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Half-Year Financial Report for the period 1 July 2016 to 31 December 2016
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
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
Ferrum Crescent Limited
ACN 097 532 137
Half-Year Financial Report
for the period
1 July 2016 to 31 December 2016
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
Contents
Page
Directors’ report 3-9
Auditor’s independence declaration 10
Consolidated Statement of Profit or Loss and Other Comprehensive Income 11
Consolidated Statement of Financial Position 12
Consolidated Statement of Changes in Equity 13
Consolidated Statement of Cash Flows 14
Notes to the Consolidated Financial Statements 15 - 24
Directors’ declaration 25
Independent Review Report to the members 26
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
Your directors present their report on Ferrum Crescent Limited (“Ferrum”, the “Company” or, together with its
controlled entities, the “Group”) for the half-year from 1 July 2016 to 31 December 2016.
Directors
The names of the Company’s directors in office during the half-year and until the date of this report are set
out below. Directors were in office for the entire period unless otherwise stated.
Justin Tooth
Klaus Borowski Resigned 30 January 2017
Grant Button
Evan Kirby
Laurence Read Appointed 30 January 2017
Review and results of operations
Operating Results
During the half-year 1 July 2016 to 31 December 2016, the Group recorded a net loss after tax of AUD
688,661 (1 July 2015 to 31 December 2015: net loss of AUD 727,485).
Principal activities during the half-year
The principle work-streams for the Company during the period are as follows:
1. Group-wide review of operations and costs
2. Determine viable progression routes for the Moonlight assets either through existing structures or
new engineering pathways
3. Diversify asset portfolio to secure prospective assets, outside of bulk materials, in low risk
geographies
During the six month period covered by this report the Board gave BVI Business Venture Investments No.
1709 (Proprietary) Limited ("BVI") every opportunity to fulfill their commitments under an existing
development agreement first announced by the Company on 14 October 2015 entitling the group to earn up
to a 43 per cent. equity interest in FIO through the completion and funding of the Bankable Feasibility Study
(“BFS”), which was to be conducted in two phases. The agreement was subsequently extended in January
2016.
The Company also assessed new options for development including certain specific laboratory tests relating
to beneficiation.
Subsequent to the period, the BVI agreement was terminated in early 2017, further costs reduction initiatives
at Moonlight have been advanced and the Company is actively reviewing routes forward for progressing
Moonlight.
Due diligence continued over two lead-zinc projects located in Northwest Spain that had been previously
subject to exploration by drilling and analysis. Following two extensions made at the Company’s request, to
nd
allow the seller to meet the conditions of the deal, the option was exercised on 22 September 2016. The
new Ferrum Crescent exploration team, operating out of the UK and Spain, designed and implemented a
work programme for the Toral Project. The geological goal is to establish the presence and other parameters
of mineralisation at surface and then to define the most prospective areas of the structure for the planning of
a targeted Phase 1 drill campaign. To this end, soil geochemistry sampling, rock chip sampling, and channel
sampling was carried out, in conjunction with detailed mapping.
Post-period work was completed at the Toral asset in Spain comprising 575 soil samples, 108 rock chip
samples and 23 channel samples in addition to desktop re-analysis of historic data. Using a GIS (geographic
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
information system), Ferrum Crescent has compiled all the various data streams into a three-dimensional
model. The proposed 2017 drilling campaign has been based on an increased understanding of the Toral
Project and identification of new target zones. Following receipt and interpretation of the positive mapping
and sampling results, Ferrum Crescent has drawn up a drill plan comprising thirteen holes off twelve drill
platforms, totalling from 1,600 metres to 1,800 metres of diamond drilling. The primary drill targets are zones
of co-incident anomalies combining soil geochemistry, rock alteration, visible mineralisation at surface or
underground, and structurally favourable zones. Exploration drilling is set to commence in Q2 2017.
Drillholes have been designed to intersect multiple zones of mineralisation at depths from 50 metres to 200
metres below surface. In order to facilitate access, all drill platforms are located on existing tracks and roads.
South Africa
Moonlight Iron Ore Project
Ferrum’s principal project is the Moonlight Iron Project located in Limpopo Province in the north of South
Africa. The Moonlight Deposit (upon which the Moonlight Project is based) is a magnetite deposit located on
the Moonlight, Gouda Fontein and Julietta farms and is the main operational focus for the Company. Iscor
Limited (“Iscor”), which explored the Moonlight Project in the 1980s and '90s, reported mineralisation capable
of producing a concentrate grading at 68.7% iron. At that time, Iscor concluded that the deposit, which was
described as being comparable to the world’s best, was easily mineable due to its low waste-to-ore ratio. The
beneficiation attributes of Moonlight ore are extremely impressive, with low-intensity magnetic separation
considered suitable for optimum concentration.
The Mineral Resource estimate is provided in the table below and the Mineral Resource estimation criteria,
as required in JORC (2012) and in Section 5.8.2 of the ASX Listing Rules, are available on the ASX Website.
With a cut off grade of 16% Fe, geological losses of 5% and a depth constraint of between 100m and 250m
from surface, (depending upon dip and the number of zones present), The Mineral Corporation has
determined that there are reasonable prospects for eventual economic extraction, and hence estimate the
Mineral Resource as follows:
Category Gross Net (attributable to Ferrum Crescent at
97%)
Tonne Fe SiO2 Al2O Containe Tonne Fe SiO2 Al2O Contained
(Mt) (%) (%) 3(%) d Fe (Mt) (Mt) (%) (%) 3 (%) Fe (Mt)
Inferred 172.1 25.3 51.2 4.8 43.5 166.9 25.3 51.2 4.8 42.2
Indicated 83.0 27.4 50.1 4.0 22.7 80.5 27.4 50.1 4.0 22.1
Measured 52.6 31.3 47.3 2.5 16.5 51.0 31.3 47.3 2.5 16.0
Total 307.7 26.9 50.3 4.2 82.8 298.5 26.9 50.3 4.2 80.3
*Tonnes are rounded
The Company confirms that it is not aware of any new data that materially affects this resource statement
since the first public announcement and that all material assumptions and technical parameters underpinning
the resource estimates continue to apply and have not materially changed since first reported.
