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Peter Cox said 6 weeks ago that the Land Lease would be approved in April and that has been reiterated here which is good. Also looks like the finance is all but in place. Once these two items are in achieved we will actually have a fantastic business. We have all been frustrated here, including I'm sure the BOD, but it will prove to be well worth the wait.
I have been advised all material revenues for Ironveld will be in $. Ironveld forecast $24.6 million profit in it's first full year of production (see investor doc Nov 2015 on ironveld.com). That profit would have produced £15.77 million profit based on the then exchange of $1.55 /£. However if you apply the current exchange rate $1.21/£ it will increase profit to £20.33 million which is a 28% increase.
Great news. Just need to sign off Finance, Landlease and Smelter purchase agreements, which must now to be a formality and we will have an amazing business. Note BOD forecast $50 million turnover and $24 million profit in the first full year of production which should be 2018 (Note all materials are already sold for the first 5 years of production). From those figures I expect an EPS of $6c or 5p. IMO that will equate to a 40 to 50p share price. Once that is achieved the predictors should be circling because of the project's enormous stated full production potential of one millions tonnes per annum. If that level is achieved we will produce $1.2 billion revenue and $571 million profit based on the economics of the first small smelter, but of course larger smelters should be much more economical to run.
from my and other investor discussions with the BOD they have been and remain very confident that the project will be successful and very profitable. We need those final pieces confirmed i.e. Finance, Smelter Order, HPI Off Take Agreement and Land Lease and then we know we are in business. As highlighted it is probably the Land Lease which has been the stumbling block, hopefully when that is finally authorised the other pieces will quickly be finalised.
Think news will come now after the summer holiday as nothing tends to happen in August. Like most projects of this nature small issues can delay. From all accounts the Board are very confident regarding this project. As previously stated when the announcements are made regarding Finance, Land Lease, HPI Off Take Agreement and that the Smelter is ordered we will know we are in business and this will take off...........
We need 4 reports from the Board: Confirmation that financing has been agreed Confirmation that the first smelter is ordered Confirmation that Land Lease is approved Confirmation of take off agreement for HPI is signed
Agree this was always a slow burn. The announcement regarding the offtake is grest news and the fact that our BoD are very bullish on the project is very encouraging. Expext a series of game changing announcements over the next month or two. .. ...