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Quarterly Results for the period ended 31 March 2013
Ferrum Crescent Limited
(Previously Washington Resources Limited)
(Incorporated and registered in Australia and registered as an external company in the
Republic of South Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR ISIN: AU000000WRL8
("Ferrum Crescent" or "the company" or "the group")
Quarterly Activities and Cashflow Report
For the period ended 31 March 2013
Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in Northern South
Africa, today announces its quarterly results for the three month period ending 31 March
2013.
HIGHLIGHTS:
Moonlight Iron Ore Project – Process Engineering Agreement Signed:
Ferrum enters into agreement with Danieli & C. Officine Meccaniche S.p.A. (“Danieli”), one
of the largest three suppliers of plant and equipment to the metals industry worldwide, for
the Italian based group to act as process engineer in the Bankable Feasibility Study (“BFS”)
and in that capacity to supply process engineering and other associated technical services
including:
o Beneficiation Plant (“BP”) design at the proposed Moonlight open pit mine
location comprising crushing, grinding and beneficiation and tailings storage
o Pelletising Plant (“PP”) design, to produce direct reduction (“DR”) grade pellet
at a railhead for further conveyance
o Laboratory testing and process work on Moonlight iron ore to define and
confirm the most suitable process configuration of the BP and PP to produce
high quality DR grade pellet (based on metallurgical testwork).
- Additional engineering providers will be secured by Ferrum Crescent for other
components of the BFS (such as mine design).
- Analysis by Ferrum Crescent of final pellet plant location and related infrastructure near
completion.
Commenting today Ed Nealon, Chairman, said: “The period saw Ferrum Crescent reach an
agreement with Danieli, a major equipment and services supplier to the steel industry, to
undertake all beneficiation and plant design components for the Moonlight project BFS
underway in South Africa. When combined with the offtake agreement with Duferco SA and
the significant work the team has carried out since receiving our final mining licences, Ferrum
is significantly closer to achieving its aim of developing an open pit mine at Moonlight.”
Corporate:
- Cash as at 31 March 2013 is approximately A$1.2m
Process Engineering Agreement
As announced on 27 February 2013, the Company signed an agreement with Danieli, one of
the largest three suppliers of plant and equipment to the metals industry worldwide, for the
Italian based group to fulfil the process engineering and associated technical services to be
used for the BFS in process at the Moonlight Iron Ore Project in South Africa. Danieli will carry
out the role of process engineer in the BFS and develop a full process engineering analysis and
final study for the beneficiation plant and the pelletising plant build. It is anticipated that
Moonlight will be developed as an open-pit mine (using contract miners) with on-site
concentrate production. A slurry concentrate pipeline is to be built to transport concentrate
from beneficiation to the pelletising plant near existing railhead at Thabazimbi (230km), with
return water to Moonlight. The pelletising plant to produce 6Mtpa of iron ore oxide pellets for
international and domestic markets is planned with a production of both direct reduction and
blast furnace grade.
Ferrum Crescent has sufficient confidence that the various upgrades to infrastructure that
have been announced by the South African government and by its statutory enterprises such
as Transnet and Eskom will allow Ferrum Crescent to export its product through Richards Bay
and enable production by 2018. These upgrades to rail and port in particular are strategically
necessary to unlock the value of the Waterberg Region, where the country’s most significant
remaining coal reserves are situated. For this reason, rail, power, water and port facilities are
all being upgraded as a matter of national priority. Initial scoping financial models of the entire
project indicate an attractive business case which encourages the Company to progress
completion of the BFS over the next 12 to 18 month period.
Corporate
On 08 August 2012, shareholders approved the Ferrum Crescent Director and Senior
Management Fee and Remuneration Sacrifice Share Plan (the “Plan”) whereby Directors and
Senior Managers of the Company who are eligible to be offered shares without prospectus
disclosure may elect to sacrifice part or all of their directors’ fees or executive remuneration to
acquire shares in the Company. The purpose of the Plan is to help align the interests of
Directors and Senior Managers with those of shareholders by encouraging Director and Senior
Manager share ownership and (where such shares are newly issued) preserve cash in the
Company. Further details may be found in the Notice of General Meeting dated 29 June 2012.
