TIDMIRON
RNS Number : 8620T
Ironveld PLC
30 March 2021
30 March 2021
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2020
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 2020 ("the period").
Highlights
Operational
-- Overheads incurred during the period reflected continued low
level of activity whilst negotiations for development funding
continued; and
-- Board Change - departure of Vred von Ketelhodt as full time
CFO in order to reduce overhead cost base.
Financial
-- Placing completed in December 2020 raised gross proceeds of
GBP1.15 million following the agreed lapse of the IIG Option
Agreement originally entered into in March 2020;
-- Loans and other liabilities totalling over GBP1.4 million
were settled in shares, thereby strengthening the Group's balance
sheet position; and
-- Talks at an advanced stage with a major partner seeking to
take a strategic equity stake in the Company at a premium to the
current share price.
Martin Eales, CEO, said:
"The six months to December 2020 ultimately proved frustrating
and despite best efforts, we were unable to conclude the envisaged
transaction with IIG. We have, however, made material progress on a
possible alternative transaction in the early part of this year,
which we hope to conclude in the coming weeks.
"We thank our shareholders for their support in the recent
equity Placing 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
Charlie Beeson 020 7220 0500
Turner Pope (Joint Broker)
Andy Thacker
Zoe Alexander 020 3657 0050
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, despite the best efforts of all parties
involved, over many months, to secure an appropriate funding
solution, the IIG Option agreement (originally announced in March
2020) lapsed at the end of November 2020 and the Company then
announced an equity Placing to raise gross proceeds of GBP1.15
million which was approved by shareholders in December. IIG
provided financing of US$650,000 to Ironveld during the life of the
Option Agreement and the majority of this was settled in shares at
0.42p, being a premium to the Placing Price.
Administrative expenses of GBP458,000 (2019: GBP278,000) were
incurred in the period, with the majority of the increase
represented by additional Board costs compared to the prior period
following the appointment of Martin Eales as CEO in December 2019
and professional costs relating to the IIG Option agreement and the
Placing.
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 in particular 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. In recent months the price
of vanadium has increased strongly above 2020 levels.
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.
We remain committed to operating responsibly, working closely
with stakeholders and local communities at grassroots level to
improve standards of living. We continue to support our 'Keep a
Girl in School' initiative working alongside our local partners,
The Imbumba Foundation and the Nelson Mandela Foundation, to
provide hygiene support to approximately 600 female students at
school in the local area. Additionally, we have commenced a new
scheme in 2021 which provides facilities and support to children
with maths and science homework outside of school .
Board
In late November 2020, Vred von Ketelhodt stepped down from the
Board as full time CFO, in order to reduce the Company's ongoing
overhead costs and I thank him for his contributions over many
years.
Financial
The Group recorded a loss before tax of GBP79,000 (H1 2019:
GBP276,000) and had cash balances of GBP850,000 (30 June 2020:
GBP28,000) at the end of the period. The Company does not plan to
pay a dividend for the six months ended 31 December 2020.
In December 2020 shareholders approved an equity Placing at
0.30p per share to raise gross proceeds of GBP1.15 million.
Apart from a cash repayment of US$150,000 to IIG from the
Placing proceeds, a balance of over GBP1.4 million, comprised of
outstanding loan liabilities to IIG, other loans and accrued
Directors fees, was settled in shares alongside the Placing, which
has significantly improved the Group's balance sheet position. The
Directors receiving shares did so at the applicable volume weighted
average price over the course of their fee accruals which saw an
effective issue price of 1.48p per share compared to the Placing
Price of 0.30p per share.
Possible transaction
The Company is at an advanced stage in talks with an investor
seeking to take a substantial strategic equity stake at the listed
company level at a premium to the current share price in order to
assist the Group with the next stage of its development. Whilst
there are currently no guarantees that such a transaction will be
completed or by when, the Directors are hopeful of being able to
conclude a meaningful transaction in the coming weeks.
Going concern
Following the equity Placing in December the Group's financial
resources and existing facilities are considered adequate to meet
committed overhead expenditure until early 2022, by which time, the
Directors anticipate completing the further funding of the Group or
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 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 in the absence of any further funding and therefore
present these accounts on a Going Concern basis.
COVID-19
At Ironveld, the wellbeing of our people and our business is of
upmost importance.
The Company closely follows health and travel advice as it
develops in relation to COVID-19 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 wherever
possible.
For Ironveld, there are currently no operations or supply chains
that have been interrupted and there has been no material day to
day impact other than restricted international travel which can be
dealt with using electronic communications.
Outlook
Our current discussions regarding a strategic investment
transaction give us confidence in our view that the Group's Project
retains significant undeveloped value.
