REG - Ironveld PLC - Interim results for the 6 months ended 31 Dec 2024
01/04/2025 07:00
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RNS Number : 9930C Ironveld PLC 01 April 2025
IRONVELD PLC
("Ironveld" or the "Company")
Interim results for the six months ended 31 December 2024
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium and Titanium
project located on the Northern Limb of the Bushveld Complex in Limpopo
Province, South Africa (the "Project") is pleased to announce its interim
results for the six months ended 31 December 2024 ("the Period").
Highlights
· Successful completion of a £2.5 million fundraising and the proposed
capital reorganisation in October 2024.
· The smelter facility in Rustenburg remained under secure care and
maintenance while design studies are performed. A third-party consultant with
extensive experience and expertise in water-based atomisation has made
significant progress on the design phase of a pilot plant at our smelter in
Rustenburg, intended for the production of market samples. An initial layout
has been completed.
· Work commenced at the DMS Magnetite plant and is progressing
according to plan.
Post Period and Outlook
· Work on completing the DMS Magnetite plant progressed steadily,
and the Company successfully renegotiated the joint venture agreement with
Sable Platinum Holdings, a wholly owned subsidiary of Sable Exploration and
Mining (Pty) Ltd. As a result, the Company increased its equity stake in the
project from 25% to 50%.
· Design work on the pilot project water atomiser progressed, with
final design specifications and cost estimates expected to be completed by
April 2025.
· As of 27 March 2025, the Company held cash and cash
equivalents of approximately £525,000.
John Wardle, Chairman, said: "The Period saw Ironveld successfully complete a
fund raise and commence work on finalising the DMS magnetite plant having
successfully renegotiated the joint venture agreement with Sable Platinum.
Construction and commissioning of the DMS Magnetite plant remain on track,
with first commercial production anticipated in April 2025. As part of our
short-term goals, we also aim to produce market samples of water-atomised
high-purity iron powders at our smelter facility in Rustenburg, supported by
the construction of a pilot plant to validate product quality and market
acceptance. Production trials have already demonstrated operational
capability, and securing offtake agreements for these products is expected to
facilitate further funding opportunities to scale up operations.
"Thank you for your continued support and we look forward to sharing further
positive updates with you in the near future."
For further information, please contact:
Ironveld plc c/o BlytheRay
John Wardle, Chairman 020 7138 3204
Cavendish Capital Markets Limited (Nomad and Broker) 0131 220 6939
Derrick Lee / Adam Rae
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 Mining Rights over approximately 28
kilometres of outcropping Bushveld magnetite with a SAMREC compliant ore
resource of some 56 million tons of ore grading 1,12% V2O5, 68,6% Fe2O3 and
14,7% TiO2.
In 2022 Ironveld agreed to acquire and refurbish a smelter facility in
Rustenburg, South Africa, in which it can process its magnetite ore into the
marketable products of high purity iron, titanium slag and vanadium slag. This
transaction became unconditional in March 2023.
Ironveld is an AIM traded company. For further information on Ironveld please
refer to www.ironveld.com (http://www.ironveld.com/) .
Chairman's Statement:
Ironveld completed a successful fund raise at the end of October 2024. This
allowed the continued execution of the Company's business plan which is
primarily to complete the DMS Magnetite plant and bring it into profitable
production. At the smelter, the plan is to construct a demonstration scale
water-based atomiser to produce market samples of the Company's high purity
atomised powders in order to secure offtakes and funding for the development
of the smelter project. Detailed design and costing studies for the initial
plant are currently underway.
The DMS plant has made strong progress and remains on track to commence first
commercial production in April 2025. With robust operational plans and growing
market demand, I am confident that Ironveld's strategic positioning will
enable the Company to generate sustainable growth through the production of
DMS Magnetite, iron powders, vanadium slag, and titanium slag. With
considerable growth potential within the Project, as well as opportunities to
further increase DMS Magnetite production, followed by a transition to
higher-value products, I am excited about what the future holds for the
Company.
Financial
The Group recorded a loss before tax of £689,000 (H1 2023: loss of £385,000)
in the Period. The Company does not plan to pay a dividend for the six months
ended 31 December 2024.
