TIDMIRON
RNS Number : 6715U
Ironveld PLC
30 March 2023
30 March 2023
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2022
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 2022 ("the period").
Highlights
-- A transformative period for the Company saw the acquisition
and commencement of refurbishment of the smelter facility at
Rustenburg, from August 2022 onwards;
-- Acquisition and refurbishment funded by an equity Placing of
GBP4.50 million, which completed in August 2022;
-- First mining activities also commenced prior to period end,
to ensure consistent supply of magnetite ore to the smelter;
and
-- Post period end saw first production from the smelter, an
additional GBP2.0 million fundraising from shareholders and the
smelter acquisition becoming unconditional.
Outlook
-- First sales on track for Q2 2023 in line with original plans;
-- Smelter anticipated to ramp up to full production capacity by
mid 2023 with strong demand for Ironveld's suite of speciality
metal products; and
-- Additional revenues expected from DMS Magnetite joint venture, also due around mid 2023.
Martin Eales, CEO, said: "I am very pleased with the progress we
made over the half year period to December 2022 and have already
made so far this year. The coming months are due to bring many more
positive developments as we build up production at the smelter and
make progress with our other projects."
For further information, please contact:
Ironveld plc c/o BlytheRay
Martin Eales, Chief Executive Officer 020 7138 3204
finnCap (Nomad and Broker)
Christopher Raggett/Charlie Beeson 020 7220 0500
Turner Pope (Joint Broker)
Andy Thacker/James Pope 020 3657 0050
BlytheRay
Megan Ray/Tim Blythe 020 7138 3204
Notes to Editors:
Ironveld (IRON.LN) is the owner of Mining Rights over
approximately 28 kilometres of outcropping Bushveld magnetite with
a SAMREC compliant ore resource of some 56 million tons of ore
grading 1,12% V2O5, 68,6% Fe2O3 and 14,7% TiO2.
In 2022 Ironveld agreed to acquire and refurbish a smelter
facility in Rustenburg, South Africa, in which it can process its
magnetite ore into the marketable products of high purity iron,
titanium slag and vanadium slag. This transaction became
unconditional in March 2023.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com .
Chairman's Statement:
This was a transformational period for the Company. In July
2022, Ironveld announced that it had conditionally raised gross
proceeds of GBP4.50 million via a Placing of new ordinary shares at
0.30 pence per share and the transaction was approved by
shareholders in August 2022. The net funds from the Placing were
applied to the acquisition out of Business Rescue and refurbishment
of the smelter facility in Rustenburg, South Africa, previously
owned by Ferrochrome Furnaces (Pty) Limited ("FCF"), for which the
Company had agreed purchase terms in May 2022. The Sale and
Purchase Agreement in respect of the acquisition was signed on 31
August 2022 and the Debt Purchase Agreement with the sole creditor
was signed on 1 November 2022. The acquisition became unconditional
on 29 March 2023.
In mid-August 2022, Ironveld's team commenced its six to nine
month work programme to refurbish the smelter and the Company was
able to announce that production from the first of three planned
operating furnaces had been achieved in January 2023. Alongside the
rapid progress at the smelter, Ironveld's subsidiary, Ironveld
Mining (Pty) Limited ("Ironveld Mining"), commenced preparatory
work for mining activities in the fourth quarter of 2022, and
operations are now underway to provide required magnetite ore to
the smelter on a continuous basis.
The total number of employees across the Ironveld Group
reflected this rapid expansion in activities, increasing from 9
South Africa based employees as at 30 June 2022 to 130 as at 31
December 2022, a development of which we are justifiably proud.
We remain committed to operating responsibly, working closely
with stakeholders and local communities at grassroots level to
improve standards of living. Under the terms of the 'Social and
Labour Plans' ("SLPs") that Ironveld Mining has had approved by the
South African Department of Mineral Resources and Energy alongside
our existing mining rights, Ironveld Mining has undertaken to fund
and address local infrastructure requirements in the areas in which
we operate. These improvements include: water supply to local
municipalities; electrification and electricity upgrades; and roads
and stormwater infrastructure. In addition, Ironveld Mining has
committed to provide training, bursaries and employment to the
various host communities.
Financial
Administrative expenses totalling GBP581,000 (H1 2021:
GBP384,000) were incurred in the period reflecting a return to
normalised levels of expenditure compared to the comparable period,
the commencement of operational activities in the fourth quarter of
2022 and the costs associated with a General Meeting requisitioned
by a shareholder.
The Group recorded a loss before tax of GBP522,000 (H1 2021:
loss of GBP382,000), broadly in line with Administrative expenses.
The Company does not plan to pay a dividend for the six months
ended 31 December 2022.
