Ironveld Share Discussion Threads

[aceuk] 26/10/2023 11:38

Of course Wardle can get out, he is more than wealthy enough to just walk away and not worry about it.

Strikes me the tming isn't quite right to dump Giles completely but that is surely the direction of travel - is revenge worth pursuing? My view is yes, but great care is needed.

[ladeside] 26/10/2023 11:27

Utter mince Recovery and you know it. Go away back to whatever rock you crawled from.

[ladeside] 26/10/2023 11:26

We just need to get to full capacity, work out what the profit margin is and then look at the HPI powder and how it is going to be funded.

If we can prove that there's good money to be made and that our infrastructure is all in place and working well, then who knows what could happen ?

One thing is for sure, 0.30 and below will be well gone !!!!

[rec0very stock] 26/10/2023 11:21

More unforeseen costs! Who could have guessed that would happen?

"Since the Company's Operations Update on 18 September 2023, the operations at the Rustenburg smelter have consumed a greater amount of cash resources than originally planned, in particular the impact of critical repairs and optimisation costing approximately GBP250,000 to rectify which, combined with a material interruption to planned production during October, has created a requirement for additional working capital."

We previously worked out that even at full HPI production the company burnt cash at PLC level. What has transpired since has reconfirmed that this is just a cash hungry monster. The fundraise now will last them into the new year (I seem to recall someone predicting a second placing in 2023), but with debt repayments on the smelter starting in 2024 and no sign of getting HPIP into production, another going concern emphasis of matter is almost certain to be in the results published in December, then it is rinse and repeat, unless someone does finally provide a loan which would need to be at least £5m. Little dribs and drabs of cash won't provide the CAPEX needed for HPIP and without HPIP they just keep burning cash. Indeed there is no DFS which shows that HPIP would be sufficiently profitable to provide a safe enough return on investment for a bona fide loan provider.

Wardle is just following his money - he has no choice he can't get out. It is obviously good news that he is replacing GC.

Lots of people looked into buying this back in 2018 and all walked away. What has happened since to make it more attractive? The power supply situation in South Africa has worsened and a tiny smelter has been acquired in completely the wrong place and is contributing significantly to the cash burn issue and will be repossessed if the debt can't be paid. Anyone looking to buy will be looking for a fire sale opportunity.

[luckyabbeygale] 26/10/2023 11:10

Look at Enet. 1300 percentage rise in two days. They looked very risky. I still was thinking about putting just £500 in at 0.25p and then I would of sold to soon the next day at 0.75p. Loosing out on 3p plus.

Tells us that proffesional investors do indeed average down. Also Enet only has 50K cash and is still likely to go bust.

What we have here with Ironveld is over 10 times better than ENET's potential. The stockmarket behaves like an idiot on how it goes about the pricing of shares.

[ladeside] 26/10/2023 11:02

This is True Ace, however that's doesn't apply to someone who has the most inside of inside info.

It's not guesswork or "averaging down" on the part of Wardle I wouldn't think.

[aceuk] 26/10/2023 10:55

Ultimately given his previously built ownership it's not a premium, he's doing what professional "investors" say you should not do i.e. catch falling knife/average down!

[ladeside] 26/10/2023 10:47

Irrespective, it's all good news and Wardle is obviously well aware of the value of the asset and as such is sitting on 15% of it and happy to add at a premium !!

The warrants at 0.29 do not bother me in the slightest as ultimately it underpins the share price and gives us access to another £1 Million if and when the warrants are cashed and one would presume we'd be trading far higher at that point, which in itself is obviously a positive.

Today has also removed any uncertainty over funding and from a sentiment perspective removing GC is also a major plus, so all in all it would seem a very good day for the future of Ironveld.....

[ladeside] 26/10/2023 10:41

Incoming Chairman, John Wardle commented: "I thank Giles for his contribution in advancing the Company to its current stage of development and I look forward to working more directly with the Ironveld team. Our objective is to drive the further development of the Company in the short term and demonstrate the inherent value of our assets."

I would draw attention to the passage, "demonstrate the inherent value of our assets".

[ladeside] 26/10/2023 10:39

I see Jennings has been tweeting with pretty much the same stuff as I was thinking myself (and have posted a few times over the past months) regarding a sale and sale price.

My "take out" price I reckoned to be around £35 Million (but hope for more) and he's quoted $40 - $60 Million.


Align Research
@AlignResearch
Ref Ironveld #IRON As 2nd largest shldr here, pleased to see funding at a premium and of course Wardle replacing Clarke as Chairman. We suspect the company is now being positioned for sale next yr. Would estimate a sale price of US$40-60m which would equate to @ 0.6 - 0.8p on a fully diluted basis. Mgmnt concerns being alleviated with Wardle in the driving seat now this continues to look a steal to us.

[orange1] 26/10/2023 10:29

Yes, very much a case of damning with faint praise: "His executive experience from senior positions at the likes of Amerisur Resources and Emerald Energy hold him in good stead."