Post Period End Events
The Company was able to renegotiate the DMS JV agreement with Sable Platinum
Holdings (Pty) Ltd significantly strengthening Ironveld's position by
increasing our equity stake in the DMS Magnetite project from 25% to 50%.
Under this revised structure, the joint venture will operate as a 50/50
partnership between Altona Processing (Pty) Ltd, a wholly owned subsidiary of
Ironveld Holdings, and Lapon Plant (Pty) Ltd, a wholly owned subsidiary of
Sable Platinum Holdings (Pty) Ltd. The project has progressed according to
schedule and, despite heavy unseasonal rains in late February and March, it is
expected to enter first commercial production in April 2025. We have high
expectations for this joint venture and believe it will unlock additional
exciting and diversified opportunities in the future.
A third-party consultant with extensive experience in water-based atomisation
has made significant progress on the design phase of a pilot plant for
producing market samples and has completed an initial layout. Final design
specifications and cost estimates are expected by the end of April 2025. The
agreement for the acquisition of Ferrochrome Furnaces (Pty) Limited ("FCF")
remains in place under unchanged terms. The Board continues to regard the
transaction as a highly attractive opportunity, taking into account, among
other factors, the favourable terms agreed, the significant tax losses
available within FCF, and the strong potential to successfully produce
high-margin, high-purity iron powders.
Outlook
The remainder of the year is expected to mark Ironveld's full transition into
a producer of DMS grade magnetite, while also initiating the production of
market samples of its high-purity, water-atomised iron powders The Company
expects to successfully secure offtake agreements for the powders which will
result in the development of the smelting facility towards commercial
production. From a market perspective, there continues to be strong customer
demand for all of our products: DMS grade Magnetite, water-atomised
high-purity iron powder, vanadium slag, and titanium slag.
The completion of the DMS magnetite production plant at our Limpopo mine marks
a significant milestone for the Company. We are encouraged by the strong
market demand for our product and the attractive margins it is expected to
generate. We would like to thank all our shareholders for their continued
support for both the Company and the Project and we look forward to providing
further updates in the near future.
John Wardle
Non-Executive Chairman
March 31, 2025
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
6 Months 6 Months 12 Months
ended ended ended
31.12.24 31.12.23 30.06.24
£'000 £'000 £'000
Revenue - 440 267
Cost of sales - (154) (5)
Gross profit - 286 262
Administrative expenses (635) (649) (1,404)
Other income - - 1
Operating loss (635) (363) (1,141)
Other gains and losses (24) - -
Investment revenues - 5 6
Finance costs (30) (27) (92)
Loss before taxation (689) (385) (1,227)
Taxation - (129) (192)
Loss for the period (689) (514) (1,419)
Attributable to owners of the company (660) (539) (1,405)
Non-controlling interests (29) 25 (14)
(689) (514) (1,419)
Loss per share (pence)
Basic (0.01p) (0.01p) (0.04p)
Diluted n/a n/a n/a
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
6 Months 6 Months 12 Months
ended Ended ended
31.12.24 31.12.23 30.06.24
£'000 £'000 £'000
Loss for the period (689) (514) (1,419)
Exchange differences on the translation of foreign operations (597) 675 913
Total comprehensive profit/(loss) for the period (1,286) 161 (506)
Attributable to:
Owners of the company (1,188) 52 (606)
Non-controlling interest (98) 109 100
(1,286) 161 (506)
The accompanying notes for an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
As at As at
31.12.24 30.06.24
£'000 £'000
Non-current assets
Exploration and evaluation 28,239 28,357
Property, plant and equipment 7,024 7,205
Other receivables 8 8
35,271 35,570
Current assets
Inventories 42 43
Trade and other receivables 222 115
Cash and bank balances 1,319 4
1,583 162
Total assets 36,854 35,732
Current liabilities
Trade and other payables (4,364) (4,541)
Lease liabilities (6) (11)
Borrowings (6) (570)
(4,376) (5,122)
Non-current liabilities
Trade and other payables (4,229) (4,334)
Lease liabilities (28) (26)
Deferred tax liabilities (3,528) (3,615)
(7,785) (7,975)
Total liabilities (12,161) (13,097)
Net assets 24,693 22,635
Equity
Share capital 14,035 13,054
Share premium 28,025 25,925
