Ironveld Share Discussion Threads

[rec0very stock] 13/7/2022 15:16

Hope you are right, disapplication Special at KZG got defeated by 99.33% of votes cast.

[ladeside] 13/7/2022 15:00

I'd reckon GC KNOWS that he'll have about 65% to 70% at a minimum and as such has nothing to fear from Align.

[rec0very stock] 13/7/2022 14:59

LADESIDE don't bury them too deep in the bottom drawer, you may need to vote them. 25% or 50% of the vote when not many people vote can be 10% of the number of shares issued.

[rec0very stock] 13/7/2022 14:35

Personally I am happy with my tiny holding and would not try doing what I did a few years ago and banked a spivvy profit as a result.

I can't remember which company it was but the gist was it had some oil assets in Africa it had acheived very little with for years. A group came in saying they could do better and wanted a GM to sack the BoD and install them instead. I did not care who was right or wrong, I just saw that those on one side or the other would be buying ahead of the GM proxies by date and that would push up the price. It did. I also reasoned that whichever way the vote went some of those who lost would sell. I sold shortly after the proxies by date and banked 30%. I have no idea how the vote went or what happened after as I never cared in the first place - never anything wrong with a profit even if it is totally spivvy.

The situation is different here as RJ is not providing a coherent alternative should his resolutions succeed, but if I know RJ he will probably start working on that now. Also as I said above, when we see the resolutions they probably won't leave a door open to an alternative ahead of 19 Aug (I suspect the 1 Aug date was specfically chosen so there would be no chance of another GM (min 2 weeks notice), unless the BoD really really wanted another GM).

[rec0very stock] 13/7/2022 14:24

tima,

Personally I believe Grosvenor is a dead duck and ME just can't admit it. In his video (he said lots of things in the last one which were at best misleading) he said Grosvenor could take on the debt element of the smelter acquisition - he did not say in return for what, but I can't see anyone who had funded Grosvenor being happy with anything other than the placing price - all just my own personal honestly held opinion as always.

[ladeside] 13/7/2022 13:39

Oh well, Bottom drawer for a good few months / years at least !!

Best case scenario is get up and running, make good early profits and then get taken out by Glencore / Chinese.

[soultrading] 13/7/2022 13:25

could it close blue

[tomboyb] 13/7/2022 12:59

Bid moving up -

[tima441] 13/7/2022 12:27

Any views on how the Grosvenor monies might work now... if received?

My feeling is that they may well find it easier to tie up their own financing once this closes in Aug.

In which case they probably need to come up with their previously promised monies (£5.6m?) plus maybe £1.5m more if they want to maintain 29.9% holding inc new shares?

Perhaps issuing something like 910m new shares @ revised price? Say 0.75p?
Or let their %age drop if maintain investment at £5.6m? Also at a revised price tbc?

[ladeside] 13/7/2022 12:22

Yes, it's certainly been a roller coaster ride !!

[rec0very stock] 13/7/2022 12:04

They said Grosvenor were going to subscribe for shares at 1p and had a GM to approve it before they mentioned Grosvenor did not have the money.

ME has been very careful about what has been said - it is the things he has not said you need to think about (not an unusual situation wrt AIM RNSs and follow up PR/IR fluff).

I hope this all helps. It looks like I owe LADESIDE one for buying the shares I top sliced in 2013.

[al101uk] 13/7/2022 11:59

Post placing the company will have a market cap of £9 milion, with £4 million in cash to develop their infrastructure, they claim they will be producing and selling product within a few months of the sale completing, I'm not sure how they could claim that if they didn't have all the infrastructure they need for production?

What am I doing?

Same as ever, sitting on the sidelines until I'm confident that all the peices are in place. No reason to rush in to buying above the the placing price and before the GM.

[rec0very stock] 13/7/2022 11:55

I know you are and I wish you the best of luck with whatever investing decision you make - I just hope you and others can make it on a better informed basis.

Just so you know "four convertors" one for each furnace will be the electrical convertors that take AC from the grid transform it to the voltage needed and then convert to DC.

It sounds like the smelter has everything you would expect a smelter to have as part of the package and does not have the things that are needed to get the ore smelter ready - it will get dug out of the ground all muddy and in big inconsistently sized lumps.

[al101uk] 13/7/2022 11:51

The companies plan to raise funds is far superior to Aligns.

I'm sure Align said they would not hold their corner at less than 1p per share, so I'm not sure what they are complaining about. PI's will be able to buy shares at the placing price or close to it in the general market.

