Member Info for TheBasher

"and subject to the fulfilment of certain conditions..."
True to type. Its not actually guarnateed to complete...
Unbelievable.

https://twitter.com/ironveldplc/status/1584883658694991873?s=46&t=VTm78jXlL5ppz4iVjZi2LQ

The Ironveld team are onsite checking the continuing good progress of refurbishment at the Rustenberg
(Pics)

Based on TPI’s estimated total mining cost to smelter of ZAR 2,000/tonne plus all-in transportation of ZAR 500/tonne and smelting cost of ZAR 7,950/tonne, FCF’s direct operating costs total ZAR 10,450/tonne. Assuming the current US$: ZAR rate of 18.2, this would be equivalent to US$22.97m when operating on a steady state of 40,000 process tonnes/year. Revenues of US$32m for the year would imply generation of an operating profit in excess of US$9m from Ironveld Smelting, plus a little under a further US$1m contribution from Ironveld Mining. After servicing creditors debt payments, local administrative costs and paying away any South African corporation tax dues (at a rate of 28%, although carried forward losses should ensure this does not apply until 2026), Ironveld plc would be entitled to retain 76% the balance owned by its subsidiaries.

While the existing smelter provides a foundation for building a larger scaled-up production facility, the acquired site offers only limited space for expansion. The Board has therefore indicated three separate phases of commercial expansion as detailed below:
PHASE 1 - The readymade 7.5MW capacity FCF smelter provides a platform for organic growth via demonstration of
initial production and sales;
PHASE 2 - Able to scale the initial project to construct a new 15MW+ smelter located next to the mining area, trebling
production. Capex costs (estimated at c.US$56 million), lenders subject to being satisfied with PHASE 1 proof
of concept (‘PoC’);
PHASE 3 - Long term objective to add four 75 MW smelters to process the large resource at the Project.
Ironveld’s High Purity Iron, Vanadium and Titanium project
Bushveld is a known metallogenic province covering approx. 66,000km2 , which hosts various mineral deposits including platinum group metals, Vanadium, Chrome, Palladium and Rhodium. The 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 Group retains unencumbered rights to:
• 80 million tonnes of magnetite ore - the JORC compliant mineral resources demonstrates that it holds 1.6
billion pounds of Vanadium, the equivalent to four times annual global demand.
• 32 million tons of 99.5% (‘High Purity Iron’, ‘HPI’) in situ.
• 9 million tonnes of Titanium.
The Project’s 8 April 2013 JORC-compliant mineral resource provided the foundation for a subsequent Definitive Feasibility Study (‘DFS’) which was published on 23 April 2014. This confirmed its potential to deliver an exceptionally high-grade iron product at 99.5% Fe HPI which typically trades at a premium price in the market. The 56.4Mt ore grading at 1.12% Vanadium Oxide (‘V205’) represented almost twice the grade of other Vanadium resources that are currently being mined and processed within the Bushveld Complex.

Ironveld Mining - Commencement of mining operations scheduled to begin in the current quarter
Mining operations are scheduled to begin in Q4 2022. Magnetite ore feedstock will be stockpiled on site at Rustenburg for delivery to the smelter as the three furnaces are sequentially brought into operation. The first full year of steady state production is expected to be reached by 2024/25E, by when the smelter will require c.40,000 tonnes of ore each year. External mining contractors have been engaged on site to minimise capex/related start-up costs. With high local availability of experienced staff for other ancillary works, the Group’s Project is expected to create a total of 140 new jobs within its first 12 months of operation. Agreements with local trucking contractors are already in place with indicative costs to transport from mine gate to smelter (c.400km) put at less than US$50/tonne. Total mine establishment and commissioning costs (including all social commitments) are estimated to be up
to ZAR 5 million (
Three separate phases of commercial expansion provide route to early cash flow
Based on delivery of 40,000 tonnes of ore per annum (<4,000tpm ROM), the smelter is expected to provide the following approximate quantities of finished products per annum: 20,000 tonnes of HPI (price range US$900 to US$1,000/tonne)/HPIP (price range US$1,300 to US$1,500/tonne); 190 tonnes of vanadium in **** (price range US$5,000-US$5,300/tonne); and 3,800 tonnes of
titanium in **** (price range US$200-$300/tonne). This equates to an annualised run rate of US$27 million to US$32 million once the facility is producing and selling iron powders. Given the expected short commissioning and preparation time required, ore stockpiling will commence shortly in tandem with the ongoing furnace refurbishment. Estimated operational expenditure (‘opex’) for HPI production is comfortably below selling prices, while revenues from the Vanadium and Titanium **** of c US$2 million per annum would flow straight to the bottom line given their effective zero production cost. Sales Contracts, Approved Supplier or Marketing Agreements are already in place for final output of HPI, HPI Powders, Vanadium **** offtake and Titanium **** offtake with a number of senior counterparts and well-known international traders.