Other reserve 332 82
Retained earnings reserve (10,860) (10,213)
Foreign currency translation reserve (9,589) (9,061)
Equity attributable to owners of the company 21,943 19,787
Non-controlling interests 2,750 2,848
Total equity 24,693 22,635
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER
2024
Share capital Share premium Retained earnings Other reserve Attributable to the owners of the company Non-controlling interests Total equity
Foreign currency translation reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 12,694 25,324 (8,845) (9.860) 94 19,407 2,748 22,155
Loss for the year - - (1,405) - - (1,405) (14) (1,419)
Exchange differences on translation of foreign operations - - - 799 - 799 114 913
Issue of shares 360 601 - - - 961 - 961
Cancelled share warrants - - 12 - (12) - - -
Share based payments - - 25 - - 25 - 25
Balance at 30 June 2024 13,054 25,925 (10,213) (9,061) 82 19,787 2,848 22,635
Profit /(loss) for the period - - (660) - - (660) (29) (689)
Exchange differences on translation or foreign operations - - - - (528) (69) (597)
(528)
Issue of shares 981 2,100 - - - 3,081 - 3,081
Share based payments - - 13 - 250 263 - 263
Balance at 31 December 2024 14,035 28,025 (10,860) (9,589) 332 21,943 2,750 24,693
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
6 Months 6 Months 12 Months
Ended Ended Ended
31.12.24 31.12.23 30.06.24
£'000 £'000 £'000
Cash generated by/(used in) operating activities (419) 1,608 (305)
Interest paid (15) (11) (29)
Net cash generated by/(used in) operating activities (434) 1,597 (334)
Investing activities
Interest received - 5 6
Purchase of exploration and evaluation assets (577) (2,861) (1,202)
Loans received from joint venture - 68 4
Other loans - - (3)
Net cash used in investing activities (577) (2,788) (1,195)
Financing activities
Proceeds on issue of equity (net of costs) 2,126 961 961
Proceeds from new loans 229 244 557
Repayment of loans (26) - -
Payment of lease liabilities (2) (1) (5)
Net cash generated by financing activities 2,327 1,204 1,513
Net increase/(decrease) in cash and cash equivalents 1,316 13 (16)
Cash and cash equivalents at start of period 4 19 19
Effect of foreign exchange rates (1) - 1
Cash and cash equivalents at end of period 1,319 32 4
Note to the cash flow statement
Operating loss (635) (363) (1,141)
Depreciation on property, plant and equipment 9 13 18
Foreign exchange differences (1) (21) (17)
Share based payments 12 36 25
Loan to Joint venture - provision - - 97
Operating cash flows before movements in working capital (615) (335) (1,018)
Movement in inventories - 5 5
Movement in receivables (74) 57 199
Movement in payables 270 1,881 509
Cash generated by/(used in) operating activities (419) 1,608 (305)
The accompanying notes form an integral part of these financial statements.
IRONVELD PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
1 Basis of preparation and accounting policies
The results for the six months to 31 December 2024 have been prepared under
International Financial Reporting Standards (IFRS) as adopted by the EU and
International Accounting Standards Board.
The accounting policies are consistent with those of the annual financial
statements for the year ended 30 June 2024, as described in those financial
statements.
The financial information does not constitute statutory accounts as defined by
section 435 of the Companies Act 2006. Full accounts of the company for the
year ended 30 June 2024 on which the Auditors gave an unqualified report, have
been delivered to the Registrar of Companies.
2 Loss per share
The calculation of basic and diluted loss per share is based upon the loss for
the period and the weighted average number of ordinary shares in issue during
the period.
6 Months 6 Months 12 Months
to 31.12.24 to 31.12.23 to 30.06.24
'000 '000 '000
Weighted average number of shares 6,078,624 3,666,374 3,800,317
Options/warrants - dilution - - -
6,078, 3,666,374 3,800,317
Pence Pence Pence
Basic loss per share - continuing (0.02) (0.01) (0.04)
Diluted earnings per share n/a n/a n/a
Where the Group reports a loss for any period, then in accordance with IAS 33,
the share options and warrants in issue are not considered dilutive.
3 Registered office and copies of the report
The registered office is Ironveld plc, Unit D De Clare House Sir Alfred Owen
Way, Pontygwindy Industrial Estate, Caerphilly, Wales, CF83 3HU and copies of
this report are available from the registered office.
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