Last checked at 28 Mar 2013 13:00
Ironveld plc ("Ironveld" or the "Company")
Interim Results for the Six months ended 31 December 2012
Ironveld plc, the Pig Iron developer located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa, is pleased to announce its interim results for the six months ended 31 December 2012.
Highlights:
·; Launch of new exploration and development mining group, focused on the development of iron projects within the Bushveld Complex, South Africa
·; Completion of £3 million fundraising and admission to AIM
·; Successful on-going drilling program since listing delivering positive impact on ore resource targets and life of mine
·; Strengthening of Board with the appointment of Rupert Fraser as a Non-Executive Director
Post Year End
·; Maiden JORC resource announced for Farm Altona
·; Total project mineral resource increased by 40% to 59.1 million tons at an average grade of 36.4% Fe, equating to 21.5 million tons of Fe Metal in-situ at a cut-off grade of 20%
Peter Cox, CEO of Ironveld, said: "The Company has made excellent progress since listing on the AIM market. Our on-going drill programme has delivered some significant results which have reaffirmed our confidence in the prospectivity of our licence area and we look forward to providing shareholders with further updates in due course."
For further information, please contact:
Ironveld plc Peter Cox, Chief Executive | c/o FTI Consulting 020 7269 7183 |
Shore Capital and Corporate Limited | 020 7408 4090 |
Stephane Auton / Toby Gibbs (corporate finance) | |
Jerry Keen (corporate broking) | |
F T I Consulting | 020 7269 7183 |
Oliver Winters / Katherine Goligher |
CHAIRMAN'S STATEMENT
I am very pleased to present a second interim report since the Company was renamed Ironveld plc and readmitted to AIM in August 2012 following a successful £3 million placing. As announced on 11 October 2012, the Company's year-end has been changed from 31 December to 30 June in order to harmonise group accounting reference dates and bring the Company's UK subsidiary, Mercury Recycling Limited, in line with its South African subsidiary.
Operational
The Group has interests in Prospecting Rights in the Northern Limb of the Bushveld Complex north of Mokopane, South Africa. The Rights cover a group of seven adjacent farms, measuring an area of 165 km2. It is Ironveld's intention to mine the Ti-magnetite iron ore as feedstock for its own smelters which will produce pig iron and vanadium by products.
The Company has built significant momentum as it moves towards delivering on its goals outlined at the time of listing. The success of the on-going drill programme has meant the total project mineral resource has doubled in size since August 2012, testament to the skill and hard work of our operational team in South Africa who continue to demonstrate remarkable commitment to the Company. The results of the metallurgical test have also had a positive impact on ore resource targets and the life of mine and further information will be provided to Shareholders with the publication of the pre-feasibility study expected in the next quarter.
Trading at Mercury Recycling continues to be challenging and the Directors continue to explore a number of options to improve the performance of this segment of the business.
I was delighted that Rupert Fraser agreed to join the Board as a non-executive director in October 2012. Rupert brings a wealth of capital markets experience and has already made a very positive impact on the Company.
On behalf of the Board, I would like to thank all of our shareholders for their support since the Company listed on AIM. Ironveld has had a very productive six months since its inception and the operational results to date give me confidence that the Company is well positioned to continue its progress in the year ahead.
Financial
We were very pleased to gain Admission to the AIM market in August 2012. In the process, we also raised a total of £3 million which provided funding for on-going exploration programme as well as working capital requirements.
Following the acquisition of Ironveld, the company has re-assessed its overall operating strategy and focus. The Directors have therefore re-assessed the carrying value of Mercury Recycling Limited and have taken the decision to impair the goodwill in full
Summary
The Board and management team are committed to delivering a viable, long term project producing pig iron and vanadium by products that will benefit not only the Company and its Shareholders but just as importantly the people of the Bushveld region and South Africa itself.
