TIDMIRON
RNS Number : 2473U
Ironveld PLC
28 March 2019
28 March 2019
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2018
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium
and Titanium project located on the Northern Limb of the Bushveld
Complex in Limpopo Province, South Africa (the "Project") is
pleased to announce its interim results for the six months ended 31
December 2018 ("the period").
Highlights
Operational and Financial
-- Commenced a bulk sampling programme with a potential off-take
partner, supplying sufficient tonnage to undertake a full kiln
smelting test
-- Successfully completed a placing in November 2018, raising
GBP400,000 with the proceeds used to purchase equipment to process
the Company's magnetite ore in line with the specifications of the
potential off-take partner
-- Received a number of enquiries from potential industrial
partners, who have carried out extensive due diligence
Post Period
-- The potential off-taker concluded its metallurgical tests as
part of the bulk sampling programme
-- Discussions with the potential off-taker regarding the terms
of the off-take agreement continue
-- Successfully completed a placing in February 2019 of GBP1.1
million to strengthen the Company's financial position
-- The Company remains in detailed discussions with two potential industrial partners
Peter Cox, CEO, said:
"The Company has made significant progress towards securing a
long term off-take agreement and is encouraged by the status of
current discussions and the interest from potential development
partners. We have a vast resource of High Purity Iron, Vanadium and
Titanium in situ at the project, all three of which have strong
demand markets, and we are hopeful that we can capitalise on the
increasing demand for these high value materials through a
commercial agreement.
"We thank our shareholders for their continued support and look
forward to providing further updates as we make continued
progress."
For further information, please contact:
Ironveld plc c/o Camarco
Peter Cox, Chief Executive 020 3757 4980
Shore Capital
Jerry Keen / Toby Gibbs 020 7408 4090
Camarco
Gordon Poole / Kimberley Taylor / Thayson
Pinedo 020 3757 4997
Notes to Editors:
Ironveld (IRON.LN) is the owner of a High Purity Iron (HPI),
Vanadium and Titanium project located on the Northern Limb of the
Bushveld Complex in Limpopo Province South Africa. Ironveld expects
to mine its own VTM ore as feedstock for a 7.5 MW DC smelter which
will produce speciality iron products including high purity iron
powder as well as vanadium and titanium slag products.
The Definitive Feasibility Study published in April 2014
confirms the project's viability to deliver an exceptionally
high-grade iron product (99.5% Fe) called High Purity Iron which
commands a premium in the market place. Vanadium and Titanium slag
containing commercial grades of vanadium and titanium will also be
produced and sold.
Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox
as CEO, Vred von Ketelhodt as CFO, Nick Harrison, Rupert Fraser and
Duncan George Harvey as a Non-Executive Directors.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com.
Chairman's Statement:
During the period, the Company has made a number of significant
advancements towards its aim of becoming a production-led mining
company. Substantial progress is expected over the coming months as
we remain confident of securing a commercial off-take agreement and
remain in discussions with potential industrial partners.
In September 2018, after a period of engagement, Ironveld
commenced a bulk sampling programme with a potential off-take
partner, who is a specialist subsidiary of an international steel
group. The programme saw us supplying the potential off-take
partner with an initial delivery of 7,000 tons of mine ore for
processing, enabling the potential off-taker to undertake a full
kiln smelting test.
The potential off-take partner has now completed metallurgical
tests on the sample and discussions are progressing, with the aim
of concluding a commercial offtake agreement. Finalising a
long-term agreement would support the Company by generating
significant revenue as Ironveld begins to monetise its vast
resource and take advantage of the growing demand for vanadium and
existing stable demand for HPI and Titanium.
Whilst substantially all of the operating costs for the sampling
were covered by payment for the ore, the programme also had the
benefit of raising the profile of the Project, which led to
enquiries from a number of potential industrial partners, all of
whom carried out extensive due diligence. The Company remains in
discussions with these potential industrial partners and is hoping
to conclude an agreement which would allow it to commence
operations.
