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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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