Member Info for Hedgehog100

In March, FAR announced strategic funding at 9p, comparable to the strategic funding IRON announced last month at 1p:

15th Mar 2021 7:01 am RNS Strategic Investment & Appointment of Chairman
"Strategic Investment by Vision Blue Resources and proposed appointment of Sir Mick Davis as Chairman ...
-- Total funding package of up to US$12.6m at a subscription price of 9 pence per share (the "Issue Price") ...
-- Proceeds of the total funding package will be used to:
o Complete the expansion of the existing, cashflow generating, processing facilities
o Complete the Bankable Feasibility Study ("FS") on the Company's large scale, low cost Balasausqandiq Vanadium Project ("Balausa Project") ...
Construction funding rights:
In addition to the Initial Investment and Further Investment Rights outlined above, VBR will retain the right to further invest up to US$30m in FAR based on pre-agreed share prices. These rights will only be triggered in the event that FAR launches a process to raise capital for the construction of the Balausa Project and where the Initial Investment and the Further Investment have been exercised.
A summary of the terms are outlined below:
a) Right to purchase US$10m of additional shares in FAR at a share price of 25.0 pence per share, equating to a pre-money market valuation of US$150m, at the agreed exchange rate
b) Right to purchase US$20m of additional shares in FAR at a share price of 78.0 pence per share, equating to a pre-money market valuation of US$500m, at the agreed exchange rate ..."
https://www.lse.co.uk/rns/FAR/strategic-investment-appointment-of-chairman-f77dwspburqqyjt.html

The March deal sent FAR rocketing to over 40p - although it took a week to get there - a market cap. of well over £100M.

Why hasn't IRON performed as well yet in comparison?
Especially as IRON's project is larger and more advanced than FAR's?

I think that a major factor is that FAR's funding package came with an agreement for FAR rights to invest more at far higher prices: s.p. levels nearly three times higher, and nearly nine times higher.

So the different exciting funding structures that IRON is looking at with Grosvenor could be a real opportunity to help achieve something similar.

E.g. CLNs (convertible loan notes) funding with conversion prices at multiples of the 1p level.

P.S. Thanks CleverThoughts.

At least two more IRON offtake agreements are coming: one for titanium, and one or more for HPI (high purity iron) - the HPI deal(s) with auto parts manufacturers.

This could well involve a Tesla supplier or suppliers -

"Who Are Tesla's (TSLA) Main Suppliers?
By J.B. MAVERICK
Reviewed by GORDON SCOTT on June 23, 2021
... Tesla manufactures the basic electric components of the car – the electric motor, the battery pack and the charger – but other parts come from suppliers spread across the U.S., Europe and Asia. ..."
https://www.investopedia.com/ask/answers/052815/who-are-teslas-tsla-main-suppliers.asp

And interestingly, in September-October last year shares in Piedmont Lithium (PLL) soared about ten-fold within weeks, before and after it announced an offtake deal with Tesla.

Though they've since moved even higher.

PLL is currently AU$0.845 on the ASX, a market cap. of AU$1.36 billion.

"ENERGY SEPTEMBER 28, 2020 2:36 AM UPDATED A YEAR AGO

Australia's Piedmont signs lithium ore supply deal with Tesla, shares surge

By Reuters Staff 2 MIN READ

(Reuters) - Piedmont Lithium PLL.AX on Monday said it signed a five-year deal with Tesla Inc TSLA.O to supply high-purity lithium ore mineral to the U.S. electric carmaker, prompting an 83% surge in the Australian lithium miner's shares.

The initial five-year agreement implies that Piedmont will supply about a third of its planned 160,000-tonnes-per-year spodumene concentrate produce from its deposits in North Carolina. Both companies have an option to extend the deal for another five years. ..."

https://www.reuters.com/article/us-piedmont-lithium-deal-tesla/australias-piedmont-signs-lithium-ore-supply-deal-with-tesla-shares-surge-idINKBN26J03H

From Align Research's 7.1.21 research note on Ironveld (IRON):

" ... Already there is a five-year offtake agreement for the vanadium **** with a globally recognised trading company. Previously there were marketing agreements for the HPI powder and titanium ****, with a five-year contract signed with Oreport, an established South African marketing company with expertise in commodities, steel and stainless steel. ... "

https://www.alignresearch.co.uk/wp-content/uploads/2021/01/Ironveld_Initiation_Align_Research_January_2021.pdf

https://www.alignresearch.co.uk/cpt-company/ironveld/

That vanadium offtake agreement is still very much in place.