...the Bushveld, while delivering production that is expected to lead to early generation of cash flows. As was announced
on 12 September 2022, Enernet Global Inc. (‘Enernet’), the independent power producer (‘IPP’), installed a pre-operations power supply at the smelter in order to test and re-commission the plant. A planned programme of systems and equipment testing/upgrades is now underway at the smelter and orders have been placed for critical long lead time components. Specialist contractors required for the refurbishment work have already been engaged and are active on site.

Further temporary additional power will be added to this facility to enable scaling up of plant operations in the coming months, prior to completion of Enernet’s optimised power solution (including solar, battery storage and gas generation) that is expected in Q3 2023. While the IPP agreement guarantees supply at a discount to the national tariff, it also ensures no reliance on the South African electricity grid at any stage, thereby eliminating operational risk from the relatively unreliable electricity public utility, Eskom, which routinely undertakes daily ‘load shedding’ programmes. An agreement to incorporate certain aspects of the
smelter’s required electrical upgrades into Enernet’s own project installation, is also expected to enable the Group to make savings
in its planned short term capital expenditure. All necessary environmental and other operational permits have already been put in place to enable the smelter complex’s rapid move toward production. High Purity Iron (‘HPI’) from Ironveld’s extensive magnetite resource that is held through a Mining Right on South Africa’s Limpopo Province, is expected to contribute in excess of 95% of the Group’s revenues going forward (with the balance coming in the form of vanadium and titanium **** credits). Given that raw materials supply can account for as much as 70% of production costs, having its own local source of high-quality ore (including by-product credits) provides the Group with a significant advantage over competition and should enable it to price its output in the lowest cost quartile. Demand for HPI in the form of a water atomized powder (‘HPIP’) continues to increase from specialist users, including the automotive industry and
other manufacturers requiring powder metallurgy/magnetic materials for their final output; production can be blended through incorporation of other metals to impart hardness/wear resistance etc., while self-lubrication can be gained via porosity control.
Recognising that this enables HPIP to command a price premium of 40% to 50% over standard HPI, the Group’s forward planning includes additional spend (estimated at below US$2m) to upgrade its production facility over the coming two years, with strong demand expected to be found through existing offtake agreements.

17 October 2022
Ironveld
Ironveld has released an update on recent progress by its wholly owned subsidiaries,
Ironveld Smelting Pty Limited and Ironveld Mining Pty Limited, as they move the
Group’s undeveloped and unique project (‘the Project’) in South Africa’s Bushveld
complex towards production. It details delivery of pre-operations power to the
Rustenburg smelter, while also noting that mine planning remains on track to provide
it with ore during the current quarter. Significantly also, Ironveld and the sole creditor
of Ferrochrome Furnaces Pty Limited (‘FCF’) have agreed all commercial issues in the
Debt Purchase Agreement (‘DPA’); this is expected to be signed in the coming two
weeks, following which steps to formally remove FCF from Business Rescue will be
taken. Having reviewed of all works successfully completed to date, Ironveld Smelting
expects first production of its suite of products (high purity iron, vanadium in **** and
titanium in ****) in Q1 2023, which remains in line with its original estimate of a 6–9
month refurbishment programme. Completion of this potentially transformative
acquisition thus positions the Group to fast-track generation of first revenue through
already existing offtake/sales agreements less than one year from now. While providing
a demonstration platform capable of securing initial production/commercial sales, this
nevertheless represents just the first of three expansion phases proposed by the Board
capable of multiplying output from the Project’s very large resource. With Ironveld
remaining on-track to become cash generative within its first year of production, the
Board’s ambitious medium to longer-term vision continues to gain credibility.
Highlights of the progress update
• Pre-operations power at the Rustenburg smelter now fully installed, with systems
and equipment testing underway;
• Smelter refurbishment on schedule with first production anticipated in Q1 2023;
• Mine planning on track to commence operations in current quarter to provide ore
to the smelter; and
• Debt Purchase Agreement with sole creditor expected to be signed in coming
weeks.
Ironveld Smelting – First production of its suite of products in Q1 2023
Within the Share Purchase Agreement to acquire 100% of FCF signed by Ironveld
Smelting, the only condition precedent is the signing of a DPA with FCF’s sole creditor
for a total of ZAR 115 million (approximately £5.75 million). Ironveld and the sole
creditor have now agreed all commercial issues in the DPA, which is expected to be
signed in the coming two weeks, although Ironveld’s exclusivity remains in place until
signing is completed. Following completion, Ironveld and the Business Rescue
Practitioner will proceed with the formal steps to remove FCF from Business Rescue.
Having been secured on highly attractive terms, the Rustenburg smelter facility
presents the opportunity to substantially de-risk the Group’s potentially world-class
high purity

Remember the string of large trades pre the recent raise and dilution? Given how things have played out since then, can anyone throw some meaningful light and what those unusually (for IRON) large trades signified?

Anyone thinking that lithium miners are a hype, check out what’s happening with Kazera (KZG). Chinese investment with no dilution. Kodal are in a strong position. Tick tock.

I feel such a mug. Not an easy place to be, being a man in my late 50’s with a great business track record who feels that he has some grasp on the games people play… with further deregulation for the financial industry promised by Trusty Truss, what hope do we have?

