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Rsg - Resource Generation Limited - Consolidated Financial Statements For The

Release Date: 24/08/2011 16:20:12      Code(s): RSG
RSG - Resource Generation Limited - Consolidated financial statements for the   
year ended 30 June 2011                                                         
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" or "the Company")                                                     
Consolidated financial statements for the year ended 30 June 2011               
ASX/JSE Release                                                                 
Resource Generation Limited today released its consolidated financial statements
for the year ended 30 June 2011.                                                
The financial statements were approved by the Board of Directors and signed by  
Paul Jury (Managing Director). The financial statements have been audited by    
Deloitte Touche Tohmatsu.                                                       
The full set of financial statements are available on Resource Generations      
Limited`s website. www.resgen.com.au                                            
Extracts from the financial statements for the year ended 30 June 2011 may be   
found below.                                                                    
Sydney, Australia                                                               
24 August 2011                                                                  
Contacts                                                                        
Paul Jury, Managing Director on +61 2 9376 9000 or                              
Steve Matthews, Company Secretary on + 61 2 9376 9000                           
Media enquiries                                                                 
Anthony Tregoning + 61 2 8264 1000                                              
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited                   
Resource Generation has coal interests in South Africa and Tasmania.Its current 
priority is to develop its resources in the Waterberg region of South Africa.   
Preliminary Final Report                                                        
Year Ended 30 June 2011                                                         
                                       30 June 11          30 June 10           
                                       $ `000              $ `000               
Revenue from continuing operations      1,235               982                 
Loss from continuing operations         (5,072)             (3,280)             
Adjustment for investment diminution    654                 56                  
Headline earnings                       (4,418)             (3,224)             
EPS (cents)                             (2.3)               (2.2)               
Headline earnings EPS (cents)           (2.0)               (2.1)               
Commentary                                                                      
The operations of the Company showed a loss for the period of $5.1 million.     
The operating loss comprises the following:                                     
$m                                  
Expenses not capitalised                     1.3                                
Development expenditure                      0.7                                
Non-cash accounting adjustments:             3.1                                
Share based compensation                                                        
Operating Loss                               5.1                                
Additional Information                                                          
Net tangible assets per share: 51 cents (30 June 2010: 54 cents).               
No dividends were paid or proposed to be paid to members during the financial   
year.                                                                           
Further information regarding Resource Generation and its business activities   
can be obtained by visiting the Company`s website at www.resgen.com.au.         
Paul Jury                                                                       
Managing Director                                                               
24 August 2011                                                                  
Statements of comprehensive income                                              
For the year ended 30 June 2011                                                 
Consolidated                                                                    
                                            2011           2010                 
                                            $`000          $`000                
Revenue from continuing operations           1,235          982                 
Administration, rent and corporate           (1,263)        (847)               
Depreciation of property plant and equipment (111)          (92)                
Development expenditure                      (654)          (56)                
Employees benefits expense                   (762)          (302)               
Land management                              (359)                              
Share based compensation                     (3,144)        (2,965)             
Loss before income tax                       (5,058)        (3,280)             
Income tax expense                           (14)           -                   
Loss from continuing operations              (5,072)        (3,280)             
Loss for the year                            (5,072)        (3,280)             
Other comprehensive income                                                      
Exchange differences on translation of                                          
foreign operations (net of tax)              (264)          (88)                
Total comprehensive income                   (5,336)        (3,368)             
Loss is attributable to:                                                        
Owners of Resource Generation Limited        (5,072)        (3,280)             
Total comprehensive income for the year is attributable to:                     
Owners of Resource Generation Limited        (5,336)        (3,368)             
Earnings per share for loss from continuing operations attributable to the      
ordinary equity holders of the company                                          
Basic earnings per share                     (2.3)          (2.2)               
Diluted earnings per share                   (2.3)          (2.2)               
Balance sheets                                                                  
As at 30 June 2011                                                              
Consolidated                                                                    
                                            2011           2010                 
                                            $`000          $`000                
Current assets                                                                  
Cash and cash equivalents                    25,326         6,088               
Trade and other receivables                  950            1,693               
Deposits and prepayments                     15             16                  
26,291         7,797                
Non-current assets                                                              
Property, plant and equipment                33,888         22,951              
Mining tenements and exploration             68,302         61,423              
Deposits and receivables                     11,046         -                   
                                            113,236        84,374               
TOTAL ASSETS                                 139,527        92,171              
Current liabilities                                                             
Trade and other payables                     818            1,582               
Provisions                                   179            147                 
                                            997            1,729                
Non-current liabilities                                                         
Royalties payable                            3,452          3,926               
Borrowings                                   926            -                   
                                            4,378          3,926                
TOTAL LIABILITIES                            5,375          5,655               
NET ASSETS                                   134,152        86,516              
Equity                                                                          
Contributed equity                           148,615        95,945              
Reserves                                     20,063         20,025              
Accumulated losses                           (34,554)       (29,482)            