And that is a sign of the size and quality of this asset:

" Ironveld has a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa. This project has the potential to become a vertically integrated vanadium mining and processing business serving the increasing demand for vanadium in steel alloys and vanadium redox batteries.

The company holds unfettered rights to:

• 80 million tonnes of magnetite ore - the JORC compliant mineral resources demonstrates holds 1.6 billion pounds of Vanadium, the equivalent to four times annual global demand
• 32 million tons of High Purity Iron in situ
• 9 million tonnes of Titanium"

https://www.ironveld.com/

Last November IRON agreed to settle £780,900 of deferred directors fees, including to the chairman Giles Clarke, by issuing shares at an effective issue price per share of 1.48 pence -

27th Nov 2020 4:49 pm RNS Posting of GM Circular
https://www.lse.co.uk/rns/IRON/posting-of-gm-circular-ue72jw2imhdn3sn.html

A massive vote of confidence in the company, and helping to align their interests with our own.

And at about a halfpenny higher than the current s.p.

Dave,

I think that Grosvenor will be very keen to close this investment, as they are getting such a good deal: IRON's NAV (net asset value) is about 2p per share, so they are investing at about half this level.

And they will have seen the way that the IRON s.p. has responded to this deal, so will know that they should be sitting on an immediate huge paper profit.

In comparison, Align Research estimated a net asset value of 1.5-2p for KZG, and KZG's strategic investment was supposed to be at about 2.75p.

Though the KZG s.p. never moved much above 2p after the 2.75p deal was announced.

Whereas the IRON s.p. has moved well over 1p since the 1p funding was announced.

HKK,

Today's great GROC RNS was reporting on a programme of field work, so you wouldn't expect it to be about starting a mine.

But the previous RNS had a great deal on this, which shows how this is being fast-tracked -

11th Oct 2021 7:00 am RNS Amitsoq Graphite Update & Post-IPO Site Visit

" ... "Amitsoq is one of the highest-grade graphite projects globally and GreenRoc is now accelerating its development and attaining valuable resource information, while at the same time initiating the groundwork to support feasibility data. Our site visit also enabled the management team to review the extent of the graphite outcrops and the exposure in the old mine workings which have held up particularly well over the years. The unusually good ground condition bodes well for any future underground operations.

" ... We were highly impressed with the reception we received from the local municipality officials and were assured of their, and the local community's, support for the project. We also continue to be reassured by the supportive nature of the Greenlandic mining jurisdiction and look forward to expanding our operations there."

... The Amitsoq site visit has been invaluable in allowing GreenRoc management to further assess potential mining methods and possible operational infrastructural layouts.

... The former graphite mine at Amitsoq, which was mined in the 1920s, was inspected and found to be in excellent condition considering the age of the old workings. This has positive implications for the underground support regime that will be required for the chosen mining method. It is also apparent that much of the infrastructure required, such as workshops, can be accommodated underground, thereby potentially mitigating any winter weather effects on the operations. These favourable ground conditions are anticipated to have a positive impact on the mine design and the ensuing production efficiencies.

... The GreenRoc directors met with the Mayor and the leader of the local Kujalleq municipality, and undertook initial discussions on the potential impact of the development of the Amitsoq Project on local communities. It was noted that local population levels have dropped in recent years, and the GreenRoc development would have a meaningful impact in creating job opportunities thereby assisting in the reversal of this trend. The potential for training and upskilling local people in drilling and mining skills was welcomed by the municipality.

