Interim results for the 6 months ended 31 Dec 2024

Ironveld

01/04/2025 07:00

RNS Number : 9930C

Ironveld PLC

01 April 2025

 

 

IRONVELD PLC

("Ironveld" or the "Company")

 

Interim results for the six months ended 31 December 2024

 

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 2024 ("the Period").

 

Highlights

 

·   Successful completion of a £2.5 million fundraising and the proposed capital reorganisation in October 2024.

·   The smelter facility in Rustenburg remained under secure care and maintenance while design studies are performed. A third-party consultant with extensive experience and expertise in water-based atomisation has made significant progress on the design phase of a pilot plant at our smelter in Rustenburg, intended for the production of market samples. An initial layout has been completed.

·      Work commenced at the DMS Magnetite plant and is progressing according to plan.

 

Post Period and Outlook

 

·       Work on completing the DMS Magnetite plant progressed steadily, and the Company successfully renegotiated the joint venture agreement with Sable Platinum Holdings, a wholly owned subsidiary of Sable Exploration and Mining (Pty) Ltd. As a result, the Company increased its equity stake in the project from 25% to 50%.

 

·      Design work on the pilot project water atomiser progressed, with final design specifications and cost estimates expected to be completed by April 2025.

 

·        As of 27 March 2025, the Company held cash and cash equivalents of approximately £525,000.

 

John Wardle, Chairman, said: "The Period saw Ironveld successfully complete a fund raise and commence work on finalising the DMS magnetite plant having successfully renegotiated the joint venture agreement with Sable Platinum. Construction and commissioning of the DMS Magnetite plant remain on track, with first commercial production anticipated in April 2025. As part of our short-term goals, we also aim to produce market samples of water-atomised high-purity iron powders at our smelter facility in Rustenburg, supported by the construction of a pilot plant to validate product quality and market acceptance. Production trials have already demonstrated operational capability, and securing offtake agreements for these products is expected to facilitate further funding opportunities to scale up operations.

 

"Thank you for your continued support and we look forward to sharing further positive updates with you in the near future."

 

For further information, please contact:

 

Ironveld plc
John Wardle, Chairman
c/o BlytheRay
020 7138 3204
Cavendish Capital Markets Limited (Nomad and Broker)
Derrick Lee / Adam Rae
Turner Pope (Joint Broker)
Andy Thacker/James Pope
0131 220 6939
020 3657 0050
BlytheRay
Megan Ray/Tim Blythe
020 7138 3204

 

 

Notes to Editors:

 

Ironveld (IRON.LN) is the owner of Mining Rights over approximately 28 kilometres of outcropping Bushveld magnetite with a SAMREC compliant ore resource of some 56 million tons of ore grading 1,12% V2O5, 68,6% Fe2O3 and 14,7% TiO2.

 

In 2022 Ironveld agreed to acquire and refurbish a smelter facility in Rustenburg, South Africa, in which it can process its magnetite ore into the marketable products of high purity iron, titanium slag and vanadium slag. This transaction became unconditional in March 2023.

 

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.

 

 

Chairman's Statement:

 

Ironveld completed a successful fund raise at the end of October 2024. This allowed the continued execution of the Company's business plan which is primarily to complete the DMS Magnetite plant and bring it into profitable production. At the smelter, the plan is to construct a demonstration scale water-based atomiser to produce market samples of the Company's high purity atomised powders in order to secure offtakes and funding for the development of the smelter project. Detailed design and costing studies for the initial plant are currently underway.

The DMS plant has made strong progress and remains on track to commence first commercial production in April 2025. With robust operational plans and growing market demand, I am confident that Ironveld's strategic positioning will enable the Company to generate sustainable growth through the production of DMS Magnetite, iron powders, vanadium slag, and titanium slag. With considerable growth potential within the Project, as well as opportunities to further increase DMS Magnetite production, followed by a transition to higher-value products, I am excited about what the future holds for the Company.

 

Financial

 

The Group recorded a loss before tax of £689,000 (H1 2023: loss of £385,000) in the Period. The Company does not plan to pay a dividend for the six months ended 31 December 2024.