Competent Person’s Statement South Africa:
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 Exploration Results, Mineral Resources and Ore Reserves’ and as defined in the June 2009
Edition of the AIM Note for Mining and Oil and Gas Companies. Mr. Nupen consents to the inclusion in this
statement of the matters based on his information in the form and context in which it appears.
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
Spain
On 30 September 2016 the Company completed the purchase of 100% of the shares of GoldQuest Iberica,
S.L. (“GoldQuest”), which owns 100% of the Toral and Lago lead-zinc exploration projects located
respectively in the provinces of León and Galicia in Spain.
Toral Project
The wholly owned Toral zinc-lead-silver permit is located near Ponferrada in the west of the province of León,
Autonomous Community of Castile and León, Spain approximately 400km northwest of Madrid.
Image available on www.ferrumcrescent.com
Location of Toral Zinc-Lead- Silver Permit Area
The Toral Project has been extensively explored historically by its previous owners Portex Minerals Inc. and
Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc mineralisation.
Located in north-west Spain, approximately 400km north-west of Madrid, the project's licence area hosts
excellent road, rail and power infrastructure and is situated in a known historic mining jurisdiction. The asset
also has a pre-existing NI 43-101 resource estimate reported by Micon International Co. Limited on 30 April
2012 (the “NI 43-101 Report”). The NI 43-101 Report estimated that the project has a NI 43-101 compliant
Inferred and Indicated foreign resource estimate of 8.71Mt at an economic cut-off grade of 7% Pb + Zn (as
set out in the Company’s announcement of 10 November 2016).
Toral zinc-lead-silver permit is located near Ponferrada in the west of the province of León, Autonomous
Community of Castile and León, Spain, approximately 400 kilometres northwest of Madrid. Work undertaken
by the Company has concentrated on the prospective area located vertically above the deep Toral Deposit
within the same licence, which is the subject of a foreign estimate for the purpose of the ASX Listing Rules,
comprising an NI 43-101 compliant Indicated foreign mineral resource estimate of 4.04 Mt at 11.8 Pb + Zn
(%) and Inferred foreign mineral resource estimate of 4.67 Mt at 9.8 Pb+ Zn (%) (details of which are set out
in the Company's announcement of 10 November 2016).
Recent work, concluded post-period, has been carried out over areas of zinc- in- soil anomalism along 2
kilometres of strike extension at the Toral Project, with an average width of around 150 metres. Topographic
survey completed with a high specification GPS enabled accurate positioning of old workings (adits),
identifying sub-parallel zones of mineralisation. Underground channel sampling identified high grade
mineralisation close to surface.
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
Historic Work
Between 1975 and 1985, the Adaro/Peñarroya joint venture carried out exploration on the four separate
licences which now correspond, approximately, to the Toral permit area. Over a period of nine years, a
topographical survey, geological mapping, a hydrogeological study and more than 40,000m of diamond
drilling (62 holes and 41 wedges) were carried out.
Lundin Mining S.L. (Lundin) acquired the Toral investigation permit no. 15.199 in 2007 and commenced
exploration in April 2007. Lundin compiled the information collected by the previous licence holders. In
addition, samples of drill core were sent to ALS Chemex in Canada in order to validate the reliability of the
existing assays and exploration information was digitised. The results of Lundin’s preliminary work confirmed
the mineral potential of the Toral area. However, it was apparent that the continuity and the thickness of the
mineralisation were insufficiently detailed. In 2007 to 2009, seven diamond holes for a total of 4,523.7m were
drilled for the purpose of confirming the continuity of the mineralisation in the San Jose area of the Toral
permit and also to test the possibility of an extension of the mineralisation in depth (see section 6 below).
GoldQuest acquired Lundin, including the Toral permit, in January 2010. During 2011 and 2012, GoldQuest
conducted systematic geological mapping and soil sampling.
The Board believes that the observations and results of work programme carried out by Ferrum Crescent
from October 2016 to January 2017, suggest the following:
· Measurable and anomalous mineralisation extends for at least two kilometres at the Toral Project
· More than one mineralising horizon has been identified
· More than one mineralising style has been identified
· There is a structural control on the emplacement, thickness and paragenesis of the mineralisation
· Transverse and cross-cutting faults may act as controlling factors on mineralising fluids
Following receipt and interpretation of the positive mapping and sampling results, Ferrum Crescent has
drawn up a drill plan comprising thirteen holes off twelve drill platforms, totalling from 1,600 metres to 1,800
metres of diamond drilling. The primary drill targets are zones of co-incident anomalies combining soil
geochemistry, rock alteration, visible mineralisation at surface or underground, and structurally favourable
zones.
Using a GIS (geographic information system), Ferrum Crescent has compiled all the various data streams
into a three dimensional model. The proposed 2017 drilling campaign has been based on the new
understanding of the Toral Project and identification of new target zones. Figure 6 shows the location of the
proposed drill platforms. Drillholes are designed to intersect multiple zones of mineralisation at depths from
50 metres to 200 metres below surface. In order to facilitate access, all drill platforms are located on existing
tracks and roads.
