Ironveld Share Discussion Threads

[malcolmmm] 01/5/2024 08:08

Dead in the water comes to mind. The farmers who own the land are against this project and IRON cannot transfer their mining rights to anyone else, they cannot and haven't got anything to sell.

[tommygriff] 30/4/2024 10:40

Wardles involved day to day now but get the feeling there is a fundamental problem with the project. All funders who have shown an interest can't get past DD stage

[moneylender] 30/4/2024 10:11

Morning all. i havent been folowing this at all, big mistake! Is this now a basket case or is there a light at the end of the very long tunnel!

M

[malcolmmm] 29/4/2024 07:17

South Africa is a corrupt country, best to avoid

[ladeside] 28/4/2024 09:03

There is one thing, at least we don't need to worry about the existing share options and warrants....

[ladeside] 28/4/2024 09:01

Yes, I got that Al but the point I was making is that if we were unable to raise more than £500k then it would be unlikely that JW would demand his £125k back plus interest when that could effectively scupper both us and himself.

Ultimately nobody knows what's going on behind the scenes, those of us who still hold are just hoping that JW can get something pushed through and I think we all know it's unlikely to be great for long term holders, however given the position that we're in now, then even getting back to a 0.2 - 0.3 level would seem like a huge victory !!

[al101uk] 26/4/2024 14:51

Ladeside,

"The RNS stated that "expected completion H1", this being the case then £500k would be more than enough to see us through (especially with the additional £125k of Wardle)."

The terms of the JW's loan are:

Repayment of any funds drawn down plus interest immediately upon receipt of funds drawn down from any replacement institutional debt facility or conversion at the issue price in the event of any future equity placing during the loan term

The amount outstanding from JW is £500K plus interest, I don't see how the terms of that loan can be adhered too without a good chunk more than £500K being raised in the initial placing.

[ladeside] 26/4/2024 12:07

Nah, the 1.15 at Sandown for me.....

[malcolmmm] 26/4/2024 07:31

Try Sharepad and make some money

[purchaseatthetop] 24/4/2024 20:59

This was dead from the moment they lied about Grosvenor. That was clear.

[broncowarrior] 24/4/2024 20:54

What is the point of this? The lack of transparency about what is going on is ridiculous.

[ladeside] 24/4/2024 15:22

The RNS stated that "expected completion H1", this being the case then £500k would be more than enough to see us through (especially with the additional £125k of Wardle).

While grim, one would hope that TPI and BOD could manage to get a £500k placing away at even so low as 0.05 which would of course take us up to 5 Billion shares in issue which while far from ideal would at least give us a chance if the main funding was to actually complete as planned (Yes, Yes, I know).

Personally I'll not be averaging down and I'll just wait and hope that something positive develops, if not then it's yet another painful AIM experience but as Jim Bowen used to say, "that's the gamble".....

[bigwavedave] 24/4/2024 12:54

Which begs the question: Why throw good money after bad?

[rec0very stock] 24/4/2024 09:38

Tiny bit of life support funding from JW is no where near enough to keep overdue creditors happy. I take this as a bad sign that TPI have been unable to get a significant placing away at any price.

[ladeside] 11/4/2024 11:34

There seems to be some strange stuff going on as regards SP, as it appears to be held at 0.10 irrespective of the amount of selling (and there's been a lot).

I'm wondering if some sort of funding deal is being done behind the scenes with 0.10 as the strike price ?

Maybe just wishful thinking on my part, however they've had lots of opportunities to take it down to 0.9 / 0.8 etc and I don't think anyone would have any complaints if they did ?

As I say, it does seem strange to me.

[ladeside] 05/4/2024 13:16

Yes, once again I'd agree with that and I've always been a sucker for all or nothing but at this point I'm 100% prepared for total wipe out and have in fact factored it in already.

As regards averaging down again, I'm undoubtedly daft but I'm not completely stupid....

[rec0very stock] 05/4/2024 11:39

In terms of current liabilities, the £261k of borrowings are certainly soft and some of the £3.818m trade and other payables will be directors' salaries which can be considered soft. Some will be wages for people who have probably been laid off now (they will want paying as soon as the company has money, but are probably prepared to stay quiet until then), some will be payments to mining and transport contractors and some will be payments for overpriced generator hire (all of these could start legal proceedings or at least threaten to, which would unnerve any loan provider). £680k is smelter debt repayment, defaulting on that could lead to the smelter being repossessed. I am guessing the increase in non current payables of £128k is 6 months worth of interest on the non current part of the smelter loan (works out at just over 6% so not as bad as it could have been).

My guess is JW may have cut new cash burn to £50k per month, while the company spins its wheel going nowhere, but it would take a placing in excess of £1.5m to keep all the wolves from the door for the months still to wait before there is some certainty, one way or another, about the loan. I don't see any realistic prospect of getting new generators and restarting production before any major loan. Indeed I can't see anyone doing anything for the company without cash up front.