Post Period End Events

 

The Company was able to renegotiate the DMS JV agreement with Sable Platinum Holdings (Pty) Ltd significantly strengthening Ironveld's position by increasing our equity stake in the DMS Magnetite project from 25% to 50%. Under this revised structure, the joint venture will operate as a 50/50 partnership between Altona Processing (Pty) Ltd, a wholly owned subsidiary of Ironveld Holdings, and Lapon Plant (Pty) Ltd, a wholly owned subsidiary of Sable Platinum Holdings (Pty) Ltd. The project has progressed according to schedule and, despite heavy unseasonal rains in late February and March, it is expected to enter first commercial production in April 2025. We have high expectations for this joint venture and believe it will unlock additional exciting and diversified opportunities in the future.

 

 

A third-party consultant with extensive experience in water-based atomisation has made significant progress on the design phase of a pilot plant for producing market samples and has completed an initial layout. Final design specifications and cost estimates are expected by the end of April 2025. The agreement for the acquisition of Ferrochrome Furnaces (Pty) Limited ("FCF") remains in place under unchanged terms. The Board continues to regard the transaction as a highly attractive opportunity, taking into account, among other factors, the favourable terms agreed, the significant tax losses available within FCF, and the strong potential to successfully produce high-margin, high-purity iron powders. 

 

 

 

Outlook

The remainder of the year is expected to mark Ironveld's full transition into a producer of DMS grade magnetite, while also initiating the production of market samples of its high-purity, water-atomised iron powders The Company expects to successfully secure offtake agreements for the powders which will result in the development of the smelting facility towards commercial production.  From a market perspective, there continues to be strong customer demand for all of our products: DMS grade Magnetite, water-atomised high-purity iron powder, vanadium slag, and titanium slag.

The completion of the DMS magnetite production plant at our Limpopo mine marks a significant milestone for the Company. We are encouraged by the strong market demand for our product and the attractive margins it is expected to generate. We would like to thank all our shareholders for their continued support for both the Company and the Project and we look forward to providing further updates in the near future.

 

 

John Wardle

Non-Executive Chairman

March 31, 2025

 

 

IRONVELD PLC

 

CONSOLIDATED INCOME STATEMENT

 

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

6 Months
6 Months
12 Months
ended
ended
ended
31.12.24
31.12.23
30.06.24
£'000
£'000
£'000
Revenue
-
440
267
Cost of sales
-
(154)
(5)
Gross profit
-
286
262
Administrative expenses
(635)
(649)
(1,404)
Other income
-
-
1
Operating loss
(635)
(363)
(1,141)
Other gains and losses
(24)
-
-
Investment revenues
-
5
6
Finance costs
(30)
(27)
(92)
Loss before taxation
(689)
(385)
(1,227)
Taxation
-
(129)
(192)
Loss for the period
(689)
(514)
(1,419)
Attributable to owners of the company
(660)
(539)
(1,405)
Non-controlling interests
(29)
25
(14)
(689)
(514)
(1,419)
Loss per share (pence)
Basic
(0.01p)
(0.01p)
(0.04p)
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 2024

 

                                                                                                                                                

6 Months
6 Months
12 Months
ended
Ended
ended
31.12.24
31.12.23
30.06.24
£'000
£'000
£'000
Loss for the period
(689)
(514)
(1,419)
Exchange differences on the translation of foreign operations
(597)
675
913
Total comprehensive profit/(loss) for the period
(1,286)
161
(506)


 

Attributable to:
Owners of the company
(1,188)
52
(606)
Non-controlling interest
(98)
109
100
(1,286)
161
(506)
The accompanying notes for an integral part of these financial statements.