Total parent entity interest                 134,124        86,488              
Non-controlling interest                          28             28             
TOTAL EQUITY                                 134,152        86,516              
Consolidated statements of changes in equity                                    
For the year ended 30 June 2011                                                 
Attributable to owners of Resource Generation Limited                           
                        Contributed    Reserves  Retained  Total                
Equity                   earnings                       
                        $`000          $`000     $`000     $`000                
Balance at 1 July 2009   65,376         18,012    (26,202)  57,186              
Non controlling interest                                    28                  
Loss for the year        -              -         (3,280)   (3,280)             
Other comprehensive                                                             
income for the year -                                                           
exchange differences                                                            
on translation of                                                               
foreign operations                                                              
(net of tax)             (88)                               (88)                
Total comprehensive                                                             
income for the year      -              (264)     (5,072)   (5,336)             
Transactions with                                                               
owners in their                                                                 
capacity as owners:                                                             
Contributions of                                                                
equity, net of                                                                  
transaction costs        52,670         -         -         52,670              
Employee share options                                                          
-value of employee                                                              
Services                 -              302            -    302                 
                        52,670         302            -    52,972               
Balance at 30 June                                                              
2010                     148,615        20,063    (34,554)  134,152             
Cash flow statements for the year ended 30 June 2011                            
Consolidated                                                                    
                                            2011           2010                 
$`000          $`000                
Cash flows from operating activities                                            
Receipts from customers (inclusive of                                           
government charges)                          -              44                  
Payments to suppliers and employees                                             
(inclusive of government charges)            (2,176)        (1,175)             
Payments for land management                 (369)          -                   
Interest received                            1,023          990                 
Interest paid                                (16)           (6)                 
Taxation payments                            (14)           -                   
Payments for mineral tenements and                                              
Exploration                                  (610)          (56)                
Net cash outflow from operating activities   (2,162)        (203)               
Cash flows from investing activities                                            
Payments for land, property, plant                                              
and equipment                                (10,122)       (22,738)            
Refunds/(payments) for government                                               
charges associated with land acquisition     667            (1,435)             
Payments for mining licence deposit          (2,553)        -                   
Payments for mineral tenements and                                              
Exploration                                  (6,823)        (4,236)             
Payments for investment in subsidiary        (726)          -                   
Net cash outflow from investing activities   (19,557)       (28,409)            
Cash flows from financing activities                                            
Proceeds from issue of shares                51,614         30,875              
Equity raising costs                         (1,743)        (1,264)             
Loan to BEE partner                          (8,330)        -                   
Net cash inflow from financing activities    41,541         29,611              
Net increase in cash and cash equivalents    19,822         999                 
Cash and cash equivalents at the beginning                                      
of the year                                  6,088          5,090               
Effects of exchange rate movements on cash                                      
and cash equivalents                         (584)          (1)                 
Cash and cash equivalents at the end of                                         
the year                                     25,326         6,088               
1    Summary of Significant Accounting Policies                                 
The principal accounting policies adopted in the presentation of the            
consolidated financial statements are as set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated. The   
financial statements are for the consolidated entity consisting of Resource     
Generation Limited and its subsidiaries.                                        
a.)  Basis of preparation                                                       
This general purpose financial report has been prepared in accordance with the  
Australian Accounting Standards, other authoritative pronouncements of the      
Australian Accounting Standards Board including Interpretations and the         
Corporations Act 2001.                                                          
It is recommended that this financial report is read in conjunction with any    
public announcements made by Resource Generation Limited during the year, in    
accordance with continuous disclosure requirements arising under the            
Corporations Act 2001.                                                          
Compliance with IFRS                                                            
The financial report of Resource Generation Limited also complies with          
International Financial Reporting Standards ("IFRS") as issued by the           
International Accounting Standards Board ("IASB").                              
Financial statement presentation                                                
The Group applied AASB 101 Presentation of Financial Statements which became    
effective on 1 January 2009. The revised standard requires the separate         
presentation of a statement of comprehensive income and a statement of changes  
in equity. All non-owner changes in equity must now be presented in the         
statement of comprehensive income. As a consequence, the group had to change the
presentation of its financial statements. Comparative information has been re-  
presented so that it is also in conformity with the revised standard.           
Historical cost convention                                                      
These financial statements have been prepared under the historical cost         
convention, except for certain non-current assets and financial instruments that
are measured at revalued amounts or fair value, as explained in the accounting  
policies below.                                                                 
Critical accounting estimates                                                   
The preparation of financial statements in conformity with AIFRS requires the   
use of certain critical accounting estimates. It also requires management to    
exercise its judgement in the process of applying the Group`s accounting        
policies. The areas involving a higher degree of judgement or complexity, or    
areas where assumptions and estimates are significant to the financial          
statements, are disclosed separately.                                           
New accounting standards and interpretations                                    
The following new accounting standards and interpretations have been adopted in 
the current reporting period. The Group`s assessment of the impact of these new 
standards and interpretations is set out below.                                 
