TIDMIRON
RNS Number : 0178I
Ironveld PLC
30 March 2020
30 March 2020
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2019
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 2019 ("the period").
Highlights
Operational
-- Overheads incurred during the period reflected low level of
activity whilst negotiations for development funding continued;
-- Strategic Review process announced in July 2019 led to a number of inbound enquiries; and
-- Board Changes - departure of Rupert Fraser and Duncan Harvey
as Non-Executive Directors and appointment of new Chief Executive
Officer, Martin Eales.
Financial
-- Loan Facilities of up to GBP260,000 agreed post period end
provided short term funding prior to completion of a larger
financing transaction; and
-- Option Agreement signed with Inclusive Investment Group
("IIG") for up to US$3.2 million of funding announced today.
Martin Eales, CEO, said:
"As announced today Ironveld intends to enter into a major new
strategic partnership with IIG following the granting of an Option
which, when approved by shareholders and exercised, will result in
IIG taking an ownership position in the Company of approximately
36.0 per cent. in exchange for a total cash subscription of US$2.2
million (approximately GBP1.85 million). The non-refundable Option
fee of US$250,000 (approximately GBP210,000) is a significant
demonstration of IIG's commitment to the proposed transaction.
"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 Blytheweigh
Martin Eales, Chief Executive Officer 020 7138 3204
finnCap (Nomad and Broker)
Christopher Raggett/Hannah Boros 020 7220 0500
Blytheweigh
Megan Ray/Tim Blythe 020 7138 3204
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 is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com.
Chairman's Statement:
During the period, the Company announced the commencement of a
Strategic Review and held discussions with a number of potential
funding partners. Administrative expenses of GBP278,000 (2018:
GBP257,000) reflect the continued low level of activity during the
period whilst the Company engaged with possible partners.
Your Board remains confident that the Company's asset,
containing 27 million tons of HPI, together with significant
Vanadium and Titanium content, continues to demonstrate robust
economics and has a potential value many times in excess of the
Company's market capitalisation and balance sheet carrying
value.
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 atomised 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 utilised
in the steel, alloy and pigment industries.
Given stock market dynamics over the recent past and especially
since the impact of COVID-19, it has proved challenging to secure a
sensible funding deal whilst at the same time preserving value for
shareholders, and a number of proposals were rejected due to
unsuitable terms.
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
Programme, which provides hygiene support to approximately 600
female students at schools in the local area 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.
Board
During the period both Rupert Fraser and Duncan Harvey stepped
down from the Board as Non-Executive Directors and I thank them
again for their contributions over many years. In December 2019,
Martin Eales was appointed as the Company's new Chief Executive
Officer and Peter Cox became Technical Director.
Financial
The Group recorded a loss before tax of GBP276,000 (H1 2018:
GBP254,000) and cash balances of GBP107,000 (30 June 2019:
GBP566,000) at the end of the period. The Company does not plan to
pay a dividend for the six months ended 31 December 2019.
Post period end transactions
On 3 February 2020 the Company announced new Loan Facilities of
up to GBP260,000, carrying an interest rate of 8 per cent. per
annum with a six month term. Alongside the Loan Facilities the
Company granted 26,000,000 warrants to subscribe for ordinary
shares in the Company at 1 pence each. As at the date of this
announcement GBP160,000 had been drawn under the loan
facilities.
As announced today, the Company has entered into a conditional
Option Agreement with IIG such that, following the grant of a Rule
9 Waiver by the Takeover Panel and approval of certain resolutions
to effect the transaction by Ironveld shareholders, after exercise
IIG would be able to subscribe for 440,176,070 new ordinary shares
in Ironveld at a price of 0.42 pence each, generating gross
proceeds to Ironveld (taking account of the US$250,000 Option fee)
of US$2.2 million (approximately GBP1.85 million) and resulting in
IIG holding an interest of approximately 36.0 per cent. of the
Company's enlarged issued share capital. Alongside the equity
subscription it is also IIG's intention to advance a loan of
US$1,000,000 (approximately GBP840,000) to the Ironveld Group.
IIG is a South Africa based investment group focussed on Africa.
