1st Oct 2013 07:55
LONDON (Alliance News) - Ferrum Crescent Limited Tuesday said it swung to a pretax loss in its most recent year, as a re-measurement of its financial liabilities and assets produced a smaller profit than in the year prior.
Ferrum made a USD1.9 million pretax loss for the year ended June 30, compared with a USD4.5 million pretax profit for the year prior.
Last year's pretax profit was driven by a USD8.3 million profit on remeasurement of financial liability or asset, while the same exercise resulted in a profit of just USD608,414 this year.
Ferrum said there would be significant uncertainty over its ability to continue as a going concern if its asset transaction with Anvwar Asian Investment cannot be completed or if it cannot raise additional funds to meet ongoing working capital requirements when required.
On September 21 Ferrum signed an agreement with Anvwar Asian Investment to invest up to USD13.5 million in Ferrum's Moonlight Iron Ore Project in South Africa, for which Anvwar will get a 35% interest. The agreement will go through depending on "certain conditions".
Ferrum had USD548,265 in cash at the end of the reporting period, down from last year's USD3.3 million.
Ferrum shares were Tuesday quoted at 1.86 pence, down 13%.
By Samuel Agini; [email protected]; @samuelagini
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