Ironveld Share Discussion Threads

[aceuk] 24/12/2021 16:04

Merry Christmas from Ironveld

[annie38] 24/12/2021 12:14

IMS: I see you left the best news until the end of your post. Merry Christmas.

[malcolmmm] 24/12/2021 10:52

Not before time. There are also a lot of sells popping up as well

[itsmyshares] 24/12/2021 10:14

There is a lot going on behind the scenes here that none of you lot know about. I am just going to say this is why these buys keep popping in. This will be my last post.

[rec0very stock] 24/12/2021 08:39

To be fair wrt above (because I am very fair), the dig it up and then work out what to do with it strategy may be unorthodox, but will most probably work provided the resource is what it is cracked up to be. The key thing for this company is to become cash generative. With positive cashflow many doors open up, including access to proper funding for expansion / upgrade.

[rec0very stock] 24/12/2021 07:57

patt,

The track record for IRON RNSs actually coming true is not good - read the header to this thread:

"The prospecting rights cover seven adjacent farms totalling 165 square kilometres.
The company plans to mine the Ti-magnetite iron ore as feedstock for its own pig iron plant, expecting to begin production in 2015."

To be fair this is not atypical of AIM small cap miners.

Malcolm,

Over the years of false dawns followed by keep the lights on placings the market has lost confidence in this company; I doubt they could raise £8m at 0.1p via a placing.

Normal mining companies in the exploration stage produce a PFS followed by a D/BFS, this enables them to raise the equity share of the CAPEX and debt at around 70/30 debt to equity ratio. There isn't even a proper PFS, indeed do they even have a costable plan?

"Ironveld intends to commence mining in 2022 and will look to secure access to the most efficient and cost-effective smelting facilities for processing of its magnetite ore. This may involve construction of new facilities on site, acquiring existing facilities or paying for access to third party facilities."

Nope, despite the seemingly detailed ME video post the initial announcement, where a small smelter would be built on site and then upgraded, it is back to all the same things they have been talking about but not doing for years. On this basis I think it is very clear why they have gone to some backstreet newly formed company. Having seen all this for the last decade none of it surprises me, hence why only a small punt sub 1p on it being different this time makes any sense to me.

[malcolmmm] 23/12/2021 21:31

If their assets in the ground are so valuable why dont they go to the market with a placing to raise the funds? why go to some backstreet newly formed company who have to raise the funds from the banks at high interest in SA.

[purchaseatthetop] 23/12/2021 18:41

My issue remains the completely uncertain wording of the RNS's. For example:

"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 the Company's subsidiary, Luge Prospecting and Mining (Pty) Ltd ("Luge"), are covered for the foreseeable future."

There are a couple of words that concern:

"substantial" - where is the rest coming from?
"application" - so who will provide Grosvenor with the finance if this is merely for an application?
"foreseeable" - uncertain horizon. Is it 2 months or 2 years?

Then also why would Grosvenor provide "all corporate overheads and costs" when they have only a percentage?

RNS's are a fabulous fun game. NEVER read the headlines. ALWAYS read the detail.

[logica2me] 23/12/2021 11:37

Nice 6,000,000 trade gone through at t he full offer. Someone's picking some up on the cheap at this level. I'd be picking up more myself if I had spare funds.

[aceuk] 22/12/2021 19:41

As a couple here are aware I bought what I considered at the time a lot (100K) AMER @8p and watched it go to 2p. I sold half at 54p and hung on way too long with the balance but still more than doubled the original cost of the balance.

First invested a little tiny bit here at 8p and have added all the way down ignoring that sage stock market advice not to try catching a falling knife! Currently need just under 1.5p to break even and regard the risk/reward is in my favour ATM.

[al101uk] 22/12/2021 17:48

SAMRAD is offline for Xmas

"SAMRAD Online Application System will not be available from the 23rd December 2021 until 3th January 2022. This is due to closure of the Department during festive season. The system will be accessible from the 4th January 2022".

[al101uk] 22/12/2021 17:33

RS,

Been around Giles Clarke companies since 2007, when he took over Chaco and renamed it to Amerisur. I know what he's capable of both good and bad. Skirting the truth in RNS's is absolutely true to form, doesn't mean he won't get it done, but it changes the risk assesment and the potential entry point.

Mining right application process, Ironvelds application was accepted around the 1st June:

hxxps://www.gov.za/services/mining-and-water/apply-mining-right

You can also view the status of mining right applications here:

hxxps://www.dmr.gov.za/samrad-online-system

Seems like you can only get the registration form if you are in Africa... works via VPN, asks for a lot of details.

On the basis of the process detailed, I'd assume that Ironveld are very close to completion but could be dependent on funding... sigh.

