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Ironveld losses widen as it conducts strategic review

By Josh White

Date: Thursday 05 Dec 2019

Ironveld losses widen as it conducts strategic review

(Sharecast News) - Ironveld, the owner of a high-purity iron, vanadium and titanium project on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa, announced an operating loss of £0.63m in its final results on Thursday, widening from £0.57m year-on-year.
The AIM-traded company, which remains pre-revenue, said its loss before tax grew to £0.63m from £0.54m, and it reported basic and diluted losses per share of 0.1p for the 12 months ended 30 June, in line with a year ago.

It noted that it had successfully completed a placing in February to raise £1.1m, with the proceeds used to strengthen its balance sheet and cover its overheads.

The board said the company remained focussed during the year on rationalising its cost base across both South Africa and the UK.

On the operational front, it appointed finnCap to conduct a strategic review of its mining assets, and said it was "positively engaged" in discussions with several interested parties.

Confidentiality agreements had been entered into with various parties, who were engaged in management discussions and had conducted site visits, the board reported.

Those discussions were continuing with potential partners, who Ironveld said could fund the development of the project.

It also completed a bulk sampling and testing programme during the year, although commercially viable terms could not be agreed.

Looking ahead, the Ironveld board said it expected either to have secured a strategic financing partner or have concluded the strategic review early in 2020.

"This year has seen us pursue multiple routes as we look to maximise the value of our mining assets, whether that be through the commencement of operations or through a sale," said chief executive officer Peter Cox.

"We remain engaged in discussions with several parties and all options remain open at this stage.

"We remain confident in a successful outcome from the strategic review and look forward to providing updates in due course."

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