Under the terms of the Plan, the entitlement to shares for participating Directors and Senior
Managers accrues on a monthly basis, with the cash value of shares to be acquired determined
at the end of each month. Directors and Senior Managers will acquire shares so accrued on
dates to be determined by the Board from time to time but generally no later than once yearly
in arrears. As at the date of this report, the Directors and Senior Managers who have elected
to participate in the plan are Edward Nealon (as to 100% of his fees), Robert Hair (as to 77.27%
of his fees), Grant Button (as to 100% of his fees) and Andrew Nealon (as to 100% of his fees)
and they have accrued the following shares since the last entitlement issue of 14 December
2012:
Name No. of Shares Average Price Total % of Enlarged
Accrued Shareholding Post Issued Share
Issue* Capital*
Edward Nealon 1,089,093 AUD$0.024 7,523,625 2.26%
Robert Hair 2,777,186 AUD$0.024 10,473,304 3.14%
Grant Button 169,774 AUD$0.019 1,605,774 0.48%
Andrew Nealon 816,818 AUD$0.024 1,848,951 0.55%
- Figures are accurate assuming accrued shares are issued on or before 30 April 2013
The shares accrued by participating Directors and Senior Managers detailed above have not
yet been issued to the respective participants. The Company intends providing such shares
during a period that accords with the Company’s share trading and other policies and provided
that such participating Directors and Senior Managers are not in possession of inside
information.
In addition, on 27 March 2013 Executive Chairman Edward Nealon purchased 1,000,000 shares
in the Company at a price of AUD 0.017 per share. Following the purchase, Edward Nealon has
a direct interest in 6,434,532 ordinary shares representing 1.96% of the total issued share
capital.
For more information, please visit www.ferrumcrescent.com or contact:
Australia and Company enquiries: UK enquiries:
Ferrum Crescent Limited Ocean Equities Limited (Broker)
Ed Nealon T: +61 8 9380 9653 Guy Wilkes T: +44 (0) 20 7786 4370
Executive Chairman
RFC Ambrian Limited (Nominated Adviser)
Bob Hair T: +61 414 926 302 Richard Morrison T: +44 (0) 20 3440 6800
Managing Director Jen Boorer T: +44 (0) 20 3440 6800
Ferrum Crescent Limited
Laurence Read (UK representative)
T: +44 7557672432
South Africa enquiries: Sasfin Capital
Leonard Eiser T: +27 11 809 7500
Competent Persons’ Statement:
The information that relates to Exploration Results and Mineral Resources in the report of which this
statement is a summary, is based on information compiled by Stewart Nupen, who is registered with the
South African Council for Natural Scientific Professionals (Reg. No. 400174/07) and is a member of the
Geological Society of South Africa. Mr Nupen is employed by The Mineral Corporation, which provides
technical advisory services to the mining and minerals industry. Mr Nupen has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Nupen
consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.
Appendix 5B
Mining exploration entity quarterly report
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Ferrum Crescent Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 31 March 2013
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities (9 months)
$A’000 $A’000
1.1 Receipts from product sales and related
debtors
1.2 Payments for (a) exploration & evaluation (184) (550)
(b) development
(c) production
(d) administration (451) (1,358)
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 29 65
1.5 Interest and other costs of finance paid
1.6 R&D recoupment tax 202 202
1.7 Other – income from restricted cash
investments 20 42
Net Operating Cash Flows (384) (1,599)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets (1) (2)
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities - (780)
1.11 Loans repaid by other entities - -
1.12 Other (restricted cash investments) (106) (385)
Net investing cash flows (107) (1,167)
1.13 Total operating and investing cash flows
(carried forward) (491) (2,766)
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows
(brought forward) (491) (2,766)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - 780
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other – share issue costs (2) (9)
Net financing cash flows (2) 771
Net increase (decrease) in cash held (493) (1,995)
1.20 Cash at beginning of quarter/year to date 1,795 3,352
1.21 Exchange rate adjustments to item 1.20 (92) (147)
1.22 Cash at end of quarter 1,210 1,210
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 80
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
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
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
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 6
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
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 400
Total 600
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 1,210 1,795
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22) 1,210 1,795
Changes in interests in mining tenements
Tenement reference Nature of interest Interest at Interest
(note (2)) beginning at end of
of quarter quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 Interests in mining
tenements acquired or
increased
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 7
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 per Amount paid up
security (see per security (see
note 3) (cents) note 3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs,
redemptions
7.3 +Ordinary 328,201,385 321,606,385 Various Fully Paid
securities
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs
7.5 +Convertible
debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description and 2,350,000 - $0.198 07 December 2013
conversion 21,496,727 21,496,727 $0.400 31 December 2013
factor) 400,000 - $0.100 14 December 2015
7.8 Issued during
quarter
7.9 Exercised
during quarter
7.10 Expired during
quarter
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 8
Appendix 5B
Mining exploration entity quarterly report
7.11 Debentures
(totals only)
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 5).
2 This statement does give a true and fair view of the matters disclosed.
30 April 2013
Sign here: ............................................................ Date: ............................
(Company secretary)
Print name: Andrew Nealon................... .............
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 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial
Reporting 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.
17/12/2010 Appendix 5B Page 9
Appendix 5B
Mining exploration entity quarterly report
30 April 2013
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
== == == == ==
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 10
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