The Company's Project holds 27 million tons of HPI and 1.4
billion pounds of Vanadium (V2O5) in situ. The fundamentals driving
vanadium pricing continue to be supportive as the global annual
demand continues to grow, partly driven by increasing Chinese
demand and the advancements in technology for vanadium redox
batteries.
The demand for HPI, as a water atomized powder, continues to
increase as it is commonly used in the automotive industry, powder
metallurgy and magnetic materials. Titanium slag is a key element
in the development of new battery technology and is widely utilized
in the steel, alloy and pigment industries.
We would like to thank our shareholders for their ongoing
support, which has enabled us to successfully raise GBP400,000
through a placing during the period, and a further GBP1.1 million
post-period end. These proceeds have been used to fund the purchase
of a secondary gyratory crusher and magnetic separation equipment
used to process the Company's magnetite ore and also to strengthen
the Company's financial position.
We aim to operate in a responsible manner and continue to work
closely with stakeholders in the Project area to improve standards
of living. We remain committed to our Keep a Young Girl in School
Program, which provides hygiene support to approximately 600 female
students at schools in the local area in together with our
partners, the Imbumba Foundation and the Nelson Mandela Foundation.
In conjunction with the Imbumba Foundation, we are working to
introduce a support programme to encourage academic excellence
amongst male students in the Project area.
Financial
The Group recorded a loss before tax of GBP254,000 (H1 2018:
GBP243,000) and cash balances of GBP322,000 (30 June 2018:
GBP517,000) at the end of the period. The Company does not plan to
pay a dividend for the six months ended 31 December 2018.
Going concern
Following the recent share placing, the Group's present
financial resources and existing facilities are only considered
adequate to meet committed overhead expenditure for the period to
November 2019 by which time, the Directors anticipate completing
the further funding of the Project (the High Purity Iron, Vanadium
and Titanium project located on the Northern Limb of the Bushveld
Complex in Limpopo Province, South Africa owned by the Group). The
Directors are presently fully engaged with potential industrial and
commercial partners to raise the additional finance which will
allow them to commit to the next phase of the Project.
The Directors are confident that sufficient funds can be raised
for this planned activity and therefore have a reasonable
expectation that the Group will have adequate resources to continue
in operational existence for the foreseeable future, being twelve
months from the date of the approval of these interim financial
statements. The Group is committed to developing the Project and is
actively engaged in raising the appropriate finance to allow the
development to proceed. For this reason, the Board continues to
adopt the going concern basis in the preparation of the financial
statements.
Outlook
The Company continues to hold discussions with the potential
off-take partner and other potential industrial partners, with the
intention of either concluding an agreement with one of the parties
involved or completing an off-take arrangement with a third
party.
The long-term strategic focus of the Company remains to become a
production led mining company as we look to monetise our vast HPI,
Vanadium and Titanium resources.
We would like to thank all of our shareholders for their
continuing support for both the Company and the Project and we look
forward to providing further updates in the near future.
