30th Mar 2016 11:12
LONDON (Alliance News) - Ironveld PLC on Wednesday said its pretax loss narrowed in the first half of its financial year thanks to lower costs as it focuses on progressing its South African vanadium and titanium project.
Ironveld said its pretax loss for the half year to the end of December was GBP318,000, compared to a GBP399,000 loss a year earlier. The group does not generate any revenue, so the narrowed loss was the result of lower administrative and finance costs.
Ironveld owns a vanadium and titanium project in Limpopo Province, South Africa. In the first half, the company secured a series of mining rights around the project and received a formal letter from Eskom, the South African power producer, that power supply will be available for the project.
The company expects to reach financial closure on the project in the second quarter of 2016, immediately after which construction of the 15 megawatt smelter is expected to start. Commissioning is due to begin in the second quarter of 2017, with full production targeted for the third quarter of 2017.
"It is a tremendously exciting time for the company, and we look forward to progressing the project through financing and into the construction stage later in 2016," said Chief Executive Peter Cox.
Ironveld shares were down 7.0% to 5.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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