Cadence Minerals plc swung to a loss during 2021 but said its assets, particularly iron ore and lithium, would perform well in the future.
FINANCES
In its annual results for the year ended 31 December 2021, the company reported a loss of £0.14m (2020: £7.82m profit) due to reduced realised and unrealised profits and losses for the year of £1.2m (2020: £10.4m).
Administrative expenses rose to £1.8m (2020: £1.44m), while foreign exchange gains were £0.46m (2020: £0.82m loss).
Cash and cash equivalents totalled £324,000, current financial assets were £11,974,000 and the company had no borrowings.
During 2021, the company received £55,000 through share issues and £2,957,000 in net receipts and repaid all remaining loans.
RETURNS
Chief executive Kiran Morzaria said that the company would pursue its objectives because assets that were undervalued, de-risked, or had strategic advantages would outperform their peers in the long run.
“This plan yielded fruit in 2021, with the company continuing to report profitable returns on its public investments and significant operation progress being made across its core investments.
“The Amapa project gives Cadence the potential for an exceptional return on investment in the run-up to full production and an opportunity to become a significant shareholder in a mid-tier iron ore producer.
“The second of our key investments is European Metals Holdings, whose strategy is to become a Czech based lithium and tin producer.
“During the year, EMH’s Cinovec project has been significantly de-risked and is moving rapidly towards a final investment decision.”
PORTFOLIO
In 2021, the company’s portfolio focused on two main investments of the Amapa iron ore project (2022: 27%) and European Metals Holdings (8.1%).
Cadence also holds interests in the Sonora lithium project in Mexico (30%); and Lithium Technologies Pty Ltd & Lithium Suppliers Pty Ltd, Australia (35%), which post-period has been conditionally sold.
Other assets include the Yangibana rare earth project (30%) in Australia.