Giles Clarke
Chairman
March 2013
IRONVELD PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2012
6 Months | 6 Months | 12 Months | Year | |
ended | ended | ended | ended | |
31.12.12 | 31.12.11 | 31.12.12 | 31.12.11 | |
£'000 | £'000 | £'000 | £'000 | |
Revenue | 1,044 | 1,165 | 2,090 | 2,537 |
Cost of sales | (84) | (65) | (182) | (148) |
Gross profit | 960 | 1,100 | 1,908 | 2,389 |
Administrative expenses | (1,353) | (1,213) | (2,418) | (2,420) |
Impairment of goodwill | (4,122) | - | (4,122) | - |
Operating loss | (4,515) | (113) | (4,632) | (31) |
Investment revenues | 11 | - | 11 | - |
Gain on acquisition | 97 | - | 97 | - |
Finance costs | (13) | (2) | (14) | (4) |
Loss before taxation | (4,420) | (115) | (4,538) | (35) |
Taxation | 17 | (19) | 64 | (6) |
Loss for the period | (4,403) | (134) | (4,474) | (41) |
(Attributable to owners of the company) | ||||
Loss per share : Basic (pence) | (1.99) | (0.37) | (3.46) | (0.11) |
Diluted (pence) | n/a | n/a | n/a | n/a |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2012
| £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
Loss for the period | (4,403) | (134) | (4,474) | (41) |
|
|
|
|
|
Exchange differences on the translation | (819) | - | (819) | - |
of foreign operations |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
(5,222) |
(134) |
(5,293) |
(41) |
IRONVELD PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2012
| As at | As at |
| 31.12.12 | 31.12.11 |
| £'000 | £'000 |
Non-current assets |
|
|
Goodwill | - | 4,122 |
Exploration and evaluation assets | 26,081 | - |
Property, plant and equipment | 1,165 | 1,265 |
| 27,246 | 5,387 |
Current assets |
|
|
Trade and other receivables | 549 | 465 |
Cash and bank balances | 1,913 | 343 |
Current tax assets | - | 18 |
| 2,462 | 826 |
|
|
|
Total assets | 29,708 | 6,213 |
|
|
|
Current liabilities |
|
|
Trade and other payables | (309) | (234) |
Bank overdrafts and loans | (44) | (68) |
| (353) | (302) |
Non-current liabilities |
|
|
Trade and other payables | (17) | (24) |
Loans | (945) | (88) |
Deferred tax liabilities | (6,978) | (167) |
| (7,940) | (279) |
|
|
|
Total liabilities | (8,293) | (581) |
|
|
|
Net assets | 21,415 | 5,632 |
|
|
|
Equity |
|
|
Share capital | 6,080 | 3,583 |
Share premium | 14,062 | 235 |
Other reserves | 21 | 386 |
Retained earnings reserve | (3,491) | 1,428 |
|
|
|
Equity attributable to owners of the company | 16,672 | 5,632 |
|
|
|
Non-controlling interests | 4,743 | - |
|
|
|
Total equity | 21,415 | 5,632 |
IRONVELD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2012
| Share | Share | Other | Retained | Total |
| Capital | Premium | Reserves | Earnings | Equity |
| £'000 | £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
|
Balance at 1 July 2011 | 3,583 | 235 | 386 | 1,562 | 5,766 |
(Restated) |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period | - | - | - | (134) | (134) |
|
|
|
|
|
|
Balance at 31 December 2011 | 3,583 | 235 | 386 | 1,428 | 5,632 |
|
|
|
|
|
|
Balance at 1 January 2012 | 3,583 | 235 | 386 | 1,428 | 5,632 |
|
|
|
|
|
|
Loss for the period | - | - | - | (71) | (71) |
|
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|
|
|
|
Balance at 30 June 2012 | 3,583 | 235 | 386 | 1,357 | 5,561 |
|
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|
|
|
|
Balance at 1 July 2012 | 3,583 | 235 | 386 | 1,357 | 5,561 |
|
|
|
|
|
|
Loss for the period | - | - | - | (4,403) | (4,403) |
|
|
|
|
|
|
Transfer | - | - | (365) | 365 | - |
|
|
|
|
|
|
Exchange differences on the translation | - | - | - | (819) | (819) |
of foreign operations |
|
|
|
|
|
|
|
|
|
|
|
Equity share based payments | - | - | - | 9 | 9 |
|
|
|
|
|
|
Issue of share capital (net) | 2,497 | 13,827 | - | - | 16,324 |
|
|
|
|
|
|
Balance at 31 December 2012 | 6,080 | 14,062 | 21 | (3,491) | 16,672 |
IRONVELD PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2012
6 Months | 6 Months | 12 Months | Year | |
ended | ended | ended | ended | |
31.12.12 | 31.12.11 | 31.12.12 | 31.12.11 | |
£'000 | £'000 | £'000 | £'000 | |
Net cash from operating activities | (193) | 36 | (310) | 169 |
|
|
|
|
|
Investing activities |
|
|
|
|
Interest received | 11 | - | 11 | - |
