Annual Results for the year ended 31 December 2024

About this update from Cadence Minerals Plc

[{"type":"text","content":"\n \n This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. \n   \n Cadence Minerals Plc \n   \n (\"Cadence Minerals\", \"Cadence\", or \"the Company\") \n   \n Annual Results for the year ended 31 December 2024 \n Cadence Minerals (AIM: KDNC) is pleased to announce its final results for the year ending 31 December 2024. The full Annual Report and Audited Financial Statements will be available on the Company's website at  https://www.cadenceminerals.com/   and will be posted to shareholders shortly. \n Chairman's Statement \n   \n Dear Shareholders, \n   \n As we reflect on the year 2024 and the first half of 2025, Cadence Minerals has demonstrated resilience and strategic clarity amidst a volatile global environment. \n Despite challenges across markets, we achieved critical milestones, made tangible progress at our flagship projects, and continued to position the Company for long-term value creation. \n   \n Amapá Iron Ore Project - Advancing a Strategic Asset \n Our Amapá Iron Ore Project in Brazil remains the cornerstone of our strategy. During 2024, metallurgical testing confirmed the project's capability to produce high-grade, Direct Reduction (\"DR\") quality iron concentrate with a Fe content of 67.5%, accompanied by low impurities. This is a significant milestone-not only technically, but commercially. \n   \n Global demand for DR-grade iron ore is accelerating, driven by the decarbonisation of steel production. DR-grade feedstock is crucial for direct reduced iron (DRI) and electric arc furnace (EAF) steelmaking, both of which produce significantly fewer emissions compared to traditional blast furnaces. As steelmakers transition to lower-carbon processes, the premium for DR-grade material has widened considerably. In 2024, premiums for DR-grade concentrate ranged from $15 to $45 per tonne over the benchmark 62% Fe fines, depending on location and purity. Analysts project that global demand for DR-grade products could rise more than fivefold by 2050, and availability remains constrained. \n   \n Cadence's ability to deliver a reliable source of DR-grade concentrate from Amapá places us in a unique position to serve this growing market. Our development activities have focused on progressing licensing, advancing engineering studies, and preparing for phased production. These efforts align with our strategy to create a vertically integrated, sustainable iron ore business. \n   \n Iron Ore Market Dynamics \n The iron ore market demonstrated resilience in 2024, with benchmark 62% Fe prices trading between US$100 and US$130 per tonne . As we entered 2025, prices hovered near $100 per tonne, and while sentiment remains cautious, structural demand for higher-grade ores-including DR-grade-remains firm. Major producers adjusted guidance downward, and cost pressures became a dominant theme. \n   \n In this context, Cadence's emphasis on quality over volume has been validated. Our focus on producing premium-grade material aligns with where value and margin are migrating in the industry. \n   \n UK Equity Market Pressures \n Cadence continues to operate against a backdrop of systemic headwinds in the UK equity market. In 2024, UK equity markets experienced continued outflows, with approximately £13.1 billion withdrawn from UK-focused funds, marking the third consecutive year of significant redemptions. This sustained capital flight contributed to a sharp contraction in the junior AIM market, which saw a net loss of 74 companies and fell to its smallest size in over two decades. \n   \n While challenging, this environment has reinforced our focus on delivering clear, long-term shareholder value. Cadence remains committed to transparent governance, prudent financing, and project development driven by progress-qualities we believe will be rewarded over time. \n   \n Lithium Market Stabilisation \n The lithium market experienced significant price corrections in 2024, with spot prices falling nearly 85% from their 2022 peaks. However, by late 2024 and into early 2025, signs of stabilisation began to emerge. Temporary mine closures and improving electric vehicle (EV) sales-particularly in China-helped rebalance supply and demand. Analysts now anticipate a more stable pricing environment in 2025, with growing downstream demand from electric vehicles (EVs) and energy storage systems supporting medium- and long-term fundamentals. \n   \n Looking Ahead \n Our operational focus remains firmly on advancing the Amapá Iron Ore Project and unlocking its full potential. With a high-grade, DR-capable resource, supportive long-term trends, and a strategic location, Amapá represents a cornerstone for our future growth. We continually evaluate new opportunities within our core competencies and jurisdictions that complement our strategic direction. \n   \n I want to thank our shareholders for their continued support, as well as our team and partners for their dedication throughout a transformative year. Cadence enters 2025 with momentum, clarity, and a deep commitment to building sustainable value for all stakeholders. \n   \n Andrew Suckling \n Non-Executive Chairman, 18 June 2025 \n   \n \n \n \n \n For further information, contact: \n   \n \n \n \n \n \n \n \n Cadence Minerals plc \n \n \n +44 (0) 20 3582 6636 \n \n \n \n \n Andrew Suckling \n \n \n \n \n \n \n \n Kiran Morzaria \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Zeus Capital Limited (NOMAD & Broker) \n \n \n +44 (0) 20 3829 5000 \n \n \n \n \n James Joyce \n \n \n \n \n \n \n \n Darshan Patel \n Gabriella Zwarts \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fortified Securities - Joint Broker \n \n \n +44 (0) 20 3411 7773 \n \n \n \n \n Guy Wheatley \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Brand Communications \n \n \n +44 (0) 7976 431608 \n \n \n \n \n Public & Investor Relations               \n \n \n \n \n \n \n \n Alan Green \n \n \n \n \n \n \n \n   \n Qualified Person \n 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. \n   \n Cautionary and Forward-Looking Statements \n Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified 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 reflect 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. \n   \n Chief Executive Officer's Commentary \n   \n I am pleased to present the audited results for the year ended 31 December 2024, along with the Strategic Report, which comprehensively reviews our business activities. These results reflect the historical position of the Company's progress and financial standing. We have included additional information on key post-year-end events in the Strategic Report. \n   \n At the core of our efforts in 2024 was the continued advancement of the Amapá Iron Ore Project in Brazil. We successfully completed an optimisation study that significantly enhanced the project's economics, delivering a 33% reduction in beneficiation plant capex and lifting post-tax NPV to US$1.97 billion based on our 67% Fe \"Green Iron\" flowsheet. The development of this Direct Reduction (DR) grade product positions Amapá to serve the expanding low-carbon steel market, which increasingly demands high-purity iron ore for use in Electric Arc Furnace (EAF) and hydrogen-based Direct Reduced Iron (\"DRI\") steelmaking. \n   \n The global iron ore market demonstrated resilience in 2024, with benchmark 62% Fe prices trading between US$100 and US$130 per tonne. Pricing was supported by steady Chinese steel production, infrastructure stimulus, and the tight supply of high-grade ore. Notably, premiums for DR-grade material remained elevated throughout the year, reflecting growing demand from decarbonisation-driven steelmaking. This price dynamic reinforced the strategic importance of our \"Green Iron\" initiative and underpinned the robust economics of the updated Amapá Project PFS. \n   \n Our lithium investments also advanced. Evergreen Lithium advanced exploration at the Bynoe Project, intersecting pegmatites proximal to known resources and expanding its exploration footprint into gold-prospective zones. While lithium prices softened over the period due to oversupply and destocking in the battery supply chain, we believe the structural outlook remains intact, with long-term demand growth driven by the adoption of electric vehicles and stationary storage. \n   \n We divested from Hastings Technology Metals and European Metals Holdings, realising 30% and 174% returns, respectively. These divestments were made in line with our strategy to recycle capital into high-conviction, near-development stage assets-particularly Amapá-while minimising exposure to public equity volatility. UK equity markets continued to suffer from persistent outflows in 2024, with investor appetite shifting offshore. This broader market trend negatively impacted valuations across our listed holdings, but our proactive approach to capital management helped preserve and redeploy value effectively. \n   \n Post-period, we progressed permitting for Amapá, responded to additional regulatory requests, and continued efforts to secure a construction partner and financing solution that minimises dilution. Our investment to date-approximately US$15.5 million for a 35.7% stake-reflects our deep commitment to bringing this project into production and capturing the full value of its extensive infrastructure and resource base. \n   \n Regarding our investment in the Sonora Lithium Project, Cadence is engaged in legal and diplomatic processes following the Mexican government's cancellation of lithium concessions. In November 2023, we submitted a formal Request for Consultations under the UK-Mexico Bilateral Investment Treaty. We believe that our rights under Mexican and international law have been breached, and we will pursue all available remedies. \n   \n Looking ahead, Cadence remains focused on unlocking long-term shareholder value by advancing our core assets, securing non-dilutive funding, and actively managing our portfolio in line with market cycles. We are confident that our strategy , anchored by a world-class iron ore project, positions us well for the year to come. \n   \n Kiran Morzaria \n Chief Executive Officer, 18 June 2025 \n   \n Investment Review \n   \n As outlined in the section \"Our Business and Investment Strategy,\" Cadence operates an investment strategy that involves investing in private projects through a combination of private and public equity models. In both investment classes, we take either an active or passive role. We have reported in these segments below. \n   \n Private Investments, Active \n   \n The Amapá Iron Ore Project, Brazil \n Interest - 34.7% at 31/12/2024 and 35.7% at 1/05/2025 \n   \n The Amapá Project is a large iron ore mine with rail, port, and beneficiation facilities. It operated from December 2007 until 2014, when a geotechnical failure at the port led to a limitation on exports. Before closing, the Project earned profits of US$54 million in 2012 and US$120 million in 2011. In 2008, it produced 712 thousand tonnes of iron ore