Ironveld Share Discussion Threads

[ladeside] 27/2/2023 15:18

Yes, I think we need to look at this as a new beginning, it's been done to death the previous disasters and how long termers have been hugely diluted (myself included), however if we are to take the 0.30 and £9 Million mcap in isolation and look at our current state of affairs and what's likely / expected to happen over the coming weeks and months, then I'd think it must be accepted that there's lots of upside to the current share price and MCAP

The most recent £2 Million raise at 0.30 also takes out any funding / cash flow risk up until we're finally producing and are cash positive, it could also be argued that it's extremely Bullish that GC & JW are both heavily involved in the placing.

The questions which still need answering are,

1. what exactly do we expect to make from the JV ?

2. Are we intending on proceeding with the HPI powder and if so how much more cash will be required and how / when is this likely to be funded ?

All in all though, things are now looking much brighter and I don't expect us to be hanging around the 0.30 range too much longer......

[aceuk] 27/2/2023 10:39

Let's get this party started ;-)

[al101uk] 26/2/2023 22:04

Mysterious new company?

Do you mean the additional deal Ironveld have done for Magnetite?

There is no detail around that deal, no finances, nothing. All we know is that the company that has done that deal looks real enough. I'm not sure that is what has enabled the placing to get away at a higher price than expected. I think it's purely about Ironveld having been punished severely for the Align debacle causing the share price to completely crater, followed by them finally delivering on some of their promises and as a result improving sentiment and beleif.

As I said to Ace, jokingly a few posts ago, the bar (expectations) have been set at ankle level, although beating them is still great.

[purchaseatthetop] 26/2/2023 19:01

Ladeside.
There is a big difference between the price they placed (at an amazing 0.3p) which was spiked by this mysterious new company. Who replaced the last mysterious new company Grosvenor who enabled a £4m placing at 0.3p who never had a penny to invest.

The share price will return to its correct level but more PIs will have invested.

[ladeside] 26/2/2023 18:48

I'm also glad I was a good bit out myself !!

[hedgehog 100] 25/2/2023 10:31

Rec0very Stock 2 Jan '23 - 10:49 - 7396 of 7603 0 1 0
" ... In the meantime read post 7369 and join the guess the parameters of the 2023 placing contest - it is just for fun.
I have 15/3/23, £1.5m and 0.1p
patt has 21/2/23, £3m and 0.14p
LADESIDE has no date, £2.2m and 0.2p"


23/02/2023 11:00 UK Regulatory (RNS & others) Ironveld PLC Placing to raise GBP2.0 million LSE:IRON Ironveld Plc
"Placing to raise GBP2.0 million
Notice of General Meeting
Ironveld plc ("Ironveld" or the "Company"), the AIM quoted mining development company, is pleased to announce a proposed fundraising of GBP2.0 million (the "Fundraising").
The Fundraising will comprise a placing of, in aggregate, 666,666,666 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares" and such 666,666,666 new Ordinary Shares being the "Placing Shares"), at a price of 0.30p per Placing Share ("Placing Price"), to raise GBP2.0 million before expenses (together, the "Placing").
280,000,000 of the Placing Shares (the "First Placing Shares") will be issued out of authorities granted to the Directors at the Company's last annual general meeting (the "Firm Placing") and the remaining 386,666,666 Placing Shares (the "Second Placing Shares") will be issued subject to the requisite authorities being granted to the Directors at a General Meeting of the Company's shareholders to be convened in due course (the "Conditional Placing"). ..."



Looks like Ladeside was the clear winner here - well done.

And the placing price of 0.3p was three times higher than that predicted by Rec0very Stock; out by a whopping 200%.

That must be one of the worst predictions I have ever seen.

[ladeside] 25/2/2023 09:41

I see we have an Align insider over on LSE who's posting complete drivel where he thought this placing should have been done at 1p and the only reason they did it cheap was to dilute Aligns holding.

Honestly, it just gets better and better.

God knows what's happened to the education system in this country and it's really no wonder the country is in the current state that it's in......

[ladeside] 24/2/2023 10:31

I honestly can't see what the negatives are, you lot are unbelievable.

Previous "negatives" trotted out were,

"The board aren't putting in their own money", well now they are but yet you're also making that out to be a negative.

"they won't be able to raise any more cash"

Well Yes THEY WILL, they've managed another £2 Million at a PREMIUM to the share price so how on earth can that be taken as a negative ??

"Look at all the warrants"

Yes, look at them, because the strike price is almost double to the current SP, so what would that tell you ??

Honestly, you're all becoming very boring now.....

[letmepass] 24/2/2023 09:32

Fact directors added over 200k at a premium gives the distinct smell of in the know, news coming.

