LONDON, UK: Ironveld plc, a prominent player in the High Purity Iron, Vanadium, and Titanium market, has released its interim results for the six months ending December 31, 2023. The company, which operates a significant project in Limpopo Province, South Africa, has announced several key developments and financial maneuvers as part of its strategic growth plan.

The Group recorded a loss before tax of £385,000 (H1 2022: loss of £522,000) in the period. The Company does not plan to pay a dividend for the six months ended 31 December 2023.

The period saw Ironveld achieving its first sales of metal products, including high purity iron and titanium slag, from its Rustenburg smelter to local buyers. However, operational challenges and necessary modifications have postponed the expected ramp-up for the year’s remainder.

To maintain funding flexibility, the directors have provided a working capital facility of up to £500,000. The company has also seen the commencement of mining activities and continued refurbishment of its Rustenburg smelters.

In a cost-saving move, rented electrical generators have been removed, with plans to install new generators of similar capacity at a significantly lower cost. Meanwhile, the smelter has entered care and maintenance to minimize costs and conserve cash until the installation is complete.

Ironveld’s largest shareholder, Tracarta, has shown confidence by agreeing to a cash subscription of £450,000 at a premium to the share price. This is complemented by an additional £550,000 from existing shareholders to support ongoing working capital needs. Dr. John Wardle has taken over as Executive Chairman, initiating a comprehensive review of the company’s strategy, overhead costs, and priorities, while Giles Clarke continues as a Non-Executive Director.

Post-period, Ironveld has entered into loan facility agreements with Tracarta, drawing down up to £375,000 to bolster its working capital as it seeks direct institutional funding. The company has also received a non-binding term sheet from a South African financial institution for asset-level financing of its mining and smelting operations, pending further due diligence.

Following Martin Eales’ departure from the Board, Dr. Wardle has assumed CEO duties on an interim basis. Ironveld is currently evaluating its funding requirements pending transaction completion and reports a cash reserve of approximately £25,000 as of March 27, 2024.

Ironveld plc remains committed to navigating through these challenging times with a focus on strategic growth and operational efficiency.

John Wardle, Executive Chairman, said: “The Period saw Ironveld undergo significant changes at Board and Management level. These changes were necessary to continue to develop the Group operations towards unlocking the significant value in our assets.

The receipt of a Term Sheet from a South African based financial institution in order to support the financing of mining and smelting activities at the Project is an important step in that direction. However the confirmation, quantum and timing of that potential funding is not yet certain.