Giles Clarke
Chairman
27 March 2019
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 31 DECEMBER 2018
6 Months 6 Months 12 Months
ended ended ended
31.12.18 31.12.17 30.06.18
GBP'000 GBP'000 GBP'000
Administrative expenses (257) (236) (570)
--------- --------- ----------
Operating loss (257) (236) (570)
Investment revenues 3 3 41
Finance costs - (10) (7)
--------- --------- ----------
Loss before taxation (254) (243) (536)
Taxation - - -
--------- --------- ----------
Loss for the period (254) (243) (536)
Attributable to owners
of the company (254) (243) (535)
Non-controlling interests - - (1)
--------- --------- ----------
(254) (243) (536)
--------- --------- ----------
Profit/(loss) per share
(pence)
Basic (0.04p) (0.05p) (0.10p)
Diluted n/a n/a n/a
--------- --------- ----------
The accompanying notes form an integral part
of these financial statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODED 31 DECEMBER 2018
6 Months 6 Months 12 Months
ended ended ended
31.12.18 31.12.17 30.06.18
GBP'000 GBP'000 GBP'000
Loss for the period (254) (243) (536)
Exchange differences on the
translation of foreign operations (335) 211 (1,505)
Total comprehensive income/(loss)
for the period (589) (32) (2,041)
--------- --------- ----------
Attributable to:
Owners of the company (539) (108) (1,805)
Non-controlling interest (50) 76 (236)
(589) (32) (2,041)
-------- -------- -----------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2018
As at As at
31.12.18 30.06.18
GBP'000 GBP'000
Non-current assets
Exploration and evaluation 26,340 26,218
Property, plant and equipment 4 4
Investments - Other 381 386
--------- ---------
26,725 26,608
Current assets
Trade and other receivables 70 177
Cash and bank balances 322 517
--------- ---------
392 694
Total assets 27,117 27,302
--------- ---------
Current liabilities
Trade and other payables (505) (413)
Borrowings - -
--------- ---------
(505) (413)
--------- ---------
Non-current liabilities
Deferred tax liabilities (5,125) (5,194)
--------- ---------
Total liabilities (5,630) (5,607)
Net assets 21,487 21,695
--------- ---------
Equity
Share capital 9,146 8,903
Share premium 19,294 19,161
Retained earnings reserve (10,590) (10,056)
--------- ---------
Equity attributable to owners
of the company 17,850 18,008
Non-controlling interests 3,637 3,687
Total equity 21,487 21,695
--------- ---------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 31 DECEMBER 2018
Attributable
Share Retained to the owners Non-controlling Total
capital Share premium earnings of the company interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July
2017 7,671 18,211 (8,282) 17,600 3,923 21,523
Total comprehensive
income for the
year - - (1,805) (1,805) (236) (2,041)
Issue of share
capital 1,232 950 - 2,182 - 2,182
Equity settled share
based payments - - 31 31 - 31
--------- -------------- ---------- ----------------
Balance at 30 June
2018 8,903 19,161 (10,056) 18,008 3,687 21,695
--------- -------------- ---------- ---------------- ---------------- --------
Total comprehensive
income for the
period - - (539) (539) (50) (589)
Equity settled share
based payments - - 5 5 - 5
Issue of share
capital 243 133 - 376 - 376
--------- -------------- ---------- ---------------- ---------------- --------
Balance at 31
December 2018 9,146 19,294 (10,590) 17,850 3,637 21,847
--------- -------------- ---------- ---------------- ---------------- --------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 31 DECEMBER 2018
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.18 31.12.17 30.06.18
GBP'000 GBP'000 GBP'000
Net cash from operating activities (51) (178) (362)
--------- --------- ----------
Investing activities
Interest received 3 2 41
Purchase of exploration and evaluation
assets (712) (454) (1,263)
Contribution to exploration and 243 - -
evaluation assets
Purchases of property, plant
and equipment (2) - (1)
Purchase of investments - - (386)
--------- --------- ----------
Net cash used in investing activities (468) (452) (1,609)
--------- --------- ----------
Financing activities
Repayment of borrowings - (861) (889)
Proceeds on issue of equity (net
of costs) 376 2,182 2,632
--------- --------- ----------
Net cash generated in financing
activities 376 1,321 1,743
--------- --------- ----------
Net increase/(decrease) in cash
and cash equivalents (143) 691 (228)
--------- --------- ----------
Cash and cash equivalents at
the start of the period 517 788 788
Effect of foreign exchange rates (52) (49) (43)
--------- --------- ----------
Cash and cash equivalents at
end of period 322 1,430 517
--------- --------- ----------
Note to the cash flow statement
Operating loss (257) (236) (570)
Depreciation on property, plant
and equipment 2 1 2
Share based payment expense - 21 -
--------- --------- ----------
Operating cash flows before movements
in working capital (255) (214) (568)
Movement in receivables 106 134 138
Movement in payables 98 (92) 75
--------- --------- ----------
Cash used in operations (51) (172) (355)
Interest paid - (10) (7)
Taxation - 4 -
--------- --------- ----------
Net cash from operating activities (51) (178) (362)
--------- --------- ----------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIODED 31 DECEMBER 2018
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2018 have been
prepared under International Financial Reporting Standards (IFRS)
as adopted by the EU and International Accounting Standards
Board.
