REG - Ironveld PLC - Financial Results for the Year Ended 30 June 2025
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RNS Number : 7234Y Ironveld PLC 31 March 2026
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 (as it forms part of UK law pursuant to the European Union
(Withdrawal) Act 2018). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
31 March 2026
Ironveld PLC
Audited Financial Results for the Year Ended 30 June 2025
Ironveld PLC ("Ironveld" or the "Company") announces its final results for the
12 months ended 30 June 2025. The Company's Annual Report and Accounts,
together with the Notice of Annual General Meeting ("AGM"), will be posted to
shareholders on 31 March 2026 and are available on the Company's website at
www.ironveld.com (http://www.ironveld.com) . The AGM will be held at 10:00
a.m. on 29 April 2026.
Key Points
Financial:
· Loss before taxation of £1.6 million (FY24 restated: £1.8 million),
a year-on-year reduction in losses
· Net loss for the year of £1,556,000 (FY24 restated: £2,250,000)
· No dividend declared (FY24: £nil)
· Cash and cash equivalents of £862,000 at 30 June 2025 (FY24:
£4,000)
· Current liabilities reduced from £5,120,000 to £4,124,000 following
settlement of outstanding borrowings during the year
· Share capital and share premium increased from £38.9 million to
£43.1 million
· Net equity finance raised during the year of £3,460,000, comprising:
o £2.5 million placing and capital reorganisation (November 2024)
o £900,000 equity placing (June 2025)
Operational:
· Initial blasting activities commenced at the Altona opencast pit by
subsidiary Lapon Mining
· DMS-grade magnetite processing plant entered testing and
commissioning phase
· Investment in South African subsidiaries increased from £32.6
million to £34.7 million, reflecting continued capital deployment ahead of
production commencement
Post Period:
· In October 2025, Lapon Mining entered into a Mining Operations
Agreement with Daemaneng Minerals, under which Daemaneng assumes full
operational and financial responsibility for mining activities on a
capital-light basis for the Company
· Binding term sheet agreed with Daemaneng for the assumption of
operational and managerial responsibility for the DMS plant, targeting 6,000
tonnes per month initially, scaling to 15,000 tonnes per month
· Completed trial delivery of DMS-grade magnetite to an established
South African customer; phased commercial volumes anticipated from a minimum
of 1,000 tonnes per month
· Rainfall materially subsided in February following a period of severe
weather across Limpopo province; natural dewatering largely complete, with
colluvial mining operations expected to resume within 2-3 weeks
· Plant upgrades to deliver agreed DMS-grade magnetite quality and
volume targeting completion by end of March 2026, following which the Company
will seek to formalise a long-term commercial offtake arrangement
· Key commercial terms agreed for a significant Run-of-Mine ("RoM")
offtake supported by a ZAR 3 million prepayment structure; counterparty
logistics plan being refined following weather-related delays, with
end-customer discussions described as on track
· Ongoing discussions with a German trading house regarding a strategic
marketing agreement, requiring 15,000 tonnes per month at specification
· Market outlook strengthened by the China-Africa Economic Partnership
Agreement, creating duty-free access for magnetite exports; additional export
opportunities identified in Mozambique, Botswana and the United States
Chairman's Statement
Dr John Wardle, Non-Executive Chairman, commented:
"The period under review, and the months immediately following it, represent a
fundamental turning point for Ironveld. We have made significant strides in
our transition towards becoming a fully operational mining and processing
business, with the establishment of strategic partnerships that have
fundamentally de-risked our business model and positioned us to unlock the
considerable value inherent in our asset portfolio.
The year saw two strongly supported, oversubscribed fundraises, providing the
capital to advance our key initiatives. Post period, the landmark Mining
Operations Agreement with Daemaneng Minerals marks a defining step in
Ironveld's transition: the Company will be materially shielded from the direct
operating and capital expenditure of mining, while retaining complete
ownership and commercial control of its assets and product.
With the DMS plant now transitioning towards scaled production and meaningful
commercial discussions underway, the milestones achieved during and after the
period provide a robust foundation for the Company's next phase. Our focus is
firmly on progressing commercialisation of our magnetite products,
establishing sustained cash flow generation, and realising the underlying
value of our asset base. On behalf of the Board, I thank our shareholders for
their continued support and trust."
Kris Andersson, CEO of Ironveld, commented:
"From an operational perspective, the extreme weather events of the past few
months presented a challenge beyond anyone's control. However, I am pleased to
confirm that the worst is behind us. Daemaneng has used this period
productively to conduct a comprehensive review of the groundworks designs,
ensuring full alignment with the approved EMPR and specifically aimed at
mitigating future flood risk. On the commercial front, we continue to make
tangible progress. The market backdrop continues to strengthen and
simultaneously we are seeing robust demand signals from domestic and regional
markets including Mozambique and Botswana. These efforts reflect our ongoing
focus on methodically laying the groundwork for scalable, high-quality
production."
Important Notice
The financial information set out in this announcement does not constitute
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The statutory accounts for the year ended 30 June 2025 were approved by
the Board on 26 March 2026 and will be filed with the Registrar of Companies.
The auditors' report on those accounts was unqualified, though it contained a
material uncertainty paragraph in respect of going concern. The person
responsible for arranging the release of this announcement on behalf of the
Company is Kristoffer Andersson, Chief Executive Officer.
For further information, please contact:
Ironveld plc c/o BlytheRay
Kristoffer Andersson, Chief Executive Officer +44 20 7138 3204
Cavendish Capital Markets Limited (Nomad and Broker) +44 20 7220 0500
Derrick Lee
Turner Pope Investments (TPI) Ltd (Joint Broker) +44 20 3657 0050
Andrew Thacker / Guy McDougall
BlytheRay +44 20 7138 3204
Megan Ray / Said Izagaren / James Mulligan
Caution regarding forward looking statements
Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as "believe", "could", "should", "envisage",
"estimate", "intend", "may", "plan", "potentially", "expect", "will" or the
negative of those, variations or comparable expressions, including references
to assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures, competitive advantages, business
prospects and opportunities. Such forward-looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
For more information please visit: www.ironveld.com (http://www.ironveld.com)
About Ironveld PLC
Ironveld PLC (AIM: IRON) is a UK company listed on AIM, the market operated by
the London Stock Exchange. Through its subsidiary Lapon Mining, the Company
holds a mining licence over the Ironveld Project located in the Limpopo
province of South Africa, comprising an opencast mine and DMS-grade magnetite
processing plant. In October 2025, Lapon Mining entered into a Mining
Operations Agreement with Daemaneng Minerals, under which Daemaneng assumes
full operational and financial responsibility for mining and processing
activities. The Project is targeting initial DMS-grade magnetite production of
15,000 tonnes per month, with the ore prospective for magnetite and vanadium
mineralisation.
CHAIRMAN'S STATEMENT
Dear Shareholder,
I am pleased to present the Annual Report and Financial Statements for the
year ended 30 June 2025. The period under review, and the months immediately
following it, represent a fundamental turning point for Ironveld. We have made
significant strides in our transition towards becoming a fully operational
mining and processing business, with the establishment of strategic
partnerships that have fundamentally de-risked our business model and
positioned us to unlock the considerable value inherent in our asset
portfolio.
A Year of Strategic and Financial Progress
This year saw significant progress on multiple fronts, marked by important
developments in securing the funding necessary to advance our key initiatives.
During the period, we successfully executed two strongly supported,
oversubscribed fundraises. In June 2025, we completed a £900,000 equity
placing, reflecting robust market demand for our DMS-grade magnetite and
reinforcing investor confidence in our plan. This followed a successful £2.5
million fundraise and capital reorganisation in October 2024, which
strengthened our balance sheet and allowed us to progress our strategic
priorities.
Operationally, the year marked an important stage in the development of the
project. During the period, our subsidiary, Lapon Mining, conducted initial
blasting activities at the Altona opencast pit as part of ongoing site
preparation and testing activities. These works represent progress in
advancing the project towards potential future extraction and the expected
successful transition in 2026 from a development to operating mine.
Ore movements to the processing plant have been undertaken on a limited basis
for testing and commissioning purposes as part of the planned development
programme, rather than for commercial production. Construction of the
DMS-grade magnetite plant also progressed during the year and has entered its
testing and commissioning phase. While interest has been expressed by a number
of parties in relation to potential export markets, the project remains in the
development stage and the assets continue to be classified as exploration and
evaluation assets, with no material revenue generated during the period.
A Transformed Operating Model
The most transformative developments, however, occurred post-period, and have
fundamentally reshaped the Group's future. In October 2025, our subsidiary,
Lapon Mining, entered into a landmark Mining Operations Agreement with
Daemaneng Minerals. This Agreement will be a defining step in Ironveld's
transition as the mine moves in 2026 to scalable production, enabling
continuous mining operations without any direct capital deployment by the
Company. It unlocks production growth that would otherwise have required
significant investment, while Ironveld retains complete control and ownership
of its mining licence and associated assets.
Under this structure, that significantly de-risks our operational model,
Ironveld will be materially shielded from the direct operating and capital
expenditure of mining, Daemaneng will assume exclusive responsibility for all
mining operations and related costs. Although it remains too early to assign a
definitive financial value to the Agreement prior to the conclusion of formal
offtake and sales contracts, the scale of the partnership is illustrated by
Daemaneng's anticipated average monthly mining expenditure. This represents a
material self-funded commitment over the operational term, clearly
demonstrating the confidence underpinning this partnership. Critically, this
funding is recovered solely from the proceeds of material sold, meaning
Ironveld bears no liability should production not meet expectations.
Daemaneng will mine and sell ore as Ironveld's authorised agent under a clear
marketing and sales mandate, not as the owner of the ore. For DMS plant sales,
a transparent proceeds waterfall mechanism has been established with our JV
partner, ensuring all parties receive their agreed share directly from sales
revenues. Daemaneng then recovers its verified, pre-approved costs through a
clearly defined "proceeds waterfall" structure, with the remaining profit
flowing directly to Ironveld. This structure ensures that while Daemaneng
bears all operational and financial risk, Ironveld retains complete commercial
sovereignty over its product and its ultimate customers.
Furthermore, the underlying Mining Operations Agreement establishes Lapon
Mining as the undisputed principal and owner of all ore, with Daemaneng acting
as a strictly controlled agent. Lapon Mining retains full legal title to all
minerals until transfer to a buyer, all offtake and sales contracts must be
entered into by Lapon Mining or under a specific pre-approved power of
attorney, and Lapon Mining reserves the absolute right to approve or veto any
sale prior to ore delivery. All sales proceeds are deposited into
Lapon-controlled accounts, with invoices issued using Lapon's template and VAT
details, and Lapon Mining retains full legal and governance control over the
Ore Supply Agreement with Lapon Plant, including the right to oversee,
approve, and enforce all commercial and operational terms.
The commercial terms are deliberately structured to assure profitability for
Ironveld. The Agreement incorporates a defined cost framework that sets out
Daemaneng's projected mining costs per tonne. These figures represent the
highest guaranteed permissible cost of mining per tonne, serving as a
conservative, capped benchmark for expenditure verification and recovery. This
framework establishes a transparent relationship between production volumes
and total recoverable expenditure, ensuring disciplined cost control and
preventing any claims beyond these verified, pre-agreed maximum levels. As
production volumes increase, Daemaneng's average cost per tonne is expected to
decrease through operational efficiencies; however, its total recoverable
expenditure remains limited to these verified amounts. Crucially, in the event
that the realised sales price is lower than the verified mining cost, the
contractor bears that loss entirely. This performance-linked model ensures
Daemaneng's financial upside depends entirely on its operational efficiency
and ability to secure favourable market pricing, creating perfect alignment
with Ironveld's interests.
Daemaneng's exclusive operating rights are granted for a defined term but are
strictly conditional on continuous compliance and performance, with clear
production and investment commitments. Failure to meet these obligations would
terminate exclusivity, ensuring Ironveld remains flexible and protected. This
structure allows Ironveld to capture the commercial upside of large-volume
opportunities-both from run-of-mine sales and downstream processing-without
assuming the delivery or financing risks typically associated with such
agreements.
Building on this foundation, we also entered into a binding term sheet with
Daemaneng to accelerate production at our DMS plant. Mirroring the
capital-light model of our mining operations, Daemaneng will assume full
operational and managerial responsibility for the plant, including all
associated capital expenditure. Under this agreed plan, the plant is being
optimised to reach approximately 6,000 tonnes per month initially, with the
objective of rising to 15,000 tonnes per month, subject to market demand.
