TIDMIRON
RNS Number : 6563G
Ironveld PLC
31 March 2022
31 March 2022
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2021
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 2021 ("the period").
Highlights
Operational
-- Overheads incurred during the period reflected continued low
level of activity whilst Company awaited Grosvenor transaction to
proceed to completion.
Corporate Transactions
-- Investment transactions with Grosvenor Resources announced in
October 2021 and December 2021 for a total of approximately GBP8.40
million (ZAR 161 million); and
-- Board remains in regular dialogue with Grosvenor regarding
its funding arrangements and still expects the transactions to
close when finalised.
Martin Eales, CEO, said:
"The announced transactions with Grosvenor will, when completed,
represent a transformational change for Ironveld, bringing a
significant and well-connected South African partner to the share
register. The Board is in regular communication with
Grosvenor,regarding its funding process and the institutions
involved and we look forward to completion soon."
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/James Pope 020 3657 0050
BlytheRay
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 smelting 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 two significant
investment transactions with Grosvenor Resources Pty Limited
("Grosvenor"), whereby Grosvenor will subscribe for 561,505,950 new
ordinary shares at 1.0 pence per share and an intention to acquire
51% of Ironveld's subsidiary company, Luge prospecting and Mining
Company Pty Limited ("Luge"), for ZAR 50 million (approximately
GBP2.6 million). The Luge transaction was formally signed post
period end in January 2022. The Board considers that these
transactions are highly attractive for the Company's development as
they will introduce a well-connected South Africa based investment
group to the share register in a material size.
The Ironveld 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 grows, partly driven
by increasing Chinese demand and the advancements in technology for
vanadium redox batteries, which is forecast to comprise 15% of all
vanadium demand by 2025. In recent months, the price of vanadium
has seen a strong increase and now rests at its highest level since
early 2019.
The demand for HPI, as a water atomised powder, continues to
increase due to its common use in the automotive industry, powder
metallurgy and magnetic materials. A growing new market
incorporates metal powders in 3D printing. 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.
Financial
A reduced level of Administrative expenses totalling GBP384,000
(2020: GBP458,000) were incurred in the period as the Company
focused on keeping tight control on costs prior to securing the
necessary development funding.
The Group recorded a loss before tax of GBP382,000 (H1 2020:
loss of GBP79,000), broadly in line with Administrative expenses,
and had cash balances of GBP24,000 (30 June 2021: GBP270,000) at
the end of the period. The Company does not plan to pay a dividend
for the six months ended 31 December 2021.
On 30 December 2021, the Company announced a GBP200,000 Bridge
Loan Facility with Giles Clarke and Nick Harrison, both Directors
of the Company.
Transactions with Grosvenor
The equity subscription transaction with Grosvenor was announced
in October 2021 and the Luge transaction was announced in December
2021, but formally signed post period end in January 2022. When
both transactions are closed, Grosvenor will have invested a total
of approximately GBP8.40 million (or ZAR 161 million) and will hold
approximately 29.9% of Ironveld's issued share capital.
Shareholder approval for the Grosvenor equity subscription was
granted at a General Meeting in November 2021 and refreshed at the
Annual General Meeting of the Company in January 2022.
As at today's date Grosvenor has not finalised its own funding
arrangements which will enable it to close the announced
transactions. Ironveld has been made fully aware during regular
communication with Grosvenor as to the status of these funding
arrangements and the institutions involved and consequently the
Board has taken the view that despite the time taken the
transactions are likely to close following Grosvenor completing its
own funding package.
Going concern
Given the anticipated cash inflow from the Grosvenor
transactions, the Directors are confident that sufficient funds can
be raised for planned activities. The Directors therefore 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.
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.
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
Whilst completion of the Grosvenor transactions has taken longer
than anticipated, the Board retains the view that the agreed
injection of funds and the partnership with Grosvenor remains
highly attractive in view of the development opportunities for
Ironveld's project in South Africa.