Lago Project
The Lago Project is located approximately 54km to the north-east of the Toral Project in the province of
Galicia. Historical investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera
International Espana S.A. ("EXMINESA"), between 1985 and 1990, indicated that mineralisation at the Lago
Project may be similar to that encountered at the Toral Project with vertical, lenticular bodies (probably more
than one), approximately 800m long by 300m wide.
Corporate
Subsequent to the Company entering into an exclusive option to acquire 100 percent of GoldQuest, two nil-
cost extensions were granted to Ferrum Crescent and on 22 September 2016 the option was exercised.
Accordingly, the Company has acquired 100 per cent. of the share capital of GoldQuest Iberica, S.L.
(“GoldQuest”). GoldQuest owns 100 per cent. of two lead-zinc exploration projects in the provinces of Leon
and Galicia, in historic Spanish mining areas (the “Iberian Projects” or “Toral and Lago Projects”).
Consideration comprised GBP326,500 in cash and the issue of 100 million new ordinary shares in the capital
of Ferrum Crescent.
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
On 25 July 2016, the Company announced that it had conditionally raised in aggregate, GBP 374,453
(AU$655,034) before expenses through a placement via Beaufort Securities Limited, as agent to the
Company, of 187,226,485 new ordinary shares of no par value each in the capital of the Company at a price
of 0.20 pence per new ordinary share. As part of the placing, each investor was offered, subject to
shareholder approval in accordance with the ASX Listing Rules, options on the basis of one option for every
share subscribed pursuant to the placing. Each option will entitle the holder to subscribe for a further new
ordinary share at a price of 0.30 pence per share for an exercise period of two years following the date of
admission of the placing shares trading on AIM. In addition the Company has agreed to grant further
18,722,649 options to Beaufort Securities Limited on the same terms. Following admission, the total issued
ordinary share capital of the Company was 1,470,018,368 ordinary shares.
On 28 July 2016, the Company announced that it was issuing 66,874,816 new ordinary shares of no par
value each in the capital of the Company as a result of the exercise of, in aggregate 66,874,816 options
exercisable at a price of 0.165 pence per share, raising AUD 193,025 before expenses. Such options were
granted in connection with the Company’s placing and subscription announced on 27 April 2016. Following
the issue of the option shares and the abovementioned placing shares, the total issued ordinary share capital
of the Company was 1,536,893,184 ordinary shares.
On 26 August 2016, the Company announced that it was issuing 44,797,543 new ordinary shares of no par
value each in the capital of the Company as a result of the exercise of, in aggregate, a further 44,797,543
options exercisable at a price of 0.165 pence per share, raising AUD 128,184 before expenses. Such options
were granted in connection with the Company’s placing and subscription announced on 27 April 2016.
Following the issue of these option shares, the total issued ordinary share capital of the Company was
1,581,690,727 ordinary shares.
On 23 September 2016, the Company announced that was issuing 5,381,907 new ordinary shares of no par
value each in the capital of the Company as a result of the exercise of, in aggregate, 5,381,907 options
exercisable at a price of 0.165 pence per share Such options were granted in connection with the Company’s
placing and subscription announced on 27 April 2016. Following the issue of these further option shares, the
total issued ordinary share capital of the Company was 1,587,072,634 ordinary shares.
On 29 September 2016, the Company announced the following proxy results of the General Meeting of
Shareholders held on said date in respect of the resolutions set out in the Notice of General Meeting dated
23 August 2016. Resolution 1, 2 and 3 were passed on a show of hands.
Resolution 1: Ratification of prior issue of Shares
Resolution 2: Approval of grant of Placement Options
Resolution 3: Approval of grant of Broker Options
Also on 29 September 2016, the Company also announced that it was issuing 100,000,000 new ordinary
shares of no par value each in the capital of the Company to GoldQuest Mining (Spain) Corp
On 30 September 2016, the above shares were issued in settlement of the share element of the
consideration for the acquisition of 100 per cent. of the issued share capital of GoldQuest Iberica, S.L. The
shares are fully paid and rank pari passu in all respects with the Company’s existing ordinary shares.
Following the issue of the shares, the total issued ordinary share capital of the Company was 1,687,072,634
ordinary shares.
On 4 October 2016, the Company granted 187,226,485 new unlisted options to investors who subscribed for
placing shares on a one for one basis and 18,722,649 new unlisted options to Beaufort Securities Limited as
settlement of certain corporate broking fees. These options are exercisable at 0.30 pence per share on or by
29 July 2018
On 7 October 2016, the Company announced that was issuing 181,560,288 new ordinary shares of no par
value each in the capital of the Company as a result of the exercise of, in aggregate, 181,560,288 options
exercisable at a price of 0.165 pence per share These options were granted in connection with the
Company’s placing and subscription announced on 27 April 2016. Following the issue of these further option
shares, the total issued ordinary share capital of the Company was 1,814,787,339 ordinary shares.
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
On 25 November 2016, the Company issued 769,231 new ordinary shares of no par value each in the capital
of the Company as a result of the exercise of, in aggregate, 769,231 options exercisable at a price of 0.165
pence per share. The options were granted in connection with the Company’s placing and subscription
announced on 27 April 2016. Following the issue of these further option shares, the total issued ordinary
share capital of the Company was 1,869,402,153 ordinary shares.
On 12 December 2016, the Company announced that it had conditionally raised approximately GBP550,000
before expenses via a placement of 275,218,025 new ordinary shares of no par value in the capital of the
Company at 0.2 GBP pence per new ordinary share. Following the issue of these shares, the total issued
ordinary share capital of the Company was 2,144,620,178 ordinary shares.