[aceuk] 26/10/2023 10:16

Not just good, that is excellent news and no X announcement to go with it.

Do I detect just a little bitterness in the exchange of cordialities;-)

[bigwavedave] 26/10/2023 07:47

Good. Is this the start of Ironveld 2.0?

[ih_639388] 26/10/2023 07:46

Surprised no comments on latest raise and JW becoming Chairman. We need more details on what has happened to smelter operations and costs.

GLA

[ladeside] 23/10/2023 18:38

The problem at the moment is that we still don't know for sure if the HPI powder is going ahead, and if it is, how will it be financed ?

The BOD have insinuated that shareholders won't be screwed over in a cheap placing etc, however until such times as we're officially told how this is going to be financed then people seem rather hesitant as regards making a purchase / taking a position given previous "promises".

We also don't know if we're yet in full production and we don't know if we're turning a profit or making a loss and until these questions are definitively answered then it's likely we're going to drift around these pathetic share price levels.

Don't get me wrong, I'm still holding and indeed adding, but by the same token I'm not naive enough to believe that we'll suddenly re-rate without some real news which can be proven to the market, as you can only call "wolf" so often before people start to lose faith and trust in what's being spouted and there lies the REAL issues here....

[aceuk] 23/10/2023 12:15

That's all very well but the problem is the company's relationship with honesty which is not exactly good!

[luckyabbeygale] 23/10/2023 12:12

Interesting post from SmartMoney1 on III.

Fire sale prices!

Dipln, the site is a heavily guarded facility with access strictly restricted to Lapon Mining staff. So, the answer to your question is no, I didn't visit the site. However, the purpose of my trip was not to visit the site but to engage with the local business community who have dealings with Lapon. And the most I can share, without attracting the ire of the company and, subsequently, the ire of the administrators of this board, is simply to say that, this business is materially undervalued.

And for what it's worth, I have been a buyer at these fire sale prices.

By way of a reminder, and as stated in my previous posts, the fundamentals of Ironveld are simply a rarity on AIM:

• The company is sitting on 56 million tonnes of JORC-compliant magnetite resource! This is graded at 68.6% Fe2O3, 14.7% TiO2 and 1.12% V2O5 with a project life in excess of 100 years!

• The company is selling its produce!

• The company's NPV currently sits at £88.4m (8% discount rate). This equates to 2.47pence per share!

• The company is projecting profitable revenues in Q4 2023 – this excludes projected profits from the DMS joint venture, HPI conversion into powders, and any further expansion of smelting facilities!

• Alongside Catalyse Capital, the company's BOD have a major portion of their net worth invested in the company. 17.03% of the company to be precise.

• Premier Miton, winner of the Fund Manager of the Year Award (2021), and boasting £11bn AUM (assets under management), has taken a 7% stake in the company.

• Population growth, the convergence of living standards, urbanisation, and the demand for speciality metals and battery metals to support the global, clean energy transition and decarbonisation all point in the company's favour.

• At 0.24p (£8.5m), and considering all the above, the company's shares are grossly mispriced. And that's excluding any potential outcome from the advanced funding discussions currently taking place, or an approach from a cash-rich suitor keen on securing the extensive magnetite resource!

AIMHO

[aceuk] 18/10/2023 09:55

The price has not dropped .... yet ;-)

[ladeside] 14/10/2023 13:53

We'll hopefully get some positive News released over the next week or two which should see the beginning of the re-rate....

[dead duck resources] 14/10/2023 12:52

Robust results from SEAM; (a one-man-band J Allan who as a broker analyst once crossed paths with Pala so has probably known the CEO here for some time)

Balance sheet at Sept 1st 2023
Cash £275
-£528,000 financial liabilities
-£997,000 accrued director fees, mainly J Allan. Payment deferred until cash available

SEAM's ability to be a going concern is dependent on completion of the rights issue to repay debt. Management continue to monitor the cash situation as liabilities currently exceed assets. Expenses consist of management fees and general costs. These conditions indicate a material uncertainty that may cast significant doubt...

Market cap: £0.01m

[luckyabbeygale] 13/10/2023 13:17

I have just made a start to build a position here.

[tomtum1] 12/10/2023 13:32

Well your something else Patt advising on stocks. Your enet which you said you topped up so many times is gone bust

[ladeside] 10/10/2023 14:22

Real time prices are 23.4 to buy and 23.0 to sell.

It's pretty crazy though that a £500k Directors loan facility on decent terms has the ability to knock £2 Million off the MCAP.

Still, the company REAL valuation doesn't change, even if the current share price / MCAP is crazy stuff.

[purchaseatthetop] 10/10/2023 11:19

Al101uk. On ENET, a £200 buy just shifted the price by 3.1%!

[al101uk] 10/10/2023 10:52

Just for fun I'm going to add a post to make it 5 in a row of posts not diametrically opposed to one another...

Normal volatility in a microcap share. I always think back to when I moved the price on a quiet day with a £5K trade (I'm talking multiple ticks)... Ironveld were bigger by market cap back then.