(i)  Amendments to AASB 7                         The amendments clarify        
"Financial Instruments Disclosure"                the required level of         
(adopted in advance of effective                  disclosure about credit       
date of 1 January 2011)                           risk and collateral held      
                                                 and provide relief from        
                                                 disclosures previously         
required regarding             
                                                 renegotiated loans.            
                                                 The adoption of this standard  
                                                 did not have an impact on the  
financial statements.          
(ii) Amendments to AASB 5 "Non-                   Per the clarification in      
current Assets Held for                           AASB 2009-5 the               
Sale and Discontinued Operations"                 disclosure requirements       
in standards other than AASB 5 
                                                 do not generally apply to non- 
                                                 current assets as held for     
                                                 sale and discontinued          
operations. The adoption of    
                                                 this amendment did not have an 
                                                 impact on the  financial       
                                                 statements.                    
(iii)     Amendments to AASB 101                  The amendments clarify        
"Presentation of Financial                        that an entity may            
Statements" (adopted in                           choose to present the         
advance of effective date                         required analysis of          
of 1 January 2011)items of     
                                                 other comprehensive income     
                                                 either in the statement of     
                                                 changes in equity or in the    
notes to the financial         
                                                 statements. The adoption of    
                                                 this amendment did not have an 
                                                 impact on the financial        
statements.                    
(iv) Amendments to AASB 107                       The amendments specify        
                                                 "Statement of Cash Flows"that  
                                                 only expenditures that result  
in a recognised asset in the   
                                                 statements of financial        
                                                 position can be classified as  
                                                 investing activities in the    
statement of cash flows.       
                                                 Consequently, cash flows in    
                                                 respect of development costs   
                                                 that do not meet the criteria  
in AASB 138 "Intangible        
                                                 Assets" for capitalisation as  
                                                 part of an internally          
                                                 generated intangible assets    
have been reclassified from    
                                                 investing to operating         
                                                 activities in the statement of 
                                                 cash flows. The adoption of    
this standard resulted in a    
                                                 reclassification of prior year 
                                                 development expenditure        
                                                 written off.                   
4. Segment information                                                          
4.1 Description of segments                                                     
Management has determined the segments based upon reports reviewed by the Board 
that are used to make strategic decisions. The Board considers the business from
both a business and geographic perspective.                                     
Business segments                                                               
The Company has coal interests in South Africa and Tasmania and uranium         
tenements in Cameroon. The main priority is to develop its coal resources in the
Waterberg region of South Africa. Management has determined mining tenements and
exploration and corporate to be the critical reportable segment. Corporate,     
including equity raisings and administration costs, is indentified as a separate
segment for reporting purposes.                                                 
There were no transactions in relation to Cameroon for the current year and no  
assets or liabilities are held in relation to Cameroon.                         
4.2       Segment revenues and results                                          
                   Segment Revenue               Segment Profit                 
30/6/11   30/6/10             30/6/11   30/6/10              
2011                $`000     $`000               $`000     $`000               
Mining                                                                          
tenements                                                                       
and exploration     606       562                 (731)     341                 
Corporate      629       420                 (4,341)   (3,621)                  
Total for                                                                       
Continuing                                                                      
Operations          1,235     982                 (5,072)   (3,280)             
Segment revenue is primarily interest income.                                   
The accounting policies of the reportable segments are the same as the Group`s  
accounting policies described in Note 1. The mining tenements and exploration   
segment profit represents the profit earned by that segment without allocation  
of central administration costs and directors` salaries, share of profits of    
associates, investment income, gains and losses, finance costs and income tax   
expense, all of which are included in the corporate segment. This is the measure
reported to the chief operating decision maker for the purposes of resource     
allocation and assessment of segment performance.                               
4.3       Segment asset and liabilities                                         
                                                 2011      2010                 
$`000     $`000                
Segment assets                                                                  
Mining tenements and exploration                  117,932   88,190              
Corporate                                    21,595    3,981                    
139,527   92,171               
Segment liabilities                                                             
Mining tenements and exploration                  4,890     5,328               
Corporate                                    485       327                      
5,375     5,655                
4.4       Other segment information                                             
         Depreciation and              Additions to non-current                 
         Amortisation                  assets                                   
Segment Revenue               Segment Profit                 
                   30/6/11   30/6/10             30/6/11   30/6/10              
                   $`000     $`000               $`000     $`000                
Mining tenements                                                                
and exploration     28        21                  11,033    22,731              
Corporate      83        71                  15        7                        
Total               111       92                  11,048    22,738              
4.5       Geographical information                                              
Revenue from                  Non-Current assets             
                   External customers                                           
                   30/6/11   30/6/10             30/6/11   30/6/10              
                   $`000     $`000               $`000     $`000                
Australia      629       420                 86        155                      
South Africa        606       562                 113,150   84,219              
Total               1,235     982                 113,236   84,374              
Events occurring after the reporting period                                     
There were no events occurring after balance date that have not been reflected  
in the financial statements.                                                    
Date: 24/08/2011 16:20:11 Supplied by www.sharenet.co.za                     
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