Ironveld Share Discussion Threads

[ladeside] 26/11/2020 12:52

You're probably right Al, I used to think GC was one of the better Kingpins on AIM, however those thoughts have been evaporating over the years, I suppose I always gave the benefit of the doubt over Amer as lots of us DID see the company go from the low pennies up to a stable 60p+ for a while (think we hit the 90's briefly if I remember correctly), however ultimately it was pie in the sky with Plat being a spent force, Fenix never taking off and Paraguay being a complete write off when it was supposed to be a "game changer".

So Yes, lots of broken promises and shattered dreams with Amer and so far Iron looks to be going the same way, however there's always the chance that personal greed will see some relative success here prior to more dark days ? who knows ?

Ultimately it's all a gamble but it just leaves a bitter taste when the house always wins and the PI tends to lose about 90% of the time.

Who knows, maybe we'd be better finding a back alley pitch and toss or a back room card school !!

[al101uk] 26/11/2020 11:51

Hi,

Had my once in a blue moon glance at GC companies yesterday and saw the Ironveld news. Wanted to post that after suffering with that kind of "interpret it as you wish" RNS, that I'd tend to believe the worst. Decided as a non-investor that I should keep my mouth shut.

Ladeside, I see you drew parallels with Amerisur and the dark days of 2p. I think the parallels are far closer to the trials and tribulations of getting the pipeline in place and the unclear RNS's around when and how much oil would finally start to flow.

As we eventually found out Plat was effectively on wind down by the time the pipeline was completed and I still feel we were lied too repeatedly by GC and his cronies for a long time prior to Amerisurs sale.

As for averaging down, I can only say that as a potential new investor, I wouldn't be interested in putting my money here at this point in the companies development.

If I were a holder, don't think I'd sell either... I'd at least wait for the semi regular pump and dump you guys seem to get here and unload into strength.

Hope you ex-AMER guys are doing well outside of investments in Mr Clarke's enterprises. I mainly plug away at the boring stuff now, my days on the AIM casino in any meaningful way are long gone.

[ladeside] 26/11/2020 11:38

As you say BWD, if this is the world class asset that they keep telling us, then why can't we get a decent deal off the ground ? I do appreciate clarea that the covid situation hasn't made things any easier, however there's always opportunities for those with deep pockets and there's plenty of them still around, especially when they're getting such a good deal on this "world class asset".

My own thoughts on this are that the 0.42 deal with IIG was giving away almost 50% for peanuts, however this Directors / Friends and family deal is giving away around 33% for even less peanuts but keeping it in the family as it were, now given that it looks like we chose to walk away from the IIG deal, it would look like they've got other serious options which they believe they can negotiate from a position of strength if they have sufficient funding / working capital already in place ??

Again this is all supposition, but knowing how GC and his gang work, then they'll be looking to maximise their own profits and this deal may well have ticked all boxes as they are the ones who directly benefit both from a cheap placing perspective and from any improved deal ??

If this wasn't the case, then why not just go with the IIG deal and the said dilution which the market had already accepted at 0.42 ??

As usual there's not much "gossip" or "itk" people around but I'm sure there's something going on as there always is !!

[clarea] 26/11/2020 11:36

Bigwavedave if you look at it from a major's perspective you have a company with a tiny market cap about to run out of cash trying to get all the capex in place to get a mine up and running no idea of the cost of this but guessing hundreds of millions would be needed in the middle of a global pandemic.

So Iron were in no way negotiating from a position of strength and with the lack of cash and forecast loss for 2021 of 700k if you were the major you would offer the worst possible farm in you thought you could get away with.

Hopefully nobody has put their life savings into this company just got to learn from mistakes such as avoid sub 100 mil market cap other than for utter fun gambles and check the cash on the books if you don't have enough to cover the predicted loss for the coming year then dilution is odds on at some point as has happened here.

Good luck and hopefully will come good for you but it is a 50-1 shot situation.

[clarea] 26/11/2020 11:19

I wouldn't be in a hurry Lakeside with this level of dilution to work through and an exchange market size of sub two grand chances are you will get a chance to add at a lower price over the next few months.

At the moment spread looks on nigh 10% so why be down that kind of level from the initial purchase as you say at least they have bought another 6-12 months so long as they don't do anything crazy.

With knowing the history of this company the cash will be burned through in the next twelve months paying directors salaries and then another raise will be needed in twelve months time.

Sadly with current state of the world its not the greatest time to be trying to put in the infra structure needed for this type of project.