concentrate, increasing to 4.8 million tonnes in 2011 and 6.1 million tonnes in 2012. \n   \n Investment \n In 2019, Cadence entered into a binding investment agreement to invest in and acquire up to 27% of the Amapá iron ore mine, beneficiation plant, railway, and private port owned by DEV Mineração S.A. (\"DEV\"). The agreement also granted Cadence a first right of refusal to increase its stake to 49%. \n   \n To acquire its 27% interest, Cadence has invested US$6 million in the Amapá Project over two stages. The first stage acquired 20% of PBA for US$2.5 million, and the second stage acquired an additional 7% for US$3.5 million. These investments were completed in the first quarter of 2022. By the end of 2024, Cadence invested about £11.34 million (US$14.38 million) for a 34.7% stake in the Amapá Project. As of the end of March 2025, Cadence invested about US$14.7 million for a 34.9% stake in the Amapá Project. \n   \n Operations Review \n Cadence Minerals made substantial operational and strategic progress at the Amapá Iron Ore Project during the reporting period and into 2025. At the end of 2024, we set several key operational targets. These included submitting the environmental license applications and their grant, improving the project's economics through increased production and capital savings, and, most importantly, completing metallurgical test work for our planned \"green iron\" 67% iron ore concentrate. \n   \n We achieved most of these targets, and in the case of the 67% flow sheet, we substantially improved the project's economics. \n   \n Optimisation Studies and Revised PFS Economics \n In July 2024, Cadence and its joint venture, Pedra Branca Alliance (PBA), completed a preliminary feasibility study (PFS)- level optimisation study, resulting in a 33% reduction (US$63.2 million) in beneficiation plant capital expenditure. The overall project capital intensity was reduced to US$58 per tonne of annual capacity, placing it in the bottom quartile of global comparable. The updated PFS, published in July 2024, reflected increased plant throughput to 5.8 Mtpa and lower operating costs. Key financial metrics improved significantly compared to the 2023 PFS. \n   \n Key Results from the 2024 Updated PFS (Base Case - 65.4% Product): \n ·      Post-tax NPV (10%) :       US$1.145 billion \n ·      Post-tax IRR :                    42% \n ·      Annual production :        5.82 Mtpa (4.81 Mtpa at 65.4% Fe, 1.01 Mtpa at 62% Fe) \n ·      C1 cash costs :                  US$33.50/dmt FOB; US$62.20/dmt CFR \n ·      Post-tax profit (LOM) :   US$3.14 billion \n ·      Project payback :             4 years \n   \n Addition of 67% Fe 'Green Iron' Flowsheet and Updated DR Grade PFS. \n A core strategic initiative throughout 2024 and 2025 has been developing a 67% Fe Direct Reduction (\"DR\") grade concentrate, known internally as the 'Green Iron' flowsheet. This product targets the growing low-carbon steel sector, particularly Electric Arc Furnace (\"EAF\") and Direct Reduced Iron (\"DRI\") markets. \n   \n Test work completed in Q4 2024 by Pei Si Engineering Inc. confirmed that a DR-grade concentrate can be produced at 67.5% Fe, with combined SiO₂ and Al₂O₃ below 1.5%. The process flowsheet incorporates regrinding, magnetic separation (LIMS and HIMS), and two-stage reverse flotation. \n   \n Based on the July base case results, Cadence developed and tested a 67% Fe \"Green Iron\" flowsheet, aiming to produce a high-purity, Direct Reduction (DR) grade concentrate targeting the low-carbon steel sector. Metallurgical test work completed in Q4 2024 confirmed the flowsheet's viability at a PFS level of accuracy. The product achieved 67.5% Fe with less than 1.5% total SiO₂ and Al₂O₃ impurities. \n   \n Key Results from the 2024 Updated DR Grade PFS - 67% Fe Flowsheet Case: \n ·      Post-tax NPV (10%) :       US$1.97 billion \n ·      Post-tax IRR :                    56% \n ·      Annual production :        5.5 Mtpa \n ·      C1 cash costs :                  US$33.7/dmt FOB; US$61.9/dmt CFR \n ·      Post-tax profit (LOM) :   US$4.9 billion \n ·      Project payback :             3 years \n ·      Annual Free Cash Flow : Estimated to be US$342 million. \n   \n The updated flowsheet will eliminate the 62% product stream and reduce power consumption by replacing the jigging and spiral circuits. The beneficiation process now includes additional magnetic separation. \n   \n Environmental Licensing and Permitting \n As announced in September 2023 (UPDATE - Amapá Iron Ore Project ), the Amapá Project has agreed with the Amapá State. Environmental Agency (\"SEMA\") to an expedited environmental licensing process, given that the Project was previously operating and had been granted all required licenses. \n   \n The Amapá Project owns the required Mining Concessions; however, it must obtain a Mine Extraction and Processing Permit (\"Mining Permit\") to begin operations. To obtain this permit, the Amapá Project must secure an Installation License (\"LI\") to commence construction, and once constructed, an Operational License (\"LO\"). Both an LI and an LO are also required to build and operate the railway and port. \n   \n In April 2024, the Amapá Project submitted the required environmental studies and applications for the Amapá mine and railway. These applications took the form of the Environmental Control Plan, \"PCA\" (Plano de Controle Ambiental), and an Environmental Control Report, \"RCA\" (Relatório de Controle Ambiental). The project followed this up in early September by submitting the necessary environmental studies and application for the LI grant for the iron ore port. \n   \n This submission was based on consultations with SEMA and a Terms of Reference agreed upon by both parties. We were informed that the terms of reference (ToR) contained all the requirements for the LI to be granted by the end of 2024. However, before the end of the year, SEMA informed The Amapá Project that additional information and federal clearance were required for the mine and railway LI. \n   \n The Project team has delivered all core documentation in line with the agreed-upon. While the full grant of licences was initially anticipated by year-end 2024, SEMA subsequently issued further requests for supplementary documentation and technical studies. The majority of these items have now been completed or are nearing finalisation. \n   \n ·    Mining Installation Licence : Most supplementary documentation is complete. The key outstanding requirement is a detailed archaeological study, along with other technical inputs and waivers that are either submitted or in advanced preparation. \n ·     Railway Installation Licence : Approximately 95% of requirements have been met, with final technical submissions currently underway. \n ·     Port Installation Licence : Approval timelines have been extended due to the site's historical incident record and redesign of key loading infrastructure. \n   \n We remain fully engaged in securing all outstanding approvals and remain confident that, with continued regulatory cooperation, installation licences will be granted in due course. \n   \n Tailings Storage Facility (\"TSF\") \n Cadence's initial investment criterion for the Amapá Project was the safety and stability of the TSF. Before the investment agreement with our partners, we conducted a TSF review by an internationally recognised consulting group and were satisfied with its structure and stability. However, the lack of reporting and maintenance since 2014 has deemed the TSF high risk. Work since 2019, including maintenance and compliance, has brought the TSF closer to the lowest risk rating. We aim to improve its risk rating further through a dam break study, installing video monitoring, and ongoing inspection and remediation of TSF infrastructure. \n   \n Secured Bank Settlement Iron Ore Shipments \n According to the settlement agreement announced in December 2021, the net proceeds from one shipment made in 2022 and approximately half of the net proceeds from shipments in 2021 have been utilised to pay the secured bank creditors. We have maintained a productive dialogue with the secured bank creditors regarding the best approach to repay the historic lender amounts. We believe that a one-time settlement using DEV's stockpile of iron ore as collateral would be the optimal solution, and we are progressing discussions with the secured bank creditors on this matter. ( UPDATE - Execution of Settlement Agreement ) \n   \n Development Plan for the Amapá Project \n We aim to reinstate this project into production. In 2024, we optimised the project to deliver a highly pure iron ore concentrate and impressive financial metrics. \n   \n Throughout the year, we will maintain our focus on securing the LI and financing for the project. With various work streams advancing. Cadence continues to believe that the optimal pathway to complete development is through a strategic joint venture or sale and is in active discussions with several potential partners, ranging from early-stage data review to site visits. However, this strategy does not eliminate the possibility that our joint venture may develop the project independently or consider a trade sale. \n   \n To minimise execution risk and optimise capital efficiency, we are implementing a staged development strategy. This approach begins with the recommissioning of a small-scale processing plant, followed by phased capital deployment and a gradual ramp-up of production for the DR-grade product. All development activities remain within the bounds of the current mining installation licences. \n   \n In 2025, the Company initiated detailed engineering studies to evaluate the feasibility of this staged development model. Initial findings suggest that the small-scale plant could be brought into production with materially lower upfront capital requirements, subject to receipt of the relevant mining installation licences and authorisation to utilise the existing tailings storage facility (\"TSF\"). \n   \n Should we choose to develop the project independently, we will look to advance through staged investment, gradually increasing production. The intent is to reduce the dilutive impact of equity funding by funding the project's advancement from free cash flow. Contingent on financing availability, Cadence intends to maintain its investment in the project. \n   \n Private Investments, Passive \n   \n Ferro Verde Iron Ore, Brazil \n Interest - 1% on 31/12/2024 and 0% 31/05/2025 \n   \n In 2022, Cadence invested a small amount (US$ 0.24 million) in an advanced iron ore deposit in Brazil the previous year. The Ferro Verde Deposit is in the southern portion of the state of Bahia, in the northeastern region of Brazil, next to the town of Urandi, some 700 km southwest of Salvador, the state of Bahia. We disposed of this stake for circa (US$ 0.26 million). \n Sonora Lithium Project, Mexico \n Interest - 30% on 31/12/202 4 and 31/05/2025 \n   \n C adence holds a 30% interest in the Sonora Lithium Project through its joint ventures Mexalit S.A. de C.V. and Megalit S.A. de C.V., alongside majority partner Ganfeng Lithium