REG - Ironveld PLC - Operational Update

IronveldAnnouncement

12/02/2025 07:00

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RNS Number : 7510W  Ironveld PLC  12 February 2025

This announcement contains inside information

12 February 2025

Ironveld PLC

("Ironveld" or the "Company")

 

Operational Update

Ironveld PLC ("Ironveld" or the "Company"), 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, is pleased to announce an
operational update regarding key milestones achieved by the Company in
relation to its DMS grade magnetite plant.

DMS Grade Magnetite Plant Progress

Significant progress has been made on the construction of the plant to produce
DMS grade Magnetite, with key milestones already achieved:

·     Site preparation completed - including satisfaction of Health and
Safety requirements, perimeter security in place, and construction of concrete
support slabs and stockpiling of material for the bagging plant is now
complete.

·      Generator acquired and delivered to the mine site for plant
operations.

·      Contracts for all electrical works finalised and fully paid.

·   Delivery and installation of the milling plant, including mill,
cradles, Mill Motor Control Centre and associated equipment secured, along
with all necessary materials and labour for the plant installation and initial
test production run.

On-site work is well underway, and the Company remains on track to commence
commissioning the plant during February 2025. Following initial sample
production, the plant will ramp up to 24-hour operations, targeting an
initial output of 5,000 tonnes ("t") per month. Capacity will increase
to 15,000t per month after installation and commissioning of a second,
larger ball mill in March/April 2025.

Ironveld's mining team has now been mobilised to site, where stockpiles of
pre-mined ore will be used for commissioning and initial production work,
following which mining of fresh ore for continuing production will be
undertaken.

Offtake Agreements

·     A firm initial offtake agreement has been secured for 500t per
month, with demand from this end user estimated at around 1,000t per month.

·   A tender bid is currently being prepared for an additional 5,000t -
7,500t per month, with strong confidence in securing this contract due to the
significantly lower logistical costs versus competitors, enabled by the close
proximity of Ironveld's plant to the buyer.

·      Other strong expressions of interest are currently being reviewed
from both DMS traders and end users.

Smelter Activities

Technical work is underway relating to the detailed design of the Water
Atomised Powder pilot plant at the Rustenburg smelter. This work is being
performed by a third party with extensive experience of the process, including
producing water atomised iron and platinum powders. It is expected that the
design work will be completed on schedule in March 2025.

Accounts Update

On 2 January 2025, following a delay to the publication of the Company's
audited accounts for the year ended 30 June 2024 ("FY24 Accounts"), the
Company's shares were temporarily suspended from trading on AIM in accordance
with AIM Rule 19. Since this time the Company and its advisers have advanced
the workstreams required to complete the audit process, although these remain
in progress. The Company is working to publish the FY24 Accounts as soon as
possible, following which trading in Ironveld's shares is expected to resume.

Further updates will be provided as required.

Kris Andersson, CEO of Ironveld, commented: "I am very pleased with the
progress that we have made on all operational fronts. The successful
completion of the DMS plant is expected soon and will begin to generate cash
flow for the Company shortly thereafter. The plant is designed to initially
produce 5,000 tonnes per month of finished product, but with future
improvements that we have planned, we will be able to triple production to
15,000 tonnes. We are also making good progress on the Water Atomised Powder
designs, which will offer exciting further upsides.  We are making good
progress towards the completion of our report and accounts. Our structure in
South Africa involves 7 subsidiary companies, which optimises the
administration of our wide-ranging operations, from mining through mineral
processing to smelting and sale of final products. Our engagement of new
auditors, refreshing our local audit team after 12 years, has been good and,
whilst it has taken longer than we had anticipated, we anticipate being in a
position to publish our accounts soon. In the meantime, I would like to thank
shareholders for their patience and support.

I look forward to keeping the market updated on what is an exciting period for
the Company."

 

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 / Adam Rae
 Turner Pope Investments (TPI) Ltd (Joint Broker)        +44 20 3657 0050

 Andrew Thacker / James Pope
 BlytheRay                                               +44 20 7138 3204

 Tim Blythe / Megan Ray

 

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