell us more