[bigwavedave] 26/11/2020 11:17

Ladeside - good questions. I was thinking the same but have no answers.There does appear to be some buying though. I'd pretty much written off my "investment" here so not angry, not surprised, just disappointed (again).What needs explaining is why they can't get a deal done to get this thing off the ground.

[ladeside] 26/11/2020 11:04

The thing that really rankles with me is that the share price was stable at around the 1p range for a 7 month period between May and November, as such it would have been easy to have got a placing away at say 0.60 at this time, which was still giving a 40% reduction on the share price but not causing anywhere near as much dilution or bad / ill feeling towards the company, however it's patently obvious that our Directors are acting for themselves and their friends as opposed to the shareholders.

I suppose I should know better by now having been stung on multiple occasions in the wild west corrupt Aim market, however you always think the next time will be different, so shame on me I suppose.

Having said all this, there's no chance the company will be going down the drain anytime soon, however the question now is what is a good price to sell ? and is there still a serious investment case to be made ?

There's no doubt that the Directors and their chosen few will make a killing here, so I guess the question is do I buy more and average down ? Do I hold ? or do I sell up in a rage ?

I think I'll leave it for a few days to calm down and then assess the situation from a rational perspective as opposed to an angry emotional one !!

Anyway, Good luck all, irrespective of your decisions....

[clarea] 26/11/2020 10:43

Placing it is all be it didn't expect it quite so soon, only upside is it should buy the company another twelve months but can't see any up tick in from for three-six months with such a colossal share overhang now to work through.

Thankfully didn't buy any more and this share is a good reminder to me of my mistakes in that these sub 100 mil resource companies really are 50-1 shots.

I still wouldn't be surprised if they try and take it private at some point with a low ball offer and then try and re-float a few years down the line when the global system is free of covid hopefully and getting capex together for this type of project is an easier sell to outside investors.

[annie38] 26/11/2020 10:13

I would be checking that that date is not a typo before investing any more !

[ladeside] 26/11/2020 10:10

Sheer unadulterated greed by our directors. Feathering their own nests and doing a special "friends and family" deal for their hangers on all to the detriment of the daftie pi.

It really is shocking and would be called serious and blatant corruption in any other setting.

No wonder the UK gets the name it does for its financial skullduggery.

[petomi] 26/11/2020 10:03

Very painful but there is one ray of light in the 'Use of proceeds' section:

"Taking into account available cash resources and the expected Net Proceeds, the Company expects to have sufficient cash resources to fund operations into the first half of 2022."

Theat gives them a fair bit of breathing room to sort out necessary plans and project finance etc so I will be averaging down (with a grimace)

GLA

[underhill2] 26/11/2020 09:46

With Giles Clarke at the helm nothing suprises me. It really is now a cash shell and a reverse takeover looks a possibility for an investing Company which requires a Stock Market quote.

[tommygriff] 26/11/2020 09:43

There must be an underlying issue with license, how can a vanadium project not get decent finance away in this climate!!

[underhill2] 26/11/2020 09:42

Thats life !

[ladeside] 26/11/2020 09:36

Oh well, I didnt see that coming.

[pugugly] 26/11/2020 08:50

The palacing price the broker had to offer to get funds says (imo) all that needs saying -

Could this now be on the way to becoming a cash shell.

[broncowarrior] 26/11/2020 08:20

It gets to the stage where it is "what is the point "? Company now a zombie company really, had high hopes for it.

[vatnabrekk] 26/11/2020 08:10

I really was hoping for something better than this.
Oh well, let's see what happens next!

[vatnabrekk] 26/11/2020 08:08

Absolutely Tommy.

[tommygriff] 26/11/2020 07:57

Terms of the IIG offer must have been bad if they have resorted to a bucket shop placing via TP

[johncasey] 26/11/2020 07:29

nice cheap buy in price..on going negotiations

[tommygriff] 26/11/2020 07:26

The saga continues

[ladeside] 25/11/2020 23:00

There's no doubt that we're at a crossroads and the risk is still there, however the rewards could be very good indeed for those able to stock up at these prices.

I always draw comparisons with Amer and this seems very much like the 2p days over there when things looked very dark indeed, however it then 30 bagged and I suppose we can only hope that GC can take us on a similar journey here, all be it with a better final outcome.....

[vatnabrekk] 25/11/2020 20:39

In that case, this might be a good buying opportunity!
But of course could also be risky if they don't come with a deal.