Ironveld Share Discussion Threads

[ladeside] 13/9/2023 18:58

The UK is one of the most corrupt countries in the world so I think operating in SA is the least of our worries.

Incidentally, I'm just back from Wroclaw and my God, the Poles put us to shame. The place is about 30 years ahead of us in terms of infrastructure and technology and while our entire country is failing they're just going from strength to strength in every single way.

I really fear for the UK I've got to say, we have a population of utter morons, our political system is broken, we have nobody willing to stand up for what they actually believe, each and every party has the same pathetic policies where they're pandering to extremist minority splinter groups and meanwhile everything is failing.

I hope I'm wrong but I think we're pretty much screwed....

[malcolmmm] 13/9/2023 12:35

SA is a corrupt country IMO best to avoid especially the mining industry,you are wasting your time and money IMO

[ladeside] 13/9/2023 11:57

Thanks for your always insightful research MALCOLMMM......

[aceuk] 13/9/2023 11:00

It's a gas .... 🤣

[malcolmmm] 12/9/2023 16:22

IMO this is going nowhere and never will

[hazelst] 07/9/2023 12:49

How's the ENET investment going? Things seem to be getting desperate over there.

[purchaseatthetop] 07/9/2023 11:48

Great bingo hall!

[aceuk] 07/9/2023 11:35

Care in the community

[purchaseatthetop] 05/9/2023 18:03

I think the BoD are having a lovely time spending all the money.

[ladeside] 05/9/2023 17:41

Cutting through all the noise, what we really need to know is,

1. Whether or not the Enernet power plant has been installed / on target

2. We need to know if the 3 furnaces are now all up and running

3. And the $64,000 question, we need to know if the project is profitable in its current guise or will we need to invest more in order to get the HPI powder off the ground.

I still maintain that this is all about getting the infrastructure in place and proving up the project and then I fully expect us to be taken out but of course only time will tell.....

[al101uk] 05/9/2023 11:49

Trying to spin a positive out of it, it could be that Ironveld don't see their participation in the JV as important at all. Maybe the reason they want the deal is purely so that they can charge the joint venture for mining the ore. Effectively the joint ventures cast offs will be the Iron and other commodities that Ironveld can pick up cheap/free. They have certainly made some noises in that direction.

Maybe the 50% stake was just unexpected gravy when the negotations were settled.

Still not a good look and I am stretching for an excuse for the company.

[aceuk] 04/9/2023 19:37

Thank you al101 🧐

[al101uk] 04/9/2023 18:24

Hi All,

Not been around for a while, new hobby distracting me from investing and with the markets as they are there's not a lot of pleasure to be had sitting and watching the carnage unfold. I'm primarily in dividend paying companies, so finding it all quite easy to ignore for a while.

Comparing the new RNS to the old one is interesting:

This:

All initial capital and establishment costs of approximately ZAR 35 million (£1.65 million) to be funded by Ironveld's JV partner, Pace SA (Pty) Limited.
Maximum design capacity of beneficiation plant approximately 60 tonnes per hour; and first production and sales from the JV expected mid 2023.

Turns to this:

New funding partner, Sable Platinum Holdings (Pty) Limited will supply £650,000 for the establishment of an initial quick start 10,000 tonnes per month ("tpm") capacity plant.

So what are Pace SA now bringing to the table?

Sable Platinum are providing the funding and have provided access to new customers.

Ironveld are providing the land, the ore to be processed and the people required to operate the plant.

PACE provide some more customers and "trade the Magnetite" at point of sale.

It certainly looks, once again, like Ironveld have done a deal for funding, only to find out that the money isn't available. They now have half the production capacity and half the stake they had when the deal was first signed. I'm not sure how Ironveld can accept losing half of their stake because their partner can't provide the funding promised. The only reason I can imagine is they've done it for face saving reasons.

To sugar coat this pill they claim that production capacity was originally massively overspecced (they don't say this outright, but by implication). Despite losing nearly two thirds of that capacity the JV can and intends to double the originally planned production without hitting capacity limitations.

Lets assume doubling the original plan takes us to 10K tonnes (the new capacity limit). That means when we originally planned to build a plant capable of 27K tonnes, we aimed to produce only 5K tonnes.

Of course Ironveld failed to provide any numbers other than plant capacitcity in the original RNS, so we'll never know if there really is a financial hit from all of this or not. I suspect there is.