[purchaseatthetop] 22/12/2021 17:09

It is a staggering potential resource and I bought in a year or two back, then sold for a small profit, when I realised that this is a share for the hugely patient. There are any number of AIM miners that will never mine an ounce of resource but happily pay fees and lifestyles for the chosen few.

Hats off to any of you with that patience anD if it does get developed it would return hugely. Just a rather big if. Plus I did not like the way the RNSs were timed or written. Very similar to MOS where I took out a sell. I have not taken a sell here as there is too much risk against one now.

Good luck.

[rec0very stock] 22/12/2021 16:37

Al,

Don't get me wrong, I want to see the transactions complete and on balance of probabilities believe they will complete, just maybe not quite as soon as we are led to believe. It is not however beyond reasonable doubt that there won't be a significant further delay or the deal falls through entirely - IRON has announced many things in the past and months later confessed they have not happened, but they have a new cunning plan, then there is a keep the lights on placing and it is rinse and repeat.

Previous such announcements have been much more vague than these ones, which is why I tend to favour the view that it will be different this time and why I had my small top up punt.

We have all been round the block enough times, which has enabled us collectively to dissect the latest RNS pretty well, even if some would prefer it not to be dissected. Hopefully we will all have a prosperous New Year thanks to all our investing decisions.

[al101uk] 22/12/2021 16:32

Last mention of Luge mining rights from 1st June.

"Luge is the holder of Prospecting Rights, originally granted in 2016, over the Farms and November 2020 submitted a Mining Right application for VTM which outcrops on the Farms. This application has been accepted by the Department of Mineral Resources and Energy. Following completion of the standard environmental and water use licence work, as well as community engagement, it is expected that the Mining Right will be granted in the second half of this year."

[purchaseatthetop] 22/12/2021 16:15

That was Mark Twaine. Nothing changes.

[al101uk] 22/12/2021 16:13

Rec0very,

Well, that shut me up. I did mean deep pocketed as being able to fulfill their obligation, not necasarily having the funds in the bank waiting to go and it would be understandable for the second deal to still need funding, but:

"No conditions to completion, total funds from Grosvenor for both transactions still expected to be remitted shortly."

Means

No mining license for Luge and financing still to be completed by Grosvenor.

How can their AGM circular have a date for the money transfer the day after the AGM when there was no way that was going to happen given that Grosvenor don't have the funds several weeks after the AGM approval?

Was wavering from the sidelines, but firmly back in my spectator seat now.

[malcolmmm] 22/12/2021 16:10

Ladeside like you I have been investing and been on ADVFN and other boards for years. imo miners are the riskiest of stocks but get one right every so often and it makes up for the losses plus much more. I have noted that the Stockopedia very high risk portfolio out preformed all the other portfolios by a country mile. I forget which but one gold miner made me £50k 2 days after I invested, but remember the old definition of a Gold stock-
A Gold mine is a hole in the ground with a liar sitting on the top

[rec0very stock] 22/12/2021 15:56

patt,

A thought in answer to your valid concern:

Grosvenor agreed to fund at a premium when others wanted a discount. The initial announcement drove the share price above 1p, so the premium becomes a discount. However the share price drifted back below 1p and was likely to drift further as the uncertainty grew with no news. A bit of news, which certainly appears good, and hey presto back to above 1p.

The RNS is clear that closing is now only dependant on Grosvenor raising the cash itself (because it has set itself up as a new investment company without the cash to make the investments it is agreeing to make!). Annie made a valid point, which if it does turn out to be a reason for further delay, would again bring into question the accuracy of what is being said in RNSs. Sadly most companies, principally but not just on AIM, do this sort of thing and IRON's track record puts it firmly in that most companies bracket.

[ladeside] 22/12/2021 15:51

"para" being the operative word....

[purchaseatthetop] 22/12/2021 15:35

Recovery….it is that para that concerns me. Why would IRON not wait for Grosvenor to get their finances in place before RNSing the news? Then money has not arrived and another RNS for more money. Which would make raising the money more difficult.

[rec0very stock] 22/12/2021 15:31

Why would I sell now? I know the risks and have lived with them for 10 years and knew the risks when I did my small top up.

Now if, when the deal is closed (especially if it does not come with clear confirmation that the money is in IRON's bank), the share price charges above 2p then I will top slice and let the rest ride for free. Therefore if I was self interested in my posting I would not be pointing these things out, but instead be mindlessly praising a BoD that has failed to get this project off the ground for the last 10 years, but has promised many false dawns and done many keep the lights on placings, whilst not exactly stinting on their own remuneration. You called them crooks, I call them par for the course and not just on AIM.

[rec0very stock] 22/12/2021 15:24

It is confirmed in the RNS that Grosvenor need to arrange their own financing:

"Closing of Transactions

Grosvenor is finalising its own funding package for both transactions and Ironveld expects that Closing will take place shortly."

It is only £8m and a deep pocketed investor would be able to find that down the back of the sofa.