Daemaneng will fund all costs, and a transparent profit-sharing mechanism
ensures that the Group, through its subsidiary Altona Processing Pty Ltd, and
its JV partner Sable Platinum Holdings Pty Ltd, participate fully in the
financial upside as production scales.
Since the period end, Daemaneng has completed a fully paid trial delivery to
an established South African customer, which has indicated potential demand.
This initial relationship is expected to follow a phased strategy, starting
with smaller monthly volumes from a minimum of 1,000 tonnes, with the
potential to scale up over time as confidence in product quality and supply
reliability is established. Samples have also been delivered to several other
potential offtake partners as part of broader ongoing commercial discussions,
providing further validation of the quality and marketability of our product.
In line with this momentum, the Board has received Daemaneng's detailed
Technical Development and Project Readiness Report, which outlines the
substantial progress made on operational planning for the DMS plant. The
report confirms the finalisation of a processing flowsheet for Phase 1
production targeting 15,000 tonnes per month, supported by comprehensive
metallurgical validation confirming the plant's ability to consistently
achieve the target product specification of 95% magnetics and 85% passing 45
microns. A thorough bottleneck analysis has identified key upgrade
requirements to bridge the gap between current capabilities and future
specification compliance at scale, with all recovery and throughput
assumptions validated against recent test work and historical operational
data.
The report details an extensive equipment identification and procurement
strategy. A new 40-tonne-per-hour primary magnetic separator, utilising
Ferrite magnets in an axially-aligned configuration, has been designed to
deliver cleaner first-pass separation, with a supplier-provided
5-tonne-per-hour test unit available for interim commissioning to mitigate the
12-16 week lead time. The existing on-site magnetic separator will be retained
for secondary pass separation to maximise yield recoveries. To address the
critical challenge of reducing moisture content to below 6%, high-frequency
wet screens will be installed, targeting below 12% moisture pre-drying while
enabling oversize material to be returned for remilling, and a filter press
has already been ordered to provide a final robust dewatering solution. Mill
optimisation work includes imminent fabrication of modifications to the infeed
chute to eliminate spillage, with further testing planned on grinding media
loading to balance product fineness against throughput speed. Aperture
settings on the jaw crusher and regrind cone crusher will be adjusted to
ensure mill feed is consistently below 2mm, and following an independent
audit, quotes have been received for new conveyor belts and scrapers to
prevent product losses and enhance material handling efficiency. Forward
planning for Phase 2 has identified a Hemasort unit for dry ROM sorting to
pre-process material by reducing quartz and tightening size tolerance before
it enters the main plant, significantly improving mill feed quality.
Comprehensive infrastructure and site preparation will be underway in the near
future. Water management includes a dual strategy of natural dewatering
supplemented by targeted pumping to actively mitigate water ingress, with
water retention being improved through dam installation using liners. To meet
expanded throughput targets, additional borehole pumps and transfer pumps are
being installed, and feedpipes are being upgraded to larger diameters with
higher-capacity pumps. On power supply, a replacement 350kVA generator has
been commissioned, with a smaller 10kVA unit ordered for auxiliary systems.
Site works, including area levelling and concrete pouring for new equipment
plinths, are scheduled to mitigate future rainfall-related disruption. A
weighbridge will be ordered to ensure accurate production and dispatch
recording, and material handling flow paths have been reviewed and optimised
to support planned production levels.
The report outlines a phased production approach, with Phase 1 focused on
upgrading and optimising the current plant to achieve steady-state production
of 15,000 tonnes per month at the agreed quality specification, commencing at
5 tonnes per hour (3,000 tonnes per month) and ramping up as the plant
stabilises. A defined Phase 2 expansion plan is currently at the planning
stage, which could, subject to successful commercial agreements, increase
total capacity by an additional 40,000 tonnes per month. Risk mitigation
measures include flood mitigation fully incorporated into the mine plan, a
preventative maintenance programme aligned with anticipated higher utilisation
rates, and new lab equipment for on-site quality assurance. Quality control
checkpoints have been established at critical nodes, with a plan to engage an
independent laboratory for third-party product certification.
Operational Context: Regional Weather Impact
We note that the recent operational activities have been impacted by the
unusually high rainfall between November - February experienced across large
parts of South Africa. These weather conditions have temporarily affected site
activities, as they have for numerous operations across the region. The impact
has been particularly severe in the Limpopo province, where some mining
operations have reported the suspension of underground activities due to
flooding, described by industry participants as the most severe in over two
decades, with certain areas recording rainfall significantly above the
national average. More broadly, heavy rains have affected mining operations
and power infrastructure across multiple sectors across Limpopo province,
contributing to electricity grid instability and temporary production halts at
various sites across the region. While such extreme weather has inevitably
caused some disruption, our teams have implemented effective mitigation
strategies, and we remain confident in our ability to achieve the planned
production trajectories as conditions normalise.
Market Outlook
In cooperation with Ironveld management, Daemaneng has prepared a market
outlook that informs our shared strategic vision. The market for South African
magnetite - encompassing Run-of-Mine (ROM), lumpy ore, and DMS-grade material
- has strengthened considerably following the recent China-Africa Economic
Partnership Agreement signed in Beijing. As China remains South Africa's
largest trading partner and a dominant force in critical minerals extraction,
the duty-free access framework creates a powerful catalyst for magnetite
exports, particularly given China's demand for steelmaking inputs and clean
energy infrastructure materials. This strategic timing is amplified by South
Africa's invitation to a dedicated steel investment promotion event in China,
signalling specific interest in deepening integration with South Africa's
steel value chain.
Beyond China, significant export opportunities are emerging across multiple
jurisdictions. Notably, Mozambique and Botswana have been identified as
strategic destinations for DMS-grade magnetite, with significant potential to
absorb substantial volumes. This regional expansion aligns with broader
Southern African industrial development and infrastructure requirements.
Furthermore, the United States export market presents substantial potential
for DMS-grade magnetite, driven by growing demand from coal washeries and
heavy media separation applications in American industrial processing.
Ironveld, through Daemaneng, is well-positioned to capitalise on these
favourable market conditions given the operational readiness now being
achieved.
A Strong Foundation for the Future
The milestones achieved during and after the Period have provided a robust
foundation for the Company's next phase. With our mining and processing
operations now transitioning to a capital-light, performance-driven model
through our agreements with Daemaneng, the Company has entered the new
financial period materially de-risked and poised for growth. Our focus is now
on progressing the commercialisation of our magnetite products, establishing
sustained cash flow generation, and advancing the expansion of the plant.
These initiatives provide a clear pathway to revenue growth, positive cash
flow, and the realisation of the underlying value of our asset base.
On behalf of the Board, I would like to express my gratitude to our
shareholders for their continued support and trust, and our team for their
dedication and hard work. We are building a growth-focused Ironveld,
positioned to benefit directly from long-term value creation. I look forward
to updating you on our continued progress in the year ahead.
Dr John Wardle
Non-Executive Chairman
30 March 2026
STRATEGIC REPORT
Financial Review
The financial year to 30 June 2025 reflected the Group's progress to
identifying a partner to assume all responsibilities for mining production to
enable the Group to achieve a net cash inflow without direct exposure to
mining costs.
The Group recorded a loss before tax of £1.6 million (2024 as restated: £1.8
million) in the year. No dividend can be paid for the year ended 30 June 2025
(2024: £nil).
The Company's investment in subsidiary undertakings increased from £32.6
million to £34.7 million, primarily reflecting additional funding advanced to
the Group's South African operations in the form of intercompany loans to
support ongoing exploration and development activity at the mine site ahead of
production commencement in early 2026.
Share capital and share premium increased from £38.9 million to £43.1
million, reflecting the issue of new ordinary shares during the year. The
increase arose from the £2,500,000 placing and subscription completed in
November 2024, the issue of £1,030,000 of shares in settlement of loan
facilities, creditor balances and Directors' salaries, and the £941,000
equity raise completed in June 2025, net of £400,000 of share issue costs.
The Group's liquidity position at 30 June 2025 showed an increase in cash
reserves from £4,000 to £862,000, with current liabilities also reducing
from £5,120,000 to £4,124,000 primarily due to the settlement of all
outstanding borrowings during the year. The improvement was driven primarily
by the equity raises completed during the year, together with the settlement
of certain loan facilities, creditors and Directors' salaries through the
issue of shares rather than cash. These inflows and non‑cash settlements
were partly offset by the corporate costs of maintaining public company status
and continued capital expenditure at the Group's mine sites.
Going concern - basis of prep
During the year, the Group made a loss of £1,556,000 (2024 restated:
£2,250,000), had net operating cash outflows of £2,087,000 (2024 restated:
£695,000) and has raised net equity finance of £3,460,000. Management have
prepared cash flow projection up to 31 March 2028 which indicate that the
group will start to generate operating cash flows from its projects in the
near future. Post year end, the group has progressed towards production,
signing an agreement with a mining contractor to operate and manage the DMS
operations. These operations are expected to commence imminently upon the
finalisation of a financing arrangement by that entity.
The projections indicate that further funding will be required in the short
term until such time that the group is generating operating cash flows.
Management are confident that it will be able to raise the funding in the
required timescale based on discussions with finance providers and,
considering its history of fundraising. Additionally, should there be any
delay in the commencement of operations and or deviation from expected
performance, management consider that they would be able to raise further
funding as required to cover any shortfall. As a result, the financial
statements have been prepared on a going concern basis.
However, while the directors consider that there are reasonable prospects of
securing such funding, the timing and outcome of these matters are not wholly
within the Group's control. As a result, these events and conditions indicate
the existence of a material uncertainty that may cast significant doubt on the
Group's ability to continue as a going concern. The financial statements do
not include the adjustments that would result if the Group were unable to
continue as a going concern.
Outlook and Post Period Events
The Company expects to progress with the plans outlined in its recent funding
and operational updates, including the significant strategic developments
achieved during and after the Period. The successful execution of the £2.5
million fundraise and capital reorganisation, followed by the strongly
supported £900,000 equity placing and continued engineering work, has
strengthened our financial position and accelerated our transition towards
sustained revenue generation and cash flow positivity.
The post-period agreements with Daemaneng Minerals have enhanced our
operational model, with Daemaneng assuming full responsibility for mining
activities, eliminating operating costs for the Company, and guaranteeing a
scalable supply of ore for the joint-venture DMS plant. The binding term sheet
for the expansion and optimisation of the Plant creates a fully aligned,
capital-light structure designed to support rapid production growth. We have
high expectations for this strengthened partnership with Daemaneng Minerals
and believe it positions the Company to unlock substantial value and create
further diversified opportunities in the future.
We extend our gratitude to all our shareholders for their ongoing support of
the Company and the Project. We look forward to sharing further updates with
you in the near future.
Principal risks and uncertainties
The Directors consider the following risks to be the most material or
significant for the management of the business. These issues do not purport to
be a complete list or explanation of all the risks facing the Group. In
particular the Group's performance may be affected by changes in market and/or
economic conditions, changes in legal, regulatory or tax requirement
legislation.
The Board of Directors monitors these risks and the Group's performance on a
regular basis.
Operational risks - The production of the Company's range of metals involves a
series of processes, from the mining of the ore at the mine site, the
production of the DMS grade magnetite at the DMS plant, to the smelting of
material at the Rustenburg smelter. Mining, production and Smelting operations
are subject to a number of risks, including mechanical outages, supply issues
(e.g. fuel), interruptions due to weather and soil conditions, among many
others. Post period end, the Company's subsidiary, Lapon Mining, entered
into a Mining Operations Agreement with Daemaneng Minerals. Through this,
Daemaneng has assumed full responsibility for all mining operations, capital,
and operational expenditure at Lapon over a five-year period, meaning Ironveld
will no longer incur any operating costs, de-risking the Company's cost base
while ensuring it retains full ownership of the mining licence and governance.
Availability of finance - The Group is at an early stage of commercial
production and does not yet generate sufficient revenue to fund its
operations. Expansion of current activities and further development and
production from the ore resources requires significant further capital
expenditure. The Group will need to continue to raise external finance in the
short to medium term and there can be no assurance that future funds will be
available on terms which the Directors consider acceptable, or at all. Failure
to raise adequate funding could have a material adverse effect on the Group's
ability to continue as a going concern and to execute its development
strategy. The Group's listing on AIM assists in accessing the public capital
markets to mitigate this risk, and the post-period agreements with Daemaneng
Minerals materially reduce the Group's future capital expenditure obligations
in respect of mining and processing operations, thereby reducing the quantum
of external funding required.