Group. The project comprises nine concessions in total, including La Ventana and La Ventana 1 (100% Ganfeng), El Sauz and Fleur (held via Mexalit: 70% Ganfeng, 30% Cadence), and Buenavista and San Gabriel (held via Megalit: 70% Ganfeng, 30% Cadence). Ganfeng is actively developing an open-pit mine and lithium hydroxide processing facility. \n   \n In 2022 and 2023, the Mexican Government amended its Mining Law to prohibit new lithium concessions, classifying lithium as a strategic resource reserved for state ownership. However, concessions granted prior to the reforms-such as those held by Mexalit and Megalit-were expected to remain valid under the principles of legal certainty and non-retroactivity enshrined in the Mexican Constitution. \n   \n Despite this, in August 2023, the General Directorate of Mines (DGM) cancelled nine concessions, including those belonging to Mexalit and Megalit, citing alleged non-compliance with minimum investment obligations for the period 2017-2021. Both Cadence and Ganfeng strongly refute this claim, asserting that the required investment thresholds were not only met but exceeded, with all supporting documentation and annual filings submitted in accordance with Mexican mining regulations. \n   \n Cadence and its joint venture vehicle, REMML, believe these actions constitute breaches of the UK-Mexico Bilateral Investment Treaty (BIT), including unlawful expropriation, failure to afford fair and equitable treatment, and denial of due process. In November 2023, Cadence formally submitted a Request for Consultations under the BIT, seeking an amicable resolution. This represents the first step in a structured dispute process that may progress to international arbitration if necessary. \n   \n Cadence remains committed to protecting its legal and economic rights in the Sonora Lithium Project and will pursue all available remedies under international and domestic law. \n   \n PUBLIC EQUITY \n The public equity investment segment is composed of passive investments. The trading portfolio consists of investments in listed mining entities that the board believes possess attractive underlying assets. The focus is to invest in mining companies that are significantly undervalued by the market and where there is substantial upside potential through exploration success and/or the development of mining projects for commercial production. Ultimately, the aim is to make capital gains in the short to medium term. Investments are considered individually based on various criteria and are typically traded on the TSX, ASX, AIM or LSE. \n   \n Our public equity investment incurred an unrealised loss of £1.02 million (2023: £3.10 million loss), primarily due to the decline in the share price of Evergreen Lithium (EG1). Realised losses for the year amounted to £1.10 million, stemming from the disposal of two holdings. The majority of the realised losses were attributable to the divestment of our position in European Metals Holdings (EMH), resulting in a loss of £1.01 million (2023: £0.06 million loss). Additionally, the disposal of Hastings Technology Metals (HAS) generated a realised loss of £0.09 million (2023: £2.56 million loss). \n   \n The movement in public portfolio values during the year is summarised below. \n   \n \n \n \n \n \n \n \n Commentary \n \n \n £,000 \n \n \n \n \n Portfolio value on 31 December 2023 \n \n \n \n \n \n 4,162 \n \n \n \n \n Disposal of public investments during the year \n \n \n The majority of fund generated from the disposal of EMH was used for reinvestment in Amapa \n \n \n (1,564) \n \n \n \n \n Realised and Unrealised loss on portfolio value for the year \n \n \n The majority of these loss was due to a reduction in the EMH and EG1 share prices. \n \n \n (2,125) \n \n \n \n \n Portfolio value on 31 December 2024 \n \n \n \n \n \n 473 \n \n \n \n \n   \n As of 31 December 2024, our public equity stakes consisted of the following: \n   \n \n \n \n \n Company \n \n \n 31-Dec-24 £,000 \n \n \n 31-Dec-23 £,000 \n \n \n 31-Dec-22 £,000 \n \n \n 31-Dec-21 £,000 \n \n \n \n \n European Metals Holding Ltd \n \n \n - \n \n \n 2,339 \n \n \n 4,882 \n \n \n 11,287 \n \n \n \n \n Charger Metals NL \n \n \n - \n \n \n - \n \n \n 301 \n \n \n 342 \n \n \n \n \n Macarthur Minerals Ltd \n \n \n - \n \n \n - \n \n \n - \n \n \n 181 \n \n \n \n \n Evergreen \n \n \n 469 \n \n \n 1,481 \n \n \n - \n \n \n - \n \n \n \n \n Hasting Technology Metals \n \n \n - \n \n \n 321 \n \n \n - \n \n \n - \n \n \n \n \n Eagle Mountain Mining Ltd \n \n \n - \n \n \n - \n \n \n 37 \n \n \n 122 \n \n \n \n \n Miscellaneous \n \n \n 4 \n \n \n 21 \n \n \n 24 \n \n \n 42 \n \n \n \n \n Total \n \n \n 473 \n \n \n 4,162 \n \n \n 5,244 \n \n \n 11,974 \n \n \n \n \n   \n Public Equity, Active \n   \n Evergreen Lithium Limited, Australia Interest - 8.74% at 31/12/2024 and 5.62% on 3 1/05/20 25 \n Evergreen Lithium Limited is an Australian mineral exploration company focused on discovering and developing lithium and gold resources. Its principal assets are located in the Northern Territory and Western Australia. Evergreen's flagship asset is the Bynoe Lithium Project, positioned near Core Lithium's Finniss Lithium Project. \n   \n In July 2022, Cadence Minerals received approximately 15.8. 8 million shares in Evergreen Lithium (\"Evergreen\") when it sold its 31. 5% stake in Lithium Technologies and Lithium Supplies (\"LT and LS\") to Evergreen, as announced on 27 June 2022. Evergreen was listed on the Australian Stock Exchange (\"ASX\") in 2023. Cadence's equity stake in Evergreen on its IPO was 8.74%. At the time of writing, the value of this stake is approximately £0.3 million; our initial investment in this asset was £ 0.83 million. \n   \n Cadence is due an additional AS$6.63 million (£ 3.80 million) worth of shares in Evergreen upon Evergreen's achieving certain performance milestones. The Evergreen prospectus provides further details of these milestones. \n   \n During 2024, Evergreen Lithium advanced exploration activities at the Bynoe Project following the approval of its Mine Management Plan (MMP). Evergreen undertook a high-impact drilling campaign that intersected pegmatite formations along strike from Core Lithium's BP 33 and Booths prospects, confirming the geological prospectivity for lithium mineralisation. \n   \n In addition to lithium targets, assays revealed anomalous gold mineralisation with notable intercepts. These results have supported the expansion of exploration targets across both lithium and gold domains within the Bynoe tenure. \n   \n Exploration across the Evergreen's other assets-the Kenny Lithium Project (Western Australia) and the Fortune Lithium Project (Northern Territory)-remained in early evaluation. Preliminary fieldwork and geological mapping activities were undertaken to refine prospective zones ahead of more advanced exploration. \n   \n In early 2025, Evergreen plans to build on the 2024 results by expanding exploration across the Bynoe Project. Planned activities include detailed geochemical sampling, infill soil programs, and a follow-up drill campaign targeting lithium-bearing pegmatites and gold anomalies. \n   \n Public Equity, Passive \n   \n European Metals Holdings Limited (\"European Metals\") \nInterest -0% on 31/12/2024 and 31/05/2025 \n   \n In 2024, the Cinovec Lithium Project made significant advancements, reinforcing its status as a vital lithium asset in Europe. The year began with a focus on optimising the Definitive Feasibility Study (DFS). Engineering on the Front-End Comminution and Beneficiation (FECAB) circuit improved lithium recovery to over 94.7%, while concentrate grade rose to 3.14% Li₂O. Concurrently, the Lithium Chemical Plant (LCP) enhanced efficiency through mixed sulphate recycling, reducing sodium sulphate use, costs, and increasing total recovery to 88.1%. Overall, lithium recovery reached 83.3%. \n   \n In April, a key milestone was achieved by relocating the proposed lithium processing plant from Dukla to the Prunéřov 1 Power Station (EPR1) site, benefiting from rehabilitated land and existing infrastructure. This move is anticipated to streamline permitting and enhance project economics. In May, European Metals redomiciled to Australia, making the ASX its primary listing to align its corporate presence with its European focus and improve access to EU development finance. \n   \n In Q3, the project gained institutional validation. The Cinovec Project was recommended for Just Transition Fund support in July, aligning with regional goals. Exploration licences were also extended until 2026. Work on the DFS continued, focusing on capital, operating expenditures, logistics, and mine-to-plant connectivity. \n   \n By December, European Metals completed a Concept Study on scaling production beyond the proposed 29,386 tonnes per annum lithium carbonate equivalent (LCE) without expanding the mine footprint. After year-end, the project received recognition from the EU and Czech Government as a \"Strategic Project\" under the EU Critical Raw Materials Act and a \"Strategic Deposit\" under Czech classification. These designations are expected to accelerate permitting and reinforce the project's role in Europe's lithium supply chain. \n   \n Hastings Technology Metals, Australia \nInterest - 0% on 31/12/2024 and 31/05/2025 \n   \n In June 2022, Cadence agreed to sell its 30% working interest in the Yangibana Project leases to Hastings Technology Metals (ASX: HAS) for A$9 million (£5.1 million). This was completed by issuing 2,452,650 new ordinary shares in Hastings to Cadence. The transaction finished in January 2023, and Cadence has since sold its entire investment in Hastings. The initial investment was £0.91 million, yielding a return of approximately 30%, with proceeds reinvested into the Amapá project. \n   \n At the end of February 2024, Cadence disposed of its interest in Hastings Technology Metals. The realised return on our original acquisition of 30% of the mineral concessions (£0.9 million) was approximately 30% or £0.3 million, and the sale proceeds were reinvested into the Amapá project. \n   \n Financial Review \n   \n Total comprehensive income for the year attributable to equity holders was a loss of £3.33m (2023: £3.02m). This increase in loss from the previous year of approximately £0.31m is mainly due to the reduced amount of realised and unrealised profits and losses on for the year of approximately £3.77m relating to our share investment portfolio (listed financial investments) held during the year, and the disposal of our interest in Mojito which contributed £3.9m profit in 2023. Administrative expenses were down £0.20m from £1.30m to £1.10m, and foreign exchange losses were up £0.303m from a gain of £0.297 to a loss of £0.006m. \n   \n Basic negative earnings per share was 1.650p (2023: 1.762p). \n   \n The net assets of the Group at the end of the period were £17.21 million (2023: £18.45 million). This decrease of approximately £1m reflects the losses and shares issued in the year. \n   \n Principal Risks and Uncertainties \n   \n Cadence continuously monitors its risk exposures and reports its review