Ironveld PLC Progress Update (0046D)
17 Outubro 2022 - 3:00AM
UK Regulatory
TIDMIRON
RNS Number : 0046D
Ironveld PLC
17 October 2022
Ironveld Plc
("Ironveld" or the "Company")
Progress Update
Ironveld (AIM:IRON) is pleased to provide a further update on
progress made by its subsidiaries Ironveld Smelting Pty Limited
("Ironveld Smelting") and Ironveld Mining towards production.
Highlights
-- Pre-Operations power at the Rustenburg smelter now fully
installed and systems and equipment testing underway;
-- Smelter refurbishment on schedule and first production anticipated in Q1 2023;
-- Mine planning on track to commence operations in current
quarter to provide ore to the smelter; and
-- Debt Purchase Agreement with sole creditor anticipated to be
signed in coming two weeks, with Exclusivity extended.
Ironveld Smelting
Power supply
As announced on 12 September 2022, Enernet Global Inc.
("Enernet") has successfully installed a pre-operations power
supply at the Rustenburg smelter that is being used to test and
recommission the plant. Further temporary additional power will be
added to this facility to enable scaling up of plant operations in
the coming months prior to full completion of Enernet's optimised
power solution (including solar, battery storage and gas
generation), expected in Q3 2023.
The Rustenburg smelter will not be reliant on the South African
electricity grid at any stage of production, thereby removing any
risk to operations caused by Eskom's daily programme of 'load
shedding'.
Furthermore, Ironveld and Enernet have agreed to incorporate
certain aspects of the required refurbishment upgrades to the
electrical system at the smelter into Enernet's project
installation, thereby enabling Ironveld to make savings in planned
short term capital expenditure.
Testing, Recommissioning and first Production
A planned programme of systems and equipment testing and
upgrades is now underway at the smelter and orders have been placed
for critical long lead time components. Where specialist skills
have been identified as being needed for the refurbishment work
specialist contractors have been engaged and are active on site.
Based on a review of work successfully completed to date, Ironveld
Smelting anticipates first production of its suite of products
(high purity iron, vanadium in slag and titanium in slag) in Q1
2023, in line with its original estimate of the six to nine month
refurbishment programme.
Labour Force
Since completion of the placing in August 2022, which enabled
the Company to proceed with the Ferrochrome Furnaces Pty Limited
("FCF") acquisition, Ironveld Smelting has taken rapid steps to
recruit appropriately skilled operational and maintenance staff for
the smelter operation. As at today's date around 40% of envisaged
total employees have commenced work or have accepted employment
offers. These staff members are currently engaged in the
refurbishment work.
Debt Purchase Agreement
On 31 August 2022 Ironveld announced that the Share Purchase
Agreement ("SPA") to acquire 100% of FCF had been signed by its
subsidiary company Ironveld Smelting. The only condition precedent
in the SPA is the signing of a Debt Purchase Agreement ("DPA")
between Ironveld Smelting and the sole creditor of FCF for a total
of ZAR 115 million (approximately GBP5.75 million).
Ironveld and the sole creditor have agreed all commercial issues
in the DPA and it is expected to be signed in the next two weeks.
The sole creditor has also confirmed Ironveld's exclusivity remains
in place until the DPA is signed. Following completion of the DPA,
Ironveld and the Business Rescue Practitioner will proceed with the
formal steps to remove FCF from Business Rescue.
Ironveld Mining
Commencement of mining operations has been scheduled to begin in
the current quarter (Q4 2022) in order to cost efficiently supply a
feedstock of magnetite ore for the smelter as the three furnaces
are brought into operation sequentially. Necessary contractors have
been selected and recruitment of key operational staff is
substantially complete.
When fully operational the smelter will require approximately
40,000 tonnes of ore per annum, a relatively modest amount that can
be effectively mined with a small equipment fleet. Based on current
demand in the South African mining industry, Ironveld Mining is
currently investigating options to produce a product from the
'fines', which are not suitable for the smelter, for third party
purchasers and thereby reduce average mining costs per tonne.
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
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