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 2020
6 Months 6 Months 12 Months
ended ended ended
31.12.20 31.12.19 30.06.20
GBP'000 GBP'000 GBP'000
Administrative expenses (458) (278) (695)
--------- --------- ----------
Operating loss (458) (278) (695)
Other gains and losses 386 - (326)
Investment revenues 1 3 4
Finance costs (8) (1) (2)
--------- --------- ----------
Loss before taxation (79) (276) (1,019)
Taxation - - -
--------- --------- ----------
Loss for the period (79) (276) (1,019)
Attributable to owners
of the company (77) (277) (1,017)
Non-controlling interests (2) 1 (2)
--------- --------- ----------
(79) (276) (1,019)
--------- --------- ----------
Profit/(loss) per share
(pence)
Basic (0.01p) (0.04p) (0.16p)
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 2020
6 Months 6 Months 12 Months
ended ended ended
31.12.20 31.12.19 30.06.20
GBP'000 GBP'000 GBP'000
Loss for the period (79) (276) (1,019)
Exchange differences on the
translation of foreign operations 1,332 (710) (3,654)
Total comprehensive income/(loss)
for the period 1,253 (986) (4,673)
--------- --------- ----------
Attributable to:
Owners of the company 1033 (865) (4,061)
Non-controlling interest 220 (121) (612)
1,253 (986) (4,673)
-------- -------- -----------
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
31.12.20 30.06.20
GBP'000 GBP'000
Non-current assets
Exploration and evaluation 25,586 23,574
Property, plant and equipment 2 2
Other receivables 2 2
--------- ---------
25,590 23,578
Current assets
Trade and other receivables 195 76
Cash and bank balances 850 28
--------- ---------
1,045 104
Total assets 26,635 23,682
--------- ---------
Current liabilities
Trade and other payables (258) (805)
Borrowings (110) (210)
--------- ---------
(368) (1,015)
--------- ---------
Non-current liabilities
Deferred tax liabilities (4,698) (4,384)
--------- ---------
Total liabilities (5,066) (5,399)
Net assets 21,569 18,283
--------- ---------
Equity
Share capital 10,418 9,774
Share premium 21,226 19,691
Other reserve 15 189
Retained earnings reserve (13,419) (14,480)
--------- ---------
Equity attributable to owners
of the company 18,240 15,174
Non-controlling interests 3,329 3,109
Total equity 21,569 18,283
--------- ---------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 31 DECEMBER 2020
Attributable
to the
Other owners
Share Share Retained reserve of the Non-controlling Total
capital premium earnings company interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July
2019 9,774 19,691 (10,499) - 18,966 3,721 22,687
Loss for the year - - (1,017) - (1,017) (2) (1,019)
Issue of share
option - - - 189 189 - 189
Exchange differences
on
translation of
foreign
operations - - (3,044) - (3,044) (610) (3,654)
Equity settled share
based
payments - - 80 - 80 - 80
--------- --------- --------- --------- -------------
Balance at 30 June
2020 9,774 19,691 (14,480) 189 15,174 3,109 18,283
--------- --------- --------- --------- ------------- ---------------- --------
Loss for the period - - (77) - (77) (2) (79)
Issue of shares and
warrants 644 1,535 15 2,194 - 2,194
Equity settled share
based
payments - - 28 - 28 - 28
Reclassification - - - (189) (189) - (189)
Exchange differences
on
translation of
foreign
operations - - 1,110 - 1,110 222 1,332
--------- --------- --------- --------- ------------- ---------------- --------
Balance at 31
December
2020 10,418 21,226 (13,419) 15 18,240 3,329 21,569
--------- --------- --------- --------- ------------- ---------------- --------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 31 DECEMBER 2020
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.20 31.12.19 30.06.20
GBP'000 GBP'000 GBP'000
Net cash from operating activities (341) (18) (397)
--------- --------- ----------
Investing activities
Interest received 1 3 4
Purchase of property, plant and (1) - -
equipment
Purchase of exploration and evaluation
assets (264) (449) (555)
--------- --------- ----------
Net cash used in investing activities (264) (446) (551)
--------- --------- ----------
Financing activities
Proceeds on issue of equity (net 1,082 - -
of costs)
Proceeds on issue of share options
/warrants - - 189
Proceeds from new loans 354 - 210
--------- --------- ----------
Net cash generated in financing
activities 1,436 - 399
--------- --------- ----------
Net increase/ (decrease) in cash
and cash equivalents 831 (464) (549)
--------- --------- ----------
Cash and cash equivalents at
the start of the period 28 566 566
Effect of foreign exchange rates (9) 5 11
--------- --------- ----------
Cash and cash equivalents at
end of period 850 107 28
--------- --------- ----------
Note to the cash flow statement
Operating loss (458) (278) (695)
Depreciation on property, plant
and equipment 1 1 2
Share based payments 125 - 80
--------- --------- ----------
Operating cash flows before movements
in working capital (332) (277) (613)
Movement in receivables (113) 79 61
Movement in payables 104 181 155
--------- --------- ----------
Cash used in operations (341) (17) (397)
Interest paid - (1) -
--------- --------- ----------
Net cash from operating activities (341) (18) (397)
--------- --------- ----------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2020 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 2020, 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 2020 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 31.12.20 to 31.12.19 to 30.06.20
'000 '000 '000
Weighted average number of
shares 714,486 654,991 654,991
Options - dilution - - -
------------ ------------ ------------
714,486 654,991 654,991
============ ============ ============
Pence Pence Pence
Basic loss per share - continuing (0.01) (0.04) (0.16)
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)
Secretary: Kirsti Jane Pinnell
Company Number: 04095614
Registered Office: Ironveld Plc
Unit D De Clare House Sir Alfred Owen Way
Pontygwindy Industrial Estate
Caerphilly
Wales CF83 3HU
Nominated Adviser finnCap
And Joint Broker: 60 New Broad Street
London
EC2M 1JJ
Joint Broker: Turner Pope
8 Frederick's Place
London
EC2R 8AB
Solicitors: Kuit Steinart Levy LLP
3 St Marys Parsonage
Manchester
M3 2RD
Auditors: UHY Hacker Young
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
Financial PR Blytheweigh
4 - 5 Castle Court
London
EC3V 9DL
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