to the Board. The Board reviews these risks and focuses on ensuring effective systems of internal financial and non-financial controls are in place and maintained. \n   \n The main business risk is considered to be investment risk. \n   \n The Company faces external risks that can materially impact or influence the investment environment within which the Company operates and can include changes in commodity prices, and the numerous factors which can influence those changes, including economic recession and investor sentiment and including the current and potential effects of the coronavirus pandemic. \n   \n Commodity prices have an impact on the investment performance and prospects of all our investments. The extent of the impact varies depending on a wide variety of factors but depend largely by where the investment sits on the mineral development curve. The majority of Cadence's investments sit at the more advanced stage of the development curve. Commodity price risk is pervasive at all stages of the development curve, but other prominent risks such as exploration risk and technical and funding risks at the exploration/development stage, may be considered to be weighted higher earlier in the curve than pure commodity risk which tends to have a greater impact on producers. \n   \n The Company's investments are located in jurisdictions other than the UK and therefore carries with it country risk, regulatory/permitting risk, political risk and environmental risk. Our investments can be at different stages of development and each stage within the mining exploration and development cycle can carry its own risks. \n   \n Where possible Cadence seeks to mitigate these risks by structuring its investments in a format which the Board can influence, obtain high level oversight (often at board level) and use legal agreements to provide control mechanisms (often negative control) to protect the Company's investments. In addition, we seek to further mitigate our risk exposure by obtaining a deep fundamental understanding of an asset, its potential economics, operating and legal environment and its management team, prior to investment. \n   \n It should be noted that because the Company does not operate its project investments on a day-to-day basis, there is a risk that the operator does not meet deadlines or budgets; fails to propose or pursue the appropriate strategy; does not adhere to the legal agreements in place or does not provide accurate or sufficient information to Cadence on a timely basis. \n   \n The Equity Investment segment of the Company's investments is exposed to price risk within the market, interest rate changes, liquidity risk and volatility. Although the investment risk within the portfolio is dependent on many factors, the Group's principal investments at the year-end are in companies with significant iron ore and lithium assets and, to some extent, dependent on the market's view of these commodities or chemicals and/or the market's view of the management of the companies in managing those assets. As with our private investment, the Board seeks to mitigate this by obtaining a deep fundamental understanding of an asset and its potential economics; its operating and legal environment and its management team, prior to any investment by Cadence. \n   \n All countries carry political risk that can lead to interruption of activity. Politically stable countries can have enhanced environmental and social risks; risks of strikes and changes to taxation; whereas less developed countries can have, in addition, risks associated with changes to the legal framework; civil unrest and government expropriation of assets. The Company has working knowledge of the countries in which the joint venture holds exploration licences, and its local joint venture partner has experienced local operators to assist the Company in its management of its investment in order to help reduce possible political risk. \n Directors' Section 172 Statement \n The following disclosure describes how the Directors have had regard to the matters set out in section 172(1)(a) to (f) and forms the Directors' statement required under section 414CZA of The Companies Act 2006. This new reporting requirement is made in accordance with the new corporate governance requirements identified in The Companies (Miscellaneous Reporting) Regulations 2018, which apply to company reporting on financial years starting on or after 1 January 2019. \n   \n The matters set out in section 172(1) (a) to (f) are that a Director must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: \n   \n ·    the likely consequences of any decisions in the long-term; \n ·    the interests of the Company's employees; \n ·    the need to foster the Company's business relationships with suppliers/customers and others; \n ·    the impact of the Company's operations on the community and environment; \n ·    the Company's reputation for high standards of business conduct; and \n ·    the need to act fairly between members of the Company. \n   \n As set out above in the Strategic Report the Board remains focused on providing for shareholders through the long term success of the Company. The means by which this is achieved is set out further below. \n   \n Likely consequences of any decisions in the long-term; \n The Chairman's Statement, the Chief Executive Officer's Commentary and the Strategic Review set out the Company's strategy. In applying this strategy, particularly in seeking new Project Investments and strategic holdings in other public companies, the Board assesses the long term future of those companies with a view to shareholder return. The approach to general strategy and risk management strategy of the group is set out in the Statement of Compliance with the Quoted Companies Alliance (\"QCA\") Corporate Governance Code (the \"QCA Code\") (Principles 1 and 4). \n   \n Interest of Employees; \n The Group has a very limited number of employees, and all have direct access to the Executive Directors on a daily basis and to the Chairman, if necessary. The Group has a formal Employees' Policy manual which includes process for confidential report and whistleblowing. \n   \n Need to foster the Company's business relationships with suppliers/customers and others; \n The nature of the Group's business is such that the majority of its business relationships are with joint venture partners, the boards of directors of the companies in which the Group has strategic stakes to the extent that such relationships are permitted, and with suppliers for services. As the success of the business primarily depends on its relationship with its partners and investees, the Executive Directors manage these relationships on a day-to-day basis. Where possible, the Group will take a board, or similar appointment, in strategic investees to ensure that there is a close and successful ongoing dialog between the parties. Service providers are paid within their payment terms and the Group aims to keep payment periods under 30 days wherever practical. \n   \n Impact of the Company's operations on the community and environment; \n The Group takes its responsibility within the community and wider environment seriously. Its approach to its social responsibilities is set out in the Statement of Compliance with the QCA Code (Principle 3). \n   \n DIRECTORS' SECTION 172 STATEMENT (CONTINED) \n The desirability of the Company maintaining a reputation for high standards of business conduct; \n The Directors are committed to high standards of business conduct and governance and have adopted the QCA Code. Where there is a need to seek advice on particular issues, the Board will consult with its lawyers and nominated advisors to ensure that its reputation for good business conduct is maintained. \n   \n The need to act fairly between members of the Company; \n The Board's approach to shareholder communication is set out in the Statement of Compliance with the (Principle 2). The Company aims to keep shareholders fully informed of significant developments in the Group's progress. Information is disseminated through Stock Exchange announcements, website updates and, where appropriate video/web casts. During the year the Company issued various RNS and videos to update shareholders. All information is made available to all shareholders at the same time and no individual shareholder, or group of shareholders, is given preferential treatment. \n The Directors present their annual report together with the audited financial statements of the Company for the Year Ended 31 December 2024. \n   \n Principal activity \n The Company is an investment entity. The principal activity of the Company is that of holding assets involved in the identification, investment and development of mineral resources. \n   \n Domicile and principal place of business \n Cadence Minerals plc is domiciled in the United Kingdom, which is also its principal place of business. \n   \n Business review and Future Development \n The results of the Company are shown in the financial statements below. \n   \n Results and Dividends \n The Directors do not recommend the payment of a dividend (2023: £nil). A review of the performance of the Company and its future prospects is included in the Strategic Report. \n   \n Key Performance Indicators \n Due to the current status of the Company, the Board has not identified any performance indicators as key other than cash management and the carrying value of investments. Having sufficient cash for business operations is vital and must be managed accordingly. The Directors review and manage the Group's cash flow on a monthly basis. The financial strategy is to ensure that, wherever possible, there are sufficient funds to cover corporate overheads and exploration expenditure for as long a period as possible.  Management has confidence that financing of the Company can continue as and when required, albeit the board is keen to avoid excessive dilution and will manage the financing process with that objective in mind.  Investments are closely managed and monitored; further details are included in the Chairman's statement. \n   \n The monitoring and management of the carrying value of investments are specified in the strategic report and financial statements . \n   \n Furthermore, the Company has ensured that where possible it has built operational flexibility in its corporate and exploration expenditure to be paused should the financing environment prove difficult and cash preservation prove essential. \n   \n Principal risks and uncertainties \n The principal risks and uncertainties facing the Company involve are specified in the strategic report. \n   \n Financial risk management objectives and policies \n The Company's principal financial instruments are available for sale assets, trade receivables, trade payables, loans and cash at bank. The main purpose of these financial instruments is to fund the Company's operations. \n   \n It is, and has been throughout the period under review, the Company's policy that no trading in financial instruments shall be undertaken. The main risks arising from the Company's financial instruments are liquidity risk and interest rate risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. Further information is available in Note 12. \n   \n Liquidity risk \n The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of equity and its cash resources.  