Cadence Minerals reported the successful completion of its capital expenditure optimisation program at the Amapa Iron Ore Project (the "Project", "Amapa" or "Amapa Project"). The program has identified significant savings in processing plant recommissioning and increased production. The optimisation study was conducted at a pre-feasibility level and marks an important milestone in the company's progress towards achieving cost-efficient and sustainable operations.

PFS-level optimisation studies (the "Study") have identified 33% (USD 63.2 million) of capital savings associated with the beneficiation plant at the Amapa Project. The Study has resulted in a forecast increase in production of approximately 4.8% to 5.5 Mtpa of iron ore concentrate, of which 4.51 will be a 65% product and 0.99 Mtpa a 62% product. Alongside joint venture partners, plan to redesign the mine plan to reduce mining costs.

The revised capex and mine plan will form the basis of an amended economic assessment at a PFS level. Fully committed to advancing the development of a 67% "Green Iron" Fe product flow sheet at a production rate of 5.5 Mtpa. The capital requirement for the entire Project is now in the bottom quartile of comparables at USD 58 per million tonnes of annual capacity.

The Study was completed ahead of schedule, so do not anticipate any delays to the timeline already announced. Cadence CEO Kiran Morzaria commented: "We're thrilled to announce the successful completion of capital expenditure optimisation program at The Amapa Iron Ore Project. This effort has delivered a substantial 33% reduction in capital costs, saving $63.2 million and forecasted a 4.8% to 5.,5 Mtpa increase in iron ore concentrate production.

Moreover, given the Study was completed ahead of schedule. They do not anticipate any delays to The timeline already announced, even with the additional work associated with optimising the mine plan to accommodate the increased production. They remain fully committed to advancing the development of the 67% Fe product flow sheet, aligning with their vision for sustainable growth and value maximisation".

As per the announcement made on 7 March 2024, Pedra and Branca Alliance ("PBA"), which owns 100% of the Amapa Iron Ore project, engaged an engineering firm in 2023 to carry out an in-depth review of the processing plant flowsheet to significantly reduce capital and operating expenditures and, possibly, improving the iron ore concentrate quality. The review of capital and operating expenditures is complete, and the 67% flow sheet development continues. Results from Amapa Project Optimisation Studies This part of the optimisation study focused on the iron ore beneficiation plant at the Am Papa Project.

It aimed to reduce the capital and operational expenditure while producing a product mix of 65% Blast Furnace Pellet Feed ("BFPF") and 58% spiral concentrate. An independent Chinese consulting engineering company carried out this work and identified several material capital savings, particularly in the equipment and materials suppliers. As a result of their work, the direct and indirect capital associated with the beneficiation plant has been reduced by USD 63.2 million (approximately 33%) from USD 191.7 million to USD 128.5 million.

Utilising the comparables within the PFS report published in 2023, the entire capital required for the Amapa Project is in the bottom quartile of capital intensity at USD 58 per million tonnesof capacity; the median of the comparable projects is USD 142 per million tonnes of capacity. In addition, the utilisation and availability rates of the beneficiation plant were increased, resulting in an increase in plant throughput and production from 5.28 million tonnes per annum ("Mtpa") to 5.5 Mtpa, both on a dry basis. This also led to a marginal reduction in operating costs.

Out of the 5.5 Mtpa, approximately 4.51 Mtpa will be 65% BFPF, and 0.99 Mtpa will be a 58% spiral concentrate. Next steps Based on the positive results derived from the optimisation study, which included an increase in throughput, which included an increase in conjunction with joint venture partners, to redesign the mine plan to reducing mining costs.