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Rsg - Resource Generation Limited - Financial Effects Of The Equity Placement

Release Date: 11/11/2010 07:05:01      Code(s): RSG
RSG - Resource Generation Limited - Financial effects of the equity placement   
of new ordinary shares                                                          
Resource Generation Limited                                                     
Registration number ACN 059 950 337                                             
(Incorporated and registered in Australia)                                      
Share code on the JSE Limited: RSG                                              
Share code on the Australian Stock Exchange: RES                                
ISIN Code: AU000000RES1                                                         
("Resgen")                                                                      
FINANCIAL EFFECTS OF THE EQUITY PLACEMENT OF NEW ORDINARY SHARES                
Notice is hereby given of the issue of 27,400,000 Resgen ordinary shares on 11  
November 2010 following a placement to institutional and sophisticated          
borrowers("the Transaction")at a price of $A0.50 per share.                     
The new issue of ordinary shares will simultaneously be listed on the Official  
List of the Australian Stock Exchange ("ASX") and the JSE Limited ("JSE"). The  
securities rank pari passu with Resgen`s other issued securities. Resgen has    
the ability under the ASX Listing Rules to make this placement.                 
The proceeds of the issue will be used primarily for the rail link land         
acquisition and access rights associated with the development of the company`s  
Boikarabelo Mine in South Africa and for working capital.                       
PRO FORMA FINANCIAL EFFECTS OF THE ISSUE                                        
The unaudited pro forma financial effects of the issue, as set out below, are   
based on Resgen`s results for the year  ended 30 June 2010. The number of       
shares on issue before the Transaction reflect the quantum as notified to the   
ASX and JSE on 21 September 2010 following the placement of 18,268,053          
ordinary shares to Integrated Coal Mining Limited.                              
The unaudited pro forma financial effects are presented for illustrative        
purposes only, to provide information on the impact of the issue.  Due to the   
nature of the unaudited pro forma financial effects, they may not give a fair   
representation of Resgen`s financial position and the results of its            
operations after the issue.                                                     
Resgen`s directors are responsible for the preparation of the unaudited pro     
forma financial information.                                                    
The effects of the Transaction                                                  
                                 Before the     After the        Percentage     
Transaction -  Transaction -    change         
                                 30 June 2010   30 June 2010     %              
                                 (A$ cents)     (A$ cents)                      
Earnings per share(1)             (2.1)          (1.8)            14.2          
Headline earnings per share(1)    (2.1)          (1.8)            14.2          
Net asset value per share(2)      49             42               (14.3)        
Net tangible asset value per      49             42               (14.3)        
share(2)                                                                        
Number of shares in issue         182,680,530    210,080,530      15.00         
Weighted average number of                                                      
shares in issue                   171,809,172    199,209,172      15.90         
    Notes:                                                                      
1.   The amounts in the "Before" column represent the earnings and          
         headline earnings per share as disclosed in the financial results      
         for the year ended 30 June 2010 but after the earlier placement to     
         Integrated Coal Mining Limited as disclosed to the JSE on 21           
September 2010. The amounts in the "After" column represent the        
         earnings and headline earnings per share on the assumption that the    
         Transaction was effective from 1 July 2009.                            
    2.   The amounts in the "Before" column represent the net asset value and   
net tangible asset value per share as disclosed in the financial       
         results for the year ended 30 June 2010 but after the earlier          
         placement to Integrated Coal Mining Limited as disclosed to the JSE    
         on 21 September 2010. The amounts in the "After" column represent      
the net asset value and net tangible asset value per share based on    
         the financial results for the year ended 30 June 2010 adjusted for     
         the Transaction, had it been effected on 30 June 2010.                 
    3.   Transaction costs of $150,000 have been taken into account.            
4.   Proceeds will be used primarily for the rail land link acquisition     
         and access rights and continuing development of the company`s          
         Boikarabelo Mine in South Africa and for working capital.  We have     
         not assumed interest was theoretically earned on this money from 1     
July 2009.                                                             
Sydney, Australia                                                               
11 November 2010                                                                
Sponsor                                                                         
Deloitte & Touche Sponsor Services (Proprietary) Limited                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1996/000034/07)                                            
Date: 11/11/2010 07:05:01 Supplied by www.sharenet.co.za                     
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