[al101uk] 23/2/2023 22:36

Rose tinted glasses or low expectations Ace? ;-)

[aceuk] 23/2/2023 22:21

If you go to the bank manager and say I'll risk my own money and if I'm right I'll give you a bigger slice what do you think he's going to say, eff off?

Ladeside I don't mind positivity at all, first invested over 8p/share, but you really do need to put rose tints to one side!

[ladeside] 23/2/2023 21:34

Placing at above recent share price and warrants at almost double can only be perceived as a major positive with much good news on the horizon.

[aceuk] 23/2/2023 20:05

Eff me, if they hadn't been able to get that placing away with the chair and another divvying up for just under a fifth (according to the RNS) there would have been a severe problem!

However both directors are likely well under water in their current share positions in the company (especially Wardle) suppose it can be taken positively they are still prepared to risk the falling knife!

[ladeside] 23/2/2023 19:36

The project has already gone ahead and we're only weeks away from sales so I don't see what the issue is here.

I agree with what Al says, the RNS is somewhat vague with regards to the HPI powder conversion and if we will need a further £2 Million or so to proceed with this, or indeed if we're even seriously considering it ?

Getting the placing away at 0.30 without any hassle is obviously a major positive as most people had guessed at 0.20 or below and even I had expected around 0.25 with 0.20 as my worst case but very possible strike price.

The warrants don't bother me in the slightest as they're exercisable at a near 80% premium to current share price and of course even when they ARE exercised (assuming they are) then that would mean we'd likely be at least double from current share price and we would obviously gain the capital on said conversion.

As always a few questions remain unanswered (the minor legal issues on the smelter don't bother me in the slightest) but our Directors are putting their money where their mouth is and we're very close now to full operation, so on the whole a very good update I'd say....

[purchaseatthetop] 23/2/2023 18:56

As of 30/6/22 there were unpaid directors loans of £338k plus interest and unpaid remuneration of £345k see note 24 of the accounts. Total over £800k incl interest.

£350k of that was converted into shares in the £4m placing. But £450k therefore repaid.
Add in losses and other development spending since and I simply want to know what the current cash balance is. I think,that there is a lot less than people think and how will this enable the project to go ahead?

[aceuk] 23/2/2023 16:15

Well my complaint is a bit more esoteric - all those sixes, don’t like 'em ;-)

[al101uk] 23/2/2023 14:58

That RNS was a rollercoaster read...

Placing completed for gross proceeds of £2 million... I was wrong, Ladeside was right, fantastic news. Less than I expected and at a better price.

A Warrant will be issued for every two shares taken up... That stings a bit!

Exercisable at 0.5p - OK, not too bad then.

And then the kicker...

"The net proceeds of the Fundraising, will be applied to fund general working capital and acceleration of final works necessary to reach full production capacity at the Rustenburg smelter complex in the coming months."

So not for the HPI conversion equipment then?

£2 million for working capital and another £2 million at some later date for the eventual capex requirement makes £4 million, which was my estimation. I still think that's a likely possibility.

... and then there's this:

"The legal process related to closing of the smelter acquisition from Business Rescue has been complex and time consuming. As previously announced, all major underlying agreements for the transaction have been signed and only minor administrative items remain to be completed. As such, the Company and the sole creditor are very confident that the successful conclusion of the transaction will be achieved shortly. In the meantime, the Company continues to operate the smelter without interruption and legally benefits from the proceeds of all product sales."

I was definitely wrong here (and I think I was quite rude to someone who said the deal wasn't done yet). Seems like a dotting of i's and crossing of t's, but the deal is not complete.

There's definitely good news in there:

GC and JW taking a good chunk.
Placing at a premium.
Working Capital sorted for the foreseeable.

But it's STILL not over and I find that quite dissapointing :-(

I'm still waiting for the RNS that says "funding for the construction of the equipment for HPI to HPIP is sorted". Working capital requirement was known about, RS and I flagged it some time ago, so the only additional bad news for me is the non completion of the smelter. That is somewhat offset by the apparent ease of getting the placing away.

[alfieduncan] 23/2/2023 14:52

Good to see you back with the former Amer boys ML. Hopefully Giles&John fly us to the moon this time!

[ladeside] 23/2/2023 14:08

Good to see you ML, hopefully an Amer 2p moment !!

[purchaseatthetop] 23/2/2023 14:06

So. How much cash do they have left?

Cash at 30/6/22 was £17k
There were creditors and borrowings of £1.1m at that time.
Since then they have raised £6m including today
But nearly 9 months passed so another £500k lost
So maybe £4.5m cash available for all the investments since 30/6/22.
Still not sure how they get it all done!

[z1co] 23/2/2023 13:53

Now that the sell on the news traders are out of the way and with the placing done at a slight premium to the current share price , expect the shares to rerate aggressively