The group has interests in multiple sectors and has a particular
focus on strategic metals and minerals within the region. The
company has identified Ironveld as a near-production vehicle that
it believes can accelerate into a leading strategic / battery
metals player in the region. IIG was founded by Mcebisi Jonas, the
current Chairperson of multinational mobile telecommunications
group MTN, and Monwabisi Twantwa.
Going concern
Following the recent agreement of the Loan Facilities and
assuming the approval, exercise and completion of the Option
Agreement with IIG, the Group's financial resources and existing
facilities are considered adequate to meet committed overhead
expenditure for the next 12 months 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).
Following completion of the IIG transaction the Directors intend
to work alongside IIG to engage 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.
Should the Takeover Panel not grant a Rule 9 Waiver or the
necessary Resolutions not be passed at a General Meeting of
Shareholders arranged in connection with the IIG transaction or,
following such approval, IIG not exercise its Option , the Company
will need to secure further alternative funds in order to continue
as a Going Concern.
COVID-19
At Ironveld, the well being of our people and our business is of
upmost importance. The day to day developing nature of COVID-19
means our primary focus remains on the absolute safety of our
employees and the continuity of our business.
The Company is closely following health and travel advice as it
develops as well as the guidance from the Governments and
authorities relevant to our operations.
Fortunately, we are a small but dedicated team of staff at
Ironveld, however, due to the importance of the situation, the
Company has encouraged its staff to work from home, particularly
staff with children, and to follow the evolving Government advice
even prior to the recent 'lockdowns' announced in South Africa and
the UK.
For Ironveld, there are currently no operations or supply chains
that have been interrupted and there will be no material day to day
impact other than restricted international travel which can be
dealt with using electronic communications.
Ironveld will closely follow and continuously asses the risks
posed by COVID-19 and act according based on this.
Outlook
The new strategic partnership with IIG as announced today has
the potential to transform Ironveld's fortunes, giving us the
support of a well respected and, most importantly, well connected
mining finance house in South Africa. We look forward to working
together with the IIG team and leveraging their expertise to help
secure the necessary development funding for our project.
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
30 March 2020
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 31 DECEMBER 2019
6 Months 6 Months 12 Months
ended ended ended
31.12.19 31.12.18 30.06.19
GBP'000 GBP'000 GBP'000
Administrative expenses (278) (257) (629)
--------- --------- ----------
Operating loss (278) (257) (629)
Investment revenues 3 3 6
Finance costs (1) - (2)
--------- --------- ----------
Loss before taxation (276) (254) (625)
Taxation - - -
--------- --------- ----------
Loss for the period (276) (254) (625)
Attributable to owners
of the company (277) (254) (624)
Non-controlling interests 1 - (1)
--------- --------- ----------
(276) (254) (625)
--------- --------- ----------
Profit/(loss) per share
(pence)
Basic (0.04p) (0.04p) (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 2019
6 Months 6 Months 12 Months
ended ended ended
31.12.19 31.12.18 30.06.19
GBP'000 GBP'000 GBP'000
Loss for the period (276) (254) (625)
Exchange differences on the
translation of foreign operations (710) (335) 211
Total comprehensive income/(loss)
for the period (986) (589) (414)
--------- --------- ----------
Attributable to:
Owners of the company (865) (539) (448)
Non-controlling interest (121) (50) 34
(986) (589) (414)
--------- --------- --------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2019
As at As at
31.12.19 30.06.19
GBP'000 GBP'000
Non-current assets
Exploration and evaluation 26,989 27,423
Property, plant and equipment 4 5
Investments - Other 377 390
--------- ---------
27,370 27,818
Current assets
Trade and other receivables 71 156
Cash and bank balances 107 566
--------- ---------
178 722
Total assets 27,548 28,540
--------- ---------
Current liabilities
Trade and other payables (773) (610)
(773) (610)
--------- ---------
Non-current liabilities
Deferred tax liabilities (5,074) (5,243)
--------- ---------
Total liabilities (5,847) (5,853)