As Ladeside and others have said, this is a sideshow to the primary concern of getting the HPI out of the ground and selling it, but it does exemplify a continued pattern of behaviour. Ironveld release transformational news, only to later reverse out of it. Makes them very difficult to invest in.

[ladeside] 04/9/2023 15:12

This is simple for me, I'm not an Ironveld "supporter" in as much as having a scarf and telling everyone how wonderful they are, basically this is purely about making a profit from my holding.

The question I ask myself is, "will this at least double from here and do I think it will reach a mcap of around £25 to £30 Million ?"

My answer to that question is Yes, so hence I'm happy to hold and even buy more at current prices as I'm in no rush whatsoever to cash in my chips.

Are there better investments out there ? Probably, however my argument would be that this is pretty much de-risked at current levels and I've put in the research here that I haven't elsewhere.

Has Giles let us down over the years, have promises been broken and has the share price crashed ?

Most certainly on all counts, however it's a case of re-basing expectations and getting out of dodge with a profit, as I say, I'm more than happy to hold and would expect to see an share price of 0.60 to 0.80 in the not too distant future but who knows ? there's also lots of potential upside which could see it go WAY past that so that's it for me, that's the cards on the table as it were....

[aceuk] 03/9/2023 14:36

Expecting Giles to be straight .... LOL! 🤣🤣🤣

[dead duck resources] 03/9/2023 13:41

LADESIDE, it is the directors who confuse. Even hoodwinked their own house broker who thought the revised agreement meant earlier cashflow, as the RNS left out the key bit about the interest reducing from 40% before partner payback to 0% (and 25% thereafter)

I agree it's a nothing venture but almost makes it worse that the management couldn’t be straight on something so small. We can understand them not being upfront about the performance of the smelter until they have to (Interim Results next March) but why be vague on their lemonade stall JV? Demonstrates the lack of transparency from this lot.

[tomtum1] 03/9/2023 12:29

Strange behaviour over mocking peoples shares when enet is pure dirt

[ladeside] 02/9/2023 20:33

This part of the project is a nothing and basically free money with no outlay.

Stop trying to confuse people with insinuations of impending doom.

[hazelst] 02/9/2023 09:16

How's the ENET investment going?

[purchaseatthetop] 01/9/2023 21:00

FFS. This is the same BoD who completely misled shareholders over Grosvenor.

[dead duck resources] 01/9/2023 20:57

House broker says this agreement "advances the first expected payments to Ironveld"

However this agreement delays first payments, if any.

The original agreement had Ironveld on 40% of cashflow from the outset, 50% after the JV partner earns back its outlay. A 3rd partner has now entered the mix with Iron now 0% from the outset, 25% after the new partner recoups its outlay. And a smaller plant so a lesser stake in a lesser project.

"Once we recover funding plus interest we will transfer 50%"


These slippery directors went to some lengths to mislead on this. "The new structure retains our ability to benefit from positive cashflows... [and] the amendment to our percentage interest will have a negligible effect on cashflow to Ironveld"

[purchaseatthetop] 01/9/2023 20:22

That is possibly the most ridiculous snd convoluted RNS ever written. What is really says is IRON has no cash to develop the project.

[dead duck resources] 01/9/2023 20:13

We have to read the JSE company announcement to understand the ins and outs and the changes since the January RNS. No chance of this lot telling it straight imho.

Uncertain at this stage where this 'fines' JV will sit among the HPI powder upgrade, Burnstar's letter of intent, Grosvenor's strategic equity investment etc. Better if this management announced actual happenings rather than all these plans and intents.

[ladeside] 01/9/2023 15:26

TPI retains its £30.7m DCF valuation for Ironveld

Having surmounted all major technical challenges at Rustenburg, with on site stockpiling of feedstock commencing two to three months back and sale prices guaranteed through existing offtake agreements, overall project risks have clearly now substantially reduced.

Today’s announcement not only lends additional support to the expectation that Ironveld will become cash generative within its first full year of production, but also continues to build credibility into the Board’s ambitious medium to longer-term vision of building a much larger, scaled-up production facility. Having taken today’s news on board TPI will not, at this time, be revising its existing prudent financial model for the overall project, but may look to do so once the plant has been commissioned and its prospective economic benefits formally detailed.

In the meantime, based solely on the smelter’s first phase of proposed commercial expansion and utilisation only of existing wholly owned plant, TPI
derives a £30.7m DCF valuation for Ironveld, which remains over two-and-a-half times the Group’s current market capitalisation.