Go Back Email this Link to a friend


Resource Generation Limited - Consolidated Interim Financial Statements For The Half Year Ended 31 December 2013.

Release Date: 03/02/2014 09:35:00      Code(s): RSG     
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with
registration number ACN: 059 950 337
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or "the Company")

Consolidated interim financial statements for the half year ended 31 December 2013.

3 February 2014
ASX/JSE Release
Resource Generation Limited today released its consolidated interim financial
statements for the half year ended 31 December 2013.
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 61 2 9376 9000 or
Steve Matthews, Company Secretary on 61 2 9376 9000
JSE Sponsor: Macquarie First South Capital(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
2013.




During the half year ended 31 December 2013 the consolidated entity
recorded a net loss of $0.7 million (2012 loss $0.8 million).



The Boikarabelo mine's potential continued to be unlocked during the half
year. The Boikarabelo mine, in the Waterberg region of South Africa, has
probable reserves of 774.8 million tonnes of coal on 35% of the tenements
controlled by the Group.


The entitlement offer announced in July 2013 was completed in October
2013, with $62.7 million raised between July and October.




In November 2013 rail construction activities commenced at Boikarabelo.
Construction activity continued with the focus on site infrastructure,
roadworks and water and power connections.
The rail construction will be funded by a US$55.3 million loan from Noble
Resources International Pte Ltd (Noble Group). A binding term sheet for a
US$65 million loan from Noble for construction of the infrastructure of
the Boikarabelo mine was signed on 31 December 2013. Continued
engagement with project finance banks to partially fund development of
Boikarabelo is underway supplemented by separate discussions with
financiers and equipment suppliers for mobile equipment.


Resource Generation has renewed confidence in securing full funding of
the Boikarabelo mine and increased construction activity of the mine in
2014.




RESOURCE GENERATION LIMITED



Condensed consolidated statement of comprehensive income for the half
year ended 31 December 2013
                                                Half year ended


                                               31-Dec-13          31-Dec-12
                                                   $'000              $'000



Revenue from continuing operations                 1,406                 758




Administrative, rent and corporate                 (541)              (820)
Employee benefits expense                          (705)              (382)
Depreciation of property, plant &
equipment                                          (118)                (75)
Payments for land management                       (107)                (56)
Share based compensation                           (135)              (171)
Finance expenditure                                (521)                -


Loss before income tax expense                     (721)              (746)


Income tax expense                                   (4)                (14)


Loss for the half year                             (725)              (760)


Other comprehensive income
   Items that may be reclassified
   subsequently to profit or loss



Exchange differences on translation
of foreign operations                                (480)          (1,150)
Total comprehensive income for the
half year                                          (1,205)          (1,910)



Loss is attributable to:
   Owners of Resource Generation
Limited                                              (725)            (760)

Total comprehensive income for the
half year is attributable to:

   Owners of Resource Generation
Limited                                            (1,205)          (1,910)



Earnings per share


From continuing operations                  Cents                Cents
Basic earnings per share                            (0.18)           (0.29)
Add back development expenditure                     (0.0)            (0.0)
Headline earnings per share                         (0.18)           (0.29)


Diluted earnings per share                          (0.18)           (0.29)
Add back development expenditure                     (0.0)           (0.0)
Diluted headline earnings per share                 (0.18)          (0.29)


RESOURCE GENERATION LIMITED




Condensed consolidated statement of financial position
As at 31 December 2013



                                          31-Dec-13               30-Jun-13
                                              $'000                   $'000


Current assets
Cash and cash equivalents                    49,661                  21,428

Trade and other
receivables                                     274                     569
Deposits and prepayments                        113                     298
                                             50,048                  22,295
Non-current assets


Property, plant and
equipment                                   44,445                  43,632



Mining tenements and
exploration (net of
provision for diminution)                   94,416                  88,780
Deposits and loan
receivables                                 17,830                  12,804
                                           156,691                 145,216


TOTAL ASSETS                               206,739                 167,511



Current liabilities


Trade and other payables                     3,167                  8,017
Provisions                                     777                    713
Borrowings                                       -                 20,500
                                             3,944                 29,230


Non-current liabilities
Royalties payable                            2,728                  2,764
                                             2,728                  2,764


TOTAL LIABILITIES                            6,672                 31,994


NET ASSETS                                 200,067                135,517


Equity
Issued Capital                             222,873                157,253
Reserves                                    14,685                 15,030
Accumulated losses                        (37,491)               (36,766)


TOTAL EQUITY                               200,067                135,517


                                Attributable to owners of Resource
                                        Generation Limited



