Well, could this be the bounce of the century? Unlike many AIM stocks , there are solid reasons (actual production, expansion and clients set up for off take, management with excellent track record)) why this may go through the roof.
Holding for the long term but may trade a portion to increase holding for free (if I get it right!)
Initial income that should start in early 2018 and is around $25m for starters.(High grade iron powder, titanium etc...). The Middleburgh investment is getting itself ready to produce some nice Limpopo IRONclad profits.....
( Will Middleburgh management also be considering an on site 'conroast' deal option from JLP?).
That is why I reckon it is time to get in early.
Follow the money and be patient
They originally paid 6.75p to set this UP.
Well summarised... and the game here is to get in BEFORE the rise, before the news. Yes, a high risk play, but one I am now prepared to play given the sharp drop off , placement at 2p, and directors also buying (modestly) at this point - but worth remembering they are already heavily invested....
There is still more financing to come to acquire the smelting plant.... so perhaps further dilution?
Not investing more than I can afford to lose, but of course, having taken a position, I am of the view that I will be rewarded.
Has this now hit the bottom or more to go? Huge drop since days of 16.6p ps.
I can see the huge potential from Q1 2018.....IF everything falls neatly into place. But does it ever at this stage of development?
I don't own any of these to be clear, though been sitting on the sidelines ready to possibly dip my toes in.
I can see the potential for huge gains from here or not. AIM is a fickle mistress and I've been slapped down too many times in the past and now less risk averse.
A way to go until production. I assume they are still negotiating the smelting works at this stage - when/if that happens there should be an immediate rise in sp. And then of course it needs refurbishment. So sp would then drop back as this happens, until we hit production - that's when the big rise would happen.
If all goes to plan then of course this should be a big winner. It's timing ones entry point between now and the predicted Q1 production. Five years of guaranteed offtakes should generate about $150,000,000 - what would that mean for the sp?!
Limpopo Province of SA is obviously heavily dependent on Mining - the main industry supporting the region. The region has ongoing issues with its economy and general poverty and unemployment. Not sure on the data as to how many jobs this will generate. And how does the ownership laws regarding positive discrimination have an impact on the overall business? Is this already keyed in? Sorry, I'm not very well up to date with this aspect though I know that it may be an issue.
And then there's Giles Clarke. He seems to be a very successful businessman with success stories littered behind him.
Very tempting but I think I need to do more research.
This is setting itself up nicely for a BIG bounce - might not be immediate, but with the recent placement, directors buying more (ok, not a huge amount but no-one likes to loose money) and with production planned to start Q1 next year, there will be limited opportunity to buy in at cheap levels. Of course no guarantees, but on a risk/reward ratio, this in my opinion looks good.
And this is AIM so don't risk the shirt off your back....
"any diversity of opinion becomes apparent". Opinion is irrelevant. What matters are facts.
" I am sure that Ironveld's PR person should be monitoring the main boards." If Ironveld has the money to pay a PR person I would like to know why and also why they are wasting their time monitoing shares boards such as this one.
Better to post on here as this will enable the question (which I think is valid) to be answered by those outside as well as inside the company so any diversity of opinion becomes apparent. Best of all, perhaps someone from Oreport might answer! I am sure that Ironveld's PR person should be monitoring the main boards so perhaps I could ask them for a couple of examples of Oreport's other offtake agreements, that information should be easy to obtain. Looking forward to being reassured by an explanation and finding out more about Oreport's global operations than their web site will allow. For those who want to check further please go to www.oreport.com
It's worth a visit as the pictures are nice.
Initially glad to see that Ironveld has finalised its offtake agreement with Oreport but when I went to the Oreport web site, I could not find any evidence that this company had actually done anything. It has a nice map purporting to show its global operations but when you click on the markers there is no information. The web site does not even say who the CEO is as far as I can tell (although I think it used to). Apparently Oreport is part owned by a company called Grindrod (which does exist) but the most recent press release about Oreport on the Grindrod web site is dated 2008. So can anyone provide shareholders with reassurance that Oreport has any experience in marketing the type of minerals to be produced by Ironveld, or any experience of doing anything!
It sounds like Ironveld is raising capital for this $55m project.
The smelter is the key subject that needs to be built but is the 26% BEE stake secured with funds??
One of the largest UK investments in SA (Limpopo) in the next year according to the interview comments.. It is also a great social investment in the poorer local community and should create 3000 jobs.. Well done Giles and Co.
But the cost of funding can only mean sp dilution in my books. Will they use the warrants route and hide/delay the effect of raising this finance?
Roll on 2017, but I can only foresee some sp dilution until the smelter is built and put into operation. IRONveld needs its cashflow as that £1.5m past cash call cannot last forever
IMO a great future for IRON but be careful at the moment. $55m is a lot of funding and it will not be given away for nothing.
Why are they not trying to rent some smelter space locally and get that cash income flowing?
But that smelter will require capital. Will they dilute?
In view of the availability of local SA smelters that are under used or switched off, it might be time for Giles to strike another deal to minimise capital expenditure with a long term rental agreement somewhere?
Get the income flowing then build your own???
Alternatively the cost of construction (£20m?) may be a nice loss to offset against tax on future profits.
Just a thought.
Roll on 2017. IRONVELD has got multi bagger written all over it...
SLP just confirmed that $0.3 million was received from Ironveld Holdings as partial repayment of their loan.
Harriet's Wish, Aurora and Cracouw Exploration
SLP was also informed that the DMR granted the application in terms of Section 11 of the Mineral and Petroleum Resources Development Act for ministerial consent to transfer the right to mine iron ore, vanadium and heavy minerals to a subsidiary of Ironveld Plc on 15 April 2016.
SLP will now take steps to notarially execute the cession of the right in favour of Ironveld's subsidiary and lodge this with the Mining Titles Office for registration.
It looks like things are on track.
All we now need are details of that finance deal.
Getting ready to be atomised and to bring in the $$$$$$$$s.
It is bargain basement sp time IMO.
'Don't let the grass grow too long' the English cricket season is starting we need a few sixes to be hit.
This is where the money will be made. (High quality atomized iron powder).
Could we be heading for over £22m + profit pa by 2017 ?
The world market slow down has not helped those IRON gurus but this BoD know where they are specialising. Plus once the markets recover SA will need its high grade Limpopo pig iron for internal use. A ready made market.
The BoD paid 6.75p for their shares and don't intend to lose any money.
Looking on the UP here producing atomised iron powder, vanadium and titanium very soon.
That finance deal must be nearly ready to implemented,. then an sp whoosh in 2017 IMO.
It is about to be hit for 6p+ very soon.
Are they also looking at buying up some unused smelting capacity of other financially strapped miners. Those bargain smelters may already be built PC and just waiting for a call.
It is time to start bringing in some cash - the debt funding Banks will like that scenario.
Had another look at the presentation on site which confirms all we know plus( now the slow down in timescale base on their projections). Still no licence - due to be confirmed by year end 2015 so unless that plus finance and offtake agreements comes with a rush of blood before the end of March we could be facing 2017 before production really kicks in. That would also move bigger smelters project on towards 2020 and after. Just hope I am being pessimistic but news is a long time coming......and they don't reply to the e mail contact either!!
Nothing doing with Africa, the market and commodities in the doldrums and delays inevitable. Cant see anybody in a hurry to bang in funding at the moment. Recent interview with Peter Cox not really inspiring as game plan loosing momentum and time frame.Will we see production in 2016........big question!
Market spooked and I cant see any funding agreements being ticked off in this climate. 22% down is a lot more than the mining average even though we are not a mining company. 8p is now a long way off imho during the next three months....................but what do I know!!
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