Ferrum Crescent Share Discussion Threads

[blackss] 11/2/2015 10:22

Dont see why not. its a big improvement on .5p :-)

[trinitygooner] 11/2/2015 09:24

Should we be hopeful that the broker accepted an option at 2p as payment?

[firemansam4] 02/2/2015 13:28

Hopefully the funding news then this should shift, but at least its news!

[blackss] 02/2/2015 11:08

The results of the drill i expect.

[trinitygooner] 02/2/2015 10:58

More news on bfs shortly! Any guesses?

[blackss] 02/2/2015 07:24

Not so fast JoJo


The drill programme comprised of 10 holes drilled (cumulative metres 1396) and was completed ahead of time and below budget. All holes intersected magnetic zones across various depths and samples are currently being analysed. An independent report on these exploration results from The Mineral Corporation is expected during March 2015

Although not an objective of the programme, drill hole FCL 104 also intersected a new magnetic zone, and potentially a new area of mineralisation, to the northern most mineralised area (Zone D).

Commenting today Tom Revy, CEO, said: "Following our decision to restart the Moonlight BFS at the end of 2014 I am delighted to see this phase of drilling completed ahead of schedule and under budget. Although not anticipated as part of the programme, we have also identified a new prospective area, an event that gives a clear indication of Moonlight's upside outside of the established resource. Alongside new study manager Ed Alymer, our objective is to now develop the final pit designs and be in a position to progress all work on beneficiation as soon as possible. Moonlight is a realisable DR project with nearby infrastructure, a premium product, an established resource and a secured mining licence. Further news will be announced on the BFS shortly."

[jojo_jo] 30/1/2015 18:08

Don't get me wrong, I think this is very promising long term.
However current cash constraints are forcing their hand short term.

IMPO DYOR NAI
Jo.

[blackss] 30/1/2015 13:39

Yes but it also says they are showing several potential partners round the site who are conducting DD. so there is positive interest.

[jojo_jo] 30/1/2015 13:13

Look at the spread! They clearly intend holding the current mid-price.

This combined with the recent rns rings alarm bells for me. It all looks very orchestrated - and Hume are maestros in the field.

Pure guesswork on my part of course. It'll be interesting to see how this plays out next week. I may jump back in afterwards, but certainly not before.

The rns implies they need around £500k, perhaps a little more.

IMPO DYOR NAI
Jo.

[blackss] 30/1/2015 12:29

Well you are a better clairvoyant than i am.. I'm guessing you think a placing however we know the markets have no appetite for that so what are you thinking ??

[jojo_jo] 30/1/2015 11:55

Out now, but still interested.

I expected this 'sunshine before the storm' a few days ago. It's so obvious what's coming next.

IMPO DYOR NAI
Jo

[blackss] 29/1/2015 14:31

I'm not arguing, i too will be out of the AIM once a few stragglers like this have gone boom or bust. What i was meaning is people will flood into this on news and flood out a few days later, that's how money is made now. Because of this SP's in the meantime will bounce along the bottom.

I also agree the AIM is all about a few people getting rich off the backs of a majority of small investors. 75% of these companies should never have been allowed to even list IMHO.

[nick rubens] 29/1/2015 14:06

BlackSS " there has been a major shift in investment attitudes on the AIM not least the desire to make money instantly."

AIM companies have had many years to show progress and value creation and they have shown nothing much but big wages bills. And that only seems to end when they can't raise further from already poor investors(mugs?).

I hope FCR turns out different.

I thought SNRP was going to be a great coal miner. I thought COOL were going to be big and also BHR and also lots of others.

At the end of the day there isn't much choice but to watch what little value is left dwindle to nothing as has happened numerous times to AIM companies and will continue to do so.

I can already sense my AIM investment career just needs to be formally closed by what remaining investments I have left that are around 90% down at best.

Don't listen to me though. Everyone DYOR as bailing out at the bottom before a rise is more embarrassing that losing the lot on suspension pending financial clarifications.

[rajaster] 29/1/2015 09:59

BlackSS, i agree with you, it wasnt long ago we were singing praises for Ed nealon for sticking his own hands in his pockets and buying a large chunk of shares. he built up aquarius platinum and it was one of the main reason our large hold has been buying:

hxxp://www.fundinguniverse.com/company-histories/aquarius-platinum-ltd-history/

have a look at his own personal profile:

hxxp://edwardnealon.com/

[blackss] 29/1/2015 07:43

Looking for positives

"The process to secure investment partners for Moonlight continued to the stage where during Q1 2015 a number of groups will make visits to the Moonlight project as part of their own internal due diligence work."

Its very easy to knock this because of the share price but the company continues to make progress and is obviously working hard behind the scenes. we have to be careful where we lay the blame for the SP, there has been a major shift in investment attitudes on the AIM not least the desire to make money instantly. People don't want longer term investments but that doesn't mean the companies are no good. I still have faith in this.

[nick rubens] 28/1/2015 11:18

The rights issue was a flop really,(underwriters took up 11% of company on rights?)) so a placing looks very difficult I reckon, unless they have some shareholder value creating news and is that likely after a whole year of the Anvwar saga.

