The announcement last week that Cadence Minerals (LON:KDNC) now owns 20% of the Amapá Iron Ore project should come as a relief to many shareholders. The 20% ownership is the first stage of a JV (Pedro Brance Alliance – PBA) agreed back in 2019 for Cadence to invest in and acquire up to 27% of the Amapá iron ore mine, beneficiation plant, railway and private port owned by DEV Mineração.
Amid delays, setbacks and a fluctuating share price, shareholders have had to be patient. In the last five years the share price has dropped 55%. In April 2020 it was at 3.24GBX, then with a relatively good run in H1 2021 the current 52-week high is 33.00GBX. However, shares are now at 20.64GBX – down 29% YTD.
While this week’s JV announcement has not nudged the dial in terms of a boost in share price, a recent fundraising could signal that some investors remain confident of future returns.
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