Additional discussions were undertaken with local businessmen concerning logistical support as well as the developers of a hydro-electric plant close to the Project. It was stated by the developers that this hydro-electric project has the potential to supply 6 MW of continuous power to the operations. The potential for this will be further investigated as the Amitsoq project progresses towards development status. ..."

https://www.lse.co.uk/rns/GROC/amitsoq-graphite-update-post-ipo-site-visit-cg7

This 26.10.21 IRON video interview has been posted about on this board before, but it's well worth revisiting:

"Ironveld on its way to production
535 views
Oct 26, 2021
Martin Eales, CEO of AIM-listed Ironveld, says after establishing a new partnership in Grosvenor Resources, including a cash injection, the company is now on target to start production in 12 months. As Eales explains to IGTV's Jeremy Naylor, its products are likely to be sold to one offtake and it is likely to be in the automotive sector."
https://www.youtube.com/watch?v=YUvQwl9MfUY

Here are some key points from it:

They have a magnetite deposit, not an iron ore bulk commodity project for steel.
It will be speciality metals production, processing ore into very, very high purity iron for powders for manufacturing.
This involves less cost, waste, and energy.
It's a hugely exciting market, including 3D printing, where metals are overtaking plastics.
Grosvenor can't invest over 30% without making a bid, so they're looking at different exciting funding structures with Grosvenor to get the remaining funding, which should happen in a fairly short term time frame.
Hope to be in production in 12 months.
They will build a smelter on site next to the mine.
The key market for iron powders is auto parts manufacturers, where there are 5 or 6 major manufacturers of metals powders.
They've talked to all of them, and expect to be selling to one (for simplicity) or a few offtake partners there.
They already have a vanadium offtake agreement.
They're working on a titanium offtake agreement.
They will have no problem selling their production.
Declared resource of 56 million tonnes: will keep them going for decades.
Intend to scale up production from the initial 5MW smelter.
Sees this as the beginning of a long term share price appreciation.
Will probably be fully-funded within the next couple of months.

Very significant news today about OSI's international expansion success.
The company is clearly going global.
And this clearly highlights the strength of OSI's offering, and its filling of a market need.

OSI won its first customer in North America in 2018:

8th May 2019 7:00 am RNS Final Results
" ... -- Strong lead generation and presence at major industry events - first customer win in North America ..."
https://www.lse.co.uk/rns/OSI/final-results-sxle5343y19gb8z.html

And interestingly, in February OSI registered a new patent in the USA ... which bodes well for its continued expansion into America:

1st Feb 2021 7:00 am RNS New Patent Granted
"Osirium Technologies plc (AIM: OSI.L), a leading vendor of cloud-based cybersecurity software, is pleased to announce it has been granted a new patent in the field of authentication services by the US Patent and Trade Mark office.
... The patent builds on Osirium's track record of innovation in privileged access, including a series of patents previously granted for credential management.
David Guyatt, Chief Executive Officer, commented : "Our continuing commitment to innovation has been a key factor in our success over the years. Our customers value it as it gives them new ways to address increasing security challenges, and our partners look for it, as it gives them compelling competitive differentiators.""
https://www.lse.co.uk/rns/OSI/new-patent-granted-xuxnpmhtm4yuhmx.html

26th Nov 2020 7:00 am RNS Conditional Placing and Broker Option
" ...· As previously announced, bridge funding advanced by IIG during 2020 totalling approximately US$650,000 plus interest will principally be settled by 102,174,963 New Ordinary Shares at 0.42p per share, the outstanding sum being reduced by a cash repayment of US$150,000 (approximately £112,000).
Option Agreement with IIG
As announced on 12 November 2020, the Company and IIG have agreed that the Option Agreement originally announced on 30 March 2020 will lapse on 30 November 2020. Ironveld and IIG have agreed that the majority of the funds advanced by IIG during 2020 (approximately US$650,000 plus interest) will be capitalised at a price of 0.42 pence per share resulting in the issue of 102,174,963 New Ordinary Shares to IIG. A cash repayment of US$150,000 (approximately £112,000) will be made from the Placing proceeds.
IIG has agreed not to dispose of any Ironveld shares for at least 6 months. ..."
https://www.lse.co.uk/rns/IRON/conditional-placing-and-broker-option-3u21j3zjxzxq0ol.html

"Align Research bought all IIG's stock back in April and subsequently are no longer shareholders."

JBTs,

Thanks for that.

I see now that IIG are not shown as major shareholders in IRON as at 31.7.21 -
https://www.ironveld.com/docs/AIM%20Securities%20Information%2031.07.21.pdf

But IIG would have been major shareholders if the 102,174,963 shares were issued to them.

And if so it should have been RNSed if they'd been sold, which it wasn't.

And selling in April would not have been in accordance with the lock-in agreement.

