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Is it time to follow Tracarta and buy Ironveld as it revisits all-time lows? (IRON)

16 Jul 2018 | by: Patricia Miller

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.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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