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Rsg - Resgen - Consolidated Interim Financial Statements For The Half Year

Release Date: 03/02/2012 13:52:13      Code(s): RSG
RSG - Resgen - Consolidated interim financial statements for the half year      
ended 31 December 2011.                                                         
3 February 2011                                                                 
RSG                                                                             
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")                                                     
2 February 2011                                                                 
ASX/JSE Release                                                                 
Resource Generation Limited today released its consolidated interim             
financial statements for the half year ended 31 December 2011.                  
The interim financial statements were approved by the Board of Directors and    
signed by Paul Jury (Managing Director)                                         
The financial statements have been reviewed by Deloitte and their unmodified    
audit opinion is available for inspection at the Company`s registered           
office.                                                                         
The full set of interim financial statements are available on Resource          
Generations                                                                     
Limited`s website www.resgen.com.au                                             
Contacts                                                                        
Paul Jury, Managing Director on 2 9376 9000 or                                  
Steve Matthews, Company Secretary on 61 2 9376 9000                             
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited                   
Resource Generation is developing the Boikarabelo coal mine in the Waterberg    
region of South Africa where there are probable reserves of 744.8 million       
tonnes of coal on 35% of the tenements under its control.                       
Extracts from the interim financial statements for the half year ended 31       
December 2011.                                                                  
APPENDIX 4DHalf Year Report for the period ended 31 December 2010               
                              31-Dec                                            
                              2011                      Movement                
$`000      Up/(Down)                              
                                                                                
Revenue from ordinary          1,068      Up             192.60%                
activities                                                                      
Profit from ordinary           680        Up             119.20%                
activities after tax                                                            
Net profit for the             680        Up             119.20%                
half year                                                                       

Dividends                      Not                                              
                              applicable                                        
Net tangible asset backing     31-Dec                 31-Dec                    
2011                   2010                       
                              $                      $                          
                              0.52                   0.52                       
Commentary                                                                      
A profit for the half year of $0.7 million was recorded.  The major items       
making up this profit were as follows:                                          
  Interest income                           $1.1 million                        
                                                                                
Tasmania: The sale of the coal            $1.5 million                        
  tenements through the sale of shares in                                       
  Energy Investments Pty Limited and                                            
  Tiger Coal Pty Limited.                                                       

  Share based compensation:  The share      ($0.4                               
  based compensation relates to the         million)                            
  expense associated with share rights                                          
during the period and those approved at                                       
  the Annual General Meeting on 26                                              
  October 2009 and 24 October 2011, the                                         
  issue of which is subject to                                                  
performance criteria.                                                         
                                                                                
  Farm management expenses                  ($0.6                               
                                            million)                            

  Net operating expenses                    ($0.9                               
                                            million)                            
  Profit                                    $0.7 million                        
Key activities during the six months to 31 December 2011 were:-                 
    In October 2011 the Company signed a Memorandum of                          
    Understanding (MOU) with Transnet Freight Rail (TFR).                       
    Under the MOU, TFR has agreed with the Company`s                            
subsidiary Ledjadja Coal (Pty) Limited to haul Boikarabelo                  
    coal on a take or pay basis as follows; 4 million tonnes                    
    in the year commencing 1 July 2014, 5 million tonnes in                     
    the year commencing 1 July 2015 and 6 million tonnes per                    
annum from 1 July 2016.                                                     
                                                                                
    In September 2011 the Company sold its Tasmanian coal                       
    tenements through the sale of shares in Energy Investments                  
Pty Limited and Tiger Coal Pty Limited for $1.5 million.                    
    In addition, the Company will receive  a royalty of $1.20                   
    per tonne on all coal sold from any mine developed on                       
    these tenements.                                                            

    The Company continued with detailed engineering designs                     
    for its planned Boikarabelo mine in the Waterberg region                    
    of South Africa, where there are probable reserves of                       
774.8 million tonnes of coal on 35% of the tenements                        
    controlled by the Company.                                                  
Condensed consolidated statement of comprehensive income for the                
half year ended 31 December 2011                                                
Half year ended               
                                                  31-Dec- 31-Dec-               
                                                  11      10                    
                                                  $`000   $`000                 
Revenue from continuing operations                                              
                                                  1,068   365                   
                                                                                
                                                                                
Administrative, rent and corporate                 (508)   (688)                
Employee benefits expense                          (364)   (258)                
Depreciation of property, plant & equipment        (50)    (59)                 
Land management                                    (550)                        
-                     
Share based compensation                           (358)   (2,349)              
                                                                                
Loss before income tax expense                     (762)   (2,989)              
Income tax expense                                 (5)     (14)                 
Loss from continuing operations                    (767)   (3,003)              
Profit / (Loss) from discontinued operations               (539)                
                                                  1,447                         
Profit / (Loss) for the half year                          (3,542)              
                                                  680                           
Other comprehensive income                                                      
Exchange differences on translation of foreign     (1,903)                      
operations                                                 85                   
Total comprehensive income for the half year       (1,223) (3,457)              
Profit / (Loss) is attributable to:                                             
  Owners of Resource Generation Limited                   (3,542)               
680                           
Total comprehensive income for the half year is                                 
attributable to:                                                                
  Owners of Resource Generation Limited           (1,223) (3,457)               

