TIDMKDNC
RNS Number : 2023B
Cadence Minerals PLC
31 May 2023
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Corporate Update - Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
the announcement by Hastings Technology Metals (ASX: HAS)
("Hastings") that it has introduced a staged development strategy
to reduce delivery risk and enable faster pathway to cash flow for
the Yangibana Rare Earths Project.
Highlights:
-- Results of the project capital and delivery model review
support a staged development strategy for the Yangibana Rare Earths
Project
-- This strategy will reduce upfront capital requirements and
project execution risks as well as providing a faster pathway to
cash flow by Q1 2025
-- Initial focus will be on construction of the Yangibana mine
and beneficiation plant to produce rare earths concentrate (Stage
1), followed by development of a hydrometallurgical plant to
produce mixed rare earth carbonate (Stage 2)
-- Total project capital cost is now estimated at $948m, with
the Stage 1 component being $470m (a 40% increase to the estimate
from 2020/21)
-- Fixed price contracting model aims to minimise risk of
further capital cost increases, demonstrated by the recent
arrangement with GR Engineering for construction of the
beneficiation plant
-- Beneficiation plant construction to commence in Q3 CY2023,
supporting Stage 1 concentrate delivery target date of Q1
CY2025
-- Concentrate offtake discussions underway with rare earth
oxides producers in Australia and offshore with a view to
concluding firm contracts prior to drawdown of project finance debt
in early 2024
-- Potential for strong Stage 1 financial returns with post-tax
NPV11 of $538m, an IRR of 27.54% and average annual EBITDA of $174m
providing a funding source for Stage 2.
Link here to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: "The
Yangibana Rare Earths Project is one of the world's most advanced
greenfield rare earth projects and is well-timed to meet the
forecast supply gap for magnet rare earth elements which are
required to support the global transition to clean energy. A
comprehensive project review undertaken by our new experienced
management team has confirmed that this world-class project remains
financially and operationally robust, with the investment in a
Stage 1 mining and beneficiation plant being a compelling
proposition. The implementation of a two-stage development strategy
for Yangibana will lower the upfront capital funding requirements,
reduce the project execution risk and enable a faster pathway to
early project cash flows which can be used to fund Stage 2 plant
construction."
Cadence CEO Kiran Morzaria, commented: "The Cadence board remain
enthusiastic shareholders and supporters of Hastings Technology
Metals and the Yangibana Rare Earths project. We are pleased to see
the project risks further reduced by the introduction of a two
stage investment strategy, and we are excited by the prospects for
commencement of the beneficiation plant construction within the
next few months. I look forward to providing further updates."
Cadence shareholding in Hastings
On 25 January 2023, Cadence completed the sale of its 30% stake
in several mineral concessions forming part of the Yangibana Rare
Earths project for a consideration of 2.45 million Hastings shares,
equating to approximately 1.9% Hastings issued share capital. This
consideration was a premium over the Net Present Value ("NPV") of
the Cadence portion of the mineable material, based on the
definitive feasibility ("DFS") updated by Hastings on 21 February
2022.
The full announcement concerning the Yangibana sale is available
here .
For further information
contact:
Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
Enzo Aliaj
Brand Communications +44 (0) 7976 431608
Public & Investor Relations
Alan Green
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Cautionary and Forward-Looking Statements
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should", "envisage", "estimate", "intend", "may", "plan",
"will", or the negative of those variations or comparable
expressions including references to assumptions. These
forward-looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the company's future growth results of operations
performance , future capital, and other expenditures (including the
amount, nature, and sources of funding thereof) competitive
advantages business prospects and opportunities. Such
forward-looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors. Many factors could cause actual results to differ
materially from the results discussed in the forward-looking
statements, including risks associated with vulnerability to
general economic and business conditions, competition,
environmental and other regulatory changes actions by governmental
authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many
of which are beyond the control of the company. Although any
forward-looking statements contained in this announcement are based
upon what the Directors believe to be reasonable assumptions. The
company cannot assure investors that actual results will be
consistent with such forward-looking statements.
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