Ironveld Share Discussion Threads

[annie38] 04/10/2017 16:01

J.W. knows more than anyone on here what is going on in the background and consequently I can only be reassured by the purchase.

[mouse20] 04/10/2017 14:49

Paleje, I agree. Something afoot. May take a few months for Peter Cox to write us an RNS though.

[paleje] 04/10/2017 14:04

Wardle is well informed, not a bad idea to take note of what he does.

[novicetrade68] 04/10/2017 13:54

500k buy at 2.475p.

[callumross] 04/10/2017 12:41

Oops sorry - don't know what RNS I was reading!

[paleje] 04/10/2017 12:17

How do you make Tracarta 1m sells, callum? It looks as if Wardle has added not sold, as novicetrade says.

[bigwavedave] 04/10/2017 12:13

"Tracarta has sold 1m"? Tracarta (aka John Wardle of AMER) has bought only, as far as I can see.

[callumross] 04/10/2017 12:06

Tracarta has sold 1m but now we know why 1.6m sells yesterday never moved the price - a late trade of over 2m at 2.3 which was a buy. 2.3p trades at the moment are buys regardless of what ADVFN classes them as.

[novicetrade68] 04/10/2017 10:54

Interesting Holdings RNS, Tracarta recently added 4.46m shares.

[al101uk] 03/10/2017 16:08

OK, so the RNS states that the proceeds are for working capital and to continue to fund the potential acquisition of the smelter. Basically the money is there to keep them going to the the end of the year.

But originally the purchase was supposed to be finalised in April:

"Due diligence has been completed. The aim is to agree legally binding purchase agreements by the end of April 2017"

and were based on the costs outlined in the same RNS:

The MoUs envisage payment of an initial consideration of £2.9m payable as £1.16m in cash and £1.74m in new ordinary shares in the Company.
Two further payments each of £4.0m in cash due on the first and second
anniversaries of signing of the MOUs, such payments anticipated by the Company to be funded by way of free cash flow from the Smelting Plant.

Based on the completion of the purchase in April, the plant needed to be refurbished, which was going to take until 2018:

"The refurbishment and installation of the necessary equipment to produce HPI, Vanadium and Titanium products to Ironveld’s specifications is anticipated to take
up to 6 months with production commencing in Q1 2018"

I would assume from that, that the refurb wasn't planned to start until the finance agreement is in place and the purchase completed.

There is also this little snippet in the placing RNS:

"The Company intends to put down £0.5m of the net proceeds as a refundable deposit towards the Potential Acquisition"

So I'm going to refine my guesses above with the following:

We can reduce the cash position as of year end 2017 to £0.5 million and we can assume that that money was earmarked for running costs and the refurb in the first half of 2018, with production then planned to start second half of 2018. Obviously the risk there is £0.5 million earmarked for both of those things sounds a little low.

This is entirely dependant on financing being available and no matter what happens there is definitely to be a further share issue in order to pay the "£1.74m in new ordinary shares in the Company."

This financing deal is last chance saloon though and currently any money invested here is just option money on them getting the financing deal away.

All of that means I may refine my prediction of a placing this year and say, if financing is not available they can probably stave off another placing until sometime towards the end of first quarter of 2018... but if the deal isn't done, another working capital placing is almost a certainty in my opinion and further dilution to pay for the deal is also baked in.

Also interested in the terms of the warrants that will be issued alongside the cash and shares, which could be cause for even more dilution in the future.

All of that said there may be a buying opportunity, in my view, if the company gets to the stage of issuing shares to complete the purchase. It's unlikely that this won't be at a discount to the then prevailing price, but once complete I think the bottom will be in and it should be onward and upward from there... where ever there happens to be.

[aceuk] 03/10/2017 15:45

Thought either that or the true bid/offer is rather tighter than that on my screen - haven't done any dummies to test it out.

[annie38] 03/10/2017 15:35

Surely must be an order being filled here for this quantity of sells to have had no effect on share price (yet) ?

[sabzahmed] 02/10/2017 18:51

Thanks al101. I too thought mid Nov. I am invested here and am very much underwater - hope they deliver some of that jam this month.

[al101uk] 02/10/2017 13:39

As of Dec 2016 interims the company had:

£520K Net receivables & Cash
Cashburn was about £385K for the 6 month period.

Cash burn tends to be lower in the second half, but even taking this in to account I would expect the company was broke when the placing went ahead. So Cash of £2.1 million minus expenses (5%?), so lets call it £2 million net.

Loan of £800K paid off beginning of second half so £1.2 million left.

Cash burn for second half of around £200K (reduced due to loan repayment), leaving about £1 million to fund the acquisition.

The problem now is that if the deal isn't completed by Dec 2017 (as per their RNS) they will be eating in to the placing money for working capital and once a deal is on the table, another placing may be necessary to finalise it.

If I were invested here now, I'd be keeping a very close eye on the December deadline for news and hoping nothing untoward happens in the meantime. In my view the closer they get to December without the news, the more likely another placing. If it were me I don't think I'd wait until that deadline passed to raise further funds if necessary, so on no news, I'd be looking Mid November, early December for another placing.

Having commercial use of the smelter while the deal is being finalised would of course change all of that... but I'd want to see it officially confirmed along with news that the use of the smelter was resulting in positive operational cash flow.

Anyone assuming a positive with no news on any Giles Clarke company is fooling themselves in my opinion.

[inside2] 02/10/2017 08:43

you have hand it to this company, they are consistent.

[sabzahmed] 01/10/2017 22:57

If IRON struggle to finalise funding anytime soon, when will they run out of money?When do people think the next placing will take place?

[sabzahmed] 30/9/2017 19:56

I've been saying that for years and still saying it :-)

[mouse20] 30/9/2017 15:00

I'm sure October will bring us news. Just like I thought September would. And August for that matter.

[pranchalee] 30/9/2017 12:18

the 175k and 355k were buys

[tommygriff] 30/9/2017 09:06

They all sells yesterday?

[pranchalee] 28/9/2017 10:36

Mms happy to take ur shares

[pranchalee] 26/9/2017 17:46

the bid has risen to 2.3 today