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RESOURCE GENERATION LIMITED - Financial statements for the year ended 30 June 2013

Release Date: 13/08/2013 09:35:00      Code(s): RSG     
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or the ?Company?)

ASX/JSE Release
Resource Generation Limited today released its consolidated financial
statements for the year ended 30 June 2013.

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 2013
may be found below.

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

13 August 2013

JSE Sponsor: Macquarie First South Capital (Pty) Limited

Resource Generation is developing its Boikarabelo coal mine in the
Waterberg region of South Africa, which has one of the country?s largest
remaining coal deposits. The Boikarabelo mine has probable reserves of
744.8 million tonnes of coal on 35% of the tenements under the company?s
control. Stage 1 of the mine development targets saleable coal
production of 6 million tonnes per annum.

Preliminary Final Report
Year Ended 30 June 2013
                                                   30 Jun 13    30 Jun 12
                                                      $000       $000
Revenue from continuing operations                   1,860      2,099

Loss from continuing operations                     (2,791)      (874)
Profit/(Loss)from discontinued
Operations                                               -      1,447
Profit/(Loss) for the year                          (2,813)       573

Adjustment for investment diminution                      -        53
Headline earnings                                    (2,813)      626
Earnings per share (EPS) (cents)                       (1.0)      0.2
Headline earnings per Share (HEPS) (cents)             (1.0)      0.2

Consolidated statement of comprehensive income
For the year ended 30 June 2013
                                          2013     2012
                                         $'000    $'000

Revenue from continuing
                                        1,860     2,099

Administration, rent and
                                       (1,740)     (885)
Depreciation of property
plant and equipment                      (148)     (108)
Employees benefits expense             (1,255)     (871)
Finance expenses                       (1,455)      (12)
Land management                          (165)     (561)
Marketing expenses                     (3,000)        -
Share based compensation                 3,112     (531)

Loss before income tax                 (2,791)     (869)

Income tax expense                        (22)       (5)

Loss from continuing
                                       (2,813)      (874)

Profit from discontinued
operations                                  -      1,447

Profit/ (loss) for the year            (2,813)       573
Other comprehensive income,
net of income tax

Items that may be
reclassified subsequently
to profit and loss when
specific conditions are met

Exchange differences on translation of foreign
operations                               (471)     (1,981)
Total comprehensive income             (3,284)     (1,408)

Consolidated statement of financial position
As at 30 June 2013
                                     2013          2012
                                    $'000         $'000

Current assets
Cash and cash equivalents          21,428        12,116
Trade and other receivables           569           804
Deposits and prepayments              298           360
                                   22,295        13,280

Non-current assets
Property, plant and equipment      43,632        38,227
Mining tenements and
exploration                        88,780        77,388
Deposits and loan receivables      12,804        11,581
                                  145,216       127,196
TOTAL ASSETS                      167,511       140,476

Current liabilities
Trade and other payables            8,017         2,875
Provisions                            713           464
Borrowings                         20,500           763
                                   29,230         4,102

Non-current liabilities
Royalties payable                   2,764         3,099
                                    2,764         3,099
TOTAL LIABILITIES                  31,994         7,201

NET ASSETS                         135,517      133,275

Contributed equity                157,253       148,615
Reserves                           15,030        18,613
Accumulated losses                (36,766)      (33,953)

TOTAL EQUITY                      135,517       133,275

Consolidated statement of changes in equity
For the year ended 30 June 2013

                                    buted               Retained
                                   equity    Reserves   earnings   Total equity
                                   $'000      $'000       $'000       $'000

Balance at 1 July 2011            148,615      20,063   (34,526)    134,152
Profit for the year                     -           -       573         573

Other comprehensive income for
the year - exchange differences
on translation of foreign
operations                              -     ( 1,981)         -    ( 1,981)

Total comprehensive income for
the year                                -     ( 1,981)       573    ( 1,408)

Transactions with owners in
their capacity as owners:

Employee share options - value
of employee services                    -         531          -         531
                                        -         531          -         531

Balance at 30 June 2012           148,615      18,613   (33,953)        133,275

Loss for the year                       -           -   ( 2,813)       ( 2,813)
Other comprehensive income for
the year - exchange differences
on translation of foreign
operations                              -       ( 471)        -          ( 471)

Total comprehensive income for
the year                                -       ( 471)  ( 2,813)       ( 3,284)

Transactions with owners in
their capacity as owners:

Contributions of equity, net of
transaction costs                   8,638          -           -         8,638

Employee share options - value
of employee services                    -      (3,112)          -      ( 3,112)
                                    8,638      (3,112)          -        5,526

Balance at 30 June 2013            157,253      15,030     (36,766)     135,517

Consolidated statement of cash flows
For the year ended 30 June 2013
                                   2013         2012
                                  $'000        $'000
Cash flows from operating

Payments to suppliers and
employees                         (2,173)     (1,665)
Payments for land management        (171)       (539)
Interest received                    578       1,029
Finance costs                       (964)        (10)
Taxation payments                    (20)         (5)
Payments for Tasmanian
mineral tenements and
exploration                            -         (47)
Net cash outflow from
operating activities              (2,750)     (1,237)
Cash flows from investing