Governance and Compliance - There are multiple governance-based risks which
may have an impact on the business. The Group operates within a complex
regulatory environment which focuses on accountability. Failure to comply with
regulations, including applicable licences required for continuous operations,
or failure to follow expected social and business conduct could cause
potential interruption or stoppage of operations, potential financial loss and
reputational damage. The Group relies on its NOMAD, company secretary and
in-house advocate in South Africa, to provide specialist governance support,
ensuring compliance with all regulatory and licence requirements and helping
the Board maintain appropriate standards of social and business conduct
despite its limited size.
Health and Safety - Mining and Smelting operations by their very nature are
dangerous working environments which, if not managed, could lead to serious
injuries and a loss of life. The Group implements a formal health and safety
management system, provides regular employee training and undertakes periodic
risk assessments and site inspections to ensure a safe working environment and
reduce the likelihood of incidents.
Commodity Markets - A significant decrease in commodity prices for high purity
iron, vanadium or titanium would negatively impact Group revenues. The Group
will look to mitigating commodity price risk by, engaging with potential long
term offtake partners to enhance revenue visibility and undertaking continuous
market analysis to inform strategic planning and capital allocation.
Inflation - The Group's cost base is highly susceptible to inflationary
pressures. In cycles of high commodity prices, input costs, such as wages,
consumables, diesel and energy often increase at a rate higher than that of
general inflation. Rising costs, which could be triggered by and therefore
offset by higher commodity prices, have a direct impact on the Group's
profitability. In addition, inflationary pressures have an impact on capital
expenditure. The Group seeks to control inflationary impacts through
disciplined cost management, competitive procurement processes and ongoing
review of operating and capital budgets.
Political and Country risk - Substantially all of the Group's business and
operations are conducted in South Africa and the political, economic, legal
and social situation in South Africa introduces a certain degree of risk with
respect to the Group's activities. The Group mitigates this risk by
maintaining constructive relationships with local and regional government
bodies.
Section 172(1) statement and stakeholder engagement
The Directors believe they have acted in the way most likely to promote the
success of the Company for the benefit of its members as a whole, as required
by s172 of the Companies Act 2006. The specific requirements of s172 are set
out below, along with the approach adopted by the Directors to ensure they
meet these requirements:
Consider the likely consequences of any decision on the long-term
The post-period agreements with Daemaneng Minerals have enhanced our
operational model, with Daemaneng assuming full responsibility for mining
activities, eliminating operating costs for the Company, and guaranteeing a
scalable supply of ore for the joint-venture DMS plant. The binding term sheet
for the expansion and optimisation of the Plant creates a fully aligned,
capital-light structure designed to support rapid production growth. We have
high expectations for this strengthened partnership with Daemaneng Minerals
and believe it positions the Company to unlock substantial value and create
further diversified opportunities in the future.
Consider the interests of the Company's employees
The Company currently has both permanent and temporary employees in South
Africa and only Directors in the UK. It is committed to the fair and ethical
treatment of all of its staff and has implemented training programmes and
direct relationships with local educational establishments in South Africa to
ensure it creates a local workforce for the future.
Foster the Company's business relationships with suppliers, customers and
others
In order to progress its project in South Africa the Company will be reliant
on the support of its key supplier Daemaneng Minerals. It is therefore a key
part of the Company's strategy to develop this relationship to ensure the
Company maintains a strong and secure relationship with this and any other
suppliers.
Consider the impact of the Company's operations on the community and the
environment
The Company is aware of the potential impact that its operations may have on
the environment and local community. It has been working closely with the
local community to ensure that the impact of its operations are adequately
addressed and views are heard from the effected communities.
Maintain a reputation for high standards of business conduct
The Company has established a number of policies and procedures that guide its
operations and corporate conduct. As the business continues to grow, these
policies are regularly reviewed and refined to ensure they remain aligned with
the evolving regulatory environment and the Company's long-term strategic
objectives. In addition, the Company is committed to adhering to the Quoted
Companies Alliance Corporate Governance Code 2023 (the 'QCA Code 2023') on
corporate governance.
As disclosed in the Corporate Governance Report included in this set of
accounts, the Company has also taken proactive steps to adopt the QCA Code
2023, demonstrating its dedication to maintaining high standards of
transparency and stakeholder engagement.
Act fairly between members of the Company
The active Directors hold 24.21% of the shares of the Company with the
remainder held by a range of individuals and companies.
The Company is quoted on AIM and its members will be fully aware, through
detailed announcements, shareholder meetings and financial communications,
updated on the website, of the Board's broad and specific intentions and the
rationale for its decisions. When making decision, the Board of Directors,
issues such as the impact on the community and the environment have actively
been taken into consideration. The Company pays its employees and creditors
promptly and keeps its costs to a minimum to protect shareholders funds. The
Company recognises workers' representation unions and complies with all local
employment legislation.
The Board is responsible for establishing and communicating policies and
procedures for risk management and internal controls. We recognise that risk
management is an essential business practice, and we work to balance risk,
return, threat and opportunity. We maintain a detailed risk register which is
routinely reviewed by the Audit and Risk Committee and the Board.
Climate Change
In today's mining sector, stakeholders and investors are increasingly focused
on climate change, and we can assure them that Ironveld is fully committed to
responsible environmental stewardship. Our approach to corporate
responsibility and sustainability is robust and grounded in our commitment to
high standards of health and safety and environmental management.
As we prepare to assume operatorship at Lapon Mining, we will prioritise
gathering the necessary environmental and operational data to understand our
emissions profile and to develop a credible plan to reduce those emissions
over time.
We are also mindful of the evolving regulatory landscape in the UK,
particularly the incorporation of Task Force on Climate-Related Financial
Disclosures (TCFD) requirements for LSE Main Market companies. We will comply
with any reporting obligations introduced under the AIM Rules for Companies
and ensure our disclosures remain transparent, relevant and aligned with best
practice.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 30 June 2025 (Restated)
Year ended 30 June 2024
Note £'000 £'000
Continuing Operations
Revenue 4 164
Cost of sales - (5)
Administrative expenses 4 (1,560) (1,830)
Finance costs - (92)
Investment revenues - 6
Other income - 1
Loss before taxation (1,556) (1,756)
Taxation on loss or ordinary activities 5 - (494)
Loss for the year from continuing operations (1,556) (2,250)
Exchange differences on translation of foreign operations (1,152) 753
Total comprehensive loss for the year attributable to shareholders from (2,708) (1,497)
continuing operations
Basic & dilutive earnings per share - pence 6 (0.01) (0.06)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
Attributable to:
Year ended 30 June 2025 (Restated)
Year ended 30 June 2024
Note £'000 £'000
Loss for the year
Owners of the Company (1,414) (2,236)
Non-controlling interest (142) (14)
(1,556) (2,250)
Exchange differences on translation of foreign operations
Owners of the Company (1,022) 639
Non-controlling interest (130) 114
(1,152) 753
Total comprehensive loss for the year
Owners of the Company (2,436) (1,597)
Non-controlling interest (272) 100
(2,708) (1,497)
The statement of comprehensive income has been prepared on the basis that all
operations are continuing operations.
The notes form an integral part of these consolidated financial statements.
( )
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Restated
2025
2024
Note
£000
£000
Non-current assets
Intangible
assets
7
27,310
27,996
Property, plant and
equipment
8
6,844
7,205
Other
receivables
11
-
8
( )
(
)
( )
34,154
35,209
( )
(
)
Current assets
Inventories
10
41
43
Trade and other
receivables
11
258
6
Cash and cash
equivalents
16
862
4
( )
( )
1,161
53
( )
(
) Total
assets
35,315
35,262
( )
(
) Current liabilities
Payables and contract
liabilities
12
(4,111)
(4,539)
Lease
liabilities
13
(13)
(11)
Borrowings
14
-
(570)
( )
(
)
(4,124)
(5,120)
( )
( )
Non-current liabilities
Payables and contract
liabilities
12
(4,128)
(4,396)
Lease
liabilities
13
(15)
(26)
Deferred tax
liabilities
15
(3,884)
(4,077)
( )
( )
(8,027)
(8,499)
( )
( )
Total
liabilities
(12,151)
(13,619)
( )
( )
Net
assets
23,164
21,643
( )
(
) Equity
Share
capital
17
14,244
13,054
Share
premium
17
28,806
25,925
Other
reserve
18
238
82
Retained
earnings
18
(12,456)
(11,044)
Foreign currency translation
reserve
18
(10,244)
(9,222)
( )
(
) Equity attributable to owners of the Company
20,588
18,795
Non-controlling
interests
20
2,576
2,848
(
) Total
equity
23,164
21,643
( )
( )
These financial statements were approved by the Board and authorised for issue
on 30 March 2026.
Signed on behalf of the Board
K Andersson
Director
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
2025
2024
Note
£000
£000
Non-current assets
Investments
9
34,688 32,599
Current assets
Trade and other
receivables
11
81
17
Cash and cash
equivalents
16
857
3
( )
( )
938
20
( )
( )
Total
assets
35,626
32,619
( )
(
)
Current liabilities
Trade and other
payables
12
(270)
(810)
Borrowings
14
-
(510)
( )
( )
Total
liabilities
(270)
(1,320)
( )
( )
Net
assets
35,356
31,299
( )
( )
Equity
Share
capital
17
14,244
13,054
Share
premium
17
28,806
25,925
Other
reserve
18
238
82
Retained
earnings
(7,932)
(7,762)
( )
( )
Total
equity
35,356
31,299
(Attributable to owners of the
Company)
( )
(
)
The loss for the financial year dealt with in the financial statements of the
parent Company was £171,714 (2024 - loss £348,000).
These financial statements were approved by the Board and authorised for issue
on 30 March 2026.