08/11/2021 07:00 RNSNON Osirium Technologies PLC Channel Partner and Marketing Update

Growth in channel partners and geographies

Osirium Technologies plc (AIM: OSI), a leading vendor of cloud-based cybersecurity software, today provides an update on its channel partner network and digital marketing strategy.

The Group is pleased to announce contract wins in new territories including its first deals in the Netherlands, Ireland and Singapore, achieved through Osirium's channel partner network. These contracts underline the Group's 'land and expand' strategy which focuses on increasing contract values and device numbers following initial engagement.

Osirium now has over 30 active partners across the UK and internationally, with a growing interest in new geographies including North America and South Asia. As a result, management expects the number of sales generated through these channels will increase in line with the growth in awareness of, and demand for, Privileged Access Security.

With a reduction in the number of large trade shows typically seen before the pandemic, Osirium's pivot to digital marketing and virtual events has increased in traction and continues to drive new business in conjunction with its indirect sales arm. The Group is pleased to report it reached the total number of leads generated in 2020 by the end of September 2021 and has stepped up the automation of information campaigns via email.

With a strengthening sales channel domestically and internationally, along with continued new business momentum in line with the Group's strategy, the Board remain confident in the Osirium's growth prospects.

David Guyatt, CEO of Osirium, commented:

"The indirect sales arm facilitated by our channel partner network represents a core element of our strategy, enabling us to access a wide range of geographies and scale further. Alongside this, our digital marketing strategy continues to accelerate and generate new leads.

Importantly, our 'land and expand' strategy facilitates increased engagement with these new customers and provides the solid foundations for significant contracts."

https://www.lse.co.uk/rns/OSI/channel-partner-and-marketing-update-ez0diagtbljnwf9.html

CleverThoughts,

Some key Ironveld points for newbies are:

• Huge JORC compliant mineral resources: the in-situ value of IRON's metals is somewhere in the region of US$100 billion.
(In comparison, KZG's flagship project has tantalum-lithium JORC resources with an in-situ value of well under 100 million US dollars, i.e. under a thousandth of IRON's HPI-vanadium-titanium resources in-situ value, albeit KZG also has a HMS project and a diamonds project. )

• 'Shovel-ready' project: the necessary definitive feasibility study (2014), mining licences, environmental approval, and power supply confirmation have all been obtained.
(IRON's Lunge mining right approval which is expected soon is for a 20% extension to IRON's main mineral resource.)

• Potential to be the world's lowest-cost HPI producer.

• Project life is in excess of 100 years and highly scalable.

• A play on the developing battery metals bull market, electric vehicles, and 3D printing.

• IRON chairman Giles Clarke and CEO Martin Eales have achieved huge success previously.

• Strong period of positive newsflow should just be starting.

• Potentially a real takeover target.

In conclusion, a project of this size and quality, this close to production, with a positive market outlook, should quite simply be valued far higher.

Also Steven,

I don't see how you can be sure that IIG will be dumping over time.

If they've any sense, surely they will recognise the value unfolding here, and wish to stay put.

Note that the shares issued to them last November at 0.42p were only subject to a six-month lock-in, so IIG have had about six months to sell at big profit but haven't done so.

In fact, maybe this will wish to buy more. They've been interested in being strategic investors into IRON in the past, so maybe they will participate in the further strategic funding that IRON is arranging, as it seems an ideal project for them. -

"IIG is an investment vehicle associated with Mcebisi Jonas and Monwabisi Twantwa in South Africa and is at the forefront of securing development for South Africa's coming wave of battery and strategic metals projects"
https://www.lse.co.uk/rns/IRON/strategic-partnership-and-conditional-fundraising-nmaa8hs188s17r5.html

Steven,

Those IRON warrants were exercised over eight months ago, so the shares issued should have been long since sold -

1st Mar 2021 7:00 am RNS Exercise of Warrants and Issue of Equity
https://www.lse.co.uk/rns/IRON/exercise-of-warrants-and-issue-of-equity-pcmzawfvem8402n.html

Warrant-holders don't tend to exercise them early unless they wish to sell.

The key thing is that no IRON warrants have been exercised since 1st. March.

Compare that to KZG, where over a quarter of a million pounds of warrants have been exercised recently.
And 22.85M. shares from those warrants exercised have lock-ins expiring mid December - start February.

Or to put it anther way, it's time for GENI to 'let itself go' ...