On 22 December 2016, the Company issued 3,205,088 new ordinary shares of no par value each in the
capital of the Company as a result of the exercise of, in aggregate, 3.205,088 options exercisable at a price
of 0.165 pence per share. The options were granted in connection with the Company’s placing and
subscription announced on 27 April 2016. Following the issue of these further option shares, the total issued
ordinary share capital of the Company is 2,147,825,266 ordinary shares.
Events subsequent to reporting date
On 9 January 2017, the Company announced a contract of employment had been entered into with the
Company’s Executive Chairman and that Mr Merlin Marr-Johnson had been appointed as Project Manager
with his principal responsibility being the progression of the lead-zinc projects held in Spain.
On 16 January 2017, the Company announced that Business Venture Investments No.1709 (Pty) Ltd (BVI)
had not completed BFS Phase 1 in accordance with the terms of the farm-in and joint venture Agreement
and the extended deadline of 12 January 2017.
On 25 January 2017, the Company announced the resignation of Mr Klaus Borowski as a Non-Executive
Director and the appointment of Mr Laurence Read to replace him on the Board.
On 14 February 2017 the Company announced that it had formally terminated the farm-in and joint venture
Agreement with BVI.
On 23 February the Company announced the exploration results and drill programme of the Toral project in
Spain.
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Ferrum Crescent Limited
ACN 097 532 137
Directors’ Report
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 10.
Dated at Perth this 16th day of March 2017
Signed in accordance with a resolution of the Directors.
Grant Button
Finance Director
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name. name.
www.bdo.com.au
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF FERRUM
CRESCENT LIMITED
As lead auditor for the review of Ferrum Crescent Limited for the half-year ended 31 December
2016, I declare that, to the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
2. No contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Ferrum Crescent Limited and the entities it controlled during the
period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 16 March 2017
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77
050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company
limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation other than for the acts or omissions of financial services licensees
Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the half-year from 1 July 2016 to 31 December 2016
6 months to 6 months to
31 December 31 December
2016 2015
Note AUD AUD
Revenue from continuing operations
Revenue 3(a) 11,409 20,320
Other Income 3(b) 184,378 -
195,787 20,320
Fair value gain on financial instrument 3(c) 102,523 21,368
Exploration expenditure (174,645) (143,320)
Foreign exchange gain 64,165 71,313
Share based payments (7,733) (17,133)
Other expenses 3(d) (766,235) (659,314)
Gain on disposal of available for sale investment - 649
Impairment of minority interest obligation 3(c) (102,523) (21,368)
(Loss) before income tax (688,661) (727,485)
Income tax (expense)/benefit - -
Net (loss) after income tax (688,661) (727,485)
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss:
Net exchange gain / (loss) on translation of foreign operation (141,136) (131,205)
Net fair value gains on available for sale investment - 649
Income tax effect - (182)
Growth on investment unrealised - 524
Other comprehensive (loss) for the period, net of tax (141,136) (130,214)
Total comprehensive (loss) for the period (829,797) (857,699)
Net (loss) for the period is attributable to:
Non-controlling interest - -
Owners of the parent (688,661) (727,485)
(688,661) (727,485)
Total comprehensive (loss) for the period attributable to:
Non-controlling interest - -
Owners of the parent (828,797) (857,699)
(829,797) (857,699)
(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 8 (0.05) (0.13)
- diluted (loss) per share 8 (0.05) (0.13)
The above consolidated statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes
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Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Financial Position
As at 31 December 2016
31 December 30 June
2016 2016
Note AUD AUD
Current Assets
Cash and cash equivalents 1,284,487 743,264
Trade and other receivables 76,141 33,929
Other current financial assets 34,113 29,303
Prepayments 78,496 50,606
Total Current Assets 1,473,237 857,102
Non-current Assets
Plant and equipment 21,838 13,533
Exploration and evaluation expenditure 4 1,180,488 243,331
Non-current financial assets 55,129 64,715
Total Non-current Assets 1,257,455 321,579
Total Assets 2,730,692 1,178,681
Current Liabilities
Trade and other payables 199,295 263,827
Payments received in advance - 175,722
Provisions 23,166 20,473
Total Current Liabilities 222,461 460,022
Total Liabilities 222,461 460,022
NET ASSETS 2,508,231 718,659
Equity
Contributed equity 5 35,611,957 33,049,490
Reserves (7,990,764) (7,906,534)
Accumulated losses (25,112,958) (24,424,297)
PARENT INTEREST 2,508,235 718,659
NON-CONTROLLING INTEREST - -
TOTAL EQUITY 2,508,235 718,659
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes
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Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Changes in Equity
For the half-year from 1 July 2016 to 31 December 2016
Employee Foreign Available
Contribute Share For Sale
Accumulated Option Exchange
d Incentive Equity Total
Equity Losses Reserve Reserve Reserve Reserve Reserve Equity
AUD AUD AUD AUD AUD AUD AUD AUD
At 1 July 2015 31,542,093 (22,850,764) 491,577 1,514,742 (46,054) - (10,126,072) 525,522
(Loss) for the period - (727,485) - - - - (727,485)
Other comprehensive income (net of
tax) - - - - (130,214) - - (130,214)
Total comprehensive loss (net of tax) - (727,485) - - (130,214) - - (857,699)
Transaction with owners in their
capacity as owners’
Options issued under employee option
plan - - - 17,133 - - - 17,133
Net growth on investment portfolio - - - - (991) 524 - (467)
At 31 December 2015 31,542,093 (23,578,249) 491,577 1,531,875 (177,259) 524 (10,126,072) (315,511)
At 1 July 2016 33,049,490 (24,424,297) 491,577 1,548,840 179,121 - (10,126,072) 718,659
(Loss) for the period - (688,661) - - - - (688,661)
Other comprehensive income (net of
tax) - - - - (141,136) - - (141,136)
Total comprehensive loss (net of tax) - (688,661) - - (141,136) - - (829,797)
Transaction with owners in their
capacity as owners’
Options issued under employee option
plan - - - 7,733 - - - 7,733
Options issued as part of purchase of
