Wrap Text
Quarterly Report
FIRESTONE ENERGY LIMITED
(Incorporated in Australia)
(Registration number ABN 058 436 794)
Share code on the JSE Limited: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
(SA company registration number 2008/023973/10)
("FSE" or "the Company")
About Firestone Energy
31 October 2012
Firestone Energy Limited is an
independent, Australian exploration and
development company listed on the
Australian Stock Exchange Ltd (ASX) and
Quarterly Activities Report for the
the Johannesburg Stock Exchange (JSE).
Firestone Energy has entered into a Joint
Venture with Sekoko Resources (Pty) Ltd
Period to 30 September 2012 through which Firestone Energy has
acquired the right to 60% participation
interests in the Waterberg Coal Project
located in Lephalale area, Limpopo Province,
The Board of Firestone Energy Limited (ASX/JSE: FSE) (“Firestone” or the South Africa.
“Company”) is pleased to provide shareholders with its Quarterly Activities Report
for the 3 month period ended 30 September 2012. The first stage of the project is to develop the
Smitspan mine which has a substantial
measured thermal coal resource and to
During the quarter the Company issued a notice of General Meeting together with develop the Vetleegte mine which is a
substantial metallurgical coal deposit.
an explanatory memorandum to shareholders which outlined, inter alia, a suite of
transactions which, if approved and implemented, would significantly improve Firestone Energy is committed to becoming a
profitable independent coal and energy
Firestone’s financial position and greatly assist in positioning the Company to
producer at its projects in South Africa,
become a major producer of coal in Southern Africa through its participation in thereby making a substantial contribution to
the development of the Waterberg Coal project with its joint venture partner, the social and economic development of the
Lephalale area and South Africa.
Sekoko Resources (Pty) Ltd.
Corporate Details
Subsequent to the quarter end, on 5 October 2012 shareholders in a general ASX: FSE
JSE: FSE
meeting approved resolutions, the subject of the notice of meeting. The most
Issued Capital:
salient and commercially important of these resolutions related to the acquisition 3,114 million ordinary shares
of a 25.7% interest in Firestone by Ariona Company SA (and its associates) from
Major Shareholders:
Sekoko Resources Pty Ltd; and the approval to issue new convertible notes to Sekoko Resources (Pty) Ltd
Linc Energy Ltd
Ariona in an amount up to $40.7 million. The result of the proposed issue of the BBY Nominees Pty Ltd
new convertible notes to Ariona is that it provides Firestone with a greatly Bell Potter Nominees Ltd
enhanced balance sheet and significant funding and much needed working capital Directors and Officers
enabling Firestone to continue to meet its obligations under the Waterberg Joint Non Executive Directors:
Venture, including funding the completion of the Bankable Feasibility Study (“BFS”) Mr Tim Tebeila (Chairman)
David Perkins (Deputy Chairman)
which is due for completion in late December 2012. In addition to funding the BFS Dr Pius Kasolo
Ben Mphahlele
and related activities, it is forecast that Firestone will have sufficient cash reserves Kobus Terblanche
through to project start-up which is estimated for Q3, 2013. The outcome of these Officers:
resolutions is that Ariona will emerge as the Company’s major shareholder, on Mr David Knox CEO
Ms Amanda Matthee CFO
terms as set out in the explanatory memorandum. Mr Jerry Monzu Company Secretary
As at the date of writing this quarterly report, the Company and Ariona are Contact:
working through the completion process. As soon as completion has occurred, the Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
market will be advised accordingly. Tel: +61 (08) 9287 4600
Web: www.firestoneenergy.com.au
The Waterberg Coal Project: Technical Update
During the quarter, the Waterberg Joint Venture Partners continued the BFS process for the proposed
development of an opencast mining operation, providing 10 million tonnes of coal (product) per
annum to Eskom for an initial term of 30 years. The formal Bankable Feasibility Study is being
undertaken by SRK consultants. During the period, various specialist study groups were appointed to
incorporate environmental work, rail studies, infrastructure and hydrology studies into the BFS.
Furthermore a drilling contractor has been appointed, and the Waterberg Joint Venture partners have
commenced a program to delineate the faults on Smitspan, and to upgrade the resource status on
Smitspan and Massenberg. The drilling to delineate the fault-line on Smitspan is expected to be
completed by the end of Nov 2012.
Currently the Waterberg Joint Venture have two geologists on site, overseen by an experienced coal
exploration consulting geologist. Pursuant to the MOU with Eskom Holdings, the technical team have
regular update meetings with Eskom and are also working closely with Transnet Freight Rail towards
an integrated rail plan for the Waterberg. The study team are also engaging with the Department of
Water Affairs for the supply of water to the project on a timely basis.
Yours sincerely,
David Knox
Chief Executive Officer
www.firestoneenergy.com.au
Tel: Australia (+61 08 9287 4600)
South Africa (+27 11 706 3548)
About Sekoko Resources
Sekoko Resources (Pty) Ltd is a South African-based black-owned energy and minerals company
developing the coal, magnetite iron ore and PGMs Projects in the Limpopo Province of South Africa.