Further details of this are provided in the principal accounting policies, headed 'going concern' and Note 12 to the financial statements. \n   \n Interest rate risk \n The Company only has borrowings at fixed coupon rates and therefore minimal interest rate risk, as this is deemed its only material exposure thereto. The Company seeks the highest rate of interest receivable on its cash deposits whilst minimising risk. \n   \n Market risk \n The Company is subject to market risk in relation to its investments in listed Companies held as available for sale assets. \n   \n Foreign exchange risk \n The Company operates foreign currency bank accounts to help mitigate the foreign currency risk, and currently has little exposure except through its investments. \n   \n Political Donations and Expenditure \n No charitable or political contributions were made during the current or previous year. \n   \n Directors \n The membership of the Board is set out below.  All directors served throughout the period unless otherwise stated. \n   \n \n \n \n \n Andrew Suckling \n \n \n \n \n Kiran Morzaria \n \n \n \n \n Donald Strang \n \n \n \n \n Adrian Fairbourn \n \n \n \n \n   \n Substantial shareholdings \n Interests in excess of 3% of the issued share capital of the Company which had been notified as at 13 June 2025 were as follows: \n   \n \n \n \n \n \n \n \n Number of Ordinary shares held \n \n \n Percentage of capital \n % \n \n \n \n \n Hargreaves Lansdown (Nominees) Limited (15942) \n \n \n 35,750,606 \n \n \n 12.08% \n \n \n \n \n Hargreaves Lansdown (Nominees) Limited (VRA) \n \n \n 25,090,836 \n \n \n 8.48% \n \n \n \n \n Interactive Investor Services Nominees Limited (SMKTISAS) \n \n \n 24,752,420 \n \n \n 8.36% \n \n \n \n \n James Brearley Crest Nominees Limited (WALPOLE) \n \n \n 21,509,399 \n \n \n 7.27% \n \n \n \n \n Barclays Direct Investing Nominees Limited (CLIENT1) \n \n \n 16,146,092 \n \n \n 5.46% \n \n \n \n \n HSDL Nominees Limited (MAXI) \n \n \n 15,107,566 \n \n \n 5.10% \n \n \n \n \n Hargreaves Lansdown (Nominees) Limited (HLNOM) \n \n \n 13,625,756 \n \n \n 4.60% \n \n \n \n \n Interactive Investor Services Nominees Limited (SMKTNOMS) \n \n \n 13,505,477 \n \n \n 4.56% \n \n \n \n \n Redmayne (Nominees) Limited (PENSUN) \n \n \n 12,159,873 \n \n \n 4.11% \n \n \n \n \n Vidacos Nominees Limited (IGUKCLT) \n \n \n 11,220,107 \n \n \n 3.79% \n \n \n \n \n   \n Payment to suppliers \n It is the Company's policy to agree appropriate terms and conditions for its transactions with suppliers by means ranging from standard terms and conditions to individually negotiated contracts and to pay suppliers according to agreed terms and conditions, provided that the supplier meets those terms and conditions.  The Company does not have a standard or code dealing specifically with the payment of suppliers. \n   \n Trade payables at the year end all relate to sundry administrative overheads and disclosure of the number of days purchases represented by year end payables is therefore not meaningful. \n   \n Events after the Reporting Period \n Events after the Reporting Period are outlined in Note 15 to the Financial Statements. \n   \n Going concern \n The Directors have prepared cash flow forecasts for the period ending 30 June 2026 which take account of the current cost and operational structure of the Company, as described further in the financial statements. \n   \n The cost structure of the Company comprises a high proportion of discretionary spend and therefore in the event that cash flows become constrained, costs can be quickly reduced to enable the Company to operate within its available funding. \n   \n These forecasts demonstrate that the Company has sufficient cash funds available to allow it to continue in business for a period of at least twelve months from the date of approval of these financial statements.  Accordingly, the financial statements have been prepared on a going concern basis. \n   \n Directors' Responsibilities Statement \n The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. \n   \n Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Company financial statements in accordance with UK adopted International Accounting Standards (IAS).  Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to: \n   \n -     select suitable accounting policies and then apply them consistently; \n -     make judgements and estimates that are reasonable and prudent; \n -     state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the financial statements; \n -     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. \n   \n The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.  \n \nIn so far as each of the Directors are aware: \n   \n ·   there is no relevant audit information of which the Company's auditors are unaware; and \n ·   the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. \n   \n The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.  \n   \n Auditors \n   \n PKF Littlejohn LLP offer themselves for re-appointment as auditor in accordance with Section 489 of the Companies Act 2006. \n   \n ON BEHALF OF THE BOARD \n   \n Kiran Morzaria \n Chief Executive Officer, 18 June 2025 \n   \n Corporate Governance \n Introduction to Governance \n   \n The Directors recognise that good corporate governance is a key foundation for the long-term success of the Company. As the Company is listed on the AIM market of the London Stock Exchange and it is subject to the continuing requirements of the AIM Rules. The Board has therefore adopted the principles set out in the Corporate Governance Code for small and midsized companies published by the Quoted Companies Alliance (\"QCA Code\"). The principles are listed below. \n   \n While building a strong governance framework, we also try to ensure that we take a proportionate approach and that our processes remain fit for purpose as well as embedded within the culture of our organisation. We continue to evolve our approach and make ongoing improvements as part of building a successful and sustainable company. \n   \n In November 2023 a revised QCA code was released, the key updates include: \n   \n ·        Wider Stakeholder Interests:  Enhanced focus on ESG responsibilities and stakeholder engagement (Principle 4). \n ·        Board Composition: Stricter requirements for board independence and diversity (Principles 6   and 7). \n ·        Succession Planning: Emphasis on clear succession strategies (Principle 8). \n ·        Remuneration Policy: New guidelines to align remuneration with long-term value creation (Principle 9). \n   \n As is permitted by the guidance set out by the QCA, the transitionary period of 12 months following 1 April 2024 is being utilised to put in place measures to embrace the key updates to the QCA code where possible. \n   \n 1.    Establish a strategy and business model which promote long-term value for shareholders \n   \n Our strategy is to identify undervalued assets with irreplaceable strategic advantages that will deliver capital growth to our shareholders. We invest in these assets and where required help deliver capital growth. To meet long-term demand, we believe the metals and mining sectors require focused investment capital from knowledgeable investors that understand the substantial risk of the mineral resource sector and how to mitigate these risks to maximise potential returns for our investors. \n   \n A more detailed description of its Strategy and Business Model is available in the strategic report. Details on the principal risks and uncertainties which the Company faces are specified on in the strategic report. The Company seeks to share this vision and details of the implementation of its strategy through internal dialogue with employees as well as external communications by way of public announcements and dissemination of information through this website and the annual report and accounts. \n   \n 2.    Seek to understand and meet shareholder needs and expectations \n   \n The Board is committed to maintaining an open dialogue with shareholders. Communication with the Board is committed to maintaining an open dialogue with shareholders. Communication with shareholders is coordinated by the CEO. Cadence encourages two-way communication with institutional and private investors. The Company's major shareholders maintain an active dialogue and ensure that their views are communicated fully to the Board. Where voting decisions are not in line with the Company's expectations the Board will engage with those shareholders to understand and address any issues. The Company Secretary is the main point of contact for such matters. \n   \n The Company seeks out appropriate platforms to communicate to a broad audience its current activities, strategic goals and broad view of the sector and other related issues. This includes but is not limited to media interviews, website videos in-person investor presentations and written content. Communication to all stakeholders is the direct responsibility of the Senior Management team. Managers work directly with professionals to ensure all inquiries (through established channels for this specific purpose such as email or phone) are addressed in a timely matter. Managers also ensure that the Company communicates with clarity on its proprietary internet platforms. The Board routinely reviews the Company communication policy and programmes to ensure the quality communication with all stakeholders. \n   \n The Board believes that the Annual Report and Accounts, and the Interim Report published at the half-year which can be found on the Company's website, play an important part in presenting all shareholders with an assessment of the Company's position and prospects. All reports and press releases are published under the \"Investors\" tab of the Company's website. \n   \n 3.    Take into account wider stakeholder and social responsibilities and their implications for long-term success \n   \n The Board recognises its prime responsibility under UK corporate law is to promote the success of the Company for the benefit of its members as a whole. The Board also understands that it has a responsibility towards employees, partners, customers, suppliers and to the community and environment it operates in as a whole. \n   \n Communication with and feedback from these various groups is achieved in a variety of ways. The Executive Directors hold investor roadshows and webcasts on a regular basis, at which feedback from shareholders is sought. Regular dialogue is maintained with employees through regular discussion and updates given by the Executive Directors. \n   \n The nature of the Cadence's business as an investment company means that although it has no direct effect on the working environments and communities of the companies it invests in, it nonetheless liaises with the management of its investee companies to understand their approach to stakeholder engagement and their policies, which will form part of its investment criteria. \n   \n 4.    