Goldquest Iberica - - - 49,173 - - - 49,173
Shares issued net of transaction costs 2,562,467 - - - - - - 2,562,467
At 31 December 2016 35,611,957 (25,112,958) 491,577 1,605,746 37,985 - (10,126,072) 2,508,235
The above consolidated statement of changes in equity should be read in conjunction with the accompanying note
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Ferrum Crescent Limited
ACN 097 532 137
Consolidated Statement of Cash Flows
For the period 1 July 2016 to 31 December 2016
6 months to 31 6 months to 31
December 2016 December 2015
Note AUD AUD
Cash flows from operating activities
Interest received 2,305 4,883
Income from available for sale financial assets - 4,795
Payments to suppliers and employees (852,709) (647,939)
Payment for exploration and evaluation costs (179,456) (137,118)
Receipts from customers 9,104 10,642
Net cash flows used in operating activities (1,020,756) (764,737)
Cash flows from investing activities
Payments for plant and equipment (444) -
Payment for acquisition of Goldquest assets (937,157) -
Purchase of available for sale financial assets - (30,360)
Proceeds from disposal of available for sale financial
assets - 92,699
Net cash flows from / (used in) investing activities (937,601) 62,339
Cash flows from financing activities
Proceeds from issue of shares 2,833,467 -
Costs of capital raising (271,000) -
Net cash flows from financing activities 2,562,467 -
Net increase / (decrease) in cash and cash
equivalents 604,110 (702,398)
Cash and cash equivalents at beginning of period 743,264 1,028,468
Effect of foreign exchange on cash and cash equivalents (62,887) (38,879)
Cash and cash equivalents at end of period 1,284,487 287,191
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
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Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 1: GENERAL INFORMATION AND BASIS OF PREPARATION AND ACCOUNTING POLICIES
Corporate information
The financial report of Ferrum Crescent Limited for the half-year ended 31 December 2016 was authorised for
issue in accordance with a resolution of the directors on 16 March 2017. Ferrum Crescent Limited is a company
incorporated in Australia and limited by shares, which are publicly traded on the Australian Securities Exchange
(ASX), Johannesburg Stock Exchange Limited (JSE) and London Stock Exchange (AIM).
The nature of operations and principle activities of the Group are described in the Directors’ Report.
Basis of preparation
The half-year financial report is a general purpose condensed financial report prepared in accordance with the
requirements of the Corporations Act 2001 and AASB 134: Interim Financial Reporting. Compliance with AASB
134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.
This half-year financial report does not include full disclosures of the type normally included in an annual
financial report. Therefore, it cannot be expected to provide as full an understanding of the financial
performance, financial position and cash flows of the Company as in the full financial report.
It is recommended that this half-year financial report be read in conjunction with the annual financial report for
the year ended 30 June 2016 and any public announcements made by Ferrum Crescent Limited during the half-
year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the
ASX Listing Rules.
The half-year report has been prepared on a historical cost basis except for the forward subscription agreement
and the available-for-sale financial assets which are measured at fair value. The Company is domiciled in
Australia and all amounts are presented in Australian dollars, unless otherwise noted.
For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting
period.
Adoption of new and revised Accounting Standards
A number of new or amended standards became applicable for the current reporting period, however, the Group
did not have to change its accounting policies or make retrospective adjustments as a result of adopting these
standards. There may be some changes to the disclosures in the 30 June 2017 annual report as a consequence
of these amendments.
Impact of standards issued but not yet applied by the entity
There were no new standards issued since 30 June 2016 that have been applied by Ferrum Crescent Limited.
The 30 June 2016 annual report disclosed that Ferrum Crescent Limited anticipated no material impacts
(amounts recognised and/or disclosed) arising from initial application of those standards issued but not yet
applied at that date, and this remains the assessment as at 31 December 2016.
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet
effective for the half-year ended 31 December 2016. As a result of this review the Directors have determined
that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its
business and, therefore, no change is necessary to Group accounting policies
15 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
Going Concern
As at 31 December 2016, the Group had working capital of $1,250,776 (current assets less current liabilities)
with cash on hand of $1,284,487 and a net loss of $688,661.
The Group also has exploration expenditure commitments. The operating commitments of the Group will
require further funding in the next twelve months.
The ability of the Group to continue as a going concern is principally dependent upon its ability to raise further
funds as required from the issue of equity. These conditions indicate a material uncertainty that may cast
significant doubt about the ability of the Group to continue as a going concern and, therefore, it may be unable
to realise its assets and discharge its liabilities in the normal course of business.
The financial statements have been prepared on the basis the Group will continue to meet their commitments
and can therefore continue normal business activities and realise its assets and settle liabilities in the normal
course of business.
In arriving at this position, the Directors are confident of the ability of the Group to raise capital and are reviewing
other funding alternatives including:
• finalisation of a strategic partner for the Moonlight Project via farm out or divestment;
• managing the Company’s working capital requirements; and
• raising additional funds via debt if required.
The Directors have reasonable grounds to believe that they will be able to complete any required future capital
raising and achieve any other one of the above funding alternatives.
These consolidated financial statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts nor to the amounts or classifications of liabilities that might be
necessary should the Group not be able to continue as a going concern.
