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Final Results for the Half-Year Ended 31 December 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: AU000000WRL8
16 March 2015
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")
(ASX: FCR, AIM: FCR, JSE: FCR)
Final Results for the Half-Year Ended 31 December 2014
Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in Northern South
Africa, today announces its results for the half-year ended 31 December 2014.
Project Highlights
- JORC (2012) compliant Mineral Resource
- Historical drilling, drilling by the Group, geological modelling and high density geophysical
survey conducted by the Company in 2012 confirm huge tonnage upside potential
- 30 year Mining Right granted
- Environmental licence (EIA) in place for the Moonlight mining area (approved 4 April 2013)
- Metallurgical test work indicates the potential for high quality pellets in excess of 69% iron
and low deleterious elements possible (DR grade pellets for use in direct reduction
iron/electric arc steel-making processes)
- Low stripping ratio; slurry pipeline> pellet plant at rail head (Thabazimbi); export through
Richards Bay
- Duferco offtake partner (4.5 mtpa plus first right on 1.5 mtpa if not sold domestically)
- Independent valuation 2014 – The Mineral Corporation's independent valuation of the
Project released to the market on 11 June 2014
- Located near Kumba railhead at Thabazimbi (Kumba operation depleting in grade), Limpopo
Province, northern South Africa
- New Eskom power station (4,800MW) commissioning first 800MW module
- Richards Bay port expansion for iron ore products
Developments during Half-Year
- AUD$1.03m raised as partially underwritten rights issue completed
- Moonlight BFS progressed
- Drilling programme for mine design and plant final costings
- New mineralisation intersected
- BEE partners for expanded BFS participation engaged with
- Mr Ed Aylmer appointed as Moonlight BFS Study Manager
- Mr Ted Droste and Mr Kofi Morna resign as directors
Financial Overview
- Current assets as at 31 December 2014 of AUD$1,862,671 (2013: AUD$1,612,202)
- Loss for half-year of AUD$463,690 (2013:AUD$1,687,725)
- As at 30 June 2011, a financial liability was created in the accounting for the BEE share
subscription agreement. Australian Accounting Standards require this liability, which will be
satisfied by the issue of the shares, to be re-measured each reporting period to its fair value.
The assessment of fair value is significantly impacted by the market value of the shares to be
issued in comparison with the subscription price denominated in RAND. As at 31 December
2014, this liability had decreased as a result of a movement in the underlying Company share
price and the AUD/RAND exchange rates and the settlement of the first tranche of the BEE
share subscription which happened on 28 November 2012. The second tranche was due to
be finalised within 120 days from 28 November 2012 as per the terms of the BEE share
subscription agreement. However, this has been extended until 31 July 2016.
Post Period
- Drill core samples currently undergoing analysis- results expected Q1 2015
o Results all intersected mineralisation
o Next stage of BFS will be for bulk samples to be taken in order to complete all mining
cost components of BFS
- New advisers appointed in UK and South Africa as BFS restarts
- Site visits with potential investors conducted
- First stage work on domestic supply model underway with South African steel producers
- Updated CSR report in final stages as part of funding programme with specific partners
- Agreements with Anvwar Asian Investment terminated following its breach of contract
A pdf copy of the full accounts is available on the Company’s website (www.ferrumcrescent.com)
and on the ASX website (www.asx.com.au). A summary of the material financial information
(including a statement on going concern) is included below in this announcement.
Commenting on the final results, Managing Director Tom Revy said:
“The recommencement of the Moonlight BFS at the end of the period should allow us to start the
process of completing final mine design costings. My belief is that while public markets and
commodity markets are still very challenging we have made the right decision in progressing our
high-grade iron resource at this time. With sub-major iron ore companies unable to progress
exploration or development due to grade or infrastructure issues, the future of supply to
international steel markets is interesting. The BRICS economies have dramatically slowed in
growth, as is well publicised, but now have in place much higher levels of core infrastructure that
need to be maintained. Ferrum does not just have the potential to provide high grade product to
a consumer looking to unlock low grade iron ore stocks - being located near the Kumba rail hubs,
we have access to a fully operating infrastructure route to domestic and international buyers.
While securing financing is difficult in these markets, recent advances in our negotiations show
that groups with a real interest in securing physical metal supply to feed their industries are once
again looking at viable routes to create vertically integrated supply. I look forward to updating
the market shortly on our operational and corporate work.”
For more information, please visit www.ferrumcrescent.com or contact:
Australia enquiries: UK enquiries:
Ferrum Crescent Limited Ferrum Crescent Limited
Tom Revy T: +61 8 9367 5681 Laurence Read (UK representative)
Managing Director T: +44 7557 672 432
RFC Ambrian Limited (Nominated Adviser)
Andrew Thomson/Oliver Morse
T: +61 8 9480 2500
Hume Capital Securities (Broker)
Jon Belliss
T: +44(0)20 3693 1470
South Africa enquiries: Bravura Capital (Pty) Ltd
Doné Hattingh
T (direct): +27 11 459 5037
The directors accept full responsibility for the information contained in this announcement. The auditor’s unqualified
report is available for inspection at the Company’s registered office in Australia and at the Company’s office at Block
B, Regent Hill Office Park, cnr Leslie & Turley Rds, Lonehill, 2062 for 28 business days from release of this
announcement.
Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Comprehensive Income
For the half-year from 1 July 2014 to 31 December 2014
6 months to 6 months to
31 December 31 December
2014 2013
Note AUD AUD
Revenue from continuing operations
Revenue 3(i) 19,749 19,669
19,749 19,669
Fair value (loss) / gain on financial instrument 3(ii) & 4(i) 327,961 (642,742)
Exploration expenditure (204,194) (142,310)
Foreign exchange gain 107,897 47,802
Share based payments (31,438) (113,274)
Other expenses 3(iii) (790,725) (856,870)
Gain on disposal of available for sale investment 137,597 -
(Loss) before income tax (433,153) (1,687,725)
Income tax (expense)/benefit (30,537) -
Net (loss) for the period (463,690) (1,687,725)
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Net exchange gain / (loss) on translation of foreign operation (139,769) 17,373
Net fair value gains on available for sale investment 28,536 40,690
Income tax effect (7,990) (11,393)
Reclassification adjustment relating to the disposal of available-
for-sale investments included in the income statement (137,597) -
Income tax effect 38,527 -
Other comprehensive income/(loss) for the period, net of
tax (218,293) 46,670
Total comprehensive (loss) for the period (681,983) (1,641,055)
Net (loss) for the period is attributable to:
Non-controlling interest - -
Owners of the parent (463,690) (1,687,725)
(463,690) (1,687,725)
Total comprehensive (loss) for the period attributable to:
Non-controlling interest - -
Owners of the parent (681,983) (1,641,055)
(681,983) (1,641,055)
(Loss) per share attributable to the ordinary equity
holders of the Company
Loss per share Cents per share Cents per share
- basic (loss) per share 9 (0.11) (0.49)
- diluted (loss) per share 9 (0.11) (0.49)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes
Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Financial Position
As at 31 December 2014
31 December 30 June
2014 2014
Note AUD AUD
Current Assets
Cash and cash equivalents 1,067,545 738,345
Trade and other receivables 141,724 34,210
Other current financial assets 4a 570,270 240,517
Prepayments 83,132 54,408
Total Current Assets 1,862,671 1,067,480
Non-current Assets
Plant and equipment 39,364 46,981
Non-current financial assets 4b 128,584 772,429
Total Non-current Assets 167,948 819,410
Total Assets 2,030,619 1,886,890
Current Liabilities
Trade and other payables 165,238 322,582
Loans and Borrowings 5 593,063 515,999
Provisions 88,966 95,883
Total Current Liabilities 847,267 934,464
Total Liabilities 847,267 934,464
NET ASSETS 1,183,352 952,426
Equity
Contributed equity 6 30,340,460 29,333,702
Reserves 8 (8,188,514) (7,876,372)
Accumulated losses (20,968,594) (20,504,904)
PARENT INTEREST 1,183,352 952,426
NON-CONTROLLING INTEREST - -
TOTAL EQUITY 1,183,352 952,426
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes
Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Cash Flows
For the period 1 July 2014 to 31 December 2014
6 months to 31 6 months to 31
December 2014 December 2013
Note AUD AUD
Cash flows from operating activities
Interest received 4,634 12,167
Income from available for sale financial assets 15,115 7,502
Payments to suppliers and employees (1,279,400) (709,734)
Payment for exploration and evaluation costs (205,986) (140,225)
Net cash flows used in operating activities (1,465,637) (830,290)
Cash flows from investing activities
Payments for plant and equipment 216 -
Purchase of available for sale financial assets (282,694) (203,137)
Proceeds from disposal of available for sale financial
assets 1,036,758 409,200
Net cash flows from / (used in) investing activities 754,280 206,063
Cash flows from financing activities
Proceeds from issue of shares 1,204,224 1,512,000
Costs of capital raising (196,597) (111,024)
Net cash flows from financing activities 1,007,627 1,400,976
Net increase / (decrease) in cash and cash
equivalents 296,270 776,749
Cash and cash equivalents at beginning of period 738,345 548,265
Effect of foreign exchange on cash and cash equivalents 32,930 27,888
Cash and cash equivalents at end of period 1,067,545 1,352,902
The above consolidated statement of cash flows should be read in conjunction with the accompanying
notes
Going Concern
The Group has current assets of AUD 1,862,671 as at 31 December 2014 (30 June 2014: AUD 1,067,480),
incurred a net loss of AUD 463,690 (31 December 2013: AUD 1,687,725) and had cash used in operations
of AUD 1,465,637 (31 December 2013: AUD 830,290) for the six months period then ended.
The Group’s forecast cash flow requirements for the 12 months ending 31 March 2016 reflects cash
outflows from operating and investing activities, which take into account a combination of committed and
uncommitted but currently planned expenditure. The Group’s forecast indicates that the Group will need to
raise capital during the quarter ending 30 June 2015 to enable it to settle its liabilities as and when they fall
due and continue to meet its incurred, committed and currently planned expenditure.
The Directors have been in discussions with a number of interested parties in relation to funding the
Group’s working capital requirements via investments in the Group.
In the event that the Group is unable to raise additional funds to meet the Group’s planned expenditure
when required there is a significant uncertainty as the whether the Group will be able to meet its debts as
and when they fall due and thus continue as a going concern.
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