"JANUARY 14, 2016 4:42PM ET
Flashback: David Bowie Summons ‘The Jean Genie’ in 1973
Footage of the hard-rocking performance went unseen for 38 years
By GAVIN EDWARDS
... When they lean into the microphone together and sing “let yourself go,” it’s a command that band and audience both obey. ..."
https://www.rollingstone.com/music/music-news/flashback-david-bowie-summons-the-jean-genie-in-1973-227220/

30th Sep 2021 7:00 am RNS WHM Acquisition-Completion of Cash Generative HMS
" ... · Kazera will acquire 60% of WHM (10% will be retained by Tectonic and 30% is held on trust for future Black Economic Empowerment Partners). ..."
https://www.lse.co.uk/rns/KZG/whm-acquisition-completion-of-cash-generative-hms-7e05qjdivcc0nwn.html

22nd Oct 2021 9:00 am RNS Major Investment to Raise £5.6 million
" ... · Issue of 561,505,950 Subscription Shares at 1.0p per Subscription Share to Grosvenor for 29.9 per cent. of the enlarged issued share capital of the Company;
· Grosvenor is a new South African private company formed by young black entrepreneurs who wish to expand their investments and mining operations in South Africa beyond the bulk commodities space and develop high-value vertically integrated projects; ..."
https://www.lse.co.uk/rns/IRON/major-investment-to-raise-16356-million-02lfmaw40cbxx0e.html

Another difference to KZG is that IRON has now achieved about 30% black investment into the company, and moreover at a premium price, with a very well-connected group that can open South African doors to developing the project.

So the BEE initiative, which may be putting some investors off South Africa, can no longer be an IRON concern.

What may be seen as a negative by some investors, IRON has turned into a positive.

A master-stroke by Giles Clarke and Martin Eales, but an aspect that the market doesn't really seem to have picked up on yet.

ZN,

I think the newsflow will start rolling once the investment is approved, and the funds are released from escrow.

The GM is 10a.m. on Monday, so under one trading day.

The experience of KZG, another Giles Clarke company, may be weighing here.
I.e. expected strategic funds not delivered.
The difference with KZG was that there was no binding contract, and the investors didn't have the funds.

So a totally different situation here, with a vastly bigger in-situ asset.

But news of GM approval and receipt of funds should still be received positively, and of course the newsflow should then start rolling.

I would certainly expect a re-rating up into the 2p - 3p range short term once the right newsflow is arriving.

But that should just be for starters, with far higher gains further out very possible.

22nd Jul 2021 7:00 am RNS Admission to trading on AIM & First Day of Dealing
" ... The Company was incorporated in September 2018 to acquire the assets, intellectual property and know-how of the Ferrer inCode and Gendiag.exe businesses, which were then part of Grupo Ferrer Internacional S.A., a large Spanish multinational private pharmaceutical and healthcare company. The technology and products acquired included Cardio inCode®, Lipid inCode®, Thrombo inCode® and Sudd inCode®. The Directors believe that approximately €50 million has been invested in the research and development of these products since 2007. The Company has begun to commercialise these products in certain European countries and is also targeting the UK and US. ..."
https://www.lse.co.uk/rns/GENI/admission-to-trading-on-aim-first-day-of-dealing-igq6cndmidufja8.html

€50 million equates to about £43M. at the current exchange rate.

Compared to GENI's current market cap. at 38p of £36.4M.
With GENI cash reserves post admission at 31 July 2021 of £16.7M.

Moreover, the sums invested have resulted in great products that are now being commercialised, so should actually be worth more.

A great buying opportunity at this dip expect a strong rebound.

Nick,

Salt Lake Potash has the ticker SO4, so numbers must be allowed.

It's interesting to compare STAR with another small AIM tech company involved in transport remote monitoring: Maestrano (MNO) -

12th Oct 2021 7:00 am RNS Final Results
"... Total Revenue 1,690
... Loss before income tax (1,222)
Operational Highlights for the Period
-- First US Contract with Union Pacific Railroad, the second largest Class 1Railroad in the US..."
https://www.lse.co.uk/rns/MNO/final-results-hj7syricbrc5jg3.html

MNO is currently 13p, market cap. £22.12M., on financial results far worse than STAR's.

And on the first of November two years ago MNO was 1.3p, which means that it's ten-bagged in the two years since then.

Funnily enough, helped by some important contract wins ...