Ironveld Share Discussion Threads

[al101uk] 27/11/2021 14:21

Deleted, not worth it. I'm done.

[hedgehog 100] 27/11/2021 13:38

al101uk 26 Nov '21 - 17:35 - 4634 of 4634 " ... you're just making stuff up ... " Al101uk, Would you please stop telling lies about me. A reasonable suggestion of what MAY POTENTIALLY happen cannot be 'making stuff up'. If I had said THIS IS WHAT WILL HAPPEN that would be different. So the one 'making stuff up' is yourself: repeatedly making up lies about what I have said. Ironveld is looking at different 'exciting funding structures' with Grosvenor to get the remaining funding. Even if you take out the word 'exciting', that still doesn't sound like a standard equity investment. You are unable to offer any alternative suggestions to my own of what that might be. Which I think supports my own suggestions, doesn't it. But the underlying valuation dynamic is that Grosvenor's £5.6M. strategic investment at 1p has now de-risked Ironveld, thereby increasing its value. And it's nearly 70% of the funding being sought. So you would expect the remaining funding to come in at a premium to this, because of project de-risking and funding supply-demand. From the 22.10.21 Ironveld circular: "4. Use of Proceeds The substantial investment in Ironveld by Grosvenor of £5.6 million (approximately US$7.5 million) represents an exciting opportunity for Ironveld to bring on board a credible and serious partner to help drive its strategy. The net proceeds from the Subscription will provide a substantial proportion of the overall project funding required as well as ensuring that all corporate overheads and costs associated with the new Mining Right application for Luge are covered for the foreseeable future. The Company will look to utilise Grosvenor’s expertise and access to further funding in order to progress the remaining financing required of approximately £2.5 million (approximately US$3.5 million) to bring the Company’s project into development. Both parties are committed to ensuring Ironveld can commence mining and processing of its magnetite ore in the near term. Taking into account available cash resources and the expected Net Proceeds of the Subscription, the Company expects to have sufficient cash resources to fund operations into the foreseeable future." HTTP://www.ironveld.com/docs/Ironveld%20GM%20Circular%20web%20Oct%202021.pdf

[charlesjames1] 26/11/2021 15:25

A nice flurry of buys today. Few punters lining up for news one would assume.

[sapper2476] 26/11/2021 11:03

Mine is also showing as a sell.

[malcolmmm] 26/11/2021 10:59

Showing as a sall by the look of it

[givmesunshine] 26/11/2021 09:30

Added another 600,000 shares at a smidge under 1p

[al101uk] 25/11/2021 18:45

"A convertible loan note (CLN) issue is regarded a bit like a placing" No it isn't, it's debt and comes with all the advantages of being debt (it's ahead of equity in any liquidation and has a coupon). It also has the advantage of enabling the holder to convert to equity so they get the best of both worlds. The convertable nature of a CLN is a sweetner for the creditor and in return lowers the cost of debt for the company and usually delays the payment of any interest until conversion or the conversion date is reached. The terms are hugely variable and the conversion price is only one aspect of that variability. Maybe the conversion price comes with terms for forced conversion to equity and so the investor wants a higher conversion price to create an option on the companies success. Maybe a lower price would be in Ironvelds favour because future placings may be unable to reach that conversion threshold and the investor can just decide not to take part. I was making two points in my previous posts: 1) Just because you've decided CLNs are the perfect solution to funding doesn't make it so. It's so much more complicated than you make out and you're not even in posession of enough of the facts to make a call on if a CLN could be structured in a way that makes sense to both parties. That doesn't mean it can't happen, just that it's pointless constructing a dream world where issuing CLNs doubles the share price and then pretending it's a realistic possibility. Being fully funded can still push up the share price, but taking on debt and any implied valuation won't be the rationale for the rise. 2) The reason I don't think CLNs will be issued is nothing to do with any of that. I've been following GC for many, many years and I've seen him avoid debt in far better situations than Ironveld finds itself. I don't see why that would change now. I'm in no position to make a suggestion on funding, like you, I don't have the information and who's going to take a suggestion from me anyway? Based on what I know of GC, I'd speculate that primarily equity in some form will pay for funding for the foreseeable future. ... and I'm fine with that.

[al101uk] 25/11/2021 13:18

Hedgehog, Why?

[givmesunshine] 25/11/2021 08:36

IMO - I don't think it will be long until we move to the next range .. quite stable here and I feel once all the placing is complete IRON will be keen to move on ASAP so can expect this to become a real company

[cloud9surfer] 24/11/2021 15:11

A few big buys going through.

[hedgehog 100] 24/11/2021 08:22

al101uk, I think that if the CLNs had conversion prices far higher than the current share price of 1.1p, people would find that quite exciting.

[cloud9surfer] 24/11/2021 08:00

Page 9 Paragraph 4https://www.ironveld.com/docs/Ironveld%20GM%20Circular%20web%20Oct%202021.pdfApprox a further £2.5m required.

[al101uk] 23/11/2021 22:59

Hedgehog, I get that, I just don't see it being a fairly exciting form of debt either :-)

[al101uk] 23/11/2021 22:56

Something over a couple of million from memory.

[neo26] 23/11/2021 21:41

How much more do they need?

[hedgehog 100] 23/11/2021 17:22

"Ironveld on its way to production 525 views Oct 26, 2021 Martin Eales, CEO of AIM-listed Ironveld, says after establishing a new partnership in Grosvenor Resources, including a cash injection, the company is now on target to start production in 12 months. As Eales explains to IGTV's Jeremy Naylor, its products are likely to be sold to one offtake and it is likely to be in the automotive sector." https://www.youtube.com/watch?v=YUvQwl9MfUY al101uk, In the 26.10.21 IRON video interview, ME said that Grosvenor can't invest over 30% without making a bid, so they're looking at different exciting funding structures with Grosvenor to get the remaining funding, which should happen in a fairly short term time frame. The phrase 'exciting funding structures' doesn't sound like just a standard equity investment.

[al101uk] 23/11/2021 15:20

Convertable loan notes are a form of debt that typically can be converted to equity at the debt holders discretion. The debt would act like debt until it is either paid off or is converted. Debt tends to have priority over equity and it bears interest. In general using debt to finance a pre-cashflow startup (which Ironveld still effectively is) is considered a poor choice. Raising equity is always preferable. From what I know of GC et al, they generally stick to that rule of thumb and don't use debt to fund their companies. I understand the rationale, but I don't see that changing now.

[malcolmmm] 23/11/2021 15:20

Yes I found that a limited number were available but could sell so topped up this morning after which lots of buys flooded in

[givmesunshine] 23/11/2021 12:26

Lots of buying today - nice recovery

[sabre6] 23/11/2021 12:10

Annie38 I think we are both batting from the same wicket and should both make some money 💰 good luck 😉 to you

[hedgehog 100] 23/11/2021 11:46

Convertible loan notes don't count towards your shareholding, because they're not shares. They could repaid from future profits. Or converted in the future when there's been a larger fundraising to scale-up the number of smelters. And CLNs don't have to be issued to Grosvenor, they could be to another entity.

[neo26] 23/11/2021 11:31

The deal is done why the need to wait for 30th.Also why do peeps think they will go for cln, that will take them over 30%.Very surprised no one wanted to finance this project ages ago.

[givmesunshine] 23/11/2021 09:00

Doesn't like being above 1p @ the moment - I don't think we will be at the levels for long though if we get sub 1p offer I am adding