Earnings per share                                                              
From continuing and discontinued operations        Cents   Cents                
Basic earnings per share                           0.26    (0.02)               
Diluted earnings per share                         0.25    (0.02)               
                                                                                
Add back development expenditure                   0.0     (0.00)               
Headline earnings per share                        0.26    (0.02)               
Diluted headline earnings per share                0.26    (0.02)               
From continuing operations                                                      
Basic earnings per share                           (0.29)  (0.02)               
Diluted earnings per share                         (0.29)  (0.02)               
Condensed consolidated statement of financial position                          
As at 31 December 2011                                                          
                                    31-Dec-11   30-Jun-11                       
                                    $`000       $`000                           
Current assets                                                                  
Cash and cash equivalents              20,825      25,326                       
Trade and other receivables               491         950                       
Deposits and prepayments                    -          15                       
21,316      26,291                       
                                                                                
Non-current assets                                                              
Property, plant and equipment          33,987      33,888                       
Mining tenements and exploration       71,420      68,302                       
(net of provision for diminution)                                               
Deposits and receivables               11,190      11,046                       
                                      116,597     113,236                       

TOTAL ASSETS                           137,913     139,527                      
Current liabilities                                                             
Trade and other payables                  520         818                       
Provisions                                182         179                       
Borrowings                                775           -                       
                                        1,477         997                       
Non-current liabilities                                                         
Royalties payable                       3,149       3,452                       
Borrowings                                  -         926                       
                                        3,149       4,378                       
                                                                                
TOTAL LIABILITIES                        4,626       5,375                      
                                                                                
NET ASSETS                             133,287     134,152                      
                                                                                
Equity                                                                          
Issued Capital                        148,615     148,615                       
Reserves                               18,518      20,063                       
Accumulated losses                  (33,846)    (34,526)                        

TOTAL EQUITY                           133,287     134,152                      
Condensed consolidated statement of changes in equity                           
For the half year ended 31 December 2011                                        
Attributable to owners of Resource                      
                        Generation Limited                                      
                        Contributed  Reserve  Retained  Total                   
                        equity       s        earnings  equity                  
$`000        $`000    $`000     $`000                   
                                                                                
Balance as at 1          95,945       20,025   (29,454)  86,516                 
July 2010                                                                       

Loss for the period            -               (3,542)   ( 3,542)               
                                     -                                          
Other comprehensive            -                     -        85                
income for the period                 85                                        
Total comprehensive            -               ( 3,542)  ( 3,457)               
income for the period                 85                                        
                                                                                
Contributions of equity,  39,375                     -    39,375                
net of transaction costs              -                                         
Employee share options -       -                     -     2,349                
value of employee                     2,349                                     
services                                                                        
                         39,375                     -    41,724                 
                                     2,349                                      
                                                                                
Balance at 31            135,320      22,459   (32,996)  124,783                
December 2010                                                                   
                                                                                
Balance at 1             148,615      20,063   (34,526)  134,152                
July 2011                                                                       
                                                                                
Profit/Loss for the            -                   680       680                
period                                -                                         
Other comprehensive            -      (1,903)        -   ( 1,903)               
income for the period                                                           
Total comprehensive            -      (            680   ( 1,223)               
income for the period                 1,903)                                    

Contributions of equity,       -                     -         -                
net of transaction costs              -                                         
Employee share options -       -                     -       358                
value of employee                     358                                       
services                                                                        
                              -                     -       358                 
                                     358                                        

Balance at 31            148,615      18,518   (33,846)  133,287                
December 2011                                                                   
Condensed consolidated statement of                                             
cash flows                                                                      
For the half year ended 31 December                                             
2011                                                                            
                                            Half year ended                     

                                            31-Dec-   31-Dec-                   
                                            11        10                        
                                            $`000     $`000                     

Cash flows from operating activities                                            
Receipts from customers (Inclusive of goods         -                           
and services tax)                                      4                        
Payments to suppliers and employees          (721)     (1,270)                  
(inclusive of goods and services tax)                                           
Land management                              (621)                              
                                                      -                         
Interest received                                 603                           
                                                      233                       
Interest paid                                (5)       (10)                     
Payments for mineral tenements and           (47)                               
exploration                                            -                        
Net cash outflow from operating activities   (791)     (1,043)                  
                                                                                
Cash flows from investing activities                                            
Payments for property, plant and equipment   (79)      (3,478)                  
Receipts for government charges associated        453                           
with land acquisition (refundable)                     1,120                    
Proceeds from sale of business                  1,500                           
-                         
Payments for mineral tenements and           (3,410)   (4,812)                  
exploration                                                                     
Net cash outflow from investing activities   (1,536)   (7,170)                  

