1st Apr 2025 07:00
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 John Wardle, Chairman | c/o BlytheRay 020 7138 3204
|
Cavendish Capital Markets Limited (Nomad and Broker) Derrick Lee / Adam Rae
Turner Pope (Joint Broker) Andy Thacker/James Pope
| 0131 220 6939
020 3657 0050
|
BlytheRay Megan Ray/Tim Blythe | 020 7138 3204 |
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.
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 |
|
Foreign currency translation reserve | Other reserve |
| Attributable to the owners of the company | Non-controlling interests |
| Total equity | ||||||||
£'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) | - | (528) | (69) | (597) | ||||||||||
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.
Related Shares:
Ironveld