Ironveld Regulatory News (IRON)

30 March 2021

IRONVELD PLC

("Ironveld" or the "Company")

Interim results for the six months ended 31 December 2020

Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa (the "Project") is pleased to announce its interim results for the six months ended 31 December 2020 ("the period").

Highlights

Operational

· Overheads incurred during the period reflected continued low level of activity whilst negotiations for development funding continued; and

· Board Change - departure of Vred von Ketelhodt as full time CFO in order to reduce overhead cost base.

Financial

· Placing completed in December 2020 raised gross proceeds of £1.15 million following the agreed lapse of the IIG Option Agreement originally entered into in March 2020;

· Loans and other liabilities totalling over £1.4 million were settled in shares, thereby strengthening the Group's balance sheet position; and

· Talks at an advanced stage with a major partner seeking to take a strategic equity stake in the Company at a premium to the current share price.

Martin Eales, CEO, said:

"The six months to December 2020 ultimately proved frustrating and despite best efforts, we were unable to conclude the envisaged transaction with IIG. We have, however, made material progress on a possible alternative transaction in the early part of this year, which we hope to conclude in the coming weeks.

"We thank our shareholders for their support in the recent equity Placing and look forward to providing further updates as we make continued progress."

For further information, please contact:

Notes to Editors:

Ironveld (IRON.LN) is the owner of a High Purity Iron (HPI), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa. Ironveld expects to mine its own VTM ore as feedstock for a 7.5 MW DC smelter which will produce speciality iron products including high purity iron powder as well as vanadium and titanium slag products.

The Definitive Feasibility Study published in April 2014 confirms the project's viability to deliver an exceptionally high-grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. Vanadium and Titanium slag containing commercial grades of vanadium and titanium will also be produced and sold.

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.

Chairman's Statement:

During the period, despite the best efforts of all parties involved, over many months, to secure an appropriate funding solution, the IIG Option agreement (originally announced in March 2020) lapsed at the end of November 2020 and the Company then announced an equity Placing to raise gross proceeds of £1.15 million which was approved by shareholders in December. IIG provided financing of US$650,000 to Ironveld during the life of the Option Agreement and the majority of this was settled in shares at 0.42p, being a premium to the Placing Price.

Administrative expenses of £458,000 (2019: £278,000) were incurred in the period, with the majority of the increase represented by additional Board costs compared to the prior period following the appointment of Martin Eales as CEO in December 2019 and professional costs relating to the IIG Option agreement and the Placing.

Your Board remains confident that the Company's asset, containing 27 million tons of HPI, together with significant Vanadium and Titanium content, continues to demonstrate robust economics and has a potential value many times in excess of the Company's market capitalisation and balance sheet carrying value.

The fundamentals driving vanadium pricing in particular continue to be supportive as the global annual demand continues to grow, partly driven by increasing Chinese demand and the advancements in technology for vanadium redox batteries. In recent months the price of vanadium has increased strongly above 2020 levels.

The demand for HPI, as a water atomised powder, continues to increase as it is commonly used in the automotive industry, powder metallurgy and magnetic materials. Titanium slag is a key element in the development of new battery technology and is widely utilised in the steel, alloy and pigment industries.

We remain committed to operating responsibly, working closely with stakeholders and local communities at grassroots level to improve standards of living. We continue to support our 'Keep a Girl in School' initiative working alongside our local partners, The Imbumba Foundation and the Nelson Mandela Foundation, to provide hygiene support to approximately 600 female students at school in the local area. Additionally, we have commenced a new scheme in 2021 which provides facilities and support to children with maths and science homework outside of school. 

Board

In late November 2020, Vred von Ketelhodt stepped down from the Board as full time CFO, in order to reduce the Company's ongoing overhead costs and I thank him for his contributions over many years.

Financial

The Group recorded a loss before tax of £79,000 (H1 2019: £276,000) and had cash balances of £850,000 (30 June 2020: £28,000) at the end of the period. The Company does not plan to pay a dividend for the six months ended 31 December 2020.

In December 2020 shareholders approved an equity Placing at 0.30p per share to raise gross proceeds of £1.15 million.

