Ironveld Interim Loss Narrows As It Prepares To Start Mining In Africa

28th Mar 2018 13:34

LONDON (Alliance News) - Ironveld PLC on Wednesday reported narrowed loss in the first half of the year on reduced expenses and said it is focused on a readymade smelter purchase.

The AIM-listed mining company posted pretax loss of GBP243,000 for the six months to the end of 2017, narrowed from GBP385,000 it made in te same period the year earlier. This was after administrative expenses dropped to GBP236,000 from GBP297,000 and finance costs reduced to GBP10,000 from GBP89,000 year-on-year.

The company produced no revenue, as it is not currently manufacturing any product for sale.

Ironveld said it put down around GBP530,000 refundable deposit towards the potential acquisition of the Middelburg smelting facility, which would enable the company to begin early production of HPI, Vanadium and Titanium.

Upon completion of the acquisition, the production is expected to start within six months, the company said. In order to begin the mining operations, the group has to receive the water use licence, it said. Remaining licence is anticipated in the second quarter of 2018.

The group ended the period with GBP1.4 million in cash, up from GBP413,000 it had the prior year.

Ironveld Chief Executive Officer Peter Cox said: "During the period, in addition to finalising the outstanding permissions to commence mining operations we have been focussed on concluding the financing for the acquisition of the 7.5 MW Middelburg smelting facility. The acquisition represents a strategically important goal for the company as the smelter is expected to deliver attractive economic returns and early free cash flow.

The stock was trading 4.7% lower at 2.01 pence per share on Wednesday.

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