Wrap Text
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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