Signed on behalf of the Board
K Andersson
Director
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Other Foreign exchange reserve Retained Earnings Non-Controlling Interest Total Equity
Reserves
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 June 2023 12,694 25,324 94 (9,860) (8,845) 2,748 22,155
Loss for period - - - - (1,405) (14) (1,419)
Other comprehensive income - - - 799 - 114 913
Total comprehensive income for year - - - (506)
799 (1,405) 100
Transactions with owners in own capacity
Ordinary Shares issued in the period 360 601 - - - - 961
Cancelled share warrants - - - - 25 - 25
Share based payments - - (12) - 12 - -
Transactions with owners in own capacity 360 601 (12) - 37 - 986
Balance at 30 June 2024 (as previously reported) 13,054 25,925 82 (9,061) (10,213) 2,848 22,635
Prior period adjustment - - - (161) (831) - (992)
(note 23)
Balance at 30 June 2024 (restated) 13,054 25,925 82 (9,222) (11,044) 2,848 21,643
Loss for period - - - - (1,414) (142) (1,556)
Other comprehensive income - - - (1,022) (130) (1,152)
Total comprehensive income for year - - - (2,708)
(1,022) (1,414) (272)
Transactions with owners in own capacity
Ordinary Shares issued in the period 1,190
3,281 - - - - 4,471
Share Issue Costs - (400) 158 - - - (242)
Cancelled share warrants - - (2) - 2 - -
Transactions with owners in own capacity 1,190 2,881 156 - 2 - 4,229
Balance at 30 June 2025 14,244 28,806 238 (10,244) (12,456) 2,576 23,164
COMPANY STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Other Retained Earnings Total Equity
reserves
£'000 £'000 £'000 £'000 £'000
Balance at 30 June 2023 12,694 25,324 94 (7,451) 30,661
Loss for period - - - (348) (348)
Other comprehensive income - - - - -
Total comprehensive income for year - - - (348) (348)
Transactions with owners in own capacity
Ordinary Shares issued in the period 360 601 - - 961
Share Issue Costs - - - - -
Cancelled share warrants - - - 25 25
Share based payments - - (12) 12 -
Transactions with owners in own capacity 360 601 (12) 37 986
Balance at 30 June 2024 13,054 25,925 82 (7,762) 31,299
Loss for period - - - (172) (172)
Other comprehensive income - - - - -
Total comprehensive income for year - - - (172) (172)
Transactions with owners in own capacity
Ordinary Shares issued in the period 1,190
3,281 - - 4,471
Share Issue Costs - (400) 158 - (242)
Cancelled share warrants - - (2) 2 -
Transactions with owners in own capacity 1,190
2,881 156 2 4,229
Balance at 30 June 2025 14,244 28,806 238 (7,932) 35,356
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended Restated
30 June
Year ended
2025
30 June
2024
£000 £000
Cash flow from operating activities
(Loss) before taxation for the period (1,556) (1,756)
Adjustments for:
Share based payments 25 25
Finance costs - 86
Fees settled in equity 267 -
Depreciation 20 18
Interest - (29)
Foreign exchange (165) (17)
Loan to Joint venture - provision - 97
Changes in working capital:
Movement in inventories 2 5
(Increase) in trade and other receivables (252) 308
(Decrease) in trade and other payables (428) 568
Net cash outflow from operating activities (2,087) (695)
Cash flows from investing activities
Exploration and evaluation activities (341) (841)
Interest received - 6
Loans received - 1
Net cash outflow from investing activities (341) (834)
Cash flows from financing activities
Proceeds from issue of shares 3,460 961
(Repayment)/proceeds of borrowings (165) 557
Payment of lease liabilities (9) (5)
Net cash inflow from financing activities 3,286 1,513
Net increase/(decrease) in cash and cash equivalents 858 (16)
Exchange differences on cash - 1
Cash and cash equivalents at beginning of the period 4 19
Cash and cash equivalents at end of the period 862 4
COMPANY CASH FLOW STATEMENT
Year ended Year ended
30 June
30 June
2024
2025
£000 £000
Cash flow from operating activities
(Loss) before taxation for the period (172) (348)
Adjustments for:
Share based payments 25 25
Settlement of fees through issue of equity 267 -
Foreign exchange movements 132 (10)
Changes in working capital:
(Increase) in trade and other receivables (64) -
(Decrease) in trade and other payables (540) -
Net cash outflow from operating activities (352) (333)
Cash flows from investing activities
Investment in subsidiaries (2,089) (1,140)
Net cash outflow from investing activities (2,089) (1,140)
Cash flows from financing activities
Proceeds from issue of shares 3,460 961
Repayment of borrowings (165) 498
Net cash inflow from financing activities 3,295 1,459
Net increase/(decrease) in cash and cash equivalents 854 (14)
Exchange differences on cash - -
Cash and cash equivalents at beginning of the period 3 17
Cash and cash equivalents at end of the period 857 3
( )
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Ironveld Plc is a public company incorporated and domiciled in England and
Wales under the Companies Act 2006 whose shares are listed on the Alternative
Investment Market of the London Stock Exchange. The address of the registered
office is given on page 3. The nature of the Group's operations and its
principal activities are set out in note 3 and in the Directors Report.
Adoption of new and revised Standards
In the current year, the Group has applied the following new or amended
standards for the first time, which are mandatory for accounting periods
commencing on or after 1 January 2024:
· Amendments to IAS 1 - Classification of Liabilities as Current or
Non-current
· Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback
· Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements
None of the above had a material impact on the financial statements.
At the date of authorisation of these financial statements, the following
standards are not yet effective and have not been adopted early:
Amendments to IAS 21 - Lack of Exchangeability (effective 1 January 2025;
applicable to the Group from 1 July 2025). Given the Group's ZAR exposure, the
Directors are monitoring the application of these amendments, though no
material impact is currently anticipated.
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial
Instruments (effective 1 January 2026; applicable to the Group from 1 July
2026). No material impact is anticipated.
IFRS 18 Presentation and Disclosure in Financial Statements (effective 1
January 2027; applicable to the Group from 1 July 2027). IFRS 18 replaces IAS
1 and introduces mandatory new subtotals in the income statement, including a
defined 'operating profit' line, new categorisation of income and expenses,
and additional disclosure requirements. Retrospective application is required.
The Directors are currently assessing the impact; whilst IFRS 18 does not
change recognition or measurement, it is expected to impact the presentation
of the income statement and related disclosures on adoption
2.1 Significant accounting policies
The financial statements are based on the following policies which have been
consistently applied:
Basis of preparation
The financial statements of the Group and Parent Company have been prepared in
accordance with UK-adopted International Accounting Standards (IFRSs) in
conformity with the requirements of the Companies Act 2006.
The financial statements have been prepared on the historical cost basis. The
financial statements are presented in pounds sterling, which is the currency
of the primary economic environment. Amounts are rounded to the nearest
thousand pounds (£'000).
The principal accounting policies are set out below:
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and all entities controlled by the Company (its subsidiaries) made
up to the year-end. Control is achieved where the Company has power to govern
the financial and operating policies of an investee entity so as to obtain
benefits from its activities.
Subsidiaries are consolidated from the date of their acquisition, being the
date on which the Company obtains control and ceases when the Company loses
control of the subsidiary. Profit or loss and each component of other
comprehensive income are attributed to the owners of the Company and to the
non-controlling interests. Total comprehensive income of the subsidiaries is
attributed to the owners of the Company and to the non-controlling interests
even if this results in the non-controlling interests having a deficit
balance.
Non-controlling interests in subsidiaries are identified separately from the
Group's equity therein. Those interests of non-controlling shareholders are
initially measured at their proportionate share of the fair value of the
acquiree's identifiable net assets. Subsequent to acquisition, the carrying
value of the non-controlling interests is the amount of initial recognition
plus the non-controlling interests' share of the subsequent changes in equity.
Changes in the Group's interests in subsidiaries that do not result in a loss
of control are accounted for as equity transactions. The carrying amount of
the Group's interests and the non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsidiaries. Any
difference between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid or received is
recognised directly in equity and attributed to the owners of the Company.
Joint ventures
On 4 March 2025, the Group incorporated Altona Processing (Pty) Ltd as a
wholly-owned subsidiary to hold its interests in a joint venture with Sable
Platinum Holdings (Pty) Ltd for the operation of a DMS magnetite beneficiation
plant, held through Lapon Plant (Pty) Ltd. This new structure replaced the
Group's previous interest held through its former joint venture vehicle,
iPace, all agreements relating to which have been terminated.
The Group has made contributions to the plant equal to Sable's contribution to
date, with both parties' contributions recorded as loan accounts in Lapon
Plant. The definitive Shareholders' Agreement remains to be formally executed;
however, the Heads of Agreement signed by all parties is legally binding and
the Board considers the 50/50 partnership commercially established. The
Group's contributions have been capitalised within assets under construction
pending formal incorporation of the joint venture.
Business combinations
Acquisitions of subsidiaries which are determined to be business combinations
under IFRS3 are accounted for using acquisition accounting. The consideration
for each acquisition is measured at the fair value of assets given,
liabilities incurred or assumed and equity instruments issued by the Group in
exchange for control in the acquiree. Acquisition-related costs are recognised
in the income statement as incurred. Acquisitions of subsidiaries which are
determined not to be business combinations under IFRS3 are accounted for on
other bases, taking into account the application guidance in Appendix B of
IFRS3. Where the directors consider it appropriate to do so the directors will
apply the concentration test permitted by para B7B of IFRS3 and account for an
acquisition of a subsidiary as an asset acquisition.
Revenue from contracts with customers
The Group is principally engaged in the exploration, development and
production of Magnetite ore and speciality metals including High Purity Iron,
Vanadium slag and Titanium slag. The Group is at an early stage of commercial
production and revenue to date has been limited. Revenue is measured based on
the consideration specified in a contract with a customer and excludes amounts
collected on behalf of third parties. The Group recognises revenue when it
transfers control of a product or service to a customer. If a customer pays
consideration before the Group transfers goods or services to the customer, a
contract liability is recognised when the payment is made or due (whichever is
earlier). Contract liabilities are recognised as revenue when the Group
performs under the contract.
Exploration and evaluation
Costs incurred prior to acquiring the rights to explore are charged directly
to the income statement.
Licence acquisition costs and all other costs incurred after the rights to
explore an area have been obtained, such as the direct costs of exploration
and appraisal (including geological, drilling, trenching, sampling, technical
feasibility and commercial viability activities) are accumulated and
capitalised as intangible exploration and evaluation ("E&E") assets,
pending determination. Amounts charged to project partners in respect of costs
previously capitalised are deducted as contributions received in determining
the accumulated cost of E&E assets.
E&E assets are not amortised prior to the conclusion of the appraisal
activities. At the point at which technical and financial feasibility has been
demonstrated and commercial reserves discovered, and following formal Board
approval to proceed with development, the carrying value of the relevant
E&E asset will be reclassified as a development and production asset after
the carrying value has been assessed for impairment and, where appropriate,
adjusted. If after completion of appraisal activities it is not possible to
determine technical and commercial feasibility, or if the legal rights have
expired, or if the Group decides not to continue activities in the area, the
costs of unsuccessful exploration and evaluation are written off to the income
statement in the relevant period.
The Group's definition of commercial reserves for such purposes is proved and
probable reserves on an entitlement basis. Proved and probable reserves are
the estimated quantities of minerals which geological, geophysical and
engineering data demonstrate with a specified degree of certainty to be
recoverable in future years from the known reserves and which are considered
to be commercially producible.
Such reserves are considered commercially producible if management has the
intention of developing and producing them and such intention is based upon:
- a reasonable expectation that there is a
market for substantially all of the expected production;
- a reasonable assessment of the future
economics of such production;
- evidence that the necessary production,
transmission and transportation facilities are available or
can be made available; and
- agreement of appropriate funding; and
- the making of the final investment
decision.
On an annual basis a review for impairment indicators is performed. If an
indicator of impairment exists an impairment review is performed. The
recoverable amount is then considered to be the higher of the fair value less
costs of sale or its value in use. Any identified impairment is written off to
the income statement in the period identified.
Taxation
The tax expense represents the sum of the tax payable and deferred tax.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base used in the calculation of the
taxable profit and is accounted for using the statement of financial position
liability method. Deferred tax liabilities are generally recognised on all
appropriate taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be
available against which the deductible timing differences can be utilised. The
carrying amount of deferred tax assets is reviewed at each statement of
financial position date.
Deferred tax is calculated at the tax rates that are expected to be applicable
in the period when the liability or asset is realised and is based on tax laws
and rates substantially enacted at the statement of financial position date.
Deferred tax is charged in the income statement except where it relates to
items charged/credited in other comprehensive income, in which case the tax is
also dealt with in other comprehensive income.
Leases
The Group assesses whether a contract is or contains a lease, at inception of
the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with a lease term of
12 months or less) and leases of low value assets (such as tablets and
personal computers, small items of office furniture and telephones). For these
leases, the Group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another systematic basis
is more representative of the time pattern in which economic benefits from the
leased assets are consumed. Right-of-use assets are measured at cost less any
accumulated depreciation and impairment losses and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of the lease liability recognised, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease
incentives received. Right-of-use assets, included in plant and machinery, are
depreciated on a straight-line basis over the shorter of the lease term and
the estimated life of the asset.
Lease liabilities ate recognised at the commencement of a lease as the present
value of lease payments expected to be made using the rate implicit in the
lease or where this is not available, the group incremental borrowing rate.
The lease liability is subsequently remeasured if there is a modification, a
change in lease term, a change in lease payments or a change in the assessment
of an option to purchase the underlying asset.
Property, plant and equipment
Property, plant and equipment are stated at cost less depreciation.
Depreciation is provided at rates calculated to write off the cost less the
estimated residual value of each asset over its expected useful life, as
follows:
Plant and machinery
Between 2 and 6 years straight line basis
Motor
vehicles
6 years straight line basis
Assets under construction Not
depreciated until brought into use
Leased assets are depreciated in a consistent manner over the shorter of their
expected useful lives and the lease term.
Inventories
Inventories are measured at the lower of cost and net realisable value on the
first-in-first-out basis.
Net realisable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs
necessary to make the sale.
The cost of inventories comprises of all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their
present location and condition.
The cost of inventories of items that are not ordinarily interchangeable and
goods or services produced and segregated for specific projects is assigned
using specific identification of the individual costs.
The cost of inventories is assigned using the formula. The same cost formula
is used for all inventories having a similar nature and use to the entity.
When inventories are sold, the carrying amount of those inventories are
recognised as an expense in the period in which the related revenue is
recognised. The amount of any write-down of inventories to net realisable
value and all losses of inventories are recognised as an expense in the period
the write-down or loss occurs. The amount of any reversal of any write-down of
inventories, arising from an increase in net realisable value, are recognised
as a reduction in the amount of inventories recognised as an expense in the
period in which the reversal occurs.
