REG - Ironveld PLC - Interim results for the 6 months ended 31 Dec 2021
31/03/2022 07:01
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RNS Number : 6563G Ironveld PLC 31 March 2022
31 March 2022
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2021
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium and Titanium
project located on the Northern Limb of the Bushveld Complex in Limpopo
Province, South Africa (the "Project") is pleased to announce its interim
results for the six months ended 31 December 2021 ("the period").
Highlights
Operational
· Overheads incurred during the period reflected continued low
level of activity whilst Company awaited Grosvenor transaction to proceed to
completion.
Corporate Transactions
· Investment transactions with Grosvenor Resources announced in
October 2021 and December 2021 for a total of approximately £8.40 million
(ZAR 161 million); and
· Board remains in regular dialogue with Grosvenor regarding its
funding arrangements and still expects the transactions to close when
finalised.
Martin Eales, CEO, said:
"The announced transactions with Grosvenor will, when completed, represent a
transformational change for Ironveld, bringing a significant and
well-connected South African partner to the share register. The Board is in
regular communication with Grosvenor,regarding its funding process and the
institutions involved and we look forward to completion soon."
For further information, please contact:
Ironveld plc c/o Blytheweigh
Martin Eales, Chief Executive Officer 020 7138 3204
finnCap (Nomad and Broker) 020 7220 0500
Christopher Raggett/Charlie Beeson
Turner Pope (Joint Broker) 020 3657 0050
Andy Thacker/James Pope
BlytheRay 020 7138 3204
Megan Ray/Tim Blythe
Notes to Editors:
Ironveld (IRON.LN) is the owner of a High Purity Iron (HPI), Vanadium and
Titanium project located on the Northern Limb of the Bushveld Complex in
Limpopo Province South Africa. Ironveld expects to mine its own VTM ore as
feedstock for smelting which will produce speciality iron products including
high purity iron powder as well as vanadium and titanium slag products.
The Definitive Feasibility Study published in April 2014 confirms the
project's viability to deliver an exceptionally high-grade iron product (99.5%
Fe) called High Purity Iron which commands a premium in the market place.
Vanadium and Titanium slag containing commercial grades of vanadium and
titanium will also be produced and sold.
Ironveld is an AIM traded company. For further information on Ironveld please
refer to www.ironveld.com.
Chairman's Statement:
During the period the Company announced two significant investment
transactions with Grosvenor Resources Pty Limited ("Grosvenor"), whereby
Grosvenor will subscribe for 561,505,950 new ordinary shares at 1.0 pence per
share and an intention to acquire 51% of Ironveld's subsidiary company, Luge
prospecting and Mining Company Pty Limited ("Luge"), for ZAR 50 million
(approximately £2.6 million). The Luge transaction was formally signed post
period end in January 2022. The Board considers that these transactions are
highly attractive for the Company's development as they will introduce a
well-connected South Africa based investment group to the share register in a
material size.
The Ironveld Board remains confident that the Company's asset, containing 27
million tons of HPI, together with significant Vanadium and Titanium content,
continues to demonstrate robust economics and has a potential value many times
in excess of the Company's market capitalisation and balance sheet carrying
value.
The fundamentals driving vanadium pricing in particular continue to be
supportive as the global annual demand grows, partly driven by increasing
Chinese demand and the advancements in technology for vanadium redox
batteries, which is forecast to comprise 15% of all vanadium demand by 2025.
In recent months, the price of vanadium has seen a strong increase and now
rests at its highest level since early 2019.
The demand for HPI, as a water atomised powder, continues to increase due to
its common use in the automotive industry, powder metallurgy and magnetic
materials. A growing new market incorporates metal powders in 3D printing.
Titanium slag is a key element in the development of new battery technology
and is widely utilised in the steel, alloy and pigment industries.
We remain committed to operating responsibly, working closely with
stakeholders and local communities at grassroots level to improve standards of
living. We continue to support our 'Keep a Girl in School' initiative working
alongside our local partners, The Imbumba Foundation and the Nelson Mandela
Foundation, to provide hygiene support to approximately 600 female students at
school in the local area.
Financial
A reduced level of Administrative expenses totalling £384,000 (2020:
£458,000) were incurred in the period as the Company focused on keeping tight
control on costs prior to securing the necessary development funding.
The Group recorded a loss before tax of £382,000 (H1 2020: loss of £79,000),
broadly in line with Administrative expenses, and had cash balances of
£24,000 (30 June 2021: £270,000) at the end of the period. The Company does
not plan to pay a dividend for the six months ended 31 December 2021.
