Cadence Minerals shares rose on Monday amid optimism that their flagship Amapá Project would recommence production in a shorter time frame than previously expected.
Cadence Minerals has significantly shortened the expected licensing timeline for its flagship Amapá Iron Ore Project in Brazil. Licenses for the mine, railway and port are now expected within 12 to 16 months, down from the previously estimated 36 months.
The Amapá Project previously produced 6 million tonnes of iron ore per year and Cadence is working to secure Installation Licenses in 2024, followed by Operational Licenses once construction finishes.
The accelerated timeline resulted from discussions between the Amapá Project team and Brazilian environmental regulators as regulators allowed the project to submit more streamlined environmental plans rather than a full study.
Additionally, risk levels at the Amapá tailings storage facility have dropped thanks to ongoing maintenance and monitoring since 2019. While Cadence didn’t comment on timelines for revenue generation from the tailings, one would think the improvement in the risk rating brings this date forward.
Further licensing progress is expected in Q2 2024 when the project submits environmental reports for the mine, railway and port.
CEO Kiran Morzaria commented:
“We are delighted with the progress we saw first-hand in our recent visit to Amapá. Agreeing a shortened route to the operational licence is key to getting the Amapá Project back into production in the shortest time possible.”
Cadence Minerals shares were 3% higher at the time of writing on Monday.