Foreign currencies
The individual financial statements of each group company are presented in the
currency of the primary economic environment in which it operates (its
functional currency). For the purposes of the consolidated financial
statements, the results and financial position of each group company are
expressed in pounds sterling, which is the functional currency of the Company,
and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual companies,
transactions in currencies other than the entity's functional currency are
recognised at the rates of exchange prevailing on the dates of the
transactions. At each statement of financial position date, monetary assets
and liabilities that are denominated in foreign currencies are retranslated at
the rates prevailing at that date. Non-monetary items carried at fair value
that are denominated in foreign currencies are translated at the rates
prevailing at the date the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign currency are not
retranslated. Exchange differences are recognised in the income statement in
the period in which they arise.
When presenting the consolidated financial statements, the assets and
liabilities of the Group's foreign operations are translated at the exchange
rates prevailing at the statement of financial position date. Income and
expense items are translated at average exchange rates for the period, unless
exchange rates have fluctuated significantly in which case the rates at the
date of the transactions are used. Exchange differences arising are recognised
in other comprehensive income and accumulated in equity (attributed to
non-controlling interests where appropriate).
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated using the closing rate.
Financial instruments
Financial assets and financial liabilities are recognised in the Group's
statement of financial position when the Group becomes a party to the
contractual provisions of the instrument.
Other receivables
Other receivables are measured at initial recognition at fair value, and are
subsequently measured at amortised cost using the effective interest rate
method except for short-term receivables when recognition of interest would be
immaterial. The Group recognises appropriate allowances for expected credit
losses in the income statement based on a historical credit loss experience,
adjusted for factors that are specific to the debtors and general economic
conditions.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other
short term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of change in value.
Financial liability and equity
Interest bearing bank and other loans and bank overdrafts are recorded at the
proceeds received, net of direct issue costs. Finance charges, including
premiums payable on settlement or redemption and direct issue costs, are
accounted for on an accrual basis in the income statement using the effective
interest rate method and are added to the carrying amount of the instrument to
the extent that they are not settled in the period in which they arise.
The Group classifies financial instruments, or their component parts, on
initial recognition as a financial asset, financial liability or an equity
instrument in accordance with the substance of the contractual arrangement.
Financial instruments are initially recognised at fair value and are
subsequently amortised using the effective interest method. Fair value is
estimated from available market data and reference to other instruments
considered to be substantially the same.
Trade and other payables
Trade payables and other financial liabilities are initially measured at fair
value, and are subsequently measured at amortised cost, using the effective
interest rate method.
The Group's activities expose it primarily to the financial risks of changes
in interest rates on borrowings and foreign exchange risk.
Investments
Investments in subsidiaries are stated at cost less any provision for
impairment.
Share-based payments
The Group issues equity-settled share-based payments to certain employees and
other parties. Equity settled share-based payments are measured at fair value
at the date of grant. In respect of employee related share based payments, the
fair value determined at the grant date is expensed on a straight-line basis
over the vesting period, based on the Group's estimate of shares that will
eventually vest.
In respect of other share based payments, the fair value is determined at the
date of grant and recognised when the associated goods or services are
received. Warrants issued for services rendered are accounted for in
accordance with IFRS 2 recognising either the costs of the service if it can
be reliably measured or the fair value of the warrant.
Investor warrants issued as part of share issues have been determined as
equity instruments under IAS 32. Since the fair value of the shares issued
at the same time is equal to the price paid, these warrants, by deduction, are
considered to have been issued at nil value.
Operating segments
The Group considers itself to have one operating segment in the year and
further information is provided in note 3.
Going concern
The Directors have, at the time of approving the financial statements, a
reasonable expectation that the Company and the Group has adequate resources
to continue in operating existence for the foreseeable future. Thus they
continue to adopt the going concern basis of accounting in preparing the
financial statements. Further details are provided in the note 2.2 and in the
Strategic Report on pages 5 to 6. The financial statements therefore do not
include the adjustments that would result if the Group and Company were unable
to continue as a going concern.
Cost of sales
When inventories are sold, the carrying amount of those inventories is
recognised as an expense in the period in which the related revenue is
recognised. The amount of any write-down of inventories to net realisable
value and all losses of inventories are recognised as an expense in the period
the write-down or loss occurs. The amount of any reversal of any write-down of
inventories, arising from an increase in net realisable value, is recognised
as a reduction in the amount of inventories recognised as an expense in the
period in which the reversal occurs.
2.2 Critical accounting estimates and judgements
The Group makes estimates and assumptions regarding the future. Estimates and
judgements are continually evaluated based on historical experience and other
factors, including expectations of future events that are believed to be
reasonable under the circumstances. In the future, actual experience may
differ from these estimates and assumptions. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed
below.
Critical judgements
The following judgements have had the most significant effect on the amounts
recognised in the financial statements:
Going concern - basis of prep
During the year, the Group made a loss of £1,556,000 (2024 restated:
£2,250,000), had net operating cash outflows of £2,087,000 (2024 restated:
£695,000) and has raised net equity finance of £3,460,000. Management have
prepared cash flow projection up to 31 March 2028 which indicate that the
group will start to generate operating cash flows from its projects in the
near future. Post year end, the group has progressed towards production,
signing an agreement with a mining contractor to operate and manage the DMS
operations. These operations are expected to commence imminently upon the
finalisation of a financing arrangement by that entity.
The projections indicate that further funding will be required in the short
term until such time that the group is generating operating cash flows.
Management are confident that it will be able to raise the funding in the
required timescale based on discussions with finance providers and,
considering its history of fundraising. Additionally, should there be any
delay in the commencement of operations and or deviation from expected
performance, management consider that they would be able to raise further
funding as required to cover any shortfall. As a result, the financial
statements have been prepared on a going concern basis.
However, while the directors consider that there are reasonable prospects of
securing such funding, the timing and outcome of these matters are not wholly
within the Group's control. As a result, these events and conditions indicate
the existence of a material uncertainty that may cast significant doubt on the
Group's ability to continue as a going concern. The financial statements do
not include the adjustments that would result if the Group were unable to
continue as a going concern.
Exploration and evaluation assets
The Group has adopted a policy of capitalising the costs of exploration and
evaluation and carrying the amount without impairment assessment until
impairment indicators exist (as permitted by IFRS 6). The directors consider
that as at the Period end the Group remained in the exploration and evaluation
phase and therefore, under IFRS 6, the directors have to make judgements as to
whether any indicators of impairment exist and the future activities of the
Group. No such indicators of impairment were identified and therefore, in
accordance with IFRS 6, no impairment review has been carried out. The
Directors remain committed to development of the asset.
2.2 Critical accounting estimates and judgements
a) Acquisition of Ferrochrome Furnaces (Pty) Limited ("FCF")
On 24 May 2022 the Company announced that it had agreed Heads of Terms and on
31 August 2022 further announced that it had signed a share purchase agreement
to acquire 100% of the share capital of FCF, which would provide the Group
with an existing smelting facility (the Rustenburg Smelter) which, following
refurbishment, would provide the Group with the opportunity to commence
processing the ore. The acquisition by subsidiary Ironveld Smelting
(Proprietary) Limited, reflected an agreement with the shareholders and the
Business Rescue Practitioner of FCF to acquire the entire share capital for a
nominal amount but at the date of these accounts the agreement remained
subject to contract. Under the agreed terms, the Group will be required to
enter into a debt purchase agreement with the sole creditor of FCF for a total
of R116 million (approximately £5.0 million). If the purchase price is paid
in full on completion then a discount of 10% can be achieved on the
outstanding balance. Since the transaction becoming unconditional the Group
has incurred £2 million on refurbishing the smelter complex.
This results in the directors making the following critical judgements in
preparing these financial statements:
Nature of the acquisition - The directors have considered application notes of
IFRS3 and elected to apply the optional test set out in paragraph B7B of IFRS
3 (the 'concentration test') which permits a simplified assessment of whether
an acquired set of activities and assets is not a business. Having determined
that the concentration test is met and the set of activities and assets is not
a business no further assessment is considered necessary. The acquisition of
FCF will therefore be accounted for as an asset acquisition and not a business
combination.
Recognition of assets under construction and related debt obligations -The
directors have considered the definition of an asset set out in Chapter 4 of
the Conceptual Framework for Financial Reporting issued by the International
Accounting Standards Board. In their consideration the directors have had
regard to the Group's unencumbered use of the smelter, including the right to
use it to generate revenue, management's actions in refurbishing the smelter
complex for long term use, the status of the Business Rescue process and
consents obtained from the sole creditor of FCF and the probability of a range
of possible outcomes and of inflows or outflows of economic benefits. The
directors have also considered IAS 16 para 7 in relation to recognition
criteria, in particular paragraph 7 (a) which refers to whether it is probable
that future economic benefits will flow to the group. Based on the nature of
the facts and the actions of management the directors consider that the
'probable' threshold has been passed and therefore it is appropriate to
recognise the asset as an asset under construction at the year end.
As a consequence of their determination the directors have recognised the
Rustenburg smelter complex in assets under construction (see note 14) and also
the deferred and contingent debt obligations under the Debt Purchase Agreement
(see note 18)
Until the Business Rescue process in South Africa is fully concluded in all
respects the acquisition remains subject to contract and there is an element
of uncertainty over this accounting treatment. If for any reason, the
likelihood of which the directors consider to be remote, final closure of the
Business Rescue process does not take place it is probable that asset under
construction of £6.9 million and associated deferred and contingent debt
obligations of £5.0 million would be derecognised and capitalised
refurbishment expenditure of £2.3 million would be expensed.
b) Critical judgement in the recoverability of exploration and evaluation
assets
Exploration and evaluation assets include mineral rights and exploration and
evaluation costs, including geophysical, topographical, geological and similar
types of costs. Exploration and evaluation costs are capitalised if management
concludes that future economic benefits are likely to be realised and
determines that an economically viable extraction operation can be established
as a result of exploration activities and internal assessment of mineral
resources. According to IFRS 6 Exploration for and Evaluation of Mineral
Resources, the potential indicators of impairment include: management's plans
to discontinue the exploration activities, lack of further substantial
exploration expenditure planned, expiry of exploration licences in the period
or in the nearest future, or existence of other data indicating the
expenditure capitalised is not recoverable. At the end of each reporting
period, management assesses whether such indicators exist for the exploration
and evaluation assets capitalised, which requires significant judgement. The
current exploration projects are actively being progressed and therefore the
Directors do not believe any circumstances have arisen to indicate these
assets require impairment. The carrying value of exploration and evaluation
assets at 30 June 2025 was £27,310,000 (2024 restated: £27,996,000) - see
note 7.
c) Share based payment - estimates and assumptions
Warrants were issued by the Group as a payment for services provided to the
Group in relation to the two capital raises held in the year. The grant date
fair value of such warrants is calculated using a Black-Scholes model whose
input assumptions are derived from market and other internal estimates. The
key estimates include volatility rates, the expected life of the warrants and
the risk-free rate. See note 16 for further details.
d) Company only - Critical judgement in the impairment assessment of
investment in subsidiaries
In preparing the parent company financial statements, the Directors apply
their judgement to decide if any or all of the Company's investments
(including capital contributions) in its subsidiaries should be impaired. In
undertaking their review, the Directors consider the outcome of their
impairment assessment of the exploration and evaluation assets for which no
impairment was noted.
The Company statement of financial position includes an investment in
subsidiary companies of £34,688,000 (2024: £32,599,000), which is
underpinned by and reflects the underlying subsidiary exploration and
evaluation assets discussed above and the expected future cash flows from the
Rustenburg smelter complex - see note 9. At the reporting date the Group's
market capitalisation was less than the carrying value of the investment,
which is an indicator of impairment under IAS 36. An impairment review has
been carried out in the period - see note 9.
Deferred tax assets
The directors must judge whether the future profitability of the Group is
likely in making the decision whether or not to recognise a deferred tax asset
in respect of taxation losses. No deferred tax assets have been recognised in
the year.
Key sources of estimation uncertainty
The key source of estimation uncertainty is management's assessment of whether
indicators of impairment exist in respect of the Group's exploration and
evaluation assets, as described in critical judgement (a) above. At the end of
each reporting period management assesses whether any indicators of impairment
exist in accordance with IFRS 6. No indicators of impairment were identified
at the reporting date.
