Edison Investment Research - Cadence Minerals (KDNC) Cadence Minerals - A mispriced miner

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Edison Investment Research

Alison Turner

Cadence Minerals - A mispriced miner

Cadence Minerals is a mining-focused investment company with unlisted investment assets that the market appears to be clearly mis-pricing. Its portfolio of public equities accounts for £10.2m of its £12.7m market cap, leaving an implied combined value of £2.5m for its 30% stake in the Amapá iron ore project and its minority stake in the Sonora lithium project. In our view each of these is worth more than this, and we believe a conservative base-case valuation of both to be £45m or 26p/share at their current stages of development. This values Cadence at 32.2p/share, more than four times its current valuation. Our high-case valuation is 57p/share.

06/07/2023 1 EN

Underlying

Cadence Minerals

Cadence Minerals is engaged in identification, investment and development of Lithium and rare earth assets. Co. is also exploring other mining related opportunities.

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GB00BJP0B151 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Alison Turner

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Cadence Minerals - A mispriced miner

Cadence Minerals (KDNC LN) - Licensing update for the Amapá iron ore project, Brazil

Cadence Minerals - Amapá optimisation adds value

Cadence Minerals - Real progress, real value

Manx Financial Group - Termination of coverage

musicMagpie - Termination of coverage

Topps Tiles - Accelerating growth through Q125

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