                            Contributed               Retained         Total
                                 equity    Reserves   earnings        equity
                                  $'000       $'000      $'000         $'000
Balance as at 1 July 2012       148,615       18,613   (33,953)      133,275


Loss for the period              -                -       (760)        (760)
Other comprehensive income for
the period                       -           (1,150)         -      ( 1,150)
Total comprehensive income for
the period                       -          ( 1,150)     ( 760)     ( 1,910)




Contributions of equity, net
of transaction costs             113             -           -           113
Employee share options - value
of employee services             -             171           -           171

                                 113           171           -            284



Balance at 31 December 2012      148,728      17,634   (34,713)       131,649


Balance at 1 July 2013          157,253       15,030   (36,766)       135,517


Loss for the period              -                -       (725)         ( 725)

Other comprehensive income for
the period                       -             (480)         -          ( 480)
Total comprehensive income for
the period
                                 -            ( 480)      ( 725)     ( 1,205)



Contributions of equity, net
of transaction costs             65,620           -           -         65,620
Employee share options - value
of employee services             -              135           -           135

                                 65,620         135           -         65,755




Balance at 31 December 2013     222,873       14,685     (37,491)       200,067




RESOURCE GENERATION LIMITED
Condensed consolidated statement of cash flows
For the half year ended 31 December 2013


                                           Half year ended

                                          31-Dec-    31-Dec-
                                             13         12
                                          $'000     $'000
Cash flows from operating activities

Receipts from customers (Inclusive
of government charges)                        -         -

Payments to suppliers and employees
(inclusive of government charges)       (4,375)     (787)

Land management                            (59)        49

Interest received                           737       257
Interest paid                           (1,004)       (4)

Net cash outflow from operating
activities                              (4,701)     (485)
Cash flows from investing activities

Payments for property, plant and
equipment                                 (948)     (470)

Receipts for government charges
associated with land acquisition
(refundable)                                330       731

Net refund from deposits                      -     1,847


Payments for acquisition of
subsidiaries                              (285)         -

Payments for mineral tenements and
exploration                             (7,113)   (5,962)

Net cash outflow from investing
activities                              (8,016)   (3,854)
Cash flows from financing activities

Proceeds from issue of shares            63,968       113
Equity raising costs                    (1,056)

Repayment of debt                      (20,000)         -
Loan to BEE partner                     (1,918)   (1,269)

Net cash inflow/(outflow) from
financing activities                     40,994   (1,156)



Net increase/(decrease) in cash and
cash equivalents                         28,277   (5,495)

Cash and cash equivalents at the
beginning of the half year               21,428    12,116

Effects of exchange rate movements
on cash and cash equivalents               (44)      (70)

Cash and cash equivalents at the end
of the half year                         49,661     6,551
Notes to the   condensed consolidated financial statements
For the half year ended 31 December 2013


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 2012 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 2012 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 2012.


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



2. SEGMENT INFORMATION
(a) Description of
segments

Business segments
The consolidated entity has identified its segments
on the basis of internal reporting requirements.


(b) Primary reporting format - business segments
 Information regarding these segments is presented
 below. The accounting of the reportable segments is
 the same as the Group's accounting policies.

                              Mining    Corporate   Total
                            tenement
 Half year 2013                    s

                              Africa    Australia

                                $'000       $'000   $'000
 Total segment and
 consolidated revenue             860         546   1,406
 Profit/(Loss) before
 income tax                       464     (1,185)   (721)

 Income tax expense               (4)           -     (4)
 Profit/(Loss) for the
 half year                        460     (1,185)   (725)

                              Mining    Corporate   Total
 Half year 2012             tenement
                                   s
                              Africa    Australia
                                $'000       $'000   $'000
 Total segment and
 consolidated revenue             651         107     758
 Loss before income tax           218       (964)   (746)

 Income tax expense              (14)           -    (14)
 Profit/(Loss) for the
 half year                        204       (964)   (760)


 3. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
 Approval was granted at the AGM in November 2013 for Blumont
 Group Ltd (Blumont) to acquire shares representing 15% of the
 Company at $0.22 per share. Funding by Blumont has been deferred
 to February 2014 and a deposit of $2.5 million has been made in
 January 2014 against the funding due, which will be retained if
 the funding is not forthcoming.



 There are no other matters of significance up to the date of this
 report that have not been included in the interim financial
 statements.


 4. COMMITMENTS

 Capital commitments
 The Group has $35.9m in commitments in respect of
 the development of the Boikarabelo mine.

Sydney
3 February 2014

JSE Sponsor
Macquarie First South Capital Proprietary Limited

Date: 03/02/2014 09:35:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.


                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.