3. Segmental analysis
Information reported to the Group Directors for the purposes of resource
allocation and assessment of segment performance is focused on the activity of
each segment and its geographical location. The directors consider that there
is only one business segment, which is the activity of prospecting,
exploration and mining based in South Africa. The geographical information is
the same as the operational segmental information shown below.
Year ended 30 June 2025 (Continuing operations) (Continuing operations)
Corporate and Administrative (UK) Mineral exploration
£'000 (South Africa) TOTAL
£'000 £'000
Revenue 0 4 4
Loss for the year (172) (1,384) (1,556)
Segment total assets 938 34,377 35,315
Segment liabilities (270) (11,881) (12,151)
Year ended 30 June 2024 (Continuing operations) (Continuing operations)
Restated Corporate and Administrative (UK) Mineral exploration
£'000 (South Africa) TOTAL
£'000 £'000
Revenue 0 164 164
Loss for the year (364) (1,886) (2,250)
Segment total assets 21 35,241 35,262
Segment liabilities (1,320) (12,299) (13,619)
4. Administrative expenses
Administrative expenses for the Group can further be broken down as per below:
Year ended Restated
31 Dec 2025
Year ended
31 Dec 2024
£'000 £'000
Professional fees (305) (331)
Directors' fees (362) (448)
Salaries & wages (328) (135)
Depreciation (20) (17)
South African Operating expenses restated - (426)
Other administrative expenses (545) (473)
Administrative expenses (1,560) (1,830)
Auditor's Remuneration
2025 2024
£'000
£'000
Fees payable for the audit of the Group's financial statements 55 45
55 45
In addition, fees payable to Moore Johannesburg Inc in respect of the audit of
the South African subsidiaries for the year ended 30 June 2025 amounted to
R694,800 (approximately £30,000).
During the year, the incumbent auditors Crowe U.K. LLP, 55 Ludgate Hill,
London EC4M 7JW, were replaced with Moore Kingston Smith LLP following
approval by the Board. In accordance with section 489 of the Companies Act
2006, a resolution to reappoint Moore Kingston Smith LLP as auditor will be
proposed at the forthcoming Annual General Meeting.
5.
Tax
Restated
2025 2024
a) Tax charge/(credit) for the
period
£000 £000
Corporation tax:
Current
period
- -
Deferred tax (note
15)
- 494
(
)
- 494
(
)
b) Factors affecting the tax charge for the period
Loss on ordinary activities for the period before
taxation
(1,556) (1,756)
(
) Loss on ordinary activities for the period before taxation multiplied by
effective rate of corporation tax in the UK of
25%
(389) (439)
Effects of:
Expenses not deductible for tax
purposes
- 53
Tax losses not
recognised
389 433
Tax losses not previously recognised
- (47)
Prior year adjustment - deferred tax on E&E
assets
- 302
Relating to origination and reversal of temporary
differences
- 192
(
) Tax charge for the
period
- 494
(
)
c) Factors that may affect future tax charges - The Group has estimated
unutilised tax losses amounting to £8,690,979 (2024 - £7,277,000) the values
of which are not recognised in the statement of financial position. These
losses represent a potential deferred taxation asset of £2,220,340 (2024 -
£1,842,000) based on the enacted future tax rate of 25% in the United Kingdom
and 27% in South Africa, which would be recoverable should the Group make
sufficient suitable taxable profits in the future.
In addition, the Group has pooled exploration costs incurred of £14,932,425
(2024 - £13,312,000) which are expected to be deductible against future
trading profits of the Group. These costs are capitalised on the balance sheet
as exploration and evaluation assets under IFRS 6 and included within the
intangible asset balance. They are not currently deductible and will become
available for offset against taxable profits upon commencement of production.
6. Earnings per share
The calculation of the basic and diluted earnings per share is calculated by
dividing the profit or loss for the year by the weighted average number of
ordinary shares in issue during the year.
Year ended Restated
30 June 2025 Year ended
30 June 2024
Loss attributable to shareholders of Ironveld PLC - £'000 (1,414) (2,236)
Weighted number of ordinary shares in issue 9,968,534,402 3,800,317,435
Basic & dilutive loss per share from continuing operations - pence (0.01) (0.06)
There is no difference between the diluted loss per share and the basic loss
per share presented. Share options and warrants could potentially dilute basic
earnings per share in the future but were not included in the calculation of
diluted earnings per share as they are anti-dilutive for the years resented.
7. Intangible assets
The Group's exploration and evaluation assets all relate to South Africa.
Exploration assets
Group £'000
Cost and carrying value - 1 July 2023 24,061
Additions (restated) 2,980
Foreign exchange 955
At 30 June 2024 (restated) 27,996
Additions 341
Foreign exchange (1,027)
At 30 June 2025 27,310
In respect of the exploration and evaluation assets, the Group has carried out
a review for indicators of impairment in accordance with IFRS 6. The
assessment considered the status and duration of the Group's Mining Rights,
ongoing exploration and development activity across all licence areas, the
results of the Definitive Feasibility Study, operational progress at the
Altona opencast pit, and the post-period agreements with Daemaneng Minerals
which secure long-term ore supply and eliminate future mining expenditure. No
rights have expired, exploration programmes continue, and commercial reserves
remain supported by JORC-compliant resource statements. On this basis,
management concluded that no indicators of impairment exist and accordingly no
impairment charge has been recognised for the year ended 30 June 2025.
8. Property, plant and
equipment
Assets under Motor Plant and
Group
construction vehicles machinery
Total
£000 £000
£000 £000
Cost:
At 1 July
2023
6,880
52 53 6,985
Exchange
differences
283
2 2 287
( )
(
)
At 30 June
2024
7,163
54 55 7,272
(
)
Exchange
differences
(340) (3)
(3) (346)
( )
(
)
At 30 June
2025
6,823
51 52
6,926 ( )
(
)
Depreciation:
At 1 July
2023
-
11 36 47
Charge for the
period
-
11 7
18
Exchange
differences
-
- 2
2
( )
(
)
At 30 June
2024
-
22 45 67
(
)
Charge for the
period
-
11 4
15
Exchange
differences
-
-
- -
( )
(
)
At 30 June
2025
-
33 49
82 ( )
(
)
Net book value at 30 June
2025
6,823
18 3 6,844
( )
(
)
Net book value at 30 June
2024
7,163
32 10 7,205
( )
(
)
The assets under construction represent the cost of refurbishment of the
Rustenburg smelter and include £4,788,712 (2024 - £4,334,000) of deferred
costs which at the balance sheet date were unconditional but remained subject
to contract. All non-current assets are located in South Africa.
9. Investments
Company - Subsidiary undertakings
Loans Equity Total
£000 £000
£000
Cost:
At 1 July
2023
10,520 20,334
30,854
Additions
1,745 -
1,745(
)
At 30 June
2024
12,265 20,334
32,599
( )
Additions
2,089
- 2,089
( )
At 30 June
2025
14,354 20,334 34,688
( )
Net book value at 30 June
2025
14,354 20,334 34,688
( )
( )
Net book value at 30 June
2024
12,265 20,334 32,599
( )
( )
The loans represent amounts due from Ironveld Holdings (Proprietary) Limited
of £13,534,441 (2024: £12,067,000), which now accrue interest under the
revised intra-group facility agreement dated 13 November 2025 at a rate not
exceeding the base lending rate applicable in England and Wales. Under the
original terms, £2,500,000 was repayable on 31 December 2019 with the
remainder due on 31 December 2020; however, the loan period has been extended
under the new agreement until project finance is secured. Also included are
working capital loans to Ironveld (Mauritius) Limited of £213,000 (2024:
£197,000). A new USD-denominated intra-group facility was executed on 24
November 2025; no interest has been recognised in FY2025, with interest to
accrue from FY2026 onwards.
At the reporting date the Group's market capitalisation was £7.5 million
(based on a closing share price of 0.0475p and 15,830,978,237 shares in
issue), which was below the carrying value of the Company's investment in
subsidiaries of £34,688,000. This constitutes an indicator of impairment
under IAS 36. Accordingly, an impairment review was performed during the
period.
The Company's investment in subsidiary undertakings of £34,688,000 (2024:
£32,599,000) is supported by the underlying exploration and evaluation assets
and the expected future cash flows from the Rustenburg smelter complex. The
subsidiaries have been assessed as a single cash-generating unit. An
impairment review was performed based on discounted cash flows from a
pilot-scale smelter operation over a 10-year period. In all scenarios tested,
including reasonably possible downside cases, the recoverable amount exceeded
the carrying value of the investment. On this basis, no impairment has been
recognised.
The intercompany loan balances have been assessed for expected credit losses
in accordance with IFRS 9. The Directors have performed an ECL assessment by
reference to the IAS 36 impairment review carried out above, which
demonstrated that the recoverable amount of the underlying cash-generating
unit exceeded the carrying value of the loans in all scenarios tested,
including reasonably possible downside cases. On this basis, the
probability-weighted expected credit losses on the intercompany loan balances
are immaterial and no loss allowance has been recognised.
The Company has investments in the following subsidiaries.
Proportion of Nature
of
Name of
company
Shares voting
rights business
and shares held
Subsidiary undertakings
Ironveld (Mauritius) Limited
Ordinary
*100% Holding
Company
Ironveld Holdings (Proprietary) Limited
Ordinary
100% Holding
Company
Ironveld Mining (Proprietary) Limited
Ordinary
100% Mining and exploration
Ironveld Energy (Proprietary) Limited
Ordinary 100%
Ore processing and smelting
Ironveld Smelting (Proprietary) Limited
Ordinary 74%
Ore processing and smelting
Altona Processing (Proprietary) Limited
Ordinary 100%
Ore processing and smelting
HW Iron (Proprietary) Limited
Ordinary
68% Prospecting and mining
Lapon Mining (Proprietary) Limited
Ordinary
74% Prospecting and mining
Luge Prospecting and
Mining (Proprietary) Limited
Ordinary
74% Prospecting and mining
* Ironveld (Mauritius) Ltd is held directly by Ironveld plc. All other
subsidiaries are held indirectly through Ironveld Holdings (Proprietary) Ltd.
All subsidiary undertakings are incorporated and domiciled in South Africa,
other than Ironveld (Mauritius) Limited, which is incorporated and domiciled
in Mauritius.
The registered office of all subsidiaries with the exception of Ironveld
(Mauritius) Limited was Gartner House, 33 Wessel Road, Rivonia 2128, South
Africa.
The registered office of Ironveld (Mauritius) Limtied is - C/o Rogers Capital
Corporate Services Limited, 3(rd) Floor, Rogers House, No. 5 President John
Kennedy Street, Port Louis, Republic of Mauritius.
On 4 March 2025, the Group incorporated Altona Processing (Pty) Ltd as a
wholly-owned subsidiary to represent its interests in a new 50/50 incorporated
joint venture with Sable Platinum Holdings (Pty) Ltd for the operation of a
DMS magnetite beneficiation plant, held through Lapon Plant (Pty) Ltd. This
new structure replaced the Group's previous interest held through its former
joint venture vehicle, iPace, all agreements relating to which have been
terminated. The Group has made the investments required to achieve parity with
Sable's contribution to date, with both parties' investments recorded as loan
accounts in Lapon Plant (Pty) Ltd. The definitive Shareholders' Agreement
remains to be formally executed, however the Heads of Agreement signed by all
parties is legally binding and the Board considers the 50/50 partnership
commercially established.
Further details of non-wholly owned subsidiaries of the Group are provided in
note 20.
10.
Inventories
Group
Company
2025 2024
2025 2024
£000 £000
£000 £000
Ore
stockpile
41
43
- -
( )
(
)
Due within 12
months
41
43
- -
( )
11. Trade and other receivables
Group
Company
2025 2024 (Restated)
2025 2024
£000 £000
£000 £000
Other
receivables
220
- 37 5
Amounts owed by related
parties
-
8
- -
Prepayments
38 6
44 12
( )
(
)
258 14
81 17
Due within 12
months
(258)
(6) (81) (17)
( )
(
) Due after more than 12
months
-
8
- -
( )
(
)
Amounts owed by related parties represent expenses paid on behalf of the
non-controlling interest shareholders by the company and are expected to be
recovered in more than 12 months. The amounts are unsecured and interest free.
Credit risk
The Group's principal financial assets are bank balances, cash balances,
amounts owed by related parties and other receivables. The Group's credit risk
is primarily attributable to its other receivables, of which £nil (2024:
£nil) is due from a third party financial institution. The remaining other
receivable principally relates to recoverable VAT. The amounts presented in
the balance sheet are net of allowances for doubtful receivables.
