Cadence Minerals PLC on Tuesday said its Amapa ore project in Brazil had a higher value than initially expected, following an updated prefeasibility study.
Cadence Minerals shares rose 29% to 3.99 pence each on early Tuesday afternoon in London.
The investment and development company noted a 20% increase of post-tax net present value to $1.14 billion at a discount rate of 10%, with profit after tax of $3.14 billion over the life of mine.
Further, it said there has been a 10% increase in average production after ramp-up to 5.82 million dry metric tonnes.
Cadence Chief Executive Kiran Morzaria said: ‘On behalf of our board, I am thrilled with the positive outcomes from the updated economic study at the Amapa ore project, along with further he significant progress made at Amapa. The increased net present value of $1.15 billion and the enhanced post-tax internal rate of return demonstrate substantial improvements to the project’s already robust economics.’
He added: ‘The ongoing development of the 67% ’Green Iron’ processing flow sheet and the project’s 100% renewable power source exemplify our commitment to propelling Amapa forward to meet the growing demand for low-carbon iron ore and steel, while at the same time demonstrating a potential 43% uplift in projected annual net operating profit.’
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