The accounting policies are consistent with those of the annual
financial statements for the year ended 30 June 2018, as described
in those financial statements.
The financial information does not constitute statutory accounts
as defined by section 435 of the Companies Act 2006. Full accounts
of the company for the year ended 30 June 2018 on which the
Auditors gave an unqualified report, have been delivered to the
Registrar of Companies.
2 Loss per share
The calculation of basic and diluted loss per share is based
upon the loss for the period and the weighted average number of
ordinary shares in issue during the period.
6 Months 6 Months 12 Months
to 31.12.18 to 31.12.17 to 30.06.18
'000 '000 '000
Weighted average number of
shares 571,580 491,765 529,515
Options - dilution - - -
------------ ------------ ------------
571,580 491,765 529,515
============ ============ ============
Pence Pence Pence
Basic loss per share - continuing (0.04) (0.05) (0.10)
Basic profit/(loss) per share n/a n/a n/a
- discontinued
------------ ------------ ------------
Discontinued - Diluted earnings n/a n/a n/a
per share
============ ============ ============
Where the Group reports a loss for any period, then in
accordance with IAS 33, the share options and warrants in issue are
not considered dilutive.
3 Registered office and copies of the report
The registered office is Ironveld plc, Lakeside Fountain Lane,
St Mellons, Cardiff, CF3 0FB and copies of this report are
available from the registered office.
INDEPENDENT REVIEW REPORT
UHY Hacker Young Manchester LLP
St. James Building
79 Oxford Street
Manchester M1 6HT
TO IRONVELD PLC
Introduction
We have reviewed the accompanying balance sheet of Ironveld plc
as at 31 December 2018 and the related statements of income,
changes in equity, cash flows for the six month period then ended
and other explanatory notes 1 to 3. Management is responsible for
the preparation and fair presentation of this interim financial
information in accordance with the International Financial
Reporting Standards. Our responsibility is to express a conclusion
on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements 2410, "Review of interim Financial
Information Performed by the Independent Auditor of the Entity". A
review of interim financial information consists of making
inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying interim financial
information does not give a true and fair view of the financial
position of the entity as at 31 December 2018, and of its financial
performance and its cash flows for the six month period then ended
in accordance with International Financial Reporting Standards as
applicable in the United Kingdom.
In forming our opinion on the financial information, which is
not modified, we have considered the adequacy of the disclosures
made in the Chairman's statement concerning the Group's ability to
continue as a going concern. The Group are currently negotiating
with potential industrial and commercial partners in order to
finance the additional planned activity and this indicates the
existence of a material uncertainty which may cast significant
doubt about the Group's ability to continue as a going concern. The
financial information does not include the adjustments that would
result if the Group were unable to continue as a going concern and
the directors remain confident that the negotiations will be
successful and that suitable finance will be arranged.
UHY Hacker Young Manchester LLP
Chartered Accountants
27 March 2019
IRONVELD PLC
OFFICERS, ADVISORS AND AGENTS
Directors: Giles Clarke (Chairman)
Peter Cox (Chief Executive Officer)
Vred von Ketelhodt (Chief Financial Officer)
John Harrison (Non-Executive Director)
Rupert Fraser (Non-Executive Director)
Duncan George Harvey (Non-Executive Director)
Secretary: Kirsti Jane Pinnell
Company Number: 04095614
Registered Office: Ironveld Plc
Lakeside Fountain Lane
St Mellons
Cardiff
CF3 0FB
Nominated Advisor Shore Capital Stockbrokers Limited
And Broker: Bond Street House
14 Clifford Street
London
W1S 4JU
Solicitors: Kuit Steinart Levy LLP
3 St Marys Parsonage
Manchester
M3 2RD
Auditors: UHY Hacker Young Manchester LLP
Chartered Accountants
St James Building
79 Oxford Street
Manchester M1 6HT
Bankers: HSBC
97 Bute Street
Cardiff
CF10 5NA
Registrars: Capita IRG Plc
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA
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END
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