12. Payables and contract
liabilities
Group
Company
2025 2024
(Restated) 2025 2024
£000 £000
£000 £000
Trade
payables
4,049 3,372
207 351
Other
payables
4,128 5,112
1 9
Accruals
62
451 62 450
( )
(
)
8,239
8,935 270 810
Due within 12
months
(4,111)
(4,539) (270) (810)
( )
(
) Due after more than 12
months
4,128 4,396
- -
( )
(
)
Other payables includes £4,788,712 (R116,000,000) (2024 - £5,027,000
(R116,000,000)) in respect of the proposed Rustenburg smelter acquisition
which was unconditional at the year-end but which remained subject to
contract. On completion, £4,128,200 (R100,000,000) (2024 - £4,334,000
(R100,000,000)) will be due after 12 months with the remainder anticipated to
be due within 12 months.
13. Lease liabilities
The Group has lease contracts for certain items of motor vehicles with lease
terms of six years. In addition, the Group uses short-term leases (less than
12 months term) where considered appropriate to its requirements and takes
advantage of the recognition exemptions for such leases.
Right-of-use
assets
Group
Company
2025 2024
2025 2024
£000 £000
£000 £000
Cost:
At 1
July
41
41
- -
Additions
-
-
- -
Exchange
differences
2
2
- -
( )
(
)
At 30
June
43
43 -
-
( )
(
)
Depreciation:
At 1
July
9
9
- -
Charge for the
period
5
8
- -
Exchange
differences
4
1
- -
( )
(
)
At 30
June
18
18 -
-
( )
(
)
Net book value at 30
June
25
25
- -
( )
(
)
Lease
liabilities
Group
Company
2025 2024
2025 2024
£000 £000
£000 £000
At 1
July
37
37
- -
Additions
-
-
- -
Interest
expense
6
6
- -
Payments
(19)
(11)
- -
Exchange
differences
4
5
- -
( )
(
)
28
37
- -
Due within 12
months
(13)
(11) -
-
( )
(
) Due after more than 12
months
15
26
- -
( )
(
)
The Group leases vehicles under ZAR-denominated finance arrangements. At 30
June 2025, the lease liability was £28,000 (2024: £37,000), of which
£13,000 is due within 12 months. The reduction reflects FX movement on the
ZAR liability. The right-of-use asset is recognised within property, plant and
equipment and depreciated over the lease term.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. Lease liabilities (continued)
Maturity
analysis
Group
Company
2025 2024
2025 2024
£000 £000
£000 £000
On
demand
-
-
- -
Within 1
year
13
11
- -
Between 1 to 2
years
10
11
- -
Between 2 to 5
years
6
27
- -
Over 5
years
-
-
- -
( )
(
)
Total undiscounted
liabilities
29
49
- -
Future finance charges and other
adjustments
(1)
(12) -
-
( )
(
) Lease liabilities in the financial
statements
28
37
- -
( )
(
)
14. Borrowings
Group
Company
2025 2024
2025 2024
£000 £000
£000 £000
Other
loans
-
570 -
510
( )
( )
Due within 12
months
-
570 - 510
( )
(
)
In prior year the others loans in the group and company represented amounts
due of £510,000 to Tracarta Limited (in which John Wardle, Executive Chaiman
of the Company has a beneficial interest). The loans attracted a fixed
interest rate of 11% and arrangement fees of £12k.
On 15 October 2024, Tracarta Limited agreed to capitalise £555,000 of this
loan, into 1,541,666,666 New Ordinary Shares with the balance of cash and
interest repaid in cash. In addition, other loans in the group included
£60,000 (R1.4m) due to James Allen. The loan does not attract interest and
was fully repaid during the period.
Tracarta Other Total
£000 £000 £000
Loans at the beginning of the year 510 60 570
Loans advanced in the year 85 - 85
Interest charged on loans in py (in accruals) 55 - 55
Interest charged on loans in cy 10 - 10
Shares issued to Tracarta (see note 23) (555) - (555)
Balance paid in cash (105) (60) (165)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
15. Deferred tax
Group
Restated
2025 2024
£000 £000
At 1
July
4,077 3,284
Relating to origination and reversal of temporary differences
- 192
Charge to income statement - restatement (Note
23)
- 302
Exchange
differences
(193) 299
( )
At 30
June
3,884 4,077
(
)
The Group has unrelieved tax losses carried forward which represent a deferred
tax asset of £2,220,340 (2024: £1,842,000) based on current tax rates. This
asset is not recognised in these financial statements.
The deferred tax liability arises on the fair value uplift of exploration
rights recognised at the mining consolidation level in South Africa and does
not create taxable income within the individual subsidiaries. The DTL and the
unrecognised deferred tax asset on losses cannot be offset under IAS 12 as the
DTL arises at consolidation level whilst the deferred tax assets on losses
arise within individual South African subsidiaries and the UK parent entity.
Under South African tax law, assessed losses are ring-fenced to the entity in
which they arise, cannot be transferred between group companies, and their use
is restricted to a percentage of taxable profits each year. As there is no
legally enforceable right of offset and the relevant subsidiaries are not
expected to generate sufficient taxable profits to utilise these losses, no
deferred tax asset has been recognised.
16. Financial instruments
The Group's policies as regards derivatives and financial instruments are set
out in the accounting policies in note 2. The Group does not trade in
financial instruments.
Capital risk management
The Company and the Group manages its capital to ensure that they will be able
to continue as a going concern whilst maximising the return to stakeholders
through the optimisation of the debt and equity balance. The Group's overall
strategy remains unchanged from 2024. The capital structure of the Group
consist of equity attributable to equity holders of the parent Company. The
Company and the Group are not subject to any externally imposed capital
requirements.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Company. The
Company and the Group have adopted a policy of only dealing with creditworthy
counterparties as a means of mitigating the risk of financial loss from
defaults. The Group's exposure and the credit ratings of its counterparties
are continuously monitored and the aggregate value of the transactions
concluded is spread where possible. Further information is provided in note
17.
Liquidity Risk Management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has established an appropriate framework for managing the
Company and the Group's short, medium and long-term funding and liquidity
requirements. The Group manages liquidity risk by assessing required reserves
and banking facilities, continuously monitoring forecast and actual cash
flows, and matching the maturity profiles of financial assets and liabilities.
At the year-end the Group had no undrawn bank facilities.
Subsequent to the reporting date, the Group entered into binding agreements
with Daemaneng Minerals (Pty) Ltd under which Daemaneng has assumed full
responsibility for funding and managing both mining operations at Lapon and
the joint venture DMS processing plant. These arrangements materially reduce
the Group's future funding requirements by eliminating capital and operating
expenditure obligations in respect of mining and processing, whilst securing
guaranteed revenue streams and near-term cash inflows.
Whilst these developments have significantly reduced the Group's longer-term
capital requirements, the Directors acknowledge that in the short term the
Group's working capital needs will require the continued raising of external
funds. The agreements establish a capital-light operating model that preserves
the Group's upside exposure to production and market pricing, whilst ensuring
retention of its long-term mining licences and governance oversight. The
Directors consider that, taken together, these developments strengthen the
Group's ability to manage its liquidity risk over the medium and long term.
The table below summarises the maturity profile of the Group's financial
liabilities based on contractual undiscounted payments:
Lease Liabilities Trade and other payables
£000 £000
On demand - 4,111
Less than three months 2 -
3 to 12 months 11 -
1 to 5 years 16 -
Greater than 5 years - -
Total undiscounted 29 4,111
Future finance charges (1) -
At 30 June 2025 28 4,111
In addition to the above, financial liabilities include unconditional
acquisition costs for the Rustenburg Smelter of £4,788,712 (R116,000,000)
(2024 - £5,027,000 (R116,000,000)) as disclosed in note 13. As the deal
remains unconditional but subject to contract, no contractual maturity exists
at the year end. On completion, approximately £660,512 (R16,000,000) will be
due within 12 months with the remainder of £4,128,200 (R100,000,000) due
after 12 months.
Interest rate risk profile
The Company and the Group is exposed to interest rate risk because the Group
borrows funds for working capital at fixed and variable rates. The Group
exposure to interest rates on financial assets and liabilities are detailed in
the liquidity risk management section of this note.
Financial assets
The Group has no financial assets, other than short-term receivables and cash
deposits of £862,000 (2024 - £4,000). The cash deposits attract variable
rates of interest. At the year-end the effective rate was 1.49% (2024 -
0.47%). The cash deposits held were as follows:
2025 2024
£000 £000
Ironveld PLC
857 3
Ironveld South Africa
Group
5 1
( )
862 4
( )
Financial liabilities - Lease liabilities
Lease liabilities of £28,345 (2024 - £37,000) attract interest at a variable
rate of 2.49% above the First National Bank Prime lending rate which was
10.75% at the year end.
Sensitivity analysis - As the interest-bearing liabilities are not significant
to the overall Group then an increase of 1% in interest rates in South Africa
at the balance sheet date would not have a significant effect on the profit
and loss of the group.
17. Share capital
Group and Company
2025 2024
£000 £000
Allotted, called up and fully paid
Nil (2024 - 3,934,996,887) Ordinary shares of 0.1p
each
- 3,934
15,830,978,237 (2024 - Nil) Ordinary shares of 0.01p
each
1,583 -
35,414,971,983 (2024 - Nil) deferred shares of 0.001p
each
3,541 -
322,447,158 (2024 - 322,447,158) deferred shares of 1p
each
3,224 3,224
5,894,917,569 (2024 - 5,894,917,569) deferred shares of 0.1p
each
5,896 5,896
( )
14,244 13,054
( )
(
)
Number of Shares Share Share Total
Capital Premium
No. £000 £000 £000
As at 30 June 2024 3,934,996,887 13,054 25,925 38,979
Subdivision - Nov 2024 - - - -
Issued in the year - Nov 2024 6,944,444,444 694 1,806 2,500
Issued to cover Tracarta Loan - Nov 2024 1,541,666,666 154 401 555
Issued to cover creditors - Nov 2024 1,320,981,351 132 343 475
Issued in the year - June 2025 2,088,888,889 210 731 941
Share issue costs - - (400) (400)
As at 30 June 2025 15,830,978,237 14,244 28,806 43,050
As announced on the 30 October 2024, and subsequently approved on 20 November
2024, the Company agreed to carry out a subdivision of the existing ordinary
shares whereby each existing ordinary share of 0.1 pence was subdivided into
one new ordinary share of 0.01 pence and nine deferred shares of 0.01 pence
each to enable the placing at 0.036 pence per share to become unconditional.
The new ordinary shares continue to carry the same rights as attached to the
existing ordinary shares, save for the reduction in nominal value.
On the same date, the Group issued 6,944,444,444 placing and subscription
shares at a price of 0.036 pence per share, raising gross proceeds of
£2,500,000. In addition, 2,862,647,017 new ordinary shares were issued at
0.036 pence in settlement of certain loan facilities, creditors and Directors
salaries. Finally, Investor Warrants were issued to the recipient of the new
ordinary shares pursuant to the transaction on a 1 for 1 basis, with each
investor warrant exercisable at 0.072 pence for a period of 3 years.
On 18 June 2025, a further 2,088,888,889 new ordinary shares were issued at an
issue price of 0.045 pence and admitted to trading to raise gross working
capital of £940,000 for the Group.
Unlike ordinary shares, the deferred shares have no voting rights, no dividend
rights and on a return of capital or winding up are entitled to a return of
amounts credited as paid. The deferred shares are not transferrable and
beneficial interests in the deferred shares can be transferred to such persons
as the Directors may determine as custodian for no consideration without
sanction of the holder. For this reason the deferred shares are excluded from
any Earnings per share calculations.
Share options
The Company has a share option scheme for certain employees and former
employees of the Group. The share options in issue during the year were as
follows:
Date granted Expiry date As at 1 July 2024 Granted/Exercised/Lapsed As at 30 June 2025 Exercisable at 30 June 2024 Exercisable at 30 June 2025
1 October 2015 9 January 2030 2,500,000 - 2,500,000 2,500,000 2,500,000
27 February 2023 27 February 2033 35,750,000 - 35,750,000 11,916,667 23,833,333
38,250,000 38,250,000 14,416,667 26,333,333
The options are exercisable 1/3 on the first anniversary of grant, 1/3 on the
second anniversary of grant and the final 1/3 on the third anniversary of the
grant date. Accordingly, the number of options exercisable at 30 June 2025
was 26,333,333.