Cash flows from financing activities                                            
Net proceeds from issue of shares                   -                           
                                                      39,416                    
Loan to BEE partner                          (1,283)                            
                                                      -                         
Net cash (outflow) / inflow from financing   (1,283)                            
activities                                             39,416                   

Net increase in cash and cash equivalents    (3,610)                            
                                                      31,203                    
Cash and cash equivalents at the beginning     25,326                           
of the half year                                       6,088                    
Effects of exchange rate movements on cash   (891)     (67)                     
and cash equivalents                                                            
Cash and cash equivalents at the end of the    20,825                           
half year                                              37,224                   
Notes to the  condensed consolidated financial statements                       
For the half year ended 31 December 2011                                        
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                   
(a) Basis of preparation of half year financial report                          
This general purpose financial report for the interim half year                 
reporting period 31 December 2011 has been prepared in accordance               
with Accounting Standard AASB 134 Interim Financial Reporting and               
the Corporations Act 2001.                                                      
This interim financial report does not include all the notes of the             
type normally included in an annual financial report.                           
Accordingly, this report is to be read in conjunction with the                  
Annual Report for the year ended 31 December 2011 and any public                
announcements made by Resource Generation Limited during the                    
interim reporting period in accordance with the continuous                      
disclosure requirements of the Corporations Act 2001.                           
The accounting policies adopted are consistent with those of the                
previous financial year and corresponding interim reporting period.             
(b) Significant accounting policies                                             
The interim financial report has been prepared using the same                   
accounting policies as used in the annual financial statements for              
the year ended 30 June 2011.                                                    
                                                                                
The significant accounting policy for the Company is development                
expenditure.                                                                    
Development expenditure                                                         
Development expenditure incurred by or on behalf of the                         
consolidated entity is accumulated separately for each area of                  
interest in which economically recoverable reserves have been                   
identified to the satisfaction of the directors.  Such expenditure              
comprises direct costs plus overhead expenditure incurred which can             
be directly attributable to the development process.                            

All expenditure incurred prior to the commencement of commercial                
levels of production from each area of interest is carried forward              
to the extent which recoupment out of revenue to be derived from                
the sale of production from the area of interest or, by its sale,               
is reasonably assured. Once commercial levels of production                     
commence, the development expenditure in respect of that area of                
interest will be amortised on a straight line basis , based upon an             
estimate of the life of the area of interest.                                   
The interim financial report comprises the financial statements of              
Resource Generation Limited and its subsidiaries as at 31 December              
2010 ("the Consolidated Entity").                                               
2. SEGMENT INFORMATION                                                          
(a) Description of segments                                                     
                                                                                
Business segments                                                               
The consolidated entity is organised into the following divisions               
by product and service type:                                                    
                                                                                
Mineral tenements and                                                           
exploration                                                                     
Coal tenements in South Africa and prospective uranium tenements in             
Cameroon.                                                                       
                                                                                
Geographical segments                                                           
The Company is domiciled in Australia. Development activities are               
undertaken in South Africa and Tasmania. The Company has                        
established a presence in Mauritius.                                            

(b) Primary reporting format - business segments                                
Primary reporting format - business segments                                    
Half year                       Mining tenements    Corporate Total             
2011                                                                            
                               Africa  Australia   Australia                    
                               $`000   $`000       $`000     $`000              
Total segment and consolidated  619              -  449       1,068             
revenue                                                                         
Loss before income tax          (7)              -  (755)     (762)             
Income tax expense              (5)              -            (5)               
                                                   -                            
Profit from discontinued                1,447                 1,447             
operations                      -                   -                           
Profit/(Loss) for the half      (12)    1,447       (755)     680               
year                                                                            

Half year                       Mining tenements    Corporate Total             
2010                                                                            
                                       Australia   Australia                    
Africa                                           
                               $`000   $`000       $`000     $`000              
Total segment and consolidated  129              -  236       365               
revenue                                                                         
Loss before income tax          (3)     (539)       (2,986)   (3,528)           
Income tax expense              (14)             -            (14)              
                                                   -                            
Loss for the half year          (17)    (539)       (2,986)   (3,542)           
3. COMMITMENTS                                                                  
BEE Loan                                                                        
The Company has committed to its black economic empowerment (BEE)               
partner 80 million Rand ($11.5 million) to facilitate its 26%                   
acquisition of Ledjadja Coal (Pty) Limited. The first tranche of 60             
million Rand ($8.3 million) was paid in May 2011, and the second                
tranche of 10 million Rand ($1.3 million) was paid on 30 September 2011         
with the final tranche of 10 million Rand due on 30 September 2012. The         
loan is secured over the BEE`s shares in Ledjadja. Interest on the loan         
is payable at the prime rate quoted by the Standard Bank of South               
Africa plus 3%.                                                                 
Capital commitments                                                             
The Group has $7.6m in commitments in respect of the development of the         
Boikarabelo mine.                                                               
4. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE                                
There are no matters of significance up to the date of this report that         
have not been included in the interim financial statements.                     
Date: 03/02/2012 13:52:12 Supplied by www.sharenet.co.za                     
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