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Ironveld operating loss narrows

By BFN News | 07:47 AM | Wednesday 07 December, 2016


Ironveld posts an operating loss of £494,000 for the year to the end of June - down from £520,000 last time. The loss before tax was £0.6m (2015: £0.6m) and cash balances were £0.1m (2015: £1.4m). The company - which is the owner of a high purity iron, vanadium and titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa - said it does not plan to pay a dividend for the year. Operational highlights - Offtake secured for 100 per cent of all three products for the first 5 years of LOM - Approval of Section 11 transfer transferring the Mineral Right to HW Iron (Pty) Ltd - Key mining right executed to mine magnetite on the Harriets Wish 393LR, Cracouw 391LR and Aurora 397LR Farms - Approval granted for the Environmental Management Programme on the farms - Full EIA for Pan Palladium (Pty) Ltd granted, with Mining Right expected to be granted and transferred in Q1 2017 - Prospecting right on the farm Non Plus Ultra 683LR executed - Formal letter received from Eskom confirming power supply availability for the Project - Implementation of the critical infrastructure programme with the design of the electrical infrastructure completed ahead of schedule and below budget Chief executive Peter Cox said: "The focus for the Period was on achieving key milestones that would enable Ironveld to move towards financial closure, we have made excellent progress in this respect, which is testament to the hard work of the Company. Events such as securing the mining right, EMP approval and receiving confirmation from Eskom for power supply represent tangible milestones towards bringing our world class HPI, vanadium and titanium project into production. "Offtake demand for all three products is strong with multiple offers being considered. This is being run in tandem with positive discussions around financial arrangements for the Project and near term finalisation is expected. We continue to see currency movements that benefit project economics and which are expected to result in a positive cash flow impact. "It is a tremendously exciting time for the Company and we look forward to progressing the Project through financing and into the construction stage later in 2017." Story provided by StockMarketWire.com

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