On 30 December 2021, the Company announced a £200,000 Bridge Loan Facility
with Giles Clarke and Nick Harrison, both Directors of the Company.
Transactions with Grosvenor
The equity subscription transaction with Grosvenor was announced in October
2021 and the Luge transaction was announced in December 2021, but formally
signed post period end in January 2022. When both transactions are closed,
Grosvenor will have invested a total of approximately £8.40 million (or ZAR
161 million) and will hold approximately 29.9% of Ironveld's issued share
capital.
Shareholder approval for the Grosvenor equity subscription was granted at a
General Meeting in November 2021 and refreshed at the Annual General Meeting
of the Company in January 2022.
As at today's date Grosvenor has not finalised its own funding arrangements
which will enable it to close the announced transactions. Ironveld has been
made fully aware during regular communication with Grosvenor as to the status
of these funding arrangements and the institutions involved and consequently
the Board has taken the view that despite the time taken the transactions are
likely to close following Grosvenor completing its own funding package.
Going concern
Given the anticipated cash inflow from the Grosvenor transactions, the
Directors are confident that sufficient funds can be raised for planned
activities. The Directors therefore have a reasonable expectation that the
Group will have adequate resources to continue in operational existence for
the foreseeable future being 12 months from the date of the approval of these
interim financial statements in the absence of any further funding and
therefore present these accounts on a Going Concern basis.
COVID-19
At Ironveld, the wellbeing of our people and our business is of upmost
importance.
The Company closely follows health and travel advice as it develops in
relation to COVID-19 as well as the guidance from the Governments and
authorities relevant to our operations.
For Ironveld, there are currently no operations or supply chains that have
been interrupted and there has been no material day to day impact other than
restricted international travel which can be dealt with using electronic
communications.
Outlook
Whilst completion of the Grosvenor transactions has taken longer than
anticipated, the Board retains the view that the agreed injection of funds and
the partnership with Grosvenor remains highly attractive in view of the
development opportunities for Ironveld's project in South Africa.
The long-term strategic focus of the Company remains to become a production
led mining company as we look to monetise our vast HPI, Vanadium and Titanium
resources.
We would like to thank all of our shareholders for their continuing support
for both the Company and the Project and we look forward to providing further
updates in the near future.
Giles Clarke
Chairman
31 March 2022
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2021
6 Months 6 Months 12 Months
ended ended ended
31.12.21 31.12.20 30.06.21
£'000 £'000 £'000
Administrative expenses (384) (458) (783)
Operating loss (384) (458) (783)
Other gains and losses - 386 323
Investment revenues 2 1 3
Finance costs - (8) (8)
Loss before taxation (382) (79) (465)
Taxation - - -
Loss for the period (382) (79) (465)
Attributable to owners of the company (379) (77) (460)
Non-controlling interests (3) (2) (5)
(382) (79) (465)
Loss per share (pence)
Basic (0.03p) (0.01p) (0.05p)
Diluted n/a n/a n/a
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2021
6 Months 6 Months 12 Months
ended Ended ended
31.12.21 31.12.20 30.06.21
£'000 £'000 £'000
Loss for the period (382) (79) (465)
Exchange differences on the translation of foreign operations (1,795) 1,332 1,692
Total comprehensive income/(loss) for the period (2,177) 1,253 1,227
Attributable to:
Owners of the company (1,894) 1,033 956
Non-controlling interest (283) 220 271
(2,177) 1,253 1,227
The accompanying notes for an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021
As at As at
31.12.21 30.06.21
£'000 £'000
Non-current assets
Exploration and evaluation 24,207 26,191
Property, plant and equipment 1 2
Other receivables 3 3
24,211 26,196
Current assets
Trade and other receivables 142 177
Cash and bank balances 24 270
166 447
Total assets 24,377 26,643
Current liabilities
Trade and other payables (519) (272)
Borrowings (60) -
(579) (272)
Non-current liabilities
Deferred tax liabilities (4,378) (4,774)
Total liabilities (4,957) (5,046)
Net assets 19,420 21,597
Equity
Share capital 10,436 10,436
Share premium 21,261 21,261
Other reserve 12 15
Retained earnings reserve (15,386) (13,495)
Equity attributable to owners of the company 16,323 18,217
