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(RNS) 2013-03-28 13:00
Ironveld PLC - Interim Results
RNS Number : 1506B
Ironveld PLC
28 March 2013
 



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)

 

 

 

 

 

 

Balance at 30 June 2012

3,583

235

386

1,357

5,561

 

 

 

 

 

 

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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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