 

IRONVELD PLC

 

CONSOLIDATED BALANCE SHEET

 

AS AT 31 DECEMBER 2024

 

As at
As at
31.12.24
30.06.24
£'000
£'000
Non-current assets
Exploration and evaluation
28,239
28,357
Property, plant and equipment
7,024
7,205
Other receivables
8
8
35,271
35,570
Current assets
Inventories
42
43
Trade and other receivables
222
115
Cash and bank balances
1,319
4
1,583
162
Total assets
36,854
35,732
Current liabilities
Trade and other payables
(4,364)
(4,541)
Lease liabilities
(6)
(11)
Borrowings
(6)
(570)
(4,376)
(5,122)
Non-current liabilities
Trade and other payables
(4,229)
(4,334)
Lease liabilities
(28)
(26)
Deferred tax liabilities
(3,528)
(3,615)
(7,785)
(7,975)
Total liabilities
(12,161)
(13,097)
Net assets
24,693
22,635
Equity
Share capital
14,035
13,054
Share premium
28,025
25,925
Other reserve
332
82
Retained earnings reserve
(10,860)
(10,213)
Foreign currency translation reserve
(9,589)
(9,061)
Equity attributable to owners of the company
21,943
19,787
Non-controlling interests
2,750
2,848
Total equity
24,693
22,635


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 2024

 

Share capital
Share premium
Retained earnings
Foreign currency translation reserve
Other reserve
Attributable to the owners of the company
Non-controlling interests
Total equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 July 2023
12,694
25,324
(8,845)
(9.860)
94
19,407
2,748
22,155
Loss for the year
-
-
(1,405)
-
-
(1,405)
(14)
(1,419)
Exchange differences on translation of foreign operations
-
-
-
799
-
799
114
913
Issue of shares
360
601
-
-
-
961
-
961
Cancelled share warrants
-
-
12
-
(12)
-
-
-
Share based payments
-
-
25
-
-
25
-
25
Balance at 30 June 2024
13,054
25,925
(10,213)
(9,061)
82
19,787
2,848
22,635
Profit /(loss) for the period
-
-
(660)
-
-
(660)
(29)
(689)
Exchange differences on translation or foreign operations
-
-
-
(528)
-
(528)
(69)
(597)
Issue of shares
981
2,100
-
-
-
3,081
-
3,081
Share based payments
-
-
13
-
250
263
-
263
Balance at 31 December 2024
14,035
28,025
(10,860)
(9,589)
332
21,943
2,750
24,693


 

IRONVELD PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

6 Months
6 Months
12 Months
Ended
Ended
Ended
31.12.24
31.12.23
30.06.24
£'000
£'000
£'000
Cash generated by/(used in) operating activities
(419)
1,608
(305)
Interest paid
(15)
(11)
(29)
Net cash generated by/(used in) operating activities
(434)
1,597
(334)
Investing activities
Interest received
-
5
6
Purchase of exploration and evaluation assets
(577)
(2,861)
(1,202)
Loans received from joint venture
-
68
4
Other loans
-
-
(3)
Net cash used in investing activities
(577)
(2,788)
(1,195)
Financing activities
Proceeds on issue of equity (net of costs)
2,126
961
961
Proceeds from new loans
229
244
557
Repayment of loans
(26)
-
-
Payment of lease liabilities
(2)
(1)
(5)
Net cash generated by financing activities
2,327
1,204
1,513
Net increase/(decrease) in cash and cash equivalents
1,316
13
(16)
Cash and cash equivalents at start of period
4
19
19
Effect of foreign exchange rates
(1)
-
1
Cash and cash equivalents at end of period
1,319
32
4
Note to the cash flow statement
Operating loss
(635)
(363)
(1,141)
Depreciation on property, plant and equipment
9
13
18
Foreign exchange differences
(1)
(21)
(17)
Share based payments
12
36
25
Loan to Joint venture - provision
-
-
97
Operating cash flows before movements in working capital
(615)
(335)
(1,018)
Movement in inventories
-
5
5
Movement in receivables
(74)
57
199
Movement in payables
270
1,881
509
Cash generated by/(used in) operating activities
(419)
1,608
(305)
The accompanying notes form an integral part of these financial statements.

 

IRONVELD PLC

 

NOTES TO THE FINANCIAL STATEMENTS

 

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

 

1       Basis of preparation and accounting policies

 

The results for the six months to 31 December 2024 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 2024, 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 2024 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 31.12.24
to 31.12.23
to 30.06.24
'000
'000
'000
Weighted average number of shares
6,078,624
3,666,374
3,800,317
Options/warrants - dilution
-
-
-
6,078,
3,666,374
3,800,317
Pence
Pence
Pence
Basic loss per share - continuing
(0.02)
(0.01)
(0.04)
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.

 

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