Apart from a cash repayment of US$150,000 to IIG from the Placing proceeds, a balance of over £1.4 million, comprised of outstanding loan liabilities to IIG, other loans and accrued Directors fees, was settled in shares alongside the Placing, which has significantly improved the Group's balance sheet position. The Directors receiving shares did so at the applicable volume weighted average price over the course of their fee accruals which saw an effective issue price of 1.48p per share compared to the Placing Price of 0.30p per share.

Possible transaction

The Company is at an advanced stage in talks with an investor seeking to take a substantial strategic equity stake at the listed company level at a premium to the current share price in order to assist the Group with the next stage of its development. Whilst there are currently no guarantees that such a transaction will be completed or by when, the Directors are hopeful of being able to conclude a meaningful transaction in the coming weeks.

Going concern

Following the equity Placing in December the Group's financial resources and existing facilities are considered adequate to meet committed overhead expenditure until early 2022, by which time, the Directors anticipate completing the further funding of the Group or the Project (the High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa owned by the Group).

The Directors are confident that sufficient funds can be raised for this planned activity and therefore have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future, being twelve months from the date of the approval of these interim financial statements in the absence of any further funding and therefore present these accounts on a Going Concern basis.

COVID-19

At Ironveld, the wellbeing of our people and our business is of upmost importance.

The Company closely follows health and travel advice as it develops in relation to COVID-19 as well as the guidance from the Governments and authorities relevant to our operations.

Fortunately, we are a small but dedicated team of staff at Ironveld, however, due to the importance of the situation, the Company has encouraged its staff to work from home wherever possible.

For Ironveld, there are currently no operations or supply chains that have been interrupted and there has been no material day to day impact other than restricted international travel which can be dealt with using electronic communications.

Outlook

Our current discussions regarding a strategic investment transaction give us confidence in our view that the Group's Project retains significant undeveloped value.

The long-term strategic focus of the Company remains to become a production led mining company as we look to monetise our vast HPI, Vanadium and Titanium resources.

We would like to thank all of our shareholders for their continuing support for both the Company and the Project and we look forward to providing further updates in the near future.

Giles Clarke

Chairman

30 March 2020

IRONVELD PLC

CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2020

IRONVELD PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2020

IRONVELD PLC

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2019

The accompanying notes form an integral part of these financial statements.

IRONVELD PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2020

The accompanying notes for an integral part of these financial statements.

IRONVELD PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2020

IRONVELD PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

1 Basis of preparation and accounting policies

The results for the six months to 31 December 2020 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and International Accounting Standards Board.

The accounting policies are consistent with those of the annual financial statements for the year ended 30 June 2020, 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 30 June 2020 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 ordinary shares in issue during the period.

Where the Group reports a loss for any period, then in accordance with IAS 33, the share options and warrants in issue are not considered dilutive.

3 Registered office and copies of the report

The registered office is Ironveld plc, Unit D De Clare House Sir Alfred Owen Way, Pontygwindy Industrial Estate, Caerphilly, Wales, CF83 3HU and copies of this report are available from the registered office.

IRONVELD PLC

OFFICERS, ADVISORS AND AGENTS

Directors: Giles Clarke (Chairman) Martin Eales (Chief Executive Officer)

Nick Harrison (Non-Executive Director)

Peter Cox (Technical Director)

Secretary: Kirsti Jane Pinnell

Company Number: 04095614

Registered Office: Ironveld Plc

Unit D De Clare House Sir Alfred Owen Way

Pontygwindy Industrial Estate

Caerphilly

Wales CF83 3HU

Nominated Adviser finnCap

And Joint Broker: 60 New Broad Street

London

EC2M 1JJ

Joint Broker: Turner Pope

8 Frederick's Place

London

EC2R 8AB

Solicitors: Kuit Steinart Levy LLP

3 St Marys Parsonage

Manchester

M3 2RD

Auditors: UHY Hacker Young

St James Building 79 Oxford Street Manchester M1 6HT

Bankers: HSBC

97 Bute Street

Cardiff

CF10 5NA

Registrars: Link Asset Services

34 Beckenham Road

Beckenham

Kent

BR3 4TU

Financial PR Blytheweigh

4 - 5 Castle Court

London

EC3V 9DL