NOTE 2: SEGMENT INFORMATION
For management purposes, the Group is organised into two main operating segments, which involves mining
exploration for iron ore in South Africa and mining exploration for zinc in Spain. All of the Group’s activities are
interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as two
segments. Accordingly, all significant operating decisions are based upon analysis of the Group as a whole. The
financial results from these segments are equivalent to the financial statements of the Group as a whole.
Geographic Note Corporate South Africa Spain Consolidation
Information
Dec Dec Dec Dec Dec Dec Dec Dec
2016 2015 2016 2015 2016 2015 2016 2015
$ $ $ $ $ $ $ $
Revenue from 3
external - - 9,104 10,642 - - 9,104 10,642
customers
Current assets 1,258,109 251,987 174,055 156,139 41,073 - 1,473,237 408,126
Non - current
1,049,422 381 50,009 76,769 26,236 - 1,125,667 77,150
assets
Current liabilities (140,809) (96,667) (248,942) (704,120) (14,368) - (404,119) (800,787)
Net assets /
2,166,722 155,701 (24,878) (471,212) 52,941 - 2,194,785 (315,511)
(liabilities)
16 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 3: REVENUE AND EXPENSES
The loss for the half-year includes the following items:
31 Dec 2016 31 Dec 2015
AUD AUD
(a) Revenue
Turnover 9,104 10,642
Interest received 110 4,883
Investment income 2,195 4,795
Total Revenue 11,409 20,320
(b) Other Income
Income from third party advance payment 184,378 -
184,378 -
During the financial period ended June 2014, the Company entered into a legally binding heads of
agreement with Anvwar Asian Investment (“AAI”), an entity based in Oman, whereby AAI would
purchase a 35% interest in Ferrum Iron Ore (Pty) Ltd (“FIO”), the Group Company that holds the
Moonlight Iron Ore Project. After a number of term variations of this letter of intent, the Company
entered into a new agreement with AAI in March 2014, whereby AAI would pay US$1 million, by way of
two tranches of US$500,000, one payable by the end of March 2014 and the second payable by the
end of April 2014, thereby earning the right subject to the requisite approvals of the South African
Reserve Bank to the issue of FIO shares equaling 35% of the shares of that company, being partly
paid, subject to the right to pay an additional US$9 million to become fully paid or to be converted into
35% of FIO fully paid. The additional US$9 million had to be paid by the earlier of 31 December 2015
and the completion of the Moonlight BFS.
A second payment of US$500,000 was not received by the Company from AAI within the time frame
scheduled under the agreement. The Company has informed AAI of its default, and AAI remains in
default as at the date of this report. Accordingly, the first tranche of US$500,000 has been recorded as
a current liability.
On 14 March 2015 the Company terminated the investment agreements between itself and AAI, as a
result of AAI’s breach of a material term of the agreements.
On 22 July 2015, AAI’s lawyers, Trowers & Hamlins, issued a letter to the Company, requesting that
the first tranche be returned to AAI within 14 days from the date of issue. They advised that AAI will
commence legal proceedings for the recovery of the first tranche plus any interest and costs incurred
by AAI.
On 30 June 2016 after no further correspondence between AAI, its lawyers and the Company, the
Company derecognised an amount of US$364,448, leaving a provision of US$135,552 for payments
received in advance.
On 31 December 2016 after no further correspondence the company derecognised the balance of the
provision down to nil.
17 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 3: REVENUE AND EXPENSES (CONT.)
(c) Fair value (losses)/gains
31 Dec 2016 31 Dec 2015
AUD AUD
Fair value (loss)/gain on financial instrument 102,523 21,368
Impairment of minority interest obligation (102,523) -
- 21,368
The above financial asset was fair valued as at 30 June 2016 to nil. The fair value was based on a
probability weighted approach with the key assumptions being Ferrum’s share price, foreign exchange
rates and credit risk.
(d) Other expenses
Other expenses include the following:
- Depreciation 2,697 8,690
- Consulting services 226,874 92,875
- Employment related services 91,700 108,864
- Other 444,964 448,885
766,235 659,314
NOTE 4: EXPLORATION AND EVALUATION EXPENDITURE
31 Dec 2016 30 Jun 2016
AUD AUD
Non-Current
Option to Purchase Goldquest Iberica S.L. - 243,331
Goldquest Iberica S.L. 1,180,488 -
1,180,488 243,331
On 15 February 2016, the Company entered into an exclusive option and sale agreement for a staged option fee
of up to GBP22,500, with TH Crestgate GmbH (“Crestgate”), a private Swiss-based company potentially to
acquire 100 per cent. of its indirectly wholly-owned subsidiary, GoldQuest Iberica, S.L. (“GoldQuest”), a private
company incorporated in Spain, which owns 100 per cent. of two lead-zinc exploration projects in the provinces
of León and Galicia, in historic Spanish mining areas (“the Iberian Projects”), to enable the Company to conduct
due diligence on GoldQuest and the Iberian Projects.
Subsequent to the Company entering into an exclusive option to acquire 100 percent of GoldQuest, two nil-cost
extensions were granted to the Company on 22 July 2016 and 31 August 2016. Subsequently, on 22 September
2016 the option was exercised. Accordingly, the Company has now acquired 100 per cent. of the share capital
of GoldQuest. The consideration comprised GBP326,500 in cash and the issue of 100 million new ordinary
shares in the capital of the Company.
The purchase of Goldquest was split into 2 transactions the details of which are set out below:
18 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 4: EXPLORATION AND EVALUATION EXPENDITURE (CONT.)
