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FERRUM CRESCENT LIMITED - Quarterly activities and cash flow report For the period ended 30 June 2014

Release Date: 30/07/2014 08:00
Code(s): FCR     PDF:  
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Quarterly activities and cash flow report For the period ended 30 June 2014

FERRUM CRESCENT 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: AU000000FCR2
("Ferrum Crescent", the "Company")


Quarterly Activities and Cash flow Report
For the period ended 30 June 2014

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
30 June 2014.

HIGHLIGHTS:

Moonlight Iron Ore Project:

-  Moonlight Resource made compliant with JORC 2012
-  Moonlight Iron Ore Project valued independently by The Mineral Corporation within
   a range between US$24.8m and US$41.3m, with a preferred valuation of
   US$33.0m (as announced on 11 June 2014)
- Moonlight BFS review- detailed pathway to completion announced
- Anvwar Asian Investment (“AAI”) failed to make its second US$500,000 payment,
   which was due to be paid by 30 April 2014 and remains in breach of contract;
   negotiations continue with AAI and other potential funding partners
- Whilst commencement of the BFS remains on hold, the BFS work program
   planning continues

Corporate:

-   Cash as at 30 June 2014 was approximately AU$738,000
-   Ed Nealon moved from Executive Chairman to Non-Executive Chairman of the
    Board. Bob Hair resigned as a director and moved to the position of company
    secretary replacing Andrew Nealon
-   Ferrum Crescent’s registered office moved to South Perth.


Commenting today Tom Revy, Managing Director, said: "The June Quarter 2014
saw a continuation of gearing up to commence the BFS at the Moonlight Project. This
project will produce and deliver to customers a premium iron ore product and will be of
huge benefit to Ferrum shareholders, the local communities and municipalities and to
the Limpopo and South African governments and their instrumentalities. I think people
in South Africa are becoming as excited as we are about the benefits to all
stakeholders that will come from Moonlight, and I am very much looking forward to the
things I enjoy the most in this industry – taking a premium project through feasibility
into financing, construction and operations. It is unfortunate that AAI has thus far not
carried out its side of the agreement that was reached in March 2014, but we are
continuing to talk to AAI and to pursue other investment funding options, both in South
Africa and internationally.”
For more information, please visit www.ferrumcrescent.com or contact:


Australia and Company enquiries:

Ferrum Crescent Limited
Ed Nealon T: +61 8 9367 5681
Chairman

Tom Revy T: +61 8 9367 5681
Managing Director

UK enquiries:

Pareto Securities Ltd (Broker)
Guy Wilkes T: +44 (0) 20 7786 4370

RFC Ambrian Limited (Nominated Adviser)
James Biddle/Andrew Thompson
T: +44 (0) 20 3440 6800

Ferrum Crescent Limited
Laurence Read (UK representative)
T: +44 7557672432

South Africa enquiries:

Sasfin Capital
Megan Young T: +27 11 809 7500


On 5 May 2014, the Company announced that the Mineral Resources at Moonlight had
been updated to comply with JORC 2012, the work was completed by the Mineral
Corporation Consultancy Pty Ltd (“The Mineral Corporation”) of Johannesburg.
The Company also concluded a detailed review of the bankable feasibility study for the
Moonlight Iron Ore Project. A work pathway was announced that identified advanced
metallurgy, pilot plant construction and final product analysis as the next key
components for the BFS. This work allows final costings to be made for the mining
plan and items such as the Pellet plant. A project schedule for completion of the
Moonlight BFS was announced as follows:

 -     Feasibility study can be completed within 18 months work-time;
 -     30 to 36 month construction period expected;
 -     Schedule coincides with Government infrastructure development plans; and
 -     Completion of the BFS is expected to cost approximately A$10-13m.

The Company on 11 June 2014 released to the market a copy of a valuation report
carried out by The Mineral Corporation for certain South African regulatory reasons.
The Mineral Corporation's independent valuation of the Moonlight Iron Ore Project in
South Africa (Moonlight or the Project) placed a value to the Project within a range
from S$24.8m to US$41.3m, with a preferred value of US$33m. The valuation of the
Project used the principles and guidelines of the South African Code for the Reporting
of Mineral Asset Valuation (SAMVAL Code).

The valuation opinion contained in the report is only for the Mineral Assets of the
Company, and excludes the value of any surface infrastructure established at the
Moonlight Project, any movable assets which are part of the Project or the balance
sheet circumstances of Ferrum Crescent. The effective date of the valuation is 30 April
2014.