Embed effective risk management, considering both opportunities and threats, throughout the organisation \n   \n The Board has an established Audit Committee, a summary of its roles and responsibilities is available on the corporate governance webpage. The Committee is specifically charged with ensuring that Cadence as a whole has the appropriate policies and processes in place to identify the risks which the Company is exposed to and to proactively mitigate those risks as appropriate. \n   \n The Company maintains a register of risks and publishes an overview of significant risks and uncertainties in its Annual Report. Please refer to the Company's Annual Report and Accounts for further details on the principal risks and uncertainties which the Company faces. \n   \n The Company receives regular feedback from its external auditors on the state of its internal controls. The Board maintains a register of risks and publishes an annual summary of the significant risks and uncertainties in the Annual Report. \n   \n 5.    Maintain the Board as a well-functioning, balanced team led by the chair \n   \n The Board is comprised of Andrew Suckling the Non-Executive Chairman, a Non-Executive Director and two Executive Directors. The CEO, Kiran Morzaria, is engaged to work a minimum of a 27-hour week and is an employee of the Company. The Finance Director, Donald Strang, is engaged to work a minimum of a 27-hour week. \n   \n The Board deemed that given the stage and development of the Company, it would be more cost efficient to employ a full-time accountant which along with the finance director ensure that Company's financial systems are robust, compliant, and support current activities and future growth. \n   \n The service agreements of the Non-Executive Directors anticipate that the Non-Executive Chairman should spend 5 working days per month and the Non-Executive Director 3 working days per month. All Directors dedicate such time as required to effectively perform their roles. \n   \n The roles of the Chairman and CEO are clearly separated. The Directors ensure the skills required to undertake their roles are kept current through training and consultation with subject matter experts as required. \n   \n The CEO is responsible for the operational management of the business of Cadence and for the implementation of strategy and policies as agreed by the Board. The non-executive Chairman is responsible for the leadership and effective working of the Board, for setting the Board agenda, and ensuring that Directors receive accurate, timely and clear information. \n   \n The CEO is responsible for the operational management of the business of Cadence and for the implementation of strategy and policies as agreed by the Board. The Non-Executive Chairman is responsible for the leadership and effective working of the Board, for setting the Board agenda, and ensuring that Directors receive accurate, timely and clear information. \n   \n The Non-Executive Directors are not considered independent under the FRC Code as they hold options in the Company. However, the Board considers that the Non-Executive Directors are independent of management under all other measures and are able to exercise independence of judgement. Whilst conflicts of interest are fully disclosed and understood, as appropriate Non-Executive Directors exercise independence of judgement. \n   \n No Director is involved in discussions or decisions where he has a conflict of interest. An Audit Committee and a Remuneration Committee support the Board. \n   \n Cadence intends that the Board endeavours to hold full board meetings at least 3 times each year. The attendance of Board members for meetings during the current financial year is as follows: \n   \n \n \n \n \n Andrew Suckling \n \n \n 7 of 8 \n \n \n \n \n Adrian Fairbourn \n \n \n 6 of 8 \n \n \n \n \n Kiran Morzaria \n \n \n 8 of 8 \n \n \n \n \n Donald Strang \n \n \n 8 of 8 \n \n \n \n \n   \n 6.    Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities \n   \n Directors who have been appointed to the Company have been chosen because of the skills and experience they offer. The Board continually strives to ensure that it has the right balance of knowledge, skills, experience and contacts across the sectors in which it operates. This is evaluated in line with Cadence's business model as it changes. \n   \n It is of primary importance that the Board's knowledge is kept  up to date in a rapidly changing mining and metals marketplace. This is achieved by maintaining a broad network of contacts across the industry and ensuring regular dialogue is held and feedback obtained by both the executive and non-executive directors as appropriate. \n   \n As necessary, Directors receive externally provided refresher and update training specific to their individual roles. \n   \n The Company Secretary advises the Board members on their legal and corporate responsibilities and matters of corporate governance. \n   \n Biographical details of each of the Directors are given in the strategic report and on the website. \n   \n 7.    Evaluate board performance based on clear and relevant objectives, seeking continuous improvement \n   \n On 28 September 2018, the Company adopted the QCA Code. Prior to this point, given the nature and the development of the Company, it did not set Key Performance Indicators. \n   \n The Company now measures its performance, and therefore, inherently, the performance of the Board as a unit, against Key Performance Indicators. Given the significance of the Amapa project its development has become our primary Key Performance Indicator. \n   \n The performance of the Executive Directors is monitored and regularly reviewed by the Non-Executive Directors. Such review considers both the KPIs outlined above, The Board intends to introduce qualitative performance measurements for the Executive Directors to ensure that the right degree of focus is applied to the strategic direction as well as the current financial performance of the business. \n   \n 8.    Promote a corporate culture that is based on ethical values and behaviours \n   \n The Company has a strong ethical culture, which is promoted by the actions of the Board and Executive team. \n These include the following key policies which govern its ethical culture. \n   \n ·    Equal opportunities policy \n ·    Code of conduct \n ·    Whistleblowing policy \n ·    Health and safety policy \n ·    Email and internet policy \n ·    Social media policy \n   \n The Company has an anti-bribery policy and has implemented adequate procedures described by the Bribery Act 2010. The Company reports on its compliance to the Board on an annual basis. The Company has undertaken a review of its requirements under the General Data Protection Regulation, implementing appropriate policies, procedures and training to ensure it is compliant. \n   \n 9.    Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders \n   \n The Company encourages two-way communication with both its institutional and private investors and responds quickly to all significant queries received. The \"Investors\" tab of our website contains all required regulatory information together with other information which shareholders may find useful. \n   \n The AGM is an important forum for shareholder engagement, and the directors are always available immediately after the AGM to listen to the views of any shareholders in attendance and to provide them with an update on the business. \n   \n 10.  Maintain governance structures and processes that are fit for purpose and support good decision-making by the board \n   \n Details of the Company's corporate governance arrangements are provided within this Corporate Governance section of the Annual Report and Accounts. The Board considers the appropriateness of these arrangements against the size and complexity of the Company as it evolves over time. \n   \n The Chairman leads the Board and is responsible for ensuring its effectiveness in all aspects of its role. The Chairman promotes a culture of openness and debate, in particular by ensuring the Non-Executive Directors provide constructive challenge to the Executive Directors. \n   \n The matters reserved for the board are: \n ·    Definition of the strategic goals for the Company, sets corporate objectives to enable the goals to be met, and measures performance against those objectives; \n ·    Ensuring that the necessary financial and human resources are in place to both meet its obligations to all stakeholders and to provide a platform for profitable growth; \n ·    Recommending any interim and final dividends; \n ·    Approving all mergers and acquisitions and all capital expenditure greater than £200,000; \n ·    Receiving recommendations from the Audit Committee in relation to the reporting requirements and the appropriate accounting policies for the Company, the appointment of auditors and their remuneration, and the identification and management of risk; \n ·    Receives recommendations from the Appointments Committee concerning the appointment of executive directors, and from the Remuneration Committee concerning the remuneration of the executive directors; \n ·    Determination of the fees paid to the Non-Executive Directors. \n   \n The CEO has the overall responsibility for creating, planning, implementing, and integrating the strategic direction of the Company. This includes responsibility for all components and departments of a business. The CEO also ensures that the organisation's leadership maintains constant awareness of both the external and internal competitive landscape, opportunities for expansion, customer base, markets, new industry developments and standards. \n   \n The Finance Director works alongside the CEO and has overall control and responsibility for all financial aspects of company strategy. The Finance Director takes overall responsibility of the Company's accounting function and ensures that Company's financial systems are robust, compliant and support current activities and future growth. The Finance Director will co-ordinate corporate finance and manage company policies regarding capital requirements, debt, taxation, equity and acquisitions as appropriate. \n   \n The Board is supported by two committees being the Audit Committee and Remuneration Committee. The Audit Committee advises the Board on the reporting requirements and the appropriate accounting policies for the Company, the appointment of auditors and their remuneration, and the identification and management of risk. The Remuneration Committee advises the Board on all matters pertaining to the remuneration of the Executive Directors. \n   \n Board Members \n The Board comprises of a Non-Executive Chairman, one Non-Executive Director and two Executive Directors. \n   \n Andrew Suckling, Non-Executive Chairman \n Andrew has over 25 years' experience in the commodity industry. He began in 1994 as a trader on the London Metal Exchange and subsequently became a founding partner, research analyst and trader with the multi-billion fund management group Ospraie. Andrew is a graduate of Brasenose College, Oxford University, earning a BA (Hons) in Modern History in 1993 and an MA in Modern History in 2000.  