Ironveld surges on South Africa update and narrower annual loss

In the 12 months to the end of June, the London-listed company said its pre-tax loss narrowed 20.9% year-on-year to £593,000 on the back of lower administrative expenses.

Ironveld said that in the same period construction of its 15 megawatt smelter at its project in South Africa’s Limpopo Province progressed successfully, and it expects to begin production of high-purity iron (HPI), vanadium and slag by-products by next year.

The group added the proceeds from the combined £2.25m it raised in two separate placings in November 2014 and June this year will be used to progress due diligence with both debt funders for its project.

"The past 12 months has seen the company take important steps to commence the construction of the 15 megawatt smelter, while financially de-risking this attractive project further,” said group chief executive Peter Cox.

“We will continue to work hard towards bringing our world class HPI, vanadium and titanium project to production.”

Ironveld shares were up 12.5% to 4.50p at 1553 GMT on Monday.