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Ironveld Share Discussion Threads
Showing 1751 to 1775 of 1775 messages
|Large delayed buy there.|
|Jlp still retained smelter access, on their sale of the plant. Will be of interest to see what their position is regarding any plant conversion.|
|I am comfortable and bought more today.
I do finally think things are moving here after a very prolonged period of waiting for'imminent' news as is often the way with Giles.
I did correspond with Peter Cox who did reiterate the next few months should be transformational for the company. I have no reason to doubt him.|
|Not sure what you mean by the warrant question. The warrants will be issued in equal quantities to the shares, the exercise price will determine the chance of them converting to equity. So the higher the exercise price the better from a shareholder point of view. The exercise price on the previous warrants was 6.25p and they expire October 2017. I suspect future warrants will be in a similar format, issued at an exercise price of about a 25% premium to the placing price.
Can't answer the question on mining equipment, I have no idea!
Still sitting on the sidelines until I feel comfortable getting involved again.|
|Oleoducto Binacional Amerisur, a sure fire way to sort out transport issues that affected Amerisur (Giles Clarke/Nick Harrison connection) that took years to complete, yet was only ever a few months from completion, and still isn't meeting the promises made.
If you look up the word imminent in a future version of the dictionary you could well see Giles Clarkes smiling face, behind which is pictured the OBA.|
|Code for time x infinity|
|PS what are O, B and A?|
|Thanks 101.Surely though the difference in number of shares between £4M in warrants at say 4p or say 6p is not that great, in the grand scheme of things, assuming they do reach the levels of profitability they promise with a 75MW eventually? They should be making so much money by then that they could buy them back...I agree with you though that it's not clear what the reason for the change is. Is it opportunistic, perhaps the smelter owner approached IRON and they thought it made sense to get some early cash flow? That would be fine. But there is a possibility that there is some problem with 'Plan A' which has forced their hand. It does seem odd that they were saying just a couple of weeks ago that they were full steam ahead for the main construction funding, and now suddenly they're buying a new smelter.I do also agree it will be expensive to send fleets of trucks 300km and will reduce margins substantially. On the other hand, any cash flow positivity will be very beneficial and strengthen the company's hand in getting other funding, and not needing any further placings.I reiterate my question about being able to actually mine. They don't have any mining equipment at the moment AFAICS? So if they expect to be sending fleets of ore trucks across SA in 9 months time, will it not cost millions to buy diggers etc? Where will that capital come from - will they raise it separately, or will it be part of the major fundraising package, and they will front-run the equipment required to supply the Siyanda smelter?Thanks again.|
They are backed by warrants as well, so I estimated £4 million placing, backed by £4 million in warrants, the exercise price of the warrants is going to be really key to any future valuation of the company.
That's 26% dilution based on current market cap on equity alone.
There is already approx 10% of the company in outstanding warrants excercisable at 6.25p
Only mentioning it because any future valuation of the company needs to take these warrants in to account, especially if your valuing short term cash flow.
In addition the company is effectively taking on debt over two years, not sure how that will effect their ability to raise additional capital, the fact that they have cash flow to fund that debt may help them... but transport costs are going to be an issue so what's the net back going to look like.
I guess the only advice I can offer is if they mention the letters O B and A, run for the hills
More questions than answers for me, lots up in the air, need to know the commercials of the new project, the knock on effect on the old project and why the change in strategy. I don't see any reason to expect long delays as of the results a few weeks ago and the money was virtually in the bank. The sentiment coming from management speak seems at odds with their actions.|
|Zengas, so maybe £4-5M needed shortly? At perhaps 4p if we are lucky, 3.5p if not?|
|All three by products are priced in dollars, cyberbub|
|This deal will give us 100% of the 7.5 MW smelting plant.
Projected annual production starting in Q1 of 21,000 tons of HPI Powder, 190.5 tons Vanadium slag and 4134.5 tons of Titanium.
Although the 15 MW smelter has been behind schedule, (supposedly nearing closure) this 7.5 MW deal would actually reduce some of the previous timescale on that bigger smelter in terms of commissioning time.
Good to see them also re-iterate their intention for 4 x 75 MW smelters to process the large V.T Magnetite resource.
Total acquisition cost appears to be £10.9m ($13.6m at todays ex rate) and over 2 years.
£1.16m approx in cash now plus £1.74m approx in new ordinary shares (if at 3.5p or 4p it could be about 43.5m - 50m shares). This might explain part of the share price weakness lately in getting the share price down ?