There were no borrowings at the period end (30 June 2022:
borrowings of GBP499,000) as all outstanding balances were settled
either in cash or by the issue of new shares in August 2022.
Post Period End Events
As noted above, first production was achieved at the Rustenburg
smelter in January 2023.
In February 2023, the Company announced an equity Placing to
raise gross proceeds of GBP2.0 million at a price of 0.30p, and
this was approved by shareholders in March 2023.
In March 2023 the Company announced that the acquisition of FCF
had become unconditional.
Transactions with Grosvenor
Ironveld announced two agreed investment transactions with
Grosvenor Resources (Pty) Limited ("Grosvenor") in late 2021.
Company updates since that date have noted that Grosvenor was in
talks to finalise its own funding to complete the agreed
transactions, and that Grosvenor has also been in regular and open
dialogue with the Company. As at today's date, the Company is aware
that talks with potential funders remain ongoing and the Board
believes that a financing offer has a good chance of being made
however, given the changes in Ironveld's position since the
original agreements with Grosvenor were signed, any financing offer
will be assessed on its merits and its potential to create value
for all shareholders.
Going concern
Given the recent cash inflow from the equity Placing and the
commencement of sales from the smelter, the Directors have a
reasonable expectation that the Group will have adequate resources
to continue in operational existence for the foreseeable future
being 12 months from the date of the approval of these interim
financial statements in the absence of any further funding and
therefore present these accounts on a Going Concern basis.
Outlook
There is a great deal to look forward to in 2023. We anticipate
securing first sales from the smelter in the second quarter and
reaching full operational production capacity around the middle of
the year, with the Company now fully funded to achieve this. There
is strong demand from customers for all of our three products of
high purity iron, vanadium slag and titanium slag. In addition,
Ironveld Mining will benefit from its joint venture with Pace SA to
produce and sell DMS grade magnetite from the mine in mid 2023.
In due course the Company also anticipates investing in further
equipment at the smelter to upgrade the high purity iron product to
powder form, which will significantly enhance revenues, and is
seeking innovative ways to finance this expansion.
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 2023
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 31 DECEMBER 2022
6 Months 6 Months 12 Months
ended ended ended
31.12.22 31.12.21 30.06.22
GBP'000 GBP'000 GBP'000
Administrative expenses (581) (384) (798)
--------- --------- ----------
Operating loss (581) (384) (798)
Other gains and losses 47 - -
Investment revenues 23 2 4
Finance costs (11) - (17)
--------- --------- ----------
Loss before taxation (522) (382) (811)
Taxation - - -
--------- --------- ----------
Loss for the period (522) (382) (811)
Attributable to owners
of the company (520) (379) (806)
Non-controlling interests (2) (3) (5)
--------- --------- ----------
(522) (382) (811)
--------- --------- ----------
Loss per share (pence)
Basic (0.02p) (0.03p) (0.06p)
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 2022
6 Months 6 Months 12 Months
ended Ended ended
31.12.22 31.12.21 30.06.22
GBP'000 GBP'000 GBP'000
Loss for the period (522) (382) (811)
Exchange differences on the
translation of foreign operations (576) (1,795) (199)
Total comprehensive loss for
the period (1,098) (2,177) (1,010)
--------- --------- ----------
Attributable to:
Owners of the company (1,015) (1,894) (974)
Non-controlling interest (83) (283) (36)
(1,098) (2,177) (1,010)
---------- ---------- ----------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022
As at As at
31.12.22 30.06.22
GBP'000 GBP'000
Non-current assets
Exploration and evaluation 26,634 26,350
Property, plant and equipment 1,212 2
Other receivables 6 3
--------- ---------
27,852 26,355
Current assets
Trade and other receivables 507 198
Cash and bank balances 779 17
--------- ---------
1,286 215
Total assets 29,138 26,570
--------- ---------
Current liabilities
Trade and other payables (508) (619)
Borrowings - (499)
--------- ---------
(508) (1,118)
--------- ---------
Non-current liabilities
Lease liabilities (46) -
Deferred tax liabilities (4,616) (4,730)
--------- ---------
(4,662) (4,730)
--------- ---------
Total liabilities (5,170) (5,848)
Net assets 23,968 20,722
--------- ---------
Equity
Share capital 12,013 10,453
Share premium 24,101 21,379
Other reserve 74 12
Retained earnings reserve (8,941) (8,421)
Foreign currency translation
reserve (6,540) (6,045)
--------- ---------
Equity attributable to owners
of the company 20,707 17,378
