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Resource Generation Limited - Consolidated Financial Statements For The Year Ended 30 June 2015.

Release Date: 20/08/2015 10:50:00      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 2015.

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 and their unmodified audit
opinion is available for inspection at the Company's registered office.

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 2015
may be found below.

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

Sydney
20 August 2015

JSE Sponsor: Deloitte & Touche Sponsor Services (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 (refer SENS announcement dated 16 December 2010).
Stage 1 of the mine development targets saleable coal production of 6
million tonnes per annum.



*This information was prepared and first disclosed under the
JORC Code 2012 on the basis that the information has not
materially changed since it was last reported.
        Consolidated statement of profit or loss and other
                       comprehensive income


                 For the year ended 30 June 2015


                                              Consolidated
                                               2015            2014
                                              $'000           $'000
                                                         *Restated

Revenue from continuing
operations
                                                   -          2,294
Other                                              -          2,501
                                                   -          4,795


Administration, rent and
corporate                                     (865)          (1,209)

Depreciation of property plant
and equipment
                                              (404)           (261)

Employees benefits expense
                                            (1,606)          (1,411)
Finance expenses                            (2,729)          (1,182)
Land management                               (290)           (132)

Share based compensation
                                              (797)          (1,635)
Foreign exchange movements
                                              1,070              -


Loss before income tax
                                            (5,621)          (1,035)


Income tax expense                                 (5)          (7)




Loss from continuing operations
                                            (5,626)          (1,042)


Loss for the year                           (5,626)          (1,042)
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
                                    -          (9,723)

Total comprehensive income
                                    (5,626)   (10,765)




Loss is attributable to:


Owners of Resource Generation
Limited
                                    (5,626)    (1,042)




Total comprehensive income for
the year is attributable to:


Owners of Resource Generation
Limited                             (5,626)   (10,765)




Headline earnings                   (5,626)   (10,765)

Earnings per share (EPS) (cents)
                                   (0.9)      (0.2)
Headline earnings per share
(HEPS)(cents)
                                   (0.9)      (0.2)
Consolidated statement of financial position
As at 30 June 2015
                         Consolidated
                          2015               2014      01-Jul-13
                                        *Restated      *Restated
                         $'000              $'000          $'000

Current
assets

Cash and cash
equivalents          28,551             54,337         21,428

Trade and
other
receivables             200               414            569

Deposits and
prepayments             207               140            298
                     28,958             54,891         22,295
Non-current
assets

Property,
plant and
equipment                     950           1,197         34,510

Mining
tenements and
mining
development            140,539            103,530         82,102


Deposits and
loan
receivables             18,484             16,923         12,804
                       159,973            121,650        129,416
TOTAL ASSETS           188,931            176,541        151,711


Current
liabilities

Trade and
other
payables                 7,320              8,377          8,017
Provisions                    987                788            713
Borrowings               2,661                    -       20,500
                        10,968              9,165         29,230
Non-current
liabilities
Provisions          204         38             -
Borrowings       31,221     21,231             -

Royalties
payable           2,716      2,553      2,764
                 34,141     23,822      2,764

TOTAL
LIABILITIES      45,109     32,987     31,994


NET ASSETS      143,822    143,554    119,717


Equity

Contributed
equity         223,622    223,622    159,753
Reserves        (2,529)   (10,090)    (3,270)
Accumulated
losses         (42,757)   (37,808)   (36,766)


TOTAL EQUITY   178,336    175,724    119,717
Consolidated statement of changes in equity

For the year ended 30 June 2015


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

Balance at 1 July
2013 (as
previously
reported)             159,753     12,530      (36,766)   135,517


Adjustments (see
note 3(b))                -     (15,800)           -     ( 15,800)


Balance at 1 July
2013 (restated)       159,753     (3,270)     (36,766)   119,717


Loss for the year         -               -   ( 1,042)   ( 1,042)



Other
comprehensive
income for the
year - exchange
differences on
translation of
foreign operations        -     ( 9,723)           -     ( 9,723)


Total
comprehensive
income for the
year                      -     ( 9,723)      ( 1,042)   ( 10,765)

Transactions with
owners in their
capacity as
owners:



Contributions of
equity, net of
transaction costs    63,869               -        -      63,869
Other contributed
equity                    -       1,085        -      1,085

Treasury shares                    183                  183

Employee share
options - value of
employee services         -       1,635        -      1,635
                     63,869       2,903        -     66,772

Balance at 30 June
2014                 223,622 (10,090)     (37,808)   175,724


Loss for the year         -          -    ( 4,949)   ( 4,949)




Other
comprehensive
income for the
year - exchange
differences on
translation of
foreign operations        -       6,764        -      6,764

