Interim results for the 6 months ended 31 Dec 2021

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 £8.40 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

Martin Eales, Chief Executive Officer

c/o Blytheweigh

020 7138 3204

 

 

finnCap (Nomad and Broker)

Christopher Raggett/Charlie Beeson

 

Turner Pope (Joint Broker)

Andy Thacker/James Pope

 

020 7220 0500

 

 

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 £2.6 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 £384,000 (2020: £458,000) 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 £382,000 (H1 2020: loss of £79,000), broadly in line with Administrative expenses, and had cash balances of £24,000 (30 June 2021: £270,000) 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 £200,000 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 £8.40 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 PERIOD ENDED 31 DECEMBER 2021

 

   

6 Months


6 Months


12 Months


ended


ended


ended


31.12.21


31.12.20


30.06.21


£'000


£'000


£'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 PERIOD ENDED 31 DECEMBER 2021

 

 


6 Months


6 Months


12 Months


ended


Ended


ended


31.12.21


31.12.20


30.06.21


£'000


£'000


£'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


£'000



£'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 PERIOD ENDED 31 DECEMBER 2021




 


Share capital


Share premium


Retained earnings


 

 

Other reserve

 

Attributable to the owners of the company


Non-controlling interests

 

Total equity


£'000


£'000


£'000


£'000

 

£'000


£'000

 

£'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 PERIOD ENDED 31 DECEMBER 2021

 


6 Months


6 Months


12 Months


Ended 


Ended 


Ended 


31.12.21


31.12.20


30.06.21


£'000


£'000


£'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 PERIOD ENDED 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

 

 

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR BKKBQPBKDANN

Companies

Ironveld (IRON)
UK 100

Latest directors dealings