Andrew is the chair of the Audit and Remuneration Committee. \n   \n Kiran Morzaria, Chief Executive Officer \n Kiran holds a B.Eng. from the Camborne School of Mines and an MBA (Finance). He has over 20 years' experience in the mineral resource industry, working in both operational and management roles. The first four years of his career were spent in exploration, mining and civil engineering, after which he was involved in the acquisition, recommissioning and eventual sale of the Vatukoula Gold Mine. \n   \n Donald Strang, Finance Director \n Donald is a member of the Australian Institute of Chartered Accountants and has over 20 years of experience in both publicly listed and private enterprises in Australia, Europe and Africa. He has considerable corporate and international expertise, and over the past decade, has focused on mining and exploration activities. \n   \n Adrian Fairbourn, Non-Executive Director \n Adrian began his career as an investment analyst before moving to build and manage the highly successful alternative fund-of-funds operation at the Bank of Bermuda. Adrian has co-managed a multi-family office in London, responsible for hedge fund investments, direct investments and also asset-raising for co-investment opportunities. He has successfully assisted in over $US1 billion of structuring, capital and fundraising projects for private companies and alternative funds. Adrian is a member of the Audit and Remuneration Committee. \n   \n The Board is responsible for formulating, reviewing and approving the Company's strategy, financial activities and operating performance. Day-to-day management is devolved to the Executive Directors, who are charged with consulting the Board on all significant financial and operational matters. The Board retains ultimate accountability for governance and is responsible for monitoring the activities of the executive team. \n   \n The roles of Chairman and Chief Executive Officer are split in accordance with best practice. The Chairman has the responsibility of ensuring that the Board discharges its responsibilities. The Chairman is responsible for the leadership and effective working of the Board, for setting the Board agenda, and ensuring that Directors receive accurate, timely and clear information. No one individual has unfettered powers of decision. \n   \n The two Executive Directors are comprised of a Chief Executive Officer (\"CEO\") and Finance Director. The CEO has the overall responsibility for creating, planning, implementing, and integrating the strategic direction of the Company. This includes responsibility for all components and departments of a business. The CEO also ensures that the organisation's leadership maintains constant awareness of both the external and internal competitive landscape, opportunities for expansion, customer base, markets, new industry developments and standards. \n   \n The non-executive directors are not considered independent under the Financial Reporting Council's Corporate Governance Code (April 2016) (\"FRC Code\") as they both have options in the Company. However, the Board considers that both non-executives are independent of management under all other measures and able to exercise independence of judgement . \n   \n The Committees \n Audit Committee \n The Audit Committee consists of two non-executive members of the board and meet at least once a year. \n The principal duties and responsibilities of the Audit Committee include: \n ·      Overseeing the Company's financial reporting disclosure process; this includes the choice of appropriate accounting policies \n ·      Monitor the Company's internal financial controls and assess their adequacy \n ·      Review key estimates, judgements and assumptions applied by management in preparing published financial statements \n ·      Assess annually the auditor's independence and objectivity \n ·      Make recommendations in relation to the appointment, re-appointment and removal of the company's external auditor \n   \n Remuneration Committee \n The Remuneration Committee consists of two non-executive members of the board and meet at least once a year. \n The principal duties and responsibilities of the Remuneration Committee include: \n ·      Setting the remuneration policy for all Executive Directors \n ·      Recommending and monitoring the level and structure of remuneration for senior management \n ·      Approving the design of, and determining targets for, performance related pay schemes operated by the company and approve the total annual payments made under such schemes \n ·      Reviewing the design of all share incentive plans for approval by the Board and shareholders \n ·      None of the Committee members have any personal financial interest (other than as shareholders and option holders), conflicts of interest arising from cross-directorships or day-to-day involvement in the running of the business. No director plays a part in any financial decision about his or her own remuneration. \n   \n Principle and Approach of the Board \n Cadence is committed to achieve and maintain high standards of governance. As such, the Board has chosen to adopt the Quoted Companies Alliance Corporate Governance Code for Small and Mid-Size Quoted Companies 2018 (\"the QCA Code\"). Detailed below is how the Board applies the 10 principles of Corporate Governance, which form part of the QCA code. \n   \n Internal Controls \n The Directors acknowledge their responsibility for the Company's systems of internal controls and for reviewing their effectiveness. These internal controls are designed to safeguard the assets of the Company and to ensure the reliability of financial information for both internal use and external publication. While they are aware that no system can provide absolute assurance against material misstatement or loss, in light of increased activity and further development of the Company, continuing reviews of internal controls will be undertaken to ensure that they are adequate and effective. \n   \n Risk Management \n The Board considers risk assessment to be important in achieving its strategic objectives. There is a process of evaluation of performance targets through regular reviews by Senior Management to forecasts. Project milestones and timelines are reviewed regularly. \n   \n Business Risk \n The Board regularly evaluates and reviews any business risks when reviewing project timelines. The types of risks reviewed include: \n ·      regulatory and compliance obligations \n ·      environmental requirements \n ·      commodity price, interest rate, liquidity and volatility risks \n ·      political and country risks where appropriate. \n   \n Insurance \n The Company maintains insurance in respect of its Directors and Officers against liabilities in relation to the Company. \n   \n Treasury Policy \n The Company finances its operations through equity and holds its cash as a liquid resource to fund the obligations of the Company. Decisions regarding the management of these assets are approved by the Board. \n   \n Securities Trading \n The Board has adopted a Share Dealing Code that applies to Directors, Senior Management and any employee who is in possession of 'inside information'. All such persons are prohibited from trading in the Company's securities if they are in possession of 'inside information'. Subject to this condition and trading prohibitions applying to certain periods, trading can occur provided the individual has received the appropriate prescribed clearance. \n   \n Report on Remuneration \n On behalf of the Board, I am pleased to present the Directors' Remuneration Report summarising the Company's remuneration policy and providing information on the Company's remuneration approach and arrangements for Executive Directors, Non-Executive Directors and Senior Executive Management for the year ended 31 December 2024. \n   \n This report is prepared in accordance with the QCA Remuneration Committee Guide for small and mid-sized quoted companies, revised in 2020. A summary of the Remuneration Committee's role, membership and relevant qualifications can be found in the corporate governance section. \n   \n Remuneration Committee meetings are held at least once a year with the primary focus of setting goals for the coming period and then assessing results at the end of that period. During the year, the Remuneration Committee met 2 times and; \n   \n ·    Benchmarked the Boards Remuneration, both fixed and variable and as a whole, and compared it to AIM-listed companies of a similar market capitalisation. \n ·    Reviewed the above comparisons and establish short, medium and long-term incentive schemes, which it then recommended to the Board for approval, \n ·    Reviewed the performance of the Board against targets and awarded incentives covering the reporting period. \n   \n The Board recognises that Directors' remuneration is of legitimate concern to the shareholders.  The Company operates within a competitive environment; performance depends on the individual contributions of the Directors and employees, and it believes in rewarding vision and innovation. \n   \n Policy on executive Directors' Remuneration \n The policy of the Board is to provide executive remuneration packages designed to attract, motivate and retain Directors of the calibre necessary to maintain the Company's position and to reward them for enhancing shareholder value and return.  It aims to provide sufficient levels of remuneration to do this but to avoid paying more than is necessary.  