These options are valued in accordance with IFRS2, as equity settled
share-based payment transactions and the total expense recognised in the year
for the share option cost was £25,000 (2024: £25,000).
The weighted average contractual life of share options outstanding at the end
of the year was 7.45 years (2024: 8.46 years). The highest and lowest market
price of the Company's shares during the year was 0.035p and 0.058p
respectively (2024: 0.039p and 0.34p). The share price at year end was
0.048p (2024: 0.039p).
Warrants
The Company has issued the following warrants, which are still in force at the
date of this balance sheet.
Date of Issue Reason for issue Number of Warrants Exercise Price Expiry date
Issued 2 August 2022 Broker warrants 375,000,000 0.3p 2 August 2025
Issued 14 March 2023 Broker warrants 135,000,000 0.3p 13 March 2026
Issued 14 November 2023 Placing warrants 360,000,000 0.29p 14 November 2026
Issued 20 November 2024 Broker warrants 694,444,444 0.036p 19 November 2029
Issued 20 November 2024 Placing warrants 9,807,092,461 0.072p 19 November 2027
Issued 13 June 2025 Broker Warrants 200,000,000 0.045p 13 June 2030
The following table sets out the movement of warrants during the year, no
warrants were exercised during either year:
Number of warrants Exercise price (pence)
As at 30 June 2024 1,216,333,333 0.29p to 0.5p
Issued in the year - Nov 2024 10,501,536,905 0.072p to 0.036p
Issued in the year - June 2025 200,000,000 0.045p
Expired in the year (346,333,333) 0.05p to 0.3p
As at 30 June 2025 11,571,536,905 0.036p to 0.3p
The weighted average price of all warrants at the year-end is £0.09 (2024:
£0.35) and weighted average life of these warrants is 2.39 years (2024: 1.41
years).
Share-based payments/Other reserves
Other reserve
£'000
At 1 July 2023 94
Lapsed warrants (12)
At 30 June 2024 82
Share-based payment charge - warrants 133
Option charge 25
Lapsed warrants (2)
At 30 June 2025 238
The Company issued broker warrants in November 2024 and June 2025 as noted
above. In accordance with IFRS 2, these warrants were classed as equity
settled share-based payment transactions. £133,000 has been recognised as
the fair value of the Broker warrants issued as part of the equity raises in
the year. These amounts are attributable to the cost of shares issued and
therefore have been accounted for in share premium reserve.
The fair values in the year were calculated using the Black Scholes model with
inputs as detailed below:
Broker warrants Nov 24 Broker warrants June 2025
Number of warrants 694,444,444 200,000,000
Share price 0.037p 0.0485p
Exercise price 0.036p 0.045p
Expected life 3 years 5 years
Volatility 71% 71%
Risk-Free Interest rate 4.096% 3.929%
Expected dividends - -
Fair Values £90,000 £43,000
Expected volatility has been based on an evaluation of the historical
volatility of the Company's share price. The fair value has been discounted by
30% to account for the early-stage development of the Company and limited
liquidity due to its small capital nature.
18. Reserves
(
) Group and Company
Other reserves represent the equity component of share options and share
warrants issued in the year.
The balance classified as share premium is the premium on the issue of the
Group's equity share capital, less any costs of issuing the shares.
The foreign currency translation reserve accumulates the foreign currency
gains and losses on the translation of foreign operations.
Retained earnings is made up of cumulative profits and losses to date, share
based payments, adjustments arising from changes in non-controlling interests
and exchange differences on translation of foreign operations.
19. Related party transactions
Key management personnel comprise the Directors of the Company. Remuneration
of key management is disclosed in the Directors' Remuneration Note.
Transactions with entities in which Directors have an interest:
· Goldline Global Consulting (Pty) Ltd - company in which Peter Cox has
an interest; consultancy services charged (FY24: £86, FY25: £24,142).
· Westleigh Investments Ltd - company in which Giles Clarke and
Nicholas Harrison have interests; accounting services charged (FY24: £60,000,
FY25: £45,000).
Loans and other balances with related parties:
Company/Name Related party Amount Number of shares Amount outstanding at year end Description
£
Tracarta Limited John Wardle £555,321 1,541,666,666 £nil Loan and interest settled in equity in Oct 2024 placing (see note 17)
John Wardle - £32,910 91,416,611 £nil Deferred Directors fees
Warmbad Investments Holdings (Pty) Ltd Peter Cox £144,067 400,186,111 £nil Loan settled in equity in Oct 2024 placing
Westleigh Investments Ltd Nick Harrison and Giles Clarke £74,550 207,083,333 £nil Creditor settlement in equity in Oct 2024 placing
Nick Harrison - £34,031 94,530,555 £nil Deferred Directors fees
Kris Andersson - £7,692 21,367,521 £nil Deferred Directors fees
Giles Clarke - £32,644 90,680,555 £nil Deferred Directors fees
20. Non-controlling interest
2025 2024
£000 £000
(
) At 1
July
2,848 2,748
Exchange
adjustments
(130) 114
Share of profit/(loss) for the
period
(142) (14)
( )
(
)
At 30 June
2,576 2,848
( )
(
)
The table below shows details of non-wholly owned subsidiaries of the Group
that have material non-controlling interests:
Proportion of voting rights and shares held Profit/ (loss) allocated to non-controlling interests Accumulated non-controlling interests
2025 2024 2025 2024 2025 2024
% % £000 £000 £000 £000
HW Iron (Proprietary) Limited 32 32 - - 888 932
Lapon Mining (Proprietary) Limited 26 26 (46) (50) 1,795 1,930
Ironveld Smelting (Proprietary) Limited 26 26 (96) - (105) (13)
Other non-controlling interests - 36 (2) (1)
(142) (14) 2,576 2,848
Summarised financial information in respect of each of the Group's
subsidiaries that have material non-controlling interests is set out below.
The summarised financial information represents amounts before intragroup
eliminations. The accounts of the subsidiaries have been translated from their
presentational currency of South African Rand (R) using the R:GBP exchange
rate prevailing at 30 June 2025 of R24.22 (2024: R23.08).
HW Iron (Proprietary) Limited
2025 2024
£000 £000
Non-current assets
6,195 6,437
Current
assets
10 5
Current
liabilities
(97) (63)
Non-current
liabilities
(3,365) (3,466)
( )
(
)
2,743 2,913
( )
(
)
Equity attributable to owners of the
Company
1,865 1,981
Non-controlling
interest
878 932
( )
Revenue
- -
Expenses
- -
Tax
- -
( )
(
)
Profit/(loss) for the
year
- -
( )
Attributable to the owners of the
Company
- -
Attributable to the non-controlling
interests
- -
( )
Net cash (outflow)/inflow from operating
activities
- (56)
Net cash outflow from investing
activities
- (175)
Net cash inflow from financing
activities
- 119
( )
(
)
Net cash flow - Attributable to the non-controlling
interests
- -
( )
Lapon Mining (Proprietary) Limited
(
)
2025 2024
£000 £000
Non-current assets
12,260 12,839
Current
assets
142 9
Current
liabilities
(247) (290)
Non-current
liabilities
(5,280) (5,136)
( )
6,875
7,422
( )
(
)
Equity attributable to owners of the
Company
5,088 5,492
Non-controlling
interest
1,787 1,930
( )
Revenue
- -
Expenses
(178) (194)
Tax
- -
( )
(
)
Profit/(loss) for the
year
(178) (194)
( )
( )
Attributable to the owners of the
Company
(132) (144)
Attributable to the non-controlling
interests
(46) (50)
( )
Net cash inflow from operating
activities
- 1
Net cash outflow from investing
activities
- (200)
Net cash inflow from financing
activities
- 200
( )
(
)
Net cash
flow
- 1
( )
(
)
Net cash flow - Attributable to the non-controlling
interests
- -
21. Events arising after the reporting period
Subsequent to the year end, the Group entered into two binding agreements with
Daemaneng Minerals (Pty) Ltd ("Daemaneng") which together represent a
significant post balance sheet event. On 7 October 2025, the Group's 74%-owned
subsidiary Lapon Mining (Pty) Ltd entered into a Mining Operations Agreement
under which Daemaneng assumed full responsibility for all mining operations at
the Lapon site, including all capital and operating expenditure, thereby
eliminating any future mining-related cash outflows for the Group. Daemaneng
has committed to fund approximately ZAR 500 million (c. £21.6 million) over a
five-year period, recoverable solely from sales of mined material, while
Ironveld retains full ownership of the mining licence and governance
oversight. Subsequently, on 30 October 2025, the Group's subsidiary Altona
Processing (Pty) Ltd and joint venture partner Sable Platinum Holdings (Pty)
Ltd signed a binding term sheet appointing Daemaneng as exclusive manager of
the joint venture DMS magnetite processing plant. Under this agreement,
Daemaneng will fund all capital and operating costs, target a production
ramp-up to 15,000 tonnes per month by April 2026, and act as exclusive
marketing and sales agent, with revenues distributed under a profit-sharing
waterfall entitling Altona and Sable to a guaranteed base revenue per tonne
plus participation in additional profit. As part of this arrangement,
Daemaneng will provide an initial prepayment of ZAR 1.6 million (c. £70,000),
split equally between Altona and Sable, to support near-term liquidity.
Together, these agreements establish a fully integrated, capital-light
operating model across the Group's mining and processing activities,
materially de-risking Ironveld's funding requirements and cash flow profile by
removing future mining and processing expenditure obligations, while securing
guaranteed revenue streams, accelerating near-term cash inflows, and retaining
exposure to production and market upside. The Board considers these
developments fully aligned with the Company's long-term growth and
diversification objectives.
22. Control
The Directors consider that there is no single ultimate controlling party of
the Company. The shares are widely held and, accordingly, no individual
shareholder or concert party exercises overall control.
23. Prior year restatement
During the year ended 30 June 2025, management identified prior period errors
in the financial statements of certain South African subsidiaries for the year
ended 30 June 2024.
The errors arose from: (i) loan balances between South African group entities
being incorrectly posted to exploration and evaluation asset accounts rather
than to intercompany loan accounts; (ii) prepaid expenses and an environmental
guarantee receivable being incorrectly recognised; (iii) employee costs not
being recognised in the period in which they were incurred; and (iv)
intercompany employee cost recoveries being incorrectly presented net against
expenses rather than gross. In accordance with IAS 8, the comparative figures
for the year ended 30 June 2024 have been restated to correct these
misstatements.
The errors originated within the South African operations and do not affect
the Parent Company's standalone financial statements for either year.
Impact on consolidated balance sheet as at 30 June 2024
Line item As reported £000 Adjustment £000 Restated £000
Intangible assets (E&E) 28,357 (361) 27,996
Trade and other receivables 115 (109) 6
Total assets 35,732 (470) 35,262
Trade and other payables - CL (4,541) 2 (4,539)
Trade and other payables - NCL (4,334) (62) (4,396)
Deferred tax liability (3,615) (462) (4,077)
Total liabilities (13,097) (522) (13,619)
Net assets 22,635 (992) 21,643
Retained earnings (10,213) (831) (11,044)
Foreign currency translation reserve (9,061) (161) (9,222)
Total equity 22,635 (992) 21,643
Impact on consolidated income statement for year ended 30 June 2024
Line item As reported £000 Adjustment £000 Restated £000
Revenue 267 (103) 164
Other Income 1 - 1
Administrative expenses (1,404) (426) (1,830)
Loss before taxation (1,227) (529) (1,756)
Taxation (192) (302) (494)
Loss for the year (1,419) (831) (2,250)
The other income line carries a nil adjustment as the intercompany salary
recharge has been eliminated on consolidation and presented net - both the
gross income and the corresponding gross expense have been removed, with no
net P&L impact. The deferred tax liability adjustment of £462,000
comprises a £302,000 charge arising on the tax effect of the exploration and
evaluation asset restatement, recognised within taxation in the income
statement, and a further £161,000 correction to the opening DTL translation
recognised directly in retained earnings as a prior period adjustment.
The restatement has no impact on the current year results or financial
position of the Group for the year ended 30 June 2025, nor on the Parent
Company financial statements for either year. All adjustments are non-cash in
nature. As the restatement relates solely to the year ended 30 June 2024, no
adjustment is required to the opening balance sheet at 1 July 2023 and
accordingly a third comparative balance sheet has not been presented in
accordance with IAS 1 paragraph 40A.
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