Ironveld widens H1 loss, makes important progress on HPIVT project

Shares in Ironveld are up more than 3% after it produced a wider first-half pre-tax loss of £385,000, from a loss of £318,000, but said it made important progress on the High Purity Iron, Vanadium & Tin project in South Africa.

"Through the completion of a successful placing and securing the IDC's (Industrial Development Corporation) commitment to fund approximately $17.9m of the project finance, the company exited the Period in a position of strength," it said in a statement.

"The focus for the next financial year is to make further headway with the project, securing the remaining finance and beginning construction of the smelter," the company added.

Ironveld also noted that its present resources and existing facilities were only considered adequate to meet committed overhead expenditure for the period to 30 June 2017, by which time the directors expected to have completed the full funding of the project.

Directors said on 6 October 2016 that they had received approval for a ZAR244m funding package for the project and were in the process of executing formal funding agreements.

"The group is also in advanced stages of negotiating the remaining debt agreements for the project. Overall a ZAR 871m financing package is proposed," the company said.

Ironveld said its directors were confident sufficient funds could be raised for this additional planned activity and therefore had a reasonable expectation the group would have adequate resources to continue in operational existence for the foreseeable future, being twelve months from the date of the approval of the financial statements.

"The group is committed to developing the project and is actively engaged in raising finance to allow the development to proceed."

At 10:39 GMT, shares in AIM-listed Ironveld were up 3.33% to 3.88p.