Total
comprehensive
income for the
year                      -       6,764   ( 4,949)    1,815

Transactions with
owners in their
capacity as
owners:


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


Employee share
options - value of
employee services         -        797         -        797
                          -        797         -        797
Balance at 30 June
2015                  223,622    (2,529)   (42,757)      178,336




Consolidated statement of cash flows
For the year ended 30 June 2015
                                  Consolidated
                                 2015                      2014
                                                      *Restated
                                 $'000                    $'000
Cash flows from
operating
activities

Payments to
suppliers and
employees                       (2,282)                (5,669)


Payments for land
management                       (132)                    (76)
Interest received                 677                    1,713
Finance costs                      (8)                 (1,008)



Taxation payments                  (4)                     (7)
Net cash outflow
from operating
activities                      (1,749)                (5,047)


Cash flows from
investing
activities


Payments for land,
property, plant and
equipment                        (376)                 (1,861)
Refunds of
government charges
associated with
land acquisition               -      330

Payments for
acquisition of non-
controlling
interest                       -     (287)
Net payments for
mining related
licence deposits        (285)           -


Payments for mining
tenements and
mining development    (28,588)     (22,926)

Loan to BEE partner     (196)      (2,026)
Net cash outflow
from investing
activities            (29,445)     (26,770)


Cash flows from
financing
activities
Proceeds from issue
of shares                  -        63,963
Equity raising
costs                      -       (1,538)
Repayment of
borrowings                 -       (20,000)
Forfeited share
deposit                    -         2,500
Proceeds from
borrowings                 -        22,046
Net cash inflow
from financing
activities                 -        66,971


Net
(decrease)/increase
in cash and cash
equivalents           (31,194)      35,154
Cash and cash
equivalents at the
beginning of the
year                          54,337                 21,428


Effects of exchange
rate movements on
cash and cash
equivalents                    5,408                 (2,245)



Cash and cash
equivalents at the
end of the year               28,551                 54,337

3. Critical accounting estimates and judgements

The preparation of financial statements in conformity with
Australian Accounting Standards 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 below.




Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including
expectations of future events that may have a financial impact on
the entity and that are believed to be reasonable under the
circumstances. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year
are discussed below.




The accounting policies and methods of computation adopted in the
preparation of the financial report are consistent with those
adopted and disclosed in the company's financial report for the
year ended 30 June 2014, except for the impact of the Standards
and Interpretations described above and the reclassification of
certain balances as set out in note 3. These accounting policies
are consistent with Australian Accounting Standards and with
International Financial Reporting Standards.
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 AASB116 'Property, Plant &
Equipment'.



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 depreciated 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 12. 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.




Restatement/reclassification of prior year balances

a) Development expenditure
During the year, the Directors have reassessed the status of the
Boikarabelo project, the nature and timing of fund raising
activities and expenditure incurred in order to determine the
appropriate timing for the transition from evaluation and
exploration activities (accounted for under AASB 6 Exploration
for and Evaluation of Mineral Resources) to mining development
and construction activities (accounted for under AASB 116
Property, Plant and Equipment).    This transition is determined
by assessing whether the technical feasibility and commercial
viability of the of the project are demonstrable and includes a
consideration of various factors specific to the project,
including the status and level of committed funding.




Whilst noting that such a determination is judgemental, the
Directors have concluded that the most appropriate timing of the
transition was during the year ended 30 June 2014. Accordingly,
the Consolidated statement of financial position and the
Consolidated statement of cash flows have been restated to
reflect this position.   Capitalised expenditure which was
previously classified as ?Mining tenements and exploration? is
now being reflected as ?Mining tenements and mining development?
and cash flows previously classified as ?Payments for mining
tenements and exploration? is now being reflected as ?Payments
for mining tenements and mining development?.




The Directors note that this change has no impact on the
Consolidated statement of profit or loss and other comprehensive
income, the Consolidated statement of changes in equity, the
amounts being capitalised nor the net asset position or total
non-current asset line items.   This change had no impact on
basic and diluted loss per share for the year ended 30 June 2014.



                         30-Jun-14                   30-Jun-14
                             As                     As restated
                         previously
                           stated


                            $'000        $'000         $'000

Consolidated statement
of financial position
Mining tenements and
exploration                  114,913   (114,913)                   -

Mining tenements and
mining development                 -     114,913          114,913
Total non-current
assets                       177,105                      114,913
Total Assets                 231,996           -          231,996



Consolidated statement
of cash flows

Payments for mining
tenements and
exploration                 (22,926)      22,926                   -

Payments for mining
tenements and mining
development                        -    (22,926)         (22,926)

Net cash outflow from
investing activities        (26,770)           -         (26,770)




b) Translation of foreign operations




During the year the directors changed the method for the
translation of foreign operations to be in line with AASB 121 The
Effects of Changes in Foreign Exchange Rates. Certain non-
monetary items, as noted below, were previously translated at
historical exchange rates and are now translated using the
closing rate at the end of the reporting period as required by
AASB 121 The Effects of Changes in Foreign Exchange Rates.



