High-purity iron miner Ironveld’s shares have resumed trading on the Aim, after the company published its results for the financial year ended June 30, 2024, in addition to its results for the six months ended December 31, 2024.

Ironveld operates a high-purity iron, vanadium and titanium project in the Bushveld Complex, in South Africa.

The group recorded a loss before tax of £1.2-million for the 2024 financial year, which was on par with the loss reported for the prior financial year. The attributable loss for the year amounted to £1.4-million.

For the six months to December, the group recorded an attributable loss of £689 000, a widening on the loss of £514 000 reported for the six months ended December 31, 2023.

The board has been focused on securing the funding required to resume production and complete critical upgrades to its smelter complex.

The company’s smelter facility in Rustenburg remains under care and maintenance while design studies are performed.

Ironveld is still in negotiations with a financial institution in South Africa regarding funding, which will likely conclude before the end of this calendar year.

“While the transaction has not yet been finalised, we remain confident in our ability to secure the necessary funding, in addition to a £2.5-million fundraise completed in October 2024,” the company says.

The company’s key strategic initiatives include establishing itself as the first producer of high-purity water-atomised iron in the southern hemisphere, completing essential upgrades at the smelter complex and progressing towards cash flow positivity and revenue generation.

A renegotiated agreement with Sable Platinum, including an updated term sheet regarding the company’s joint venture (JV) at the Lapon magnetite plant, in Limpopo, in JV with Sable Exploration and Mining, already strengthens Ironveld’s position.

The new agreements afford Ironveld an increased equity stake in the companies’ dense media separation (DMS) plant from 25% to 50%.

Under this revised structure, the JV will operate as a 50:50 partnership between Altona Processing – a wholly owned subsidiary of Ironveld – and Lapon Plant – a wholly-owned subsidiary of Sable Platinum.

The project is expected to start commercial production in April.

Ironveld nonexecutive chairperson Dr John Wardle says production trials have already demonstrated operational capability, and securing offtake agreements for these products is expected to facilitate further funding opportunities to scale up operations.

A third-party consultant with extensive experience in water-based atomisation has made significant progress on the design phase of a pilot plant for producing market samples and has completed an initial layout.

Final design specifications and cost estimates are expected by the end of April.

The agreement for the acquisition of Ferrochrome Furnaces remains in place under unchanged terms.

The board continues to regard the transaction as a highly attractive opportunity, taking into account, among other factors, the favourable terms agreed, the significant tax losses available within the business and the strong potential to successfully produce high-margin, high-purity iron powders.

Wardle remains confident that progress made during the reporting periods has positioned Ironveld for meaningful transformation, including cash flow generation from the DMS-grade magnetite project.

As of March 27, the company held cash and cash equivalents of £525 000.