Then pay £4m from cash flow in 12 months followed by £4m in 24 months in total.
We will also own 70% of the power company (Power Alt) that generates 10.6 MW of electricity. This could be a valuable source of some additional revenue ?. Apparently it serves as a supplement and back up power to the smelting plant.
Hard to draw comparrisons to the overall $63m capital costs for the 15 MW smelter in the late 2016 presentation which was for 42,000 tons of HPI powder, 381 tons Vanadium and 8269 tons of Titantium.
On the off take agreements a full years sales were to generate $56m, with a profit after tax of $23m and free cash of around $25m per year - so on the 7.5 t smelter approx half that.
Will owning the power plant compensate for the costs to deliver to the smelter - hard to know ? I beleive it may save us about $10m in initial start up costs and bring us that valuable free cash element much earlier now than planned.
Today - "Furthermore the anticipated profits and free cash flow from the Smelting Plant will place the Company in a considerable position of strength." I would tend to agree as this would then help the financing considerably of the future planned smelters.
I expect we will need to raise some cash either through a placing or debt on the back of this until we would start generating cash after the next 2 or 3 quarters (depending what part of Q1).
Immediate cash needed now is for the £1.16m cash payment, refurbishment costs ? and working capital ?.
They say refurbisment and equipment installation will take up to 6 months with production thereafter commencing in Q1 2018.
If legally binding by the end of the month, we should have things re financing etc sorted by end June latest and work beginning, so it could be realistically early Q1 production start-up.
Looks like they've upped their game here and looking a lot more prosperous than a few weeks back.|
|Looks encouraging, but do they have the capacity to be able to actually mine and deliver enough ore to this purchased smelter in the timescale indicated? With the share price now substantially lower than a few months ago, does that not mean much greater dilution for the major fundraising for the main smelter? Or are they now hoping to generate enough cash flow from the purchased smelter to not need as much in the major fundraising?One further point - is there any concern over the FX risk with the rand still weak? Or will all the iron be sold in $?Thanks for any comments or views. I have been keeping my eye on IRON.|
|Not sure you can just pro rata the existing DFS economics as this one is half the size so a loss of economies of scale presumably, and in addition the ore has to be transported 200 miles to this smelter. However, should still be very favourable and has effectively scaled up the initial project by 50% as an earlier poster has pointed out and provides free cash flow and validation of the production in the meantime.|
|Good news, at last!|
|This is excellent news-the acquisition de-risks the project and gets one the best chance of buying at the bottom.
Stocks need a catalyst.
Interesting to look at the existing Definitive Feasibility Study projected Profit after Tax (PAT), and compare pro rata to this deal.|
|Cracking deal, bridging the gap between now and the 15W delayed smelter being commissioned. Surprised this has not been reflected in a stronger share price today. Can still buy below mid-price.|
|jailbird absolutely - but this deal does change things. I bought back 500,000 at 3.4p which I stated also in the last 10 days and because they were at a big discount to what I had sold at as financing was tight. It probably might explain the fall and the upcoming financing for it.|
|Can't see them wanting to put this deal through by end of the month if not.
The land lease for the building of the 15mw smelter is the main delay.
They will be raising finance for this deal in some way.
It will give them 21,000 tonnes of production so if the (42,000 tonne) 15MW smelter still goes ahead which they are planning for in tandem, then their capacity will be 50% higher than the original plan.|
|Zengas I read your posts well but you surprised me last 10 days.You changed your view in a week and bought back in - which you allowed to do but nothing has changed in that period .|
|License is not guaranteed by Q2Not in their hands.History to deliver targets is not their strong point . Too early to buy in for me. ' expected' is a word commonly used when they really do not know yetGoing concernThe Group's present resources and existing facilities are only considered adequate to meet committed overhead expenditure for the period to 30 June 2017 by which time the Directors expect to have completed the full funding of the Project (the High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa owned by the Group). The Group announced on 6 October 2016 that they have received approval for a ZAR244m funding package for the Project and were in the process of executing formal funding agreements. The Group is also in advanced stages of negotiating the remaining debt agreements for the Project. Overall a ZAR 871m financing package is proposed.|
|Very very nice|
|Looks like a brilliant deal and into production by Q1.|
|You could swap SA for UK there and you wouldn't be any further away from the reality.|
|What a shame. SA has so much potential, being destroyed by corruption and greed.|