[jojo_jo] 27/1/2015 15:51

Out completely now. Muppets for directors. Little hope until most get the boot.

Will take another look after the (inevitable) placing via specialists Hume.

IMPO DYOR NAI
Jo

[trinitygooner] 27/1/2015 15:47

Well I guess I'm gonna have to write this one off as a loss.

[blackss] 24/1/2015 14:54

I think in fairness to management they have been made to wait by the SA government along the way. Nearly every delay has been via outside contractors. That said i do agree we are now at crunch time. I just hope the BFS can be completed with present funds and any more fund raising will take into account the results of the BFS ie: at a much higher share price than this.

[jojo_jo] 24/1/2015 14:29

Thanks for that reminder. It was a while ago, but still valid as the off-take agreement comes into force at full production. It's a shame they didn't incorporate some kind of upfront payment in the deal, but I guess confidence was much higher at the time.


If they can't talk Duferco into it, they should still perhaps look around for an alternative off-take partner who would be willing to fund (pre-pay for a few thousand tons) in return for a guaranteed supply at a small discount. 40,000 tonnes would do it and equate to just a few days production once in full swing.

If not, at least the Duferco Off-Take agreement guarantees revenues (in excess of £300m pa - even at today's rock bottom price). 5+ years of that should cover the mine/plant build costs. It will obviously be an important part of the BFS.

The BOD are clearly, for the most part, incompetent. The BFS is two years late and needs to be completed within the next few months. It must be half-done already. It needs to be adjusted to include an option for a smaller, scalable operation which can be expanded once cash flow is generated. They need to get the build cost in nearer to the $1bn mark, which should be easily fundable over 4 - 10 years from existing/future/rolled-over off-take agreements. The product is world class and relatively low cost. It is certainly low cost compared with Isua with its harsh environment. The ore slurry pipeline may have to wait, but there is good transport infrastructure in place/planning.

The Chinese bought Isua. They could get this for less, indirectly, by simply bidding a decent premium to the current share price here. They could probably get the company, and everything it controls for around £10m at the moment.

IMPO DYOR NAI
Jo

[blackss] 24/1/2015 12:44

The offtake agreement with Duferco SA covers up to 6 mt of anticipated iron ore pellet production from Ferrum Crescent's Moonlight Project. Under the agreement, Ferrum Crescent will sell Duferco all of their production available for export (in total 4.5 mt) and will give Duferco a first right of refusal over an additional 1.5 mt per year to the extent that the product is not sold domestically, thus allowing Ferrum Crescent to follow a growth strategy at its South African projects.

[blackss] 24/1/2015 12:40

"should not be too difficult getting a major Steelmaker to fund a good proportion of the mine/plant build (secured against the JORC measured/indicated reserves) in return for a guaranteed, discounted off-take contract."

I thought they had already signed the off take agreement

[jojo_jo] 23/1/2015 21:15

Conservatively, we should have c.£7bn worth of Fe (once beneficiated into 63% pellets). So this is clearly still very viable at current, rock bottom Iron Ore prices. When Iron Ore prices recover back to 2013 highs (roughly double today's price) this project becomes seriously valuable, with close to £15bn of Fe.

China still imports a good chunk of its ore. Korea and Japan import a lot too, so it should not be too difficult getting a major Steelmaker to fund a good proportion of the mine/plant build (secured against the JORC measured/indicated reserves) in return for a guaranteed, discounted off-take contract.

The BFS will be a pre-requisite to such a deal. It is unthinkable that they don't get this completed now, having already spent some £15m on the project.

Kibo were in much the same position until they progressed their DFS, upon which the proposed, deep pocketed JV partner committed.

The BFS being done here is a much more credible report which should attract several potential JV partners, or even facilitate traditional/bank funding. There is also a chance that a Mining Major (Vale, Rio, BHP, etc) looking to secure some extra production into the next decade will take us out after seeing the BFS. They could probably get FCR for a fraction more than FCR's 'investment to date'... peanuts for a large, totally de-risked project.

They need to get the BFS finished pdq now. The EV of the company, as it stands, is c.£20m - some 12x the current m/cap. The BFS will infer a much, much higher m/cap going forward.


IMPO DYOR NAI
Jo

[nick rubens] 23/1/2015 16:02

In the last Rights Issue Patersons Securities Limited ended up with 58,434,358 Shares as underwriters for shares not taken up.

That's around 11% of the company.

I take it they are now investors on the share register?

[firemansam4] 23/1/2015 08:14

They will pay a subscription to RNS so they can announce what they want when they want, its just bad management, communication is key on AIM! The rights issue should have been done when these were well above a penny then we wouldn't have diluted a large proportion of the company, the Arab scenario was a sham, why are they going after funding from some back street lender, they need to get there act together and stop wasting shareholders monies and speak to the right people that won't take us for a ride and then we might get some progress, Ed Nealon needs to get back in charge of this and take control and sort this mess out! Jenks needs to get on the board and then we might get somewhere, all i can see at present is Tom whittling the company away and if thats not correct then prove it! Look at Forte Energy news out 5-6 times a month at moment updating shareholders whats happening, its not rocket science!!

Sorry Rant over!

GLA
FS