Non-controlling interests 3,261 3,344
Total equity 23,968 20,722
--------- ---------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 31 DECEMBER 2022
Attributable
Foreign to the
currency owners
Share Share Retained translation Other of the Non-controlling Total
capital premium earnings reserve reserve company interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July 2021 10,436 21,261 (7,618) (5,877) 15 18,217 3,380 21,597
Loss for the year - - (806) - - (806) (5) (811)
Exchange differences on translation
of foreign operations - - - (168) - (168) (31) (199)
Issue of shares 17 118 - - - 135 - 135
Exercise of share warrants - - 3 - (3) - - -
Balance at 30 June 2022 10,453 21,379 (8,421) (6,045) 12 17,378 3,344 20,722
--------- -------------------------------------------------------------- --------- ------------- ------------- ------------- ---------------- ------------
Loss for the period - - (520) - - (520) (2) (522)
Issue of shares and warrants 1,560 2,722 - - 62 4,344 - 4,344
Exchange differences on translation
of foreign operations - - - (495) - (495) (81) (576)
--------- -------------------------------------------------------------- --------- ------------- ------------- ------------- ---------------- ------------
Balance at 31 December 2022 12,013 24,101 (8,941) (6,540) 74 20,707 3,261 23,968
--------- -------------------------------------------------------------- --------- ------------- ------------- ------------- ---------------- ------------
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 31 DECEMBER 2022
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.22 31.12.21 30.06.22
GBP'000 GBP'000 GBP'000
Net cash from operating activities (799) (48) (337)
--------- --------- ----------
Investing activities
Interest received 23 2 4
Purchase of property, plant and
equipment (1,172) - (1)
Purchase of exploration and evaluation
assets (917) (198) (396)
--------- --------- ----------
Net cash used in investing activities (2,066) (196) (393)
--------- --------- ----------
Financing activities
Proceeds on issue of equity (net 4,031 - -
of costs)
Proceeds from new loans - - 482
Repayment of loans (403) - -
--------- --------- ----------
Net cash generated in financing
activities 3,628 - 482
--------- --------- ----------
Net increase/ (decrease) in
cash and cash equivalents 763 (244) (248)
--------- --------- ----------
Cash and cash equivalents at
the start of the period 17 270 270
Effect of foreign exchange rates (1) (2) (5)
--------- --------- ----------
Cash and cash equivalents at
end of period 779 24 17
--------- --------- ----------
Note to the cash flow statement
Operating loss (581) (384) (798)
Depreciation on property, plant
and equipment 6 1 1
Foreign exchange differences (50) - -
Share based payments 60 - 100
--------- --------- ----------
Operating cash flows before movements
in working capital (565) (383) (697)
Movement in receivables (316) 27 (8)
Movement in payables 82 308 368
--------- --------- ----------
Net cash from operating activities (799) (48) (337)
--------- --------- ----------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2022 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 2022, 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 2022 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 31.12.22 to 31.12.21 to 30.06.22
'000 '000 '000
Weighted average number of
shares 2,628,958 1,316,440 1,322,832
Options/warrants - dilution - - -
------------ ------------ ------------
2,628,958 1,316,440 1,322,832
============ ============ ============
Pence Pence Pence
Basic loss per share - continuing (0.02) (0.03) (0.06)
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, Unit D De Clare House Sir
Alfred Owen Way, Pontygwindy Industrial Estate, Caerphilly, Wales,
CF83 3HU and copies of this report are available from the
registered office.
IRONVELD PLC
OFFICERS, ADVISORS AND AGENTS
Directors: Giles Clarke (Chairman)
Martin Eales (Chief Executive Officer)
Nick Harrison (Non-Executive Director)
Peter Cox (Technical Director)
John Wardle (Non-Executive Director)
Secretary: Brian James
Company Number: 04095614 (England and Wales)
Registered Office: Ironveld Plc
Unit D De Clare House Sir Alfred Owen Way
Pontygwindy Industrial Estate
Caerphilly Wales CF83 3HU
Nominated Advisor finnCap Ltd
One Bartholomew Close
London EC1A 7BL
Joint Broker finnCap Ltd
One Bartholomew Close
London EC1A 7BL
Joint Broker Turner Pope
8 Frederick's Place
London EC2R 8AB
Solicitors: Kuit Steinart Levy LLP
3 St Marys Parsonage
Manchester M3 2RD
Auditors: Crowe U.K. LLP
55 Ludgate Hill
London EC4M 7JW
Bankers: HSBC
97 Bute Street
Cardiff CF10 5NA
Registrars: Link Asset Services
10(th) Floor Central Square
29 Wellington Street
Leeds LS1 4DL
Financial PR BlytheRay
4 - 5 Castle Court
London EC3V 9DL
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IR NKCBPPBKDDNB
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