You seem to have decided to go down with the ship, hopefully you are not tempted to average down again, as you have in the past. There is no point losing money if you do not learn some lessons from it.

[ladeside] 05/4/2024 10:15

Yes, I don't disagree with anything you've said there Recovery, the only thing maybe, is that quite a portion of the liabilities are soft loans / in house but of course we DO still owe the money on the smelter purchase.

From my own perspective I've already taken a large hit and could obviously still salvage a few grand but fortunately my main (mostly safe if a little boring) investments are doing fine and ultimately it's not life changing in any way should I be wiped out, apart from perhaps delaying my retirement by a year or so.

I suppose there's always drug dealing if all else fails as every criminal I know seems to do pretty well out of it.....

[aceuk] 05/4/2024 10:12

On that last point big and total are now so similar it makes little difference ;-)

[rec0very stock] 05/4/2024 10:04

Ladeside,

A lot has changed since 2013/4. In my view none of those changes help IRON to ultimate success. Even the failed attempt at production is evidence that the resource really is not all it was cracked up to be.

It is far easier to look back and see what went wrong, but investing is about trying to look forward and to do that successfully requires taking off the rose tinted glasses. I honestly believed at the time that the Grosvenor offer of finance would be different this time. But as soon as it became clear that that was just an illusion created by GC's lies, my rose tinted glasses were consigned to the bin. Whilst we had our disagreements, hopefully you can see that I called this pretty well from the point I sold the majority of my remaining holdings onwards.

So looking forward now, you are correct that that is the only real hope, but it is a very slim one. The dire net current liabilities position, which has been made much worse over the last 6 months, is potentially what will kill the company before any loan comes and will certainly put off any genuine financier - a big proportion of any loan would need to go straight to other creditors and not into the investment needed to give the company a chance of becoming genuinely cash generative at PLC level. It will also make getting a placing away very difficult. If TPI do manage to get another one away it is likely to be at a massive discount, not be for very much and be gone very quickly.

There is no evidence (eg an independent up to date D/BFS), only biased hope, that, even if there was enough money to get to full HPIP production, the company would be cash generative and able to service a large loan. I therefore believe that if any loan comes, it will not be from a credible standard financing source, but would have so many onerous conditions attached that it would itself lead to failure.

In my experience the proceeds of fire sales have a nasty way of finding themselves distributed to everyone except shareholders.

My 28k shares are worth so little they will go down with the ship, however you need to think seriously about what you are going to do with your holding - taking big losses is painful but not as painful as taking total losses.

[malcolmmm] 04/4/2024 18:32

MALCOLMMM4 Sep '22 - 19:44 - 7019 of 8221 Edit
0 0 0
IMO all the money will go in employees' wages, bonuses ,share options ,payments for the licences and farmers rentals and maintenance of the land etc etc I give it 12 months.

Key Executives
Name Title Pay Exercised Year Born
Mr. Martin Wentworth Eales CEO & Director 175k N/A 1972
Dr. Peter John Cox BSc Min Eng, Dip Civil Eng Technical Director & Director 101k N/A 1955
Said Izagaren Sr. Account Mang. N/A N/A N/A
Ms. Keneilwe Ndala Chief Exec. Officer of Ironveld Mining N/A N/A N/A
Mr. Thamaga Mphahlele Chief Exec. Officer of Ironveld Smelting N/A N/A N/A
Mr. William Brian James Sec. N/A N/A N/A
Income 2021 2020 2019
Turnover 0 0 0
Cost of sales 0 0 0
Gross Profit 0 0 0
Operating Profit -£783,000.00 -£695,000.00 -£629,000.00
Pre-Tax profit -£465,000.00 -£1.02 m -£625,000.00
Ironveld PLC Company Background

[ladeside] 04/4/2024 16:57

As it stands I think we can all agree that the company is in a very precarious position and our only real hope is that JW can keep us ticking along until a genuine cash injection is received, if not, then it's a case of salvage what we can via a fire sale (which is unlikely to be much) otherwise it's pretty much game over.

Have we all been "had" to this point ? Yes, I'd say that's pretty obvious.

Were the warning signs there ? Yes, they undoubtedly were, however once again those of us who remained made the mistake of believing that there was a semblance of regulation in the country and that RNS's and investor podcasts might at least have had some sort of truth in them.

As I've said before, is it really any wonder that AIM is becoming un-investable and that the whole UK market in general is losing credibility ??

There's only so many times you can lie and cheat people before they wake up and see the corruption for what it is and I think the tipping point has just about come if not already here.....

[ladeside] 04/4/2024 16:47

In fairness you "saw the light" as it were but it seems you had that Ironveld scarf and hat along with the rest of us at one time and undoubtedly came a cropper along with the rest of us, just at a different point in time.....

I do see your point to an extent as I often wonder how AB gets away with it time and time again (over at RRR) and new investors don't seem to understand the history or somehow think that THEY will be the ones that will see everything turn, so Yes, I do actually understand your reasoning and your motivation for your continued posting.