Payments for land, property,
plant and equipment              (5,553)       (4,437)

Refunds of government
charges associated with land
acquisition                      1,949            490

Proceeds from sale of
business                             -          1,500

Net receipts for mining
related licence deposits           523              -

Payments for mineral
tenements and exploration      (12,143)        (7,405)
Loan to BEE partner             (1,376)        (1,283)
Net cash outflow from
investing activities           (16,600)       (11,135)

Cash flows from financing
Proceeds from issue of
shares                           8,653              -
Equity raising costs               (16)             -
Proceeds from borrowings        20,000              -

Net cash inflow from
financing activities            28,637              -

Net increase/(decrease) in
cash and cash equivalents        9,287        (12,372)

Cash and cash equivalents at
the beginning of the year       12,116         25,326
Effects of exchange rate
movements on cash and cash
equivalents                         25           (838)

Cash and cash equivalents at
the end of the year             21,428         12,116
Extracts from the Financial

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, in accordance with AASB6 'Exploration for and
Evaluation of Mineral Resources'.

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.

Expenditure on the Boikarabelo mine has been fully capitalised as per
note 13. The Group is confident of the full recovery of the expenditure
on the Boikarabelo mine on the basis of the financial modelling of the
mine incorporating forecast production and sales levels and capital
expenditure. The Group has fully provided for the impairment of the
Uranex SA mining tenements as per note 13. No value has been assigned to
the Cameroon tenements.

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, with the board
being the central decision maker.

Business segments
The Group has coal interests in South Africa 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
segments. Corporate includes equity raisings and administration costs.

The Tasmanian coal assets which were sold in September 2011, were
included in mining tenements and exploration. There were no transactions
in relation to Cameroon for the current year and no assets or liabilities
are held in relation to Cameroon.
                        Segment Revenue         Segment Profit
                         Year      Year     Year ended   Year ended
                        ended     ended      30/6/13       30/6/12
                       30/6/13   30/6/12

2013                    $'000     $'000       $'000        $'000

Mining tenements
and exploration         1,395      1,324      (2,835)        615

Corporate                 465        775          22       (1,489)

Total for
operations              1,860      2,099       (2,813)       (874)

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.

                                    2013        2012
                                   $'000       $'000
Segment assets
Mining tenements
and exploration                  150,650     132,499

Corporate                         16,861       7,977
                                 167,511     140,476

Segment liabilities

Mining tenements
and exploration                  10,760       6,539

Corporate                        21,234         662

                                 31,994       7,201

                      Depreciation and       Additions to land,
                        amortisation        property, plant and
                        Year      Year     Year ended Year ended
                       ended     ended      30/6/13      30/6/12
                      30/6/13   30/6/12

                       $'000     $'000       $'000      $'000
Mining tenements
and exploration           70         40      5,553       4,272

Corporate                 78         68          -         175

Total                    148         108      5,553      4,447

                        Revenue from          Non-current assets
                     external customers
                       Year      Year     Year ended      Year ended
                      ended     ended      30/6/13          30/6/12
                     30/6/13   30/6/12

                      $'000     $'000         $'000         $'000

Australia              465        775           115          196

South Africa         1,395      1,324       145,101      127,000

Total                1,860      2,099        145,216      127,196

Events occurring after the reporting period

Other than the events disclosed below there were no other
events occurring after balance date that have not been
reflected in the financial statements.
Non Renouncable Entitlement Offer

In respect of the non-renounceable entitlement offer of
284,698,002 fully paid ordinary shares at $0.22 per share
announced on 28 June 2013, the offer was taken up for
47,536,604 shares representing 16.7% of the total number
of eligible entitlements. The directors are seeking to
place the shortfall shares in the next three months.
Commitments have been received from three parties,
Barsington Limited, Valu Investments Pte Ltd (Valu) and
Altius Investment Holdings (Proprietary) Limited (Altius)
to subscribe for up to 207,853,850 of the shortfall. One
of Altius' conditions is that settlement should occur
after 13 September 2013, so completion of the shortfall
placement will not occur before then. Final shortfall
allocations will be determined by the Company with the
relevant parties in due course.

Offtake contract
On 10 July 2013 the Group entered into a 20 year export
coal offtake agreement with Valu for 1.0 million tonnes
per annum of coal, with supply after production commences
at the Boikarabelo mine. Coal prices will be set by
reference to an internationally recognised index at the
time of each shipment. In conjunction with this, the
existing 0.5 million tonnes per annum contract with
Bhushan Steel Limited has been terminated.

Independent power projects
On 10 July 2013 Valu undertook to conduct feasibility
studies for the development of both a 200 MW power station
and a larger 1200MW coal fired power station to be located
adjacent to the Boikarabelo mine. The Company granted Valu
the right to own, build and operate both of the coal fired
power stations as an independent power project. In
conjunction with this, the feasibility study arrangements
with CESC Limited have been terminated.

Date: 13/08/2013 09:35:00 Supplied by www.sharenet.co.za                     
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