The share price of Ironveld (LSE:IRON) has fallen to a lowly 1.7p after hitting recent highs of 2.6p in May. News of insider selling from non-exec Rupert Fraser has hurried Ironveld’s price descent, although the sale was for a mere £10k of stock. On the flip side, Tracarta Limited disclosed on 12th July that it is continuing to build its stake in the company, which now stands at 11.1%.
Delays in progressing the acquisition of a 7.5 MW smelting facility and its associated power plant in Middelburg, South Africa have frustrated shareholders.
Peter Cox, CEO of Ironveld tried to reassure investors back in February in a company update stating:
“The Company is now nearing the delivery of long awaited value to its shareholders through the execution of a strategically important acquisition and the commencement of mining activity. By quantum, our vanadium and HPI resources are world class and the quality of our product validated through the long-term offtake agreements in place. We look forward to updating our shareholders in due course.”
Chartwise, the stock is currently at the bottom of two well-defined price channels and has repeatedly seen supportive buying at these levels previously. The Relative Strength Index (RSI) is screaming oversold and further diagonal support (dotted line) suggests a potential turnaround here.
Further stagnation of operational progress is obviously a risk, but if Ironveld do manage to update the market with good news, then this could prove to have been a glaringly-good entry point in hindsight!
Author: Stuart Langelaan
Disclosure: The Author owns shares in the company mentioned above.