It would have been better if the placing was at a higher price, obviously. It would be interesting to know if the deal that has been done is the same as was discussed with Align before they went public.

I think management sum it up best:

"...Other offers of funding to the Company (including those from Mr Jennings) included high proportions of debt with onerous terms that would have to be repaid at the end of their term either in cash or shares at the prevailing price - which could be lower than today - and typically with the requirement to also award extremely high levels of warrants with no fixed floor price. "

It's funny that Align have inadvertantly caused shareholders to side with management for a placing at less than 50% of the previous price.

[ladeside] 13/7/2022 11:44

I'm attempting to take a balanced view here and play it out with the hand that we've now been dealt.

Yes, I'm angry, Yes, I think the board are a bunch of greedy self serving rats BUT at the same time this may be our best / only chance of real success here.

Should we get the placing away, get the smelter complex purchased and operational within 12 months and with no further skeletons appearing out of anyone's cupboards, then with our off take agreements and cash flow coming in we may just pull it off.

The Grosvenor thing is a complete unknown, but at least if we write it off then anything at all coming from it must be seen as a further positive.

It's a bitter pill to swallow, of that there's little doubt, but I do still believe we could all recoup losses and make some profit here, all be it, not what we hoped or expected...

[rec0very stock] 13/7/2022 11:41

Thanks LADESIDE it very clearly does not say the FCF facility has all the crushers, millers, washing plants etc which I would expect to be sited close to the ROM pad.

[rec0very stock] 13/7/2022 11:38

"Once three furnaces are fully operational, the complex will be capable of processing approximately 40,000 tonnes of Ironveld's magnetite ore per annum which, in turn, will provide the following approximate quantities of finished products per annum: 20,000 tonnes of high purity iron; 190 tonnes of vanadium in slag; and 3,800 tonnes of titanium in slag."

How much are Glencore likely to be paying for the Vanadium in slag? Is 190 the Vanadium or the slag weight? What about the rest?

We are still a long way from being able to put an NPV on the size of the prize. Would be really useful to see a DFS for the project as configured then we could actually make an informed decision of the risk reward balance.

Happy with my holding - I won't be taking part in the Broker Option. Selling now above 0.3p and then using the money to buy in the BO (no guarantee you will get all you want if oversubcribed) would give more shares and mittigate the risk of the deal being voted down at the GM.

[ladeside] 13/7/2022 11:37

FCF owns a mothballed smelter complex in Rustenburg, South Africa which is approximately 400 kilometres from Ironveld's Bushveld mining project.

The complex consists of four 2.5 MW tilting EAF furnaces and four convertors with ladles, cranes and associated buildings and equipment. Ironveld, in conjunction with technical experts, has carried out a comprehensive due diligence on FCF over the past eight months. This has included a detailed costing for the refurbishment of the facility and quotations for the necessary equipment and upgrades.

As for the "dispute with the land owners", I've never actually heard anything about that other than from an unknown bloke who posts every so often on Twitter.

[rec0very stock] 13/7/2022 11:30

We need to see the GM resolutions, but as the company will write them I would expect that it will be structured so it is this deal or nothing - there won't be time for another GM before 19 Aug and the RJ proposal would need GM resolutions to go through as that is also beyond current authority.

[rec0very stock] 13/7/2022 11:26

There is also the dispute with the land owners - they will need to be paid off.

[rec0very stock] 13/7/2022 11:23

"As mentioned earlier, it's the entire facility that's being purchased which includes crushers and all the associated machinery,"

Do you have evidence of this or is it your assumption / hope - every investing disaster is preceded by the words hope and assume. ME made no mention of it he just said CAPEX - they could use someone elses facility for a fee. No mention of working capital - would include doing the actual mining and smelter running costs or indeed the insurance costs of insuring the £30m facility. ME has a habit of not mentioning important details (eg Grosvenor don't actually have the money) in his RNSs and his unregulated PR/IR fluff

Crushers etc are normally sited close to the ROM pad to cut down on transport costs.

[ladeside] 13/7/2022 11:11

Just listened to Eales and the irony is that had the placing gone through at 0.60 or even 0.50 it would probably have been seen as a major positive, especially given the Insurance value of £30 Million and the off take agreements signed with Glencore.

If the worst comes to the worst, we could maybe put a wee team together and go over and set the complex on fire once it all completes.....

[tomboyb] 13/7/2022 11:01

Can't see any point in selling my stock, nor buying for that matter -

Limbo -