Market's view on Cadence Mineral
Published on April 2024
- Criticism towards the management’s valuation of a company’s shares at 3p with a full warrant, deemed nonsensical at a market valuation of 3.6p.
- Comparison drawn between KDNC and EMH, both described as small market cap companies with significant potential resources.
- Speculations about substantial unannounced capital savings in the Amapa project, set to be revealed in a March update.
- Discussion on Amapa producing a higher value 67% FE ore potentially leading to increased NPV from $949m to around $1.2bn.
- KDNC’s strategic investment decisions, including the cancellation of its dual listing to reduce costs, are highlighted.
- Disposal of holdings in Hastings noted, anticipated to free up an estimated £0.75m towards furthering the Amapa project.
- Mentions of ongoing developments in associated projects like EMH and EG1, with potential increases in KDNC’s holdings based on performance milestones.
- Negative sentiment expressed about the potential profitability and government permissions for foreign mining operations in Brazil.
- Positive updates welcomed, with expectations of beneficial announcements regarding the Amapa project.