I. Original option payments
On 16 February 2016, the first cash portion of GBP1,000.00 was paid to Crestgate.
On 17 February 2016, 4,515,041 ordinary shares were issued to Crestgate at a price of GBP 0.00144 per share.
On 1 April and 20 April 2016, the second and third cash payments of GBP7,500.00 each respectively were paid
to Crestgate.
On 25 May 2016 an amount of GBP92,500.00 was placed into a trust account with Crestgate’s lawyers until the
option to purchase was concluded, which would form part of the final purchase price.
On 31 May 2016, 5,000,000 ordinary shares were issued to Crestgate at a price of GBP0.0013 per share.
II. Final purchase consideration
On 15 September GBP234,000.00 was paid to Crestgate as the final cash portion of the purchase of GoldQuest.
On 30 September 2016, the Company issued 100,000,000 new ordinary shares of no par value each in the
capital of the Company to GoldQuest Mining (Spain) Corp. These shares were issued in settlement of the share
element of the consideration for the acquisition of 100 per cent of the issued share capital of GoldQuest Iberica,
S.L. The shares are fully paid and rank pari passu in all respects with the Company’s existing ordinary shares.
The above transaction also incurred legal and administrative fees of AUD131,788.00. The total purchase
consideration was AUD1,180,488.00 made up as follows:
30 September
2016
Purchase consideration
100,000,000 ordinary shares issued to Goldquest Mining (Spain) Corp. 391,495
9,515,041 ordinary shares issued to TH Crestgate GmbH 25,841
Cash consideration 631,364
Acquisition costs 131,788
1,180,488
Net assets acquired
Cash and Equivalents 8,923
Property, Plant and Equipment 7,437
Deferred exploration and evaluation expenditure 1,744,515
Trade and other receivables 64,064
Trade and other payables (6,386)
Third Party Loans (771,253)
Notional Goodwill * 133,188
1,180,488
* Fair Value attribution being the difference between consideration paid less fair value of identifiable net assets acquired
The company has determined that the acquisition has taken the form of an asset acquisition and not a business
combination. In making this decision, the company determined that the nature of the exploration and
evaluation activities by GoldQuest did not constitute an integrated set of activities and assets that are capable
of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or
other economic benefits directly to investors or other owners, members or participants.
19 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 4: EXPLORATION AND EVALUATION EXPENDITURE (CONT.)
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a
carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will
arise in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred
tax under AASB 112 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition
will be included in the capitalised cost of the asset.
NOTE 5: CONTRIBUTED EQUITY
31 Dec 2016 30 June 2016 31 Dec 2016 30 June 2016
No. of Shares No. of Shares AUD AUD
(a) Share Capital summary
Ordinary Shares
Ordinary Shares fully paid 2,147,825,266 1,282,791,883 35,861,575 33,314,792
Less: Employee share plan (2,300,000) (2,300,000) (265,302) (265,302)
shares
2,145,525,266 1,280,491,883 35,596,273 33,049,490
(b) Movements in ordinary share capital
Half-Year
31 December 2016
Number AUD
01 July 2015 Opening Balance 618,787,353 31,807,395
17 February 2016 Subscription shares 4,515,041 13,046
29 February 2016 Subscription Shares 149,681,797 359,236
27 April 2016 Placing of subscription shares 500,000,000 1,279,499
27 April 2016 Fee Shares 4,807,692 12,303
27 April 2016 Shares – TH Crestgate GmbH 5,000,000 12,795
Cost associated with share issues (169,476)
30 June 2016 Closing Balance 1,282,791,883 33,314,792
29 July 2016 Options Exercised 66,874,816 193,025
29 July 2016 Additional Shares Issued 187,226,485 655,034
26 August 2016 Options Exercised 44,797,543 128,184
29 September 2016 Options Exercised 5,381,907 15,057
30 September 2016 Shares issued to Goldquest 100,000,000 400,000
7 October 2016 Options Exercised 181,560,288 491,242
25 November 2016 Options Exercised 769,231 2,126
12 December 2016 Placing shares – Beaufort Securities 275,218,025 939,770
19 December 2016 Options Exercised 3,205,088 9,029
Cost associated with share issues (271,000)
31 December 2016 Closing Balance 2,147,825,266 35,877,259
Less: Employee share plan shares on issue (c) (2,300,000) (265,302)
2,145,525,266 35,611,957
20 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 5: CONTRIBUTED EQUITY (CONT.)
(c) Movements in employee share plan shares issued with limited
recourse loans.
01 July 2016 2,300,000 265,302
Movement in employee share plan shares - -
31 December 2016 2,300,000 265,302
NOTE 6: UNLISTED OPTIONS
December 2016 June 2016
No. of Options No. of Options
- 12 May 2016 Unlisted options issued to investors at
GBP.00165 197,411,127 500,000,000
- 29 July 2018 Unlisted options issued to investors at
GBP.003 per share 187,226,485 -
384,637,612 500,000,000
Movement in 12 May 2018 unlisted options issued to
investors
Beginning of the financial year 500,000,000 500,000,000
Options issued during the year - -
Options exercised during the year (302,588,873) -
Options cancelled during the year - -
End of the financial year 197,411,127 500,000,000-
The table below summarises the model inputs (post consolidation) for investor options granted during the year
ended 30 June 2016:
Options granted for consideration 500,000,000
Exercise price (GBP) 0.00165
Issue date 12 May 2016
Expiry date 12 May 2018
Underlying security spot price at grant date (GBP) 0.00165
Expected life 2
Movement in 29 July unlisted options issued to
investors
Beginning of the financial year - -
Options issued during the year 187,226,485 -
Options exercised during the year - -
Options cancelled during the year - -
End of the financial year 187,226,485 --
The table below summarises the model inputs (post consolidation) for investor options granted during the period
ended 31 December 2016:
21 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 6: UNLISTED OPTIONS (CONT.)