This includes a significant exploration program and development of the Waterberg Coal Joint Venture
Project based on significant Coal Zone Resources.
2
Appendix 5B
Mining exploration entity quarterly report
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.
Name of entity
Firestone Energy Limited
ABN Quarter ended (“current quarter”)
71 058 436 794 30 September 2012
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities
$A’000 $A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration & evaluation (411) (411)
(b) development - -
(c) production - -
(d) administration (353) (353)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received - -
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (GST receipts) 49 49
Net Operating Cash Flows (715) (715)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects - -
(b) equity investments - -
(c) properties - -
1.9 Proceeds from sale of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
- -
Net investing cash flows
1.13 Total operating and investing cash flows (carried (715) (715)
forward)
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought (715) (715)
forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, Convertible
Notes etc.
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings 717 717
1.17 Repayment of borrowings
1.18 Capital raising costs
1.19 Other – Interest paid
717 717
Net financing cash flows
Net increase (decrease) in cash held 2 2
1.20 Cash at beginning of quarter/year to date 169 169
1.21 Exchange rate adjustments to item 1.20 Gain / (Loss) (10) (10)
161 161
1.22 Cash at end of quarter
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 663
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Payments to wholly owned subsidiary, Lexshell Pty Limited, of which amounts are paid to third
parties to make payments on behalf of Firestone Energy pursuant to its JV agreement with Sekoko
Resources - $567K
Payments to Directors of the Company - $96K
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
N/A
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
N/A
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A’000 $A’000
3.1 Loan facilities 2,200 977
The Company has in place a further financing
facility (convertible notes) with its existing
convertible noteholders.
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation 150
4.2 Development -
4.3 Production -
4.4 Administration 250
400
Total
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter
shown in the consolidated statement of cash flows) $A’000 $A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank 134 102
27 67
5.2 Deposits at call
-
5.3 Bank overdraft
-
5.4 Other (provide details)
161 169
Total: cash at end of quarter (item 1.22)
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning end of
of quarter quarter
6.1 Interests in mining Nil
tenements relinquished,
reduced or lapsed
6.2 Interests in mining Nil
tenements acquired or
increased
+ See chapter 19 for defined terms.
Appendix 5B Page 4 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price Amount paid
per security up per
(see note 3) security (see
(cents) note 3)
(cents)
7.1 Preference Nil Nil
+securities
(description)
7.2 Changes Nil Nil
during
quarter
(a) Increases
through
issues
(b) Decreases
through
returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary
securities 3,113,878,641 3,113,878,641 Fully paid
FSE
7.4 Changes
during
quarter
(a) Increases
through
issues
(b) Decreases
through
returns of
capital, buy-
backs
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
7.5 +Convertible Unlisted Convertible Conversion
debt Notes number-
securities Variable per Note
(description) Repayment dates –
Con Note 1 – 12 FSEAQ 2 October 2012
Con Note 2 – 3 FSEAS 16 November 2012
Con Note 3 – 3 FSEAU 18 December 2012
Con Note 4 – 3 FSEAY 21 January 2013
Con Note 5- 3 FSEAW 23 February 2013
Con Note 6 – 3 FSEAZ 23 March 2013
Con Note 7 – 3 FSEAA 30 April 2010
Con Note 8 - 1 x ($500k) 04 June 2013
4 x ($100k) 04 June 2013
Con Note 9 - 9 x ($100k) 13 July 2013
Con Note 13 - 6 x ($100k) 8 November 2013
Con Note 14 – 6 x ($100k) 23 November 2013
Con Note 15 – 6 x ($100k) 22 December 2013
Con Note 16 – 6 x ($100k) 24 January 2014
Con Note 17 – 9 x ($100k) 22 February 2014
Con Note 20 – 6 x ($100k) 24 May 2014
Con Note 21 – 3 x ($100k) 22 June 2014
Con Note 22 – 3 x ($100k) 19 October 2014
7.6 Changes
during
quarter
(a) Increases
through
issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise Expiry date
FSEAK price
FSEAM 30,000,000 Nil 5.0 Cents 30 Nov 2012
FSEAO 110,000,000 Nil 6.0 Cents 31 May 2013
FSEAI 96,904,767 Nil 6.0 Cents 30 Jun 2013
FSEO 25,875,000 Nil 6.0 Cents 30 Jun 2014
48,395,000 48,395,000 4.0 Cents 31 May 2014
7.8 Issued during
quarter
FSEAA 40,000,000 Nil 2.5 Cents 19 Sept 2014
7.9 Exercised
during
quarter
7.10 Expired
during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
+ See chapter 19 for defined terms.
Appendix 5B Page 6 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 31 October 2012
Company Secretary
Print name: Mr Jerry Monzu
Notes
1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash
position. An entity wanting to disclose additional information is encouraged to
do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 7
River Group
Johannesburg
31 October 2012
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