Update on Power Generation Work Programme
Mon, 12th Sep 2022 07:00
Or is this yet another failed deadline?
From RNS Number : 0044Z dated 12 September 2022
Update on Power Generation Work Programme
“The first stage of the service is underway with a 1MW pre-operations power facility that will enable Ironveld to test and re-commission the smelter. Enernet will complete installation of the pre-operations power in September 2022.”

Hmm, positive news around the corner? That would be a pleasant surprise.

Never throw the whole lot in to one share .
Always think “what if this goes belly up?”
There are never any guarantees in the stock market.
I’ve seen people get horribly burnt by these types of “dead cert” opportunities.
Yes, it looks good, but buyer beware.
And if it does come good, don’t get all smug thinking you are the best investor in town. Unless you are controlling the deal, you are at the whim of whatever plays out. And it’s not always what you think it will be.
You have been warned.

Is this a nice little orchestrated dip to rattle the cage of a few week holders?
Or is there something in this shambolic mini budget that will impact Kodal?

Every RNS usually has some caveat or get out of jail card dealt…”payment imminent”, “expected shortly”, and now another “deal done” that in fact isn’t a deal done.
This time the announcement that the smelter had been acquired was still dependent on the debt deal which still hasn’t happened one month the after the “acquisition of smelter” RNS.
Ironveld don’t appear to be able to close any deal that that involves a substantial amount of money unless it’s a placing.. Pat on the back ME, you “acquired” the smelter for £50. But you didn’t. The debt isn’t finalised. The deal is dependent on IRON taking on £m’s of debt. That’s the true cost acquiring the smelter. The longer the wait goes on, the more concerned I am that it won’t complete based on the failed deals of the last few years.
Anyone remember the ME interview on Bloomberg?

So like all these “success” RNS’s, they really are not. Rinse and repeat.
I sincerely hope that this time the loop is broken but I have a sinking feeling, as does my shareholding. Too deep in the hole to want to pull it out and put it elsewhere so to speak, but I feel well and truly f****d.

https://www.statista.com/chart/28000/lithium-demand-forecast/

https://www.statista.com/chart/28000/lithium-demand-forecast/

@infinite
KZG had the same BOD as IRONVELD until very recently.
Check out all the chat on IRONVELD and the Align Research posts about IRONVELD on their blog site.
http://www.alignresearch.co.uk/blog/

It’s been a s**t show..

… after all the bullocks of the last few weeks, this part could be completed as “promised” by ME.
No RNS. No completed deal?

“Ironveld retains deal exclusivity until 19 August 2022 (the "Exclusivity Period");”

“ Martin Eales, Chief Executive Officer of Ironveld, said:
"The acquisition of the smelter is a major development and milestone for the Company. We have a refurbishment plan ready to execute, which we estimate will take nine months, and thereafter we anticipate first sales within 12 months of the Acquisition. Our existing offtake contracts and marketing agreements, as well as all the necessary environmental and operational permits that are already in place, provide us with the ability to accelerate the Company's pathway to production and cash flow far more quickly and for less cost than if we were to construct a new smelter

"As part of our refurbishment plan, it is exciting to have the opportunity to build and supply our operation with renewable energy via a hybrid power plant, reducing risks to the project and enhancing its Environmental Social Governance credentials.

"Our final products; high purity iron, vanadium in **** and titanium in ****, are required for the green economy and will therefore supply growing markets. End products include vanadium redox and other batteries and 3D printing in industries such as transport and renewable energy.

"I am pleased that we maintain a positive working relationship with Grosvenor and we have been working closely with its principals over the past few months regarding the Acquisition.

"I look forward to keeping shareholders updated on the Acquisition and as we come closer to breaking ground."”
‘

Tue, 24th May 2022 07:00
RNS Number : 5172M
Ironveld PLC
24 May 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Ironveld Plc

("Ironveld" or the "Company")

Terms Agreed for Smelter Acquisition

Ironveld (AIM: IRON) is pleased to announce that it has signed Heads of Terms to acquire 100 per cent of the share capital of Ferrochrome Furnaces (Pty) Limited ("FCF") (the "Acquisition") which will provide Ironveld with an existing smelting facility and the opportunity to commence mining and processing in the short term.

Highlights
· FCF, which is in Business Rescue, owns a mothballed smelter complex in Rustenburg, South Africa;
· Ironveld has agreed with the Business Rescue Practitioners, Tayfin Forensic and Investigative Auditors ("Tayfin"), to acquire the share capital of FCF for a nominal fee and to purchase outstanding debt from the sole creditor on the following terms:
o ZAR 15 million (approximately £0.75 million) payable upon completion; and
o ZAR 100 million (approximately £5.0 million) over 10 years calculated as a percentage of profits from the smelter, capped at 13

We are in August- likely the market will wait for the return of the bespoke suits from their lovely summer holidays, let them build a position at what I perceive to be bargain rates, before letting it go.
Either that or perhaps the market has had its fingers burned too many times with this company.
We will see.

Had to be said!
What an eye watering reaction to the good news that the 2nd payment has come in.
Time to check at the end of the year to see what, if any, rerate has happened from a squib to a successful lighting of the touch paper.