Net assets 21,701 22,687
--------- ---------
Equity
Share capital 9,774 9,774
Share premium 19,691 19,691
Retained earnings reserve (11,364) (10,499)
--------- ---------
Equity attributable to owners
of the company 18,101 18,966
Non-controlling interests 3,600 3,721
Total equity 21,701 22,687
--------- ---------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 31 DECEMBER 2019
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
2018 8,903 19,161 (10,056) 18,008 3,687 21,695
Total comprehensive
income for the
year - - (624) (624) (1) (625)
Issue of share
capital 871 530 - 1,401 - 1,401
Exchange differences
on translation
of foreign
operations 176 176 35 211
Equity settled share
based payments - - 5 5 - 5
--------- -------------- ---------- ----------------
Balance at 30 June
2019 9,774 19,691 (10,499) 18,966 3,721 22,687
--------- -------------- ---------- ---------------- ---------------- --------
Total comprehensive
income for the
period - - (277) (277) 1 (276)
Exchange differences
on translation
of foreign
operations (588) (588) (122) (710)
--------- -------------- ---------- ---------------- ---------------- --------
Balance at 31
December 2019 9,774 19,691 (11,364) 18,101 3,600 21,701
--------- -------------- ---------- ---------------- ---------------- --------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 31 DECEMBER 2019
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.19 31.12.18 30.06.19
GBP'000 GBP'000 GBP'000
Net cash from operating activities (18) (51) (420)
--------- --------- ----------
Investing activities
Interest received 3 3 6
Purchase of exploration and evaluation
assets (449) (712) (1,202)
Contribution to exploration and
evaluation assets - 243 268
Purchases of property, plant
and equipment - (2) (4)
Purchase of investments - - -
--------- --------- ----------
Net cash used in investing activities (446) (468) (932)
--------- --------- ----------
Financing activities
Proceeds on issue of equity (net
of costs) - 376 1,401
--------- --------- ----------
Net cash generated in financing
activities - 376 1,401
--------- --------- ----------
Net increase/(decrease) in cash
and cash equivalents (464) (143) 49
--------- --------- ----------
Cash and cash equivalents at
the start of the period 566 517 517
Effect of foreign exchange rates 5 (52) -
--------- --------- ----------
Cash and cash equivalents at
end of period 107 322 566
--------- --------- ----------
Note to the cash flow statement
Operating loss (278) (257) (629)
Depreciation on property, plant
and equipment 1 2 3
Operating cash flows before movements
in working capital (277) (255) (626)
Movement in receivables 79 106 22
Movement in payables 180 98 185
--------- --------- ----------
Cash used in operations (17) (51) (419)
Interest paid (1) - (1)
Net cash from operating activities (18) (51) (420)
--------- --------- ----------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2019 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 2019, 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 2019 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 31.12.19 to 31.12.18 to 30.06.19
'000 '000 '000
Weighted average number of
shares 654,991 571,580 602,782
Options - dilution - - -
------------ ------------ ------------
654,991 571,580 602,782
============ ============ ============
Pence Pence Pence
Basic loss per share - continuing (0.04) (0.04) (0.10)
Diluted earnings per share n/a n/a n/a
============ ============ ============
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 2019 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 2019, 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 continues to engage 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 sufficient funds can be
arranged.
UHY Hacker Young Manchester LLP
Chartered Accountants
IRONVELD PLC
OFFICERS, ADVISORS AND AGENTS
Directors: Giles Clarke (Chairman)
Martin Eales (Chief Executive Officer)
Vred von Ketelhodt (Chief Financial Officer)
Nick Harrison (Non-Executive Director)
Peter Cox (Technical Director)
Secretary: Kirsti Jane Pinnell
Company Number: 04095614
Registered Office: Ironveld Plc
Lakeside Fountain Lane
St Mellons
Cardiff
CF3 0FB
Broker: finnCap
60 New Broad Street
London
EC2M 1JJ
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: Link Asset Services
34 Beckenham Road
Beckenham
Kent
BR3 4TU
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR WPUGUWUPUURU
(END) Dow Jones Newswires
March 30, 2020 05:30 ET (09:30 GMT)
Ironveld (LSE:IRON)
Historical Stock Chart
From Apr 2024 to May 2024
Ironveld (LSE:IRON)
Historical Stock Chart
From May 2023 to May 2024