The Directors note that this change has no impact on the
Consolidated statement of cash flows nor the basic and diluted
loss per share for the year ended 30 June 2014 and 30 June 2013.
                         30-Jun-14                 30-Jun-14



                             As                    As restated
                         previously
                           stated


                            $'000       $'000        $'000


Loss for the year           ( 1,042)        -          ( 1,042)


Exchange differences
on translation of
foreign operations          ( 2,238)    ( 7,485)       ( 9,723)



Total comprehensive
income                      ( 3,280)    ( 7,485)      ( 10,765)


Total comprehensive
income for year is
attributable to:
Owners of Resource
Generation Limited



Consolidated statement
of financial position


Property, plant and
equipment                   45,269     ( 44,072)       1,197


Mining tenements and
mining development         114,913     ( 11,383)     103,530

Total non-current
assets                     145,216     ( 55,455)     121,650


TOTAL ASSETS               231,996     ( 55,455)     176,541


Equity                     223,622          -        223,622
Reserves                    15,512     ( 25,602)   ( 10,090)


TOTAL EQUITY               199,009     ( 23,285)     175,724
                         30-Jun-13                 30-Jun-13
                             As                    As restated
                         previously
                           stated
                            $'000       $'000        $'000


Loss for the year           ( 2,813)        -          ( 2,813)



Exchange differences
on translation of
foreign operations            ( 471)   ( 15,800)      ( 16,271)
Total comprehensive
income                      ( 3,284)   ( 15,800)      ( 19,084)


Total comprehensive
income for year is
attributable to:
Owners of Resource
Generation Limited



Consolidated statement
of financial position

Property, plant and
equipment                   43,632      ( 9,122)      34,510

Mining tenements and
mining development          88,780      ( 6,678)      82,102



Total non-current
assets                     145,216     ( 15,800)     129,416


TOTAL ASSETS               167,511     ( 15,800)     151,711


Equity                     159,753          -        159,753
Reserves                    12,530     ( 15,800)   ( 3,270)


TOTAL EQUITY               135,517     ( 15,800)     119,717
4. Segment information


  4.1


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. The main priority
is to develop its coal resources in the Waterberg region of South
Africa. Management has determined mining development to be the
critical reportable segment. Corporate administration reflects
other corporate costs and includes equity raisings and
administration costs.



 4.2    Segment revenues and results
                 Segment Revenue          Segment Profit
                Year       Year        Year ended    Year
                ended      ended        30/6/15      ended
               30/6/15    30/6/14                   30/6/14

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




Mining
tenements
and mining
development        454       1,262        (6,791)      (470)



Corporate -
unallocated        223       3,533       1,842         (572)


Total for
continuing
operations        677       4,795         (4,949)    (1,042)
The accounting policies of the reportable segments are
the same as the Group's accounting policies described in
Note 1. The mining tenements and mining development
segment profit represents the profit earned by that
segment without allocation of central administration
costs and directors' salaries, share of profits of
associates, 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
                              2015          2014
                             $'000         $'000

Segment
assets
Mining
tenements
and mining
development              199,378       172,248


Corporate -
unallocated               24,067       36,463


                         223,445       208,711



Segment
liabilities

Mining
tenements
and mining
development               43,896       32,084



Corporate -
unallocated                1,213          903


                          45,109       32,987
 4.4    Other segment information
                Depreciation and       Additions to land,
                  amortisation         property, plant and
                                            equipment
                Year       Year       Year ended    Year
                ended      ended        30/6/15     ended
               30/6/15    30/6/14                  30/6/14

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




Mining
tenements
and mining
development        357         180         45        1,880




Corporate -
unallocated         47          81        331           18


Total             404         261         376        1,898



 4.5    Other segment information - mining assets
                                      Additions
                                      to mining
                                      assets
                                      Year ended     Year
                                        30/6/15      ended
                                                    30/6/14

                                        $'000       $'000


Mining tenements and mining
development                            32,392       26,133


Corporate - unallocated                     -            -


                                       32,392       26,133


 4.6    Geographical information
              Revenue from external    Non-current assets
                    customers
             Year      Year     Year ended    Year
             ended     ended     30/6/15      ended
            30/6/15   30/6/14                30/6/14

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


Australia       223     3,533        52          54



South
Africa          454     1,262   194,435      153,766


               677     4,795    194,487      153,820

Date: 20/08/2015 10:50:00 Supplied by www.sharenet.co.za                     
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