Wrap Text
Quarterly Report for the Period to 31 December 2012
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 January 2013
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 Period to 31 December 2012
the Johannesburg Stock Exchange (JSE).
Firestone Energy has entered into a Joint
Venture with Sekoko Resources (Pty) Ltd
through which Firestone Energy has
acquired the right to 60% participation
interests in the Waterberg Coal Project
located in Lephalale area, Limpopo Province,
South Africa.
Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or “ FSE”) is pleased to
The first stage of the project is to develop the
provide shareholders with its Quarterly Activities Report for the 3 month period
Smitspan mine which has a substantial
ended 31 December 2012. measured thermal coal resource and to
develop the Vetleegte mine which is a
substantial metallurgical coal deposit.
Technical Activities: the Waterberg Coal Project
Firestone Energy is committed to becoming a
During the quarter, the technical team of the Waterberg Joint Venture continued
profitable independent coal and energy
to progress the Bankable Feasibility Study for the proposed coal mine to supply 10
producer at its projects in South Africa,
million tones of thermal coal to Eskom per annum. thereby making a substantial contribution to
Eskom and Sekoko Resources agreed to extend the completion date of the the social and economic development of the
Lephalale area and South Africa.
Bankable Feasibility Study to 31 March 2013. This extension allows additional
time for the joint venture to complete additional drilling and technical Corporate Details
components required to support the Bankable Feasibility Study. ASX: FSE
JSE: FSE
Drilling to delineate the faults on Smitspan and Stage 1 drilling to upgrade the
resource of Smitspan and Massenberg was completed during the quarter. Issued Capital:
3,114 million ordinary shares
Laboratory analysis of the results are expected during the first quarter of 2013.
Major Shareholders:
The various specialist studies required for the completion of the Bankable Sekoko Resources (Pty) Ltd
Feasibility Study, namely environmental, rail, infrastructure, geo-technical and Linc Energy Ltd
BBY Nominees Pty Ltd
hydrology studies, commenced during the quarter, and are currently well Bell Potter Nominees Ltd
underway. The environmental consultants have commenced with the Public
Involvement Process required in order to amend the Existing Environmental Right Directors and Officers
Management Programme. Non Executive Directors:
Mr Tim Tebeila (Chairman)
An extensive drilling programme on Massenberg has now commenced, in order to David Perkins (Deputy Chairman)
upgrade the resource status of the property. The Waterberg Joint Venture Dr Pius Kasolo
technical team continue to actively engage with all stakeholders including Eskom, Ben Mphahlele
Kobus Terblanche
Transnet Freight Rail, and all relevant Regulatory Authorities.
Officers:
Mr David Knox CEO
Mr Jerry Monzu Company Secretary
Corporate Activities
Transactions with Ariona Company SA (“Ariona”) Contact:
Suite B9, 431 Roberts Road
During the quarter, the Company held a General Meeting for the suite of Subiaco, Western Australia 6008
transactions with Ariona. The shareholders of FSE approved the transactions Tel: +61 (08) 9287 4600
between the Company and Ariona, and the parties have advanced toward closing Web: www.firestoneenergy.com.au
the transactions designed to improve the financial position of the Company.
On 17 December 2012, the Company announced that it had revised the Investment Agreement to
allow for changes to the proposed settlement terms with Ariona. As part of the changes to those
terms, the Company received A$600,000 of working capital from Ariona which will form part of the
total investment amount of A$39.645 million to be provided as per the Investment Agreement. The
first stage of financial settlement is now scheduled to take place on 31 January 2013.
The Company has also retained access to the balance of the A$2.2 million working capital facility which
was announced on 22 March 2012.
The funding provided into the Company has allowed the Company to focus on its core activities on
completing the Bankable Feasibility Study for the Waterberg Coal Project, in conjunction with its joint
venture partner, Sekoko Resources (Pty) Ltd.
Take-over Proposal
On 17 December 2012, Range River Gold Limited (RNG.AU)(“Range River”) announced to the ASX an
unsolicited, conditional proposal to acquire all of the ordinary shares in FSE by way of an off-market
takeover offer (“Range River Offer”)
After the quarter, on 30 January 2013, Range River announced the Bidders’ Statement for FSE.
The Board is unanimous in its view that FSE shareholders should take no action and not make any
decision in relation to their shareholding in the Company until the Board has had the opportunity to
consider the Bidders’ Statement provided by Range River. Following careful consideration of the
Range River Offer, the Board will determine and advise FSE shareholders of its recommendation.
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 31 December 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 (907) (1,318)
(b) development - -
(c) production - -
(d) administration (444) (797)
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) 31 80
Net Operating Cash Flows (1,320) (2,035)
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 (1,320) (2,035)
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 (1,320) (2,035)
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 1,348 2,065
1.17 Repayment of borrowings - -
1.18 Capital raising costs - -
1.19 Other – Interest paid - -
1,348 2,065
Net financing cash flows
Net increase (decrease) in cash held 28 30
1.20 Cash at beginning of quarter/year to date 161 169
1.21 Exchange rate adjustments to item 1.20 Gain / (Loss) (24) (34)
165 165
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 1.2 937
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 - $937k
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 1,457
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 200
4.2 Development -
4.3 Production -
4.4 Administration 200
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 144 134
21 27
5.2 Deposits at call
- -
5.3 Bank overdraft
- -
5.4 Other (provide details)
165 161
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
price
FSEAM 110,000,000 Nil 6.0 Cents 31 May 2013
FSEAO 96,904,767 Nil 6.0 Cents 30 Jun 2013
FSEAI 25,875,000 Nil 6.0 Cents 30 Jun 2014
FSEO 48,395,000 48,395,000 4.0 Cents 31 May 2014
FSEAA 40,000,000 Nil 2.5 Cents 19 Sept 2014
7.8 Issued during
quarter
7.9 Exercised
during
quarter
7.10 Expired
during
quarter
FSEAK 30,000,000 Nil 5.0 Cents 30 Nov 2012
7.11 Debentures
(totals only)
+ See chapter 19 for defined terms.
Appendix 5B Page 6 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
7.12 Unsecured
notes (totals
only)
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 January 2013
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
31 January 2013
Johannesburg
Sponsor
RiverGroup
Date: 31/01/2013 07:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