A copy of each of these announcements can be found on the Company’s website.
Corporate

A second payment of US$500,000 was not received by Ferrum Crescent from Anwar
Asian Investments (“AAI”) within the time frame scheduled under a funding agreement
between the 2 parties. Ferrum Crescent have informed AAI of its default and not
accepted a request for an extension period to complete the financing.

During the Quarter Ferrum Crescent underwent a period of restructuring. Mr Andrew
Nealon was replaced by Bob Hair as company secretary, who himself resigned as an
executive director of the Company. It was also announced that Mr Ed Nealon moved
from executive to non-executive Chairman of the Company.

Exploration Interests

As at 30 June 2014, the Company held an interest in the following mining tenements:

Project           Location       Tenement       Tenement            Holder     Percentage
                                   Number          Status                         Interest

Moonlight          Limpopo     30/5/1/2/2/21        Mining          Ferrum           97%
                  Province,              MR           Right   Iron Ore (Pty)
                South Africa                      Granted                Ltd
Moonlight          Limpopo     30/5/1/2/2/21   Prospecting          Ferrum           97%
                  Province,              MR           Right   Iron Ore (Pty)
                South Africa                    Application              Ltd

No licences were acquired or disposed of during the Quarter.
 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                                                                  30 June 2014


 Consolidated statement of cash flows
                                                                        Current quarter               Year to date
Cash flows related to operating activities                                                            (12 months)
                                                                        $A’000                        $A’000
1.1      Receipts from product sales and related
         debtors

1.2      Payments for (a) exploration & evaluation                          (201)                    (579)
         (b) development
         (c) production
         (d) administration                                                 (321)                   (1,219)
1.3      Dividends received
1.4      Interest and other items of a similar nature
         received                                                               6                      20
1.5      Interest and other costs of finance paid
1.6      R&D recoupment tax                                                     -                     125
1.7      Other – net income on restricted cash
         investments                                                            8                     (19)

         Net Operating Cash Flows                                            (508)                   (1,672)

         Cash flows related to investing activities
1.8      Payment for purchases of:
         (a) prospects
         (b) equity investments
         (c) other fixed assets                                                  -                      (2)
1.9      Proceeds from sale of:
         (a) prospects
         (b) equity investments
         (c) other fixed assets
1.10     Loans to other entities                                                 -                       (41)
1.11     Loans repaid by other entities                                          -                        41
1.12     Other (restricted cash investments)                                   191)                      (89)

         Net investing cash flows                                             (191)                      (91)
1.13     Total operating and investing cash flows
         (carried forward)                                                    (699)                   (1,763)
1.13        Total operating and investing cash flows
            (brought forward)                                                 (699)                   (1,763)

            Cash flows related to financing
            activities
1.14        Proceeds from issues of shares, options,                            -                     1,511
            etc.
1.15        Proceeds from sale of forfeited shares
1.16        Proceeds from borrowings
1.17        Repayment of borrowings
1.18        Dividends paid
1.19.1      Other                                                               -                        29
1.19.2      Other - First Tranche proceeds from
            Anvar Asian Investment                                              -                       539
1.19.3      Other – share issue costs                                           -                     (110)
                                                                                -                     1,969
            Net financing cash flows

            Net increase (decrease) in cash held                            (699)                       206

1.20        Cash at beginning of quarter/year to date                      1,434                        548
1.21        Exchange rate adjustments to item 1.20                             3                        (16)
                                                                             738                        738
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                              82

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

 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                                                                   300

4.2    Development

4.3    Production

4.4    Administration                                                                               200


       Total                                                                                        500

 Reconciliation of cash
 Reconciliation of cash at the end of the quarter (as   Current quarter         Previous quarter
 shown in the consolidated statement of cash            $A’000                  $A’000
 flows) to the related items in the accounts is as
 follows.
 5.1    Cash on hand and at bank                                          574                       923
                                                                          164                       511
 5.2    Deposits at call

 5.3    Bank overdraft

 5.4    Other (provide details)
                                                                          738                      1,434
        Total: cash at end of quarter (item 1.22)


 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 and
        petroleum tenements
        relinquished, reduced
        or lapsed


 6.2    Interests in mining
        tenements and
        petroleum tenements
        acquired or increased
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              380,602,777         378,302,777              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               400,000                     -             $0.10     14 December 2015
        and conversion             500,000                     -             $0.03     21 November 2016
        factor)                  2,500,000                     -             $0.08      19 February 2017

7.8     Issued during
        quarter
7.9     Exercised
        during quarter
7.10    Expired /
        cancelled
        during quarter
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 /does not* (delete one) give a true and fair view of the matters
disclosed.




Sign here:
Date: 30 July 2014
(Company secretary)
Bob Hair

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.


30 July 2014
Johannesburg


Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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