Ironveld – a 'no one watching o’clock' day results announcement. Uh oh...30 Dec 2020 09:55
From Share Prophets website.
Ironveld – a 'no one watching o’clock' day results announcement. Uh oh...
By Steve Moore | Tuesday 29 December 2020
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from *************). I have no business relationship with any company whose stock is mentioned in this article.
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Ironveld (IRON) has today announced results for its year ended 30th June 2020, concluding “we look forward to providing further updates in the near future”. Hmmm – releasing results on largely ‘no one watching o’clock’ days such as those this week doesn’t tend to mean good news…
It emphasises that it has “unfettered rights to 56.4 million tonnes of magnetite ore, which the JORC compliant mineral resources demonstrates holds 1.4 billion pounds weight of Vanadium – equivalent to four times annual global Vanadium demand; 27 million tons of High Purity Iron in situ; and 8.3 million tonnes of titanium” and that “discussions continue with IIG and other parties with a view to concluding a strategic or project financing transaction. The recently completed placing gives us a strengthened financial base from which to negotiate an alternative project funding transaction and we are focused on delivering this in 2021”. However…
In March 2020 it announced it was “delighted to be working alongside IIG as our strategic partner and have no doubt that together we can capitalise on Ironveld’s huge potential”. That was with a ‘strategic partnership’ including arrangements to raise a potential approximately £2.7 million ($3.2 million). However, last month it was updated that the companies “have agreed that the option agreement will not be extended on its current terms and will now lapse”.
What happened to “no doubt that together we can capitalise on Ironveld’s huge potential” then?! And the company may be “focused” on delivering a project funding transaction in 2021, but it was also so from at least July 2019 – when it appointed finnCap to lead a review of the strategic options for its mining assets.
The results show “administrative expenses” of £0.7 million, current assets of just £0.1 million and current liabilities of £1 million – as noted on a £1.15 million recent equity raising, I guess being able to continue to trade is necessary to be able to seek to advance development negotiations!
That also saw me note a Fundraising Roll-Call Of Shame from a 0.65p share price and I noting still future cash concerns. With now the attempted no one watching o’clock results release – and it looking obvious why, natch still bargepole / sell.
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