187,226,485
Options granted for consideration
Exercise price (GBP) 0.00300
Issue date 29 July 2016
Expiry date 29 July 2018
Underlying security spot price at grant date (GBP) 0.0030
Expected life 2
NOTE 7: CONTINGENCIES AND COMMITMENTS
The Group has committed to rental payments on office premises in London, Perth, Spain and Johannesburg.
The current commitments to the end of the lease periods are as follows:-
Operating lease commitments Within 1 Year 2 - 3 years Total
Spain 16,105 13,421 29,526
South Africa 12,211 - 12,211
London 10,316 - 10,316
Total operating lease commitments 38,632 13,421 52,053
Contingent liability
Refer to note3(b) with regard to the details of the possible contingent liability between the Company and Anvwar
Asian Investments. The maximum liability is the gross amount of the original payment received in advance of
U$500,000.00.
NOTE 8: EARNINGS PER SHARE
31 December 31 December
2016 2015
Number of Shares
Weighted average number of shares used in basis (loss) 1,500,110,324 576,532,828
per share
Weighted average number of shares used in diluted (loss) 1,500,110,324 576,532,828
per share
Note 1 – 14,872,265 share options outstanding at 31 December 2016 (31 December 2015:
13,000,000) have not been included in the calculation of dilutive earnings per share as these are
anti-dilutive.
Note 2 – 29,954,525 potential shares to be issued under the subscription agreement have not
been included in the calculation of dilutive earnings per share as these are anti-dilutive.
22 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 8: EARNINGS PER SHARE (CONT.)
(a) Headline (Loss) / Earnings per share disclosed as
required by the JSE Limited
(Loss) / profit attributable to ordinary equity holders of
the parent entity. (688,661) (727,485)
Adjusted net of tax:
Profit on sale of available for sale assets - (467)
Profit on disposal of plant and equipment - -
Headline Earnings (688,661) (727,952)
Headline earnings per share (0.05) (0.13)
NOTE 9: RELATED PARTY TRANSACTIONS
Other than those transactions disclosed elsewhere in the financial report there have been no new related party
transactions with Directors, key management personnel or related parties in the current period.
NOTE 10: EVENTS OCCURRING SUBSEQUENT TO THE REPORTING DATE
Refer to director’s report for all the relevant events.
NOTE 11: FINANCIAL INSTRUMENTS
The carrying amount of financial assets and financial liabilities of the consolidated Group approximated their fair
value.
Determination of fair values
The determination of fair values for the financial assets and financial liabilities has been performed on the
following basis:
Cash and cash equivalents, trade and other receivables and trade and other payables approximate their
carrying amounts largely due to the short term maturities of these instruments.
The fair value of the available for sale financial asset is determined by reference to their net asset value at the
reporting date.
The fair value of the subscription agreement has been determined by reference to the Company’s best estimate
of the fair value of the contractual arrangement taking into consideration the underlying price of the Company
and foreign exchange rate.
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
23 | P a g e
Ferrum Crescent Limited
ACN 097 532 137
Notes to the Consolidated Financial Statements
For the period 1 July 2016 to 31 December 2016
NOTE 11: FINANCIAL INSTRUMENTS (CONT.)
- Level 1 — Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities
- Level 2 — Valuation techniques (for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable)
- Level 3 — Valuation techniques (for which the lowest level input that is significant to the fair value
measurement is unobservable)
As at 31 December 2016, the Group held the following classes of financial instruments measured at fair value:
31 Dec 2016 30 Jun 2016
AUD AUD
Level 1
Fixed deposit against HP Agreement 18,418 -
Level 2
Available for sale financial assets 34,113 64,715
52,531 64,715
For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether
transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period
24 | P a g e
Directors’ Declaration
In accordance with a resolution of the directors of Ferrum Crescent Limited, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the Company are in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the financial position as at 31 December 2016 and the
performance for the period 1 July 2016 to 31 December 2016; and
(ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001; other mandatory professional reporting requirements and
(b) subject to the disclosure in Note 1 “Going Concern”, there are reasonable grounds to believe that
the Company will be able to pay its debts as and when they become due and payable.
On behalf of the board
Grant Button
Finance Director
Perth
16th March 2017
25 | P a g e
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name. name.
www.bdo.com.au
INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of Ferrum Crescent Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Ferrum Crescent Limited, which comprises
the consolidated statement of financial position as at 31 December 2016, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of
accounting policies and other explanatory information, and the directors’ declaration of the consolidated
entity comprising the company and the entities it controlled at the half-year’s end or from time to time
during the half-year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the half-year
financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a
Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis
of the procedures described, we have become aware of any matter that makes us believe that the half-year
financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of
the consolidated entity’s financial position as at 31 December 2016 and its performance for the half-year
ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001. As the auditor of Ferrum Crescent Limited, ASRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act
2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of Ferrum Crescent Limited, would be in the same terms if given to the directors as at
the time of this auditor’s review report.
26 | P a g e
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110
275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by
guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation
other than for the acts or omissions of financial services licensees
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that
the half-year financial report of Ferrum Crescent Limited is not in accordance with the Corporations Act 2001
including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016
and of its performance for the half-year ended on that date; and
ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations
Regulations 2001.
Emphasis of matter – Material uncertainty relating to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise
to the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to
continue as a going concern and therefore the consolidated entity may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 16 March 2017
Sponsor
Bravura Capital (Pty) Ltd
27 | P a g e
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