Exploration and evaluation expenditure | (702) | - | (702) | - |
Purchases of plant and equipment | (29) | (78) | (118) | (153) |
Proceeds on disposal of plant and equipment | 4 | - | 4 | - |
Loans receivable advanced | (72) | - | (72) | - |
Acquisition of subsidiary (net cash acquired) | 4 | - | 4 | - |
|
|
|
|
|
Net cash used in investing activities | (784) | (78) | (873) | (153) |
|
|
|
|
|
Financing activities |
|
|
|
|
Repayment of borrowings | (31) | (35) | (67) | (69) |
New loans raised | 149 | - | 149 | - |
Net proceeds on issue of shares | 2,621 | - | 2,621 | - |
|
|
|
|
|
Net cash used in financing activities | 2,739 | (35) | 2,703 | (69) |
|
|
|
|
|
Net increase /(decrease) in cash | 1,762 | (77) | 1,520 | (53) |
and cash equivalents |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of period | 101 | 420 | 343 | 396 |
|
|
|
|
|
Effect of foreign exchange rates | 45 | - | 45 | - |
|
|
|
|
|
Cash and cash equivalents at end of period | 1,908 | 343 | 1,908 | 343 |
|
|
|
|
|
Note to the cash flow statement |
|
|
|
|
Operating loss | (4,515) | (113) | (4,632) | (31) |
Depreciation | 97 | 177 | 195 | 297 |
Impairment of goodwill | 4,122 | - | 4,122 | - |
Share based payment expense | 9 | - | 9 | - |
Decrease in deferred income | (4) | (4) | (9) | (9) |
Loss on disposal of plant and equipment | 15 | - | 25 | - |
Operating cash flows before movements |
|
|
|
|
in working capital | (276) | 60 | (290) | 257 |
|
|
|
|
|
Movement in receivables | 177 | 65 | (48) | (19) |
Movement in payables | (93) | (57) | 30 | (35) |
|
|
|
|
|
Cash (used in) / generated by operations | (192) | 68 | (308) | 203 |
Interest paid | (1) | (2) | (2) | (4) |
Tax paid | - | (30) | - | (30) |
|
|
|
|
|
Net cash from operating activities | (193) | 36 | (310) | 169 |
IRONVELD PLC
NOTES TO CONSOLIDATED ACCOUNTS
FOR THE PERIOD ENDED 31 DECEMBER 2012
1. Basis of preparation and accounting policies
The results for the six months to 31 December 2012 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and International Accounting Standards Board.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those financial statements.
The financial information does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. Full accounts of the company for the year ended 31 December 2011 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.
2. Loss per share
The calculation of basic and diluted loss per share is based upon the loss for the period and the weighted average number of shares in issue during the period.
6 Months | 6 Months | 12 Months | Year to | |
to 31.12.12 | to 31.12.11 | to 31.12.12 | 31.12.11 | |
'000 | '000 | '000 | '000 | |
Weighted average number of shares | 221,784 | 35,827 | 129,314 | 35,827 |
Options - dilution | - | - | - | |
221,784 | 35,827 | 129,314 | 35,827 | |
pence | pence | pence | pence | |
Basic loss per share | (1.99) | (0.37) | (3.46) | (0.11) |
Diluted earnings per share | N/a | N/a | N/a | N/a |
As the Group reports a loss for each of the periods, then in accordance with IAS 33, the share options and warrants in issue are not considered dilutive.
3. Acquisition of subsidiary
On 16 August 2012,the Group acquired 100% of the issued share capital of Ironveld Hold Co (Mauritius), a holding company of a group involved in mining and exploration of iron ore in South Africa. The identifiable assets and liabilities acquired were as follows:-
| £'000 |
Exploration and evaluation assets | 26,146 |
Other assets | 928 |
Financial liabilities | (903) |
Deferred taxation | (5,357) |
Non-controlling interest | (7,013) |
Identified bargain purchase gain | (97) |
|
|
Settled by the issue of equity shares | 13,704 |
The acquired Group has no turnover and reported a loss of £17,000 for the period since acquisition.
The Company has identified a potential gain on the acquisition of the Prospecting Rights £97k but has not yet completed its re-assessment of the acquisition. We will complete a full re-assessment before the year-end results are announced
4. Register office and copies of the report
The registered office is Ironveld Plc, Lakeside Fountain Lane, St Mellons, Cardiff, CF3 0FB and copies of this report are available from the registered office.