Non-controlling interests 3,097 3,380
Total equity 19,420 21,597
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2021
Share capital Share premium Retained earnings Attributable to the owners of the company Non-controlling interests Total equity
Other reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2020 9,774 19,691 (14,480) 189 15,174 3,109 18,283
Loss for the year - - (460) - (460) (5) (465)
Issue of shares and warrants 662 1,570 - 15 2,247 - 2,247
Reclassification - - - (189) (189) - (189)
Exchange differences on translation of foreign operations - - 1,416 - 1,416 276 1,692
Equity settled share based payments - - 29 - 29 - 29
Balance at 30 June 2021 10,436 21,261 (13,495) 15 18,217 3,380 21,597
Loss for the period - - (379) - (379) (3) (382)
Equity settled share based payments - - - - - - -
Transfer - - 3 (3) - - -
Exchange differences on translation of foreign operations - - (1,515) - (1,515) (280) (1,795)
Balance at 31 December 2021 10,436 21,261 (15,386) 12 16,323 3,097 19,420
The accompanying notes for an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2021
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.21 31.12.20 30.06.21
£'000 £'000 £'000
Net cash from operating activities (48) (341) (642)
Investing activities
Interest received 2 1 3
Purchase of property, plant and equipment - (1) (1)
Purchase of exploration and evaluation assets (198) (264) (492)
Net cash used in investing activities (196) (264) (490)
Financing activities
Proceeds on issue of equity (net of costs) - 1,082 1,134
Proceeds from new loans - - 363
Repayment of loans - 354 (109)
Net cash generated in financing activities - 1,436 1,388
Net increase/ (decrease) in cash and cash equivalents (244) 831 256
Cash and cash equivalents at the start of the period 270 28 28
Effect of foreign exchange rates (2) (9) (14)
Cash and cash equivalents at end of period 24 850 270
Note to the cash flow statement
Operating loss (384) (458) (783)
Depreciation on property, plant and equipment 1 1 2
Foreign exchange differences - - (54)
Share based payments - 125 90
Operating cash flows before movements in working capital (383) (332) (745)
Movement in receivables 27 (113) (59)
Movement in payables 308 104 162
Net cash from operating activities (48) (341) (642)
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2021 have been prepared under
International Financial Reporting Standards (IFRS) as adopted by the EU and
International Accounting Standards Board.
The accounting policies are consistent with those of the annual financial
statements for the year ended 30 June 2021, as described in those financial
statements.
The financial information does not constitute statutory accounts as defined by
section 435 of the Companies Act 2006. Full accounts of the company for the
year ended 30 June 2021 on which the Auditors gave an unqualified report, have
been delivered to the Registrar of Companies.
2 Loss per share
The calculation of basic and diluted loss per share is based upon the loss for
the period and the weighted average number of ordinary shares in issue during
the period.
6 Months 6 Months 12 Months
to 31.12.21 to 31.12.20 to 30.06.21
'000 '000 '000
Weighted average number of shares 1,316,440 714,486 1,008,492
Options - dilution - - -
1,316,440 714,486 1,008,492
Pence Pence Pence
Basic loss per share - continuing (0.03) (0.01) (0.05)
Diluted earnings per share n/a n/a n/a
Where the Group reports a loss for any period, then in accordance with IAS 33,
the share options and warrants in issue are not considered dilutive.
3 Registered office and copies of the report
The registered office is Ironveld plc, Unit D De Clare House Sir Alfred Owen
Way, Pontygwindy Industrial Estate, Caerphilly, Wales, CF83 3HU and copies of
this report are available from the registered office.
IRONVELD PLC
OFFICERS, ADVISORS AND AGENTS
Directors: Giles Clarke
(Chairman)
Martin Eales (Chief Executive
Officer)
Nick Harrison (Non-Executive
Director)
Peter Cox (Technical
Director)
Secretary: Brian
James
Company Number: 04095614 (England and Wales)
Registered Office: Ironveld Plc
Unit D De Clare House Sir Alfred Owen Way
Pontygwindy Industrial Estate
Caerphilly Wales CF83 3HU
Nominated advisor finnCap Ltd
and Joint Broker One Bartholomew Close
London EC1A 7BL
Joint Broker Turner Pope
8
Frederick's Place
London EC2R 8AB
Solicitors: Kuit Steinart Levy LLP
3
St Marys Parsonage
Manchester M3 2RD
Auditors: Crowe U.K. LLP
55 Ludgate Hill
London EC4M 7JW
Bankers: HSBC
97 Bute Street
Cardiff CF10 5NA
Registrars: Link Asset Services
34 Beckenham Road
Beckenham
Kent BR3 4TU
Financial PR BlytheRay
4
- 5 Castle Court
London EC3V 9DL
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