The remuneration will also reflect the Directors' responsibilities and contain incentives to deliver the Company's objectives. \n   \n Salary and Fees \n Benchmarking data indicate that, at the time of the review, Cadence's salary and fees are at the median remuneration for an exploration and mining company with a market capitalisation between £5 million and £10 million on the AIM market. \n   \n Share Awards (Share Incentive Plan) \n Under the Share Incentive Plan established in September 2014, the Company has maintained an Employee Benefit Trust (\"EBT\") to provide ongoing incentives to the Board. No new Ordinary Shares were issued under the EBT during the year ended 31 December 2024 (2023: nil). \n   \n Pensions \n The Company only operates a basic pension scheme for its directors and employees as required by UK legislation. The Company made the following pension contributions in the year: K Morzaria £3,669 (2023: £4,403). \n   \n Benefits in kind \n No benefits in kind were paid during the year to 31 December 2024 or the year ended 31 December 2023. \n   \n Notice periods \n Andrew Suckling, Kiran Morzaria, Donald Strang and Adrian Fairbourn each have a 12 month rolling notice period. \n   \n Share option incentives \n At 31 December 2024 each Director held 1,800,000 (31 December 2023: 1,800,000) options which are exercisable at any time before 30 April 2026. The exercise price is 29p. No options were exercised by Directors during the period (2023: None). \n   \n The remuneration of the Directors was as follows: \n   \n \n \n \n \n \n \n \n A Fairbourn \n \n \n   \n \n \n A Suckling \n \n \n   \n \n \n K Morzaria \n \n \n   \n \n \n D Strang \n \n \n   \n \n \n Total \n \n \n \n \n   \n \n \n £ \n \n \n   \n \n \n £ \n \n \n   \n \n \n £ \n \n \n   \n \n \n £ \n \n \n   \n \n \n £ \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Year to 31 December 2024 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Salary \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 172,500 \n \n \n \n \n \n - \n \n \n \n \n \n 172,500 \n \n \n \n \n Fees \n \n \n 48,000 \n \n \n \n \n \n 120,000 \n \n \n \n \n \n - \n \n \n \n \n \n 120,000 \n \n \n \n \n \n 288,000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total \n \n \n 48,000 \n \n \n   \n \n \n 120,000 \n \n \n   \n \n \n 172,500 \n \n \n   \n \n \n 120,000 \n \n \n   \n \n \n 460,500 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Year to 31 December 2023 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Salary \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 230,000 \n \n \n \n \n \n - \n \n \n \n \n \n 230,000 \n \n \n \n \n Fees \n \n \n 48,000 \n \n \n \n \n \n 120,000 \n \n \n \n \n \n - \n \n \n \n \n \n 120,000 \n \n \n \n \n \n 288,000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total \n \n \n 48,000 \n \n \n   \n \n \n 120,000 \n \n \n   \n \n \n 230,000 \n \n \n   \n \n \n 120,000 \n \n \n   \n \n \n 518,000 \n \n \n \n \n   \n At 31 December 2024 £142,000 (2023: £58,000)was outstanding to directors. \n   \n The high and low share price for the year were 5.75p and 1.60p respectively (year ended 31 December 2023: 16.625p and 4.85p). The share price at 31 December 2024 was 1.65p (31 December 2023: 5.75p). \n   \n   \n Andrew Suckling \n Non-Executive Chairman, 18 June 2025 \n   \n INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CADENCE MINERALS PLC \n Opinion \n We have audited the financial statements of Cadence Minerals Plc (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards. \n In our opinion, the financial statements: \n ·    give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended; \n ·    have been properly prepared in accordance with UK-adopted international accounting standards; and \n ·    have been prepared in accordance with the requirements of the Companies Act 2006. \n   \n Basis for opinion \n We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. \n Conclusions relating to going concern \n In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included \n ·    Obtaining and evaluating management's going concern assessment, including their assumptions, key risks and uncertainties, and any available supporting documentation. \n ·    Assessing the historical forecasting accuracy and consistency of the going concern assessment with information obtained from other areas of the audit, such as our audit procedures on management's impairment assessments. \n ·    Testing the clerical accuracy of the assessment \n ·    Evaluating whether the assumptions made by management are reasonable and appropriately conservative, considering the Group's relevant principal risks and uncertainties. We challenged the assumptions and estimates made by management where necessary. \n ·    Evaluating the adequacy of working capital, including assessing the reasonableness of assumptions used in the cash flow forecasts and budgets and any plans to address potential shortfalls. \n ·    Performing sensitivity analysis on management's assumptions, including applying incremental adverse cash flow sensitivities to assess the potential impact of severe but plausible scenarios such as significant movement in prices level 1 investments. \n   \n Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. \n Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. \n Our application of materiality \n The scope of our audit was influenced by our application of materiality. The quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit procedures. The materiality applied to the financial statements was set at £344,200 (2023: £289,000), with performance materiality set at £240,900 (2023: £202,300). \n Materiality has been calculated as 2% (2023: 2%) of the benchmark of net assets, which we have determined, in our professional judgement, to be one of the principal benchmarks within the financial statements relevant to members of the Company in assessing financial performance. \n We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £17,200 (2022: £14,450). \n We applied the concept of materiality both in planning and performing the audit, and in evaluating the effect of misstatement. \n Our approach to the audit \n In designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the financial statements. We addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represents a risk of material misstatement due to fraud. In particular we looked at areas involving significant accounting estimates and judgements by the directors and considered future events that are inherently uncertain, such as the fair value of unquoted investments and the value of the share options scheme. \n In addition, we focused our audit on the significant risk areas including the Key Audit Matter as outlined below. \n A full scope audit was performed on the complete financial information of the company \n Key audit matters \n Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. \n   \n \n \n \n \n Key Audit Matter \n \n \n How our scope addressed this matter \n \n \n \n \n Carrying value of Financial Assets (Refer to note 6) \n \n \n   \n \n \n \n \n The company holds investments in quoted and unquoted private companies amounting to £473k and £13,329k respectively. These are valued in accordance with IFRS 13 and the fair value hierarchy; and classified as per IFRS 9. \n   \n There is the risk that these investments have not been valued in accordance with IFRS 13 and IFRS 9 and require impairment. \n Investments which fall under Tier 3 of the fair value hierarchy are subject to significant management estimate, which increases the risk of material misstatement. \n The group has also invested in the level 1 listed investments, which are not subject to management judgement or estimation, and are valued at their yearend share price per the relevant exchange. \n Given the value of the investment is material at the year end and significant judgement needed when valuing level 3 investment we have assessed valuation of investments as a key audit matter. \n   \n   \n \n \n Our audit work included: \n ·    Ensuring that Cadence Minerals Plc has full title to the investments held; \n ·    Reviewing the valuation methodology for the investments held and ensuring that the  carrying values are recoverable supported by sufficient and appropriate audit evidence; \n ·    Reviewing the movement in investments to ensure they are accounted for and disclosed correctly in line with IFRS 9; \n ·    Ensuring that all asset types are categorised according to IFRS, including the accounting disclosures as required under IFRS 9; \n ·    Reviewing disclosures in relation to said assets; \n ·    Ensuring that appropriate disclosures surrounding the estimates made in respect of any valuations are included in the financial statements; and \n ·    Considering whether the transactions have been accounted for correctly within the financial statements. \n   \n The Group has applied for various licences with a view of obtaining a mining permit on the Amapa project which will allow it to move towards production. While the Group has sufficient funds to meet its current working capital needs for a period of 12 months from the date of this report, external funding will be required to advance the Amapa project towards production once the necessary licences and the mining permit is approved. This external funding still needs to be finalised and Management are looking at various options,  including a multi-staged investment raise which will allow production to commence and increase over time, or a joint arrangement with interested parties.  The Directors remain confident in management's ability to secure financing. Further details of this can be reviewed in the strategic report. \n   \n   \n \n \n \n \n   \n \n \n \n \n Carrying value and classification of loans receivable from Investee (refer to note 7) \n \n \n   \n \n \n \n \n The company has loan receivables from investees of £3.9m as at 31 December 2024. There is a risk that the loan amounts are not recoverable given that no repayments were made by the debtors for the loans outstanding. \n There is also a risk that the loans have not been accounted for in accordance with IFRS 9. \n Risk has been assessed as a Key Audit Matter due to the uncertainty, significant judgement and estimates associated with the recoverability of £3.9 million in loans from REM Mexico. The balance has not moved since the previous year. \n Disputes are ongoing with the Mexican government under the UK-Mexico Bilateral Investment Treaty around the project on the Sonara site with no conclusion yet. It is possible that this amount is not recoverable if this situation is not resolved. \n \n \n Our audit work included: \n ·    Ensuring that the loans have been classified and disclosed correctly in accordance with IFRS 9; \n ·    Discussing with Management to ascertain their justification for no IFRS 9 ECL charge being recognised in the year. Challenge management's key assumptions and consider whether the loans are fully recoverable or whether an IFRS 9 ECL charge is required; and \n ·    Ensuring that the loans are correctly classified as current or non-current in accordance with the payment terms per the loan agreements. \n Cadence holds an interest in the Sonora Lithium Project through REM Mexico, which has a 30% stake in the joint venture interests in Mexalit S.A. de CV (\"Mexalit\") and Megalit S.A. de CV (\"Megalit\"). The remaining 70% is held by Ganfeng Lithium Group Co., Ltd (\"Ganfeng\") \n Following a change in the Mexican Mining Law and the submission of evidence to support the investment spend to the regulatory authorities, a preliminary cancellation of nine lithium concessions was issued in August 2024. The cancellations are not final and both Ganfeng and Cadence have filed administrative review recourses before the Secretary of Economy against the resolutions cancelling the concessions, as they believe these resolutions violate Mexican and international law and infringe upon their fundamental due process rights. The case is still ongoing and the recovery of these loans from REM Mexico is dependent on the success of the administrative review. If the concessions are not granted back and compensation is not received from the Mexican government for concessions, a full impairment of the loan may be required. Further details are disclosed in the critical accounting estimates of these financial statements. \n \n \n \n \n &...

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