RE: RNS18 Aug 2025 07:03
Significant Mining Cost Reduction at the Amapá Iron Ore Project
Cadence Minerals (AIM: KDNC) is pleased to announce the results of a review into the mining costs of the Amapá Iron Ore Project ("Amapá", "Project" or "Amapá Project") in northern Brazil. The updated mining costs have materially reduced the overall Free on Board ("FOB") and Cost and Freight ("CFR") costs compared to those announced previously. Cadence holds a 35.1% equity interest in the Project.
Highlights:
· 36.7% Mining Cost Reduction: Mining costs reduced from US$17.65/DMT to US$11.17/DMT following re-quotation from one of Brazil's largest mining contractors.
· FOB Costs Down 19.2%: Overall FOB costs reduced from US$33.75/DMT to US$27.28/DMT.
· Major Annual Savings: Estimated cost savings of approximately US$33.3 million per annum.
· Life-of-Mine Benefit: Total savings of around US$500 million over the life of mine.
· CFR Cash Cost at US$55.46/DMT - Positions Amapá among some of the lowest cost producers.
Kiran Morzaria, CEO of Cadence Minerals, commented:
"These revised mining costs represent a major improvement in the economics of the Amapá Project. With a CFR cost base of just over US$55 per tonne, we believe Amapá is positioned among the lowest-cost iron ore operations globally."
"Importantly, these savings are based on the production plan for a premium DR-grade iron ore product, which is expected to capture higher market pricing than standard 62% Fe products. This combination of low costs and premium pricing potential delivers significant annual and life-of-mine savings, strengthens our competitiveness, and further de-risks the project as we progress towards development."
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