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
31 March 2022
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 31 DECEMBER 2021
6 Months 6 Months 12 Months
ended ended ended
31.12.21 31.12.20 30.06.21
GBP'000 GBP'000 GBP'000
Administrative expenses (384) (458) (783)
--------- --------- ----------
Operating loss (384) (458) (783)
Other gains and losses - 386 323
Investment revenues 2 1 3
Finance costs - (8) (8)
--------- --------- ----------
Loss before taxation (382) (79) (465)
Taxation - - -
--------- --------- ----------
Loss for the period (382) (79) (465)
Attributable to owners
of the company (379) (77) (460)
Non-controlling interests (3) (2) (5)
--------- --------- ----------
(382) (79) (465)
--------- --------- ----------
Loss per share (pence)
Basic (0.03p) (0.01p) (0.05p)
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 2021
6 Months 6 Months 12 Months
ended Ended ended
31.12.21 31.12.20 30.06.21
GBP'000 GBP'000 GBP'000
Loss for the period (382) (79) (465)
Exchange differences on the
translation of foreign operations (1,795) 1,332 1,692
Total comprehensive income/(loss)
for the period (2,177) 1,253 1,227
--------- --------- ----------
Attributable to:
Owners of the company (1,894) 1,033 956
Non-controlling interest (283) 220 271
(2,177) 1,253 1,227
----------- -------- --------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021
As at As at
31.12.21 30.06.21
GBP'000 GBP'000
Non-current assets
Exploration and evaluation 24,207 26,191
Property, plant and equipment 1 2
Other receivables 3 3
--------- ---------
24,211 26,196
Current assets
Trade and other receivables 142 177
Cash and bank balances 24 270
--------- ---------
166 447
Total assets 24,377 26,643
--------- ---------
Current liabilities
Trade and other payables (519) (272)
Borrowings (60) -
--------- ---------
(579) (272)
--------- ---------
Non-current liabilities
Deferred tax liabilities (4,378) (4,774)
--------- ---------
Total liabilities (4,957) (5,046)
Net assets 19,420 21,597
--------- ---------
Equity
Share capital 10,436 10,436
Share premium 21,261 21,261
Other reserve 12 15
Retained earnings reserve (15,386) (13,495)
--------- ---------
Equity attributable to owners
of the company 16,323 18,217
Non-controlling interests 3,097 3,380
Total equity 19,420 21,597
--------- ---------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 31 DECEMBER 2021
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 2020 9,774 19,691 (14,480) 189 15,174 3,109 18,283
Loss for the year - - (460) - (460) (5) (465)
Issue of shares and warrants 662 1,570 - 15 2,247 - 2,247
Reclassification - - - (189) (189) - (189)
Exchange differences on
translation of foreign
operations - - 1,416 - 1,416 276 1,692
Equity settled share based
payments - - 29 - 29 - 29
-------- -------- --------- --------- -------------
Balance at 30 June 2021 10,436 21,261 (13,495) 15 18,217 3,380 21,597
-------- -------- --------- --------- ------------- ---------------- ----------------
Loss for the period - - (379) - (379) (3) (382)
Equity settled share based - - - - - - -
payments
Transfer - - 3 (3) - - -
Exchange differences on
translation of foreign
operations - - (1,515) - (1,515) (280) (1,795)
-------- -------- --------- --------- ------------- ---------------- ----------------
Balance at 31 December
2021 10,436 21,261 (15,386) 12 16,323 3,097 19,420
-------- -------- --------- --------- ------------- ---------------- ----------------
The accompanying notes for an integral part of these financial
statements.
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 31 DECEMBER 2021
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.21 31.12.20 30.06.21
GBP'000 GBP'000 GBP'000
Net cash from operating activities (48) (341) (642)
--------- --------- ----------
Investing activities
Interest received 2 1 3
Purchase of property, plant and
equipment - (1) (1)
Purchase of exploration and evaluation
assets (198) (264) (492)
--------- --------- ----------
Net cash used in investing activities (196) (264) (490)
--------- --------- ----------
Financing activities
Proceeds on issue of equity (net
of costs) - 1,082 1,134
Proceeds from new loans - - 363
Repayment of loans - 354 (109)
--------- --------- ----------
Net cash generated in financing
activities - 1,436 1,388
--------- --------- ----------
Net increase/ (decrease) in cash
and cash equivalents (244) 831 256
--------- --------- ----------
Cash and cash equivalents at
the start of the period 270 28 28
Effect of foreign exchange rates (2) (9) (14)
--------- --------- ----------
Cash and cash equivalents at
end of period 24 850 270
--------- --------- ----------
Note to the cash flow statement
Operating loss (384) (458) (783)
Depreciation on property, plant
and equipment 1 1 2
Foreign exchange differences - - (54)
Share based payments - 125 90
--------- --------- ----------
Operating cash flows before movements
in working capital (383) (332) (745)
Movement in receivables 27 (113) (59)
Movement in payables 308 104 162
--------- --------- ----------
Net cash from operating activities (48) (341) (642)
--------- --------- ----------
The accompanying notes form an integral part of these financial
statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIODED 31 DECEMBER 2021
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2021 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 2021, 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 2021 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 31.12.21 to 31.12.20 to 30.06.21
'000 '000 '000
Weighted average number of
shares 1,316,440 714,486 1,008,492
Options - dilution - - -
------------ ------------ ------------
1,316,440 714,486 1,008,492
============ ============ ============
Pence Pence Pence
Basic loss per share - continuing (0.03) (0.01) (0.05)
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: 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
and Joint Broker 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
34 Beckenham Road
Beckenham
Kent BR3 4TU
Financial PR BlytheRay
4 - 5 Castle Court
London EC3V 9DL
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