Ironveld Share Discussion Threads

[utsushi] 24/2/2020 13:44

There are some logistical similarities between Bushveld Minerals, its recent Vanchem business acquisition and greenfield Mokopane development site on the Northern Limb compared to Ironveld.

Ironveld's project is located close to Mokopane,on the Northern Limb and Bushveld's Vanchem processing plant is located adjacent to Witan which is very close to Middleburg, the location of the 7.5 MW Smelting Plant and Associated Infastructure, both projects are separated by about 200kl of road.

Operational costs like transportation, power, and water supply could be similar as well as access to a skilled labour force.

Briefly, the Bushveld Minerals /Mokopane integrated metrics:
Initial Capital Costs $298m
NPV 9% Real $418m
IRR 25%

Ironveld would be mining different commodities, on a smaller scale, with much lower start up costs to acquire smelter ($7m?), refurbish, short commissioning time to become cash flow positive.

Most asset financing deals would be interesting on a IRR of 15% or better.

[tommygriff] 23/2/2020 08:39

https://www.icis.com/explore/resources/news/2020/02/14/10471917/interview-the-tide-is-turning-for-global-tio2-outlook-chemours-ceo

[bigwavedave] 20/2/2020 19:24

Ladeside - that's what I was thinking...

[underhill2] 20/2/2020 13:20

We have waited 7 years so far so I remain cautious !

[underhill2] 20/2/2020 13:19

Wait and see

[ladeside] 20/2/2020 13:18

The appointment of Eales surely tips the balance heavily in favour of a financing deal being done, otherwise why would the company approach him and why would he take the job ??

[underhill2] 20/2/2020 12:35

Only time will tell but we have heard all this talk before whoever is the CEO. There is no doubt one way or another the future of Ironveld will be decided.

[vatnabrekk] 20/2/2020 12:10

I feel a bit more hopeful about the financing now with Martin Eales than I did previously with Cox.

[underhill2] 20/2/2020 11:49

Could not agree more. No progress has been made in all these years.The financing will be sorted soon or bankruptcy awaits. At present I would put the odds at 50/50. Im a holder here but not at all confident of a positive outcome. Its just taking too long for the financing to be agreed

[al101uk] 20/2/2020 11:32

Small world, not called in here for a while, but found myself following up on a tip on Sylvania Platinum yesterday and this morning I thought, "that name rings a bell". I realise now that they are the company that sold the concessions Ironveld bought on incorporation.

2012 was the year Mercury Recycling bought the assets for £13.7 million and changed it's name to Ironveld. we were going to get two huge smelters onsite back then and it would all be done in 2 to 3 years.

I see Ironveld is the same as it ever was, half a step from fortune, half a step from bankruptcy and a market cap less than half the price paid for the assets. Still a flip of a coin.

[bigwavedave] 19/2/2020 16:14

Vatnabrekk - thanks for the info. I need reminders these days!

[tommygriff] 19/2/2020 12:38

I thought the main use was car gear boxes and with the introduction of electric cars the demand would decline?

[vatnabrekk] 18/2/2020 17:57

In an earlier post on here someone was asking about the licences for Ironveld. Back in November 2018 I put an email to Camarco about this and received the following reply from Kimberley Taylor:
"The RNS announcement regarding the potential off-take partner released on 26th September 2018 includes the line “The Company, having finalised community access and rental/lease agreements, has engaged the services…̶1;. As such, the land lease agreements have now been finalised and the necessary permits to begin mining are all in place."

She also added the following paragraph to her email:
"As announced previously, Ironveld shifted its strategic focus from constructing a 15 MW smelter to acquiring the 7.5 MW Middelburg Smelting facility. The Middelburg facility will provide a readymade smelter, facilitating early entry to production and enabling proof of product by delivering into the off-take contracts that have been secured for the first five years of production. However, the Company’s long-term objective remains to operate its own smelting capacity."

From the latest video of the new CEO it seems that is still the basic strategy. It has been a while coming!

[utsushi] 18/2/2020 14:04

Anglo American Kumba Iron Ore profits surge for fiscal year 2019.

Reported Tuesday, earnings rose to R16bn from R9.6bn on higher ore prices and greater efficiency's.
Revenue grew R65bn from R45bn.
EBITDA margin improved from 42% to 52%.

Encouraging background info if you are seeking to unlock the intrinsic potential of the Northern Limb.

[underhill2] 18/2/2020 11:07

We have heard all this positive talk for many years yet we still have made no progress. Im a long term holder here and will reserve my further comments until we have positive news about the financing of this project

[zero the hero] 18/2/2020 10:30

Interesting that the prospect of fundraising through shareholders is off the table (for the moment). Nice hear the new man speak positively about his plans.

Still on the sidelines here though, but watching for news to signal a new investment or a run to the hills.

[bigwavedave] 13/2/2020 21:00

PS: I've posted it on the original IRON bb
ta.

[bigwavedave] 13/2/2020 20:58

An interview with the CEO:

[bigwavedave] 13/2/2020 18:51

Thanks Tommy. He's certainly more switched on than Cox! Ironveld needs someone with dynamism to get things moving. "On the cusp of a deal"...sounds promising...and an admission that nothing has happened for five years - or "under the radar", as he puts it. Proof of the pudding and all that...but room for optimism.

[tommygriff] 13/2/2020 07:42

We deserve some progress after the last 5 years with cox

[underhill2] 13/2/2020 00:49

More than ever this is now a long term hold.