Wrap Text
RSG - Resource Generation Limited - Interim Financial Results
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")
RESGEN - INTERIM FINANCIAL RESULTS
Resource Generation Limited today released its consolidated interim financial
statements for the half year ended 31 December 2010.
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 & Touche 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
Generation
Limited`s website www.resgen.com.au
Extracts from the interim financial statements for the half year ended 31
December 2010.
APPENDIX 4D
Half Year Report for the period ended 31 December 2010
31-Dec
2010 Movement
$`000 Up/(Down)
Revenue from ordinary 365 (265) -42.06%
activities
Loss from ordinary activities (3,542) (2,525) -248.28%
after tax
Net loss for the year (3,542) (2,525) -248.28%
Dividends Not
applicable
Net tangible asset backing 31-Dec 31-Dec
2010 2009
$ $
0.52 0.55
Commentary
A loss for the half year of $3.5 million was recorded. The major items making
up this loss were as follows:
Interest income $0.4
million
Share based compensation: The share based compensation ($2.3
relates to the expense associated with share rights million)
converted during the period and those approved at the
Annual General Meeting on 26 October 2009, the issue of
which is subject to performance criteria.
Tasmania: The expenses associated with the assessment of ($0.5
the resources are fully impaired, as a conservative million)
measure.
Listing fees: Fees associated with the secondary listing on ($0.2
the Johannesburg Stock Exchange. million)
Net operating expenses ($0.9
million)
Loss ($3.5
million)
During the half year ended 31 December 2010 the consolidated
entity recorded a net loss of $3.542 million.
Key activities during the six months to 31 December 2010 were:-
The Company proceeded with its secondary listing on the
Johannesburg Stock Exchange ("JSE") on 14 July 2010. The
secondary listing on the JSE is a further step in the
development of the Boikarabelo Project providing South African
investors easier access to participate in the project and
improves the Company`s flexibility in pursuing its strategies.
In September 2010 the Company secured its first coal off-take
contract with Integrated Coal Mining Limited, part of the RPG
Group, whereby they will purchase coal for 20 years from the
Boikarabelo mine in South Africa and subscribed $10.5 million
for a 10 per cent holding in Resource Generation. In December
2010 a second coal off-take contract was signed with Bhushan
Steel Limited to purchase coal for 20 years.
Resource and reserve upgrades in the Waterberg area of South
Africa were announced in October and December 2010. The gross
in-situ resource base where the Boikarabelo mine is being
developed is 6.4 billion tonnes or 3.1 billion tonnes
excluding shale, being 1.1 billion tonnes of measured
resource, 0.5 billion tonnes of indicated resource and 1.5
billion tonnes of inferred resource. Probable reserves are 745
million tonnes.
An equity placement to raise $30 million in cash was announced
in November 2010. The proceeds will be primarily used for the
rail link acquisitions and access rights for the Company`s
Boikarabelo mine and for working capital. This was
successfully completed by December 2010, together with a share
purchase plan.
Continued evaluation of the coal resource in Tasmania.
The Company increased its ownership of Ledjadja Coal (Pty)
Limited ("Ledjadja") from 49% to 74% in November 2010, having
completed the process under the shareholders agreement.
Ledjadja owns the prospecting rights which contain the major
portion of the coal resources and reserves of the proposed
Boikarabelo mine.
Condensed consolidated statement of comprehensive income for the
half year ended 31 December 2010
Half year
Notes
2010 2009
$`000 $`000
Revenue from continuing operations
365 630
Administrative, rent and corporate (688) (269)
Employee benefits expense (258) (150)
Depreciation of property, plant & equipment (59) (44)
Provision for diminution (539) (42)
Share based compensation (2,349) (1,142)
Other expenses - -
Loss before income tax expense (3,528) (1,017)
Income tax expense (14)
-
Loss from continuing operations (3,542) (1,017)
Loss for the half year (3,542) (1,017)
Other comprehensive income
Exchange differences on translation of foreign
operations 85 306
Total comprehensive income for the half year (3,457) (711)
Loss is attributable to:
Owners of Resource Generation Limited (3,542) (1,017)
Total comprehensive income for the half year is
attributable to:
Owners of Resource Generation Limited (3,457) (711)
Cents Cents
Basic earnings per share (0.02) (0.01)
Diluted earnings per share (0.02) (0.01)
In terms of reporting under the JSE Limited Listings requirements, the Company
makes the following disclosure in respect of headline earnings together with
the reconciliation for the 2010 interim financial statements.
This information has been extracted from the interim financial statements.
Half Year
2010 2009
$`000 $`000
Net Loss (3,542) (1,017)
Adjustment for investment 539 42
diminution
Headline earnings (3,003) (975)
EPS (cents) (0.02) (0.01)
Headline earnings EPS (0.01) (0.01)
(cents)
Condensed consolidated statement of financial position
As at 31 December 2010
Notes 31 December 30 June
2010 2010
$`000 $`000
Current assets
Cash and cash equivalents 37,224 6,088
Trade and other receivables 994 1,709
38,218 7,797
Non-current assets
Property, plant and equipment 27,306 22,951
Mining tenements and exploration (net of 64,401 61,423
provision for diminution)
91,707 84,374
TOTAL ASSETS 129,925 92,171
Current liabilities
Trade and other payables 172 1,582
Provisions 169 147
341 1,729
Non-current liabilities
Royalties payable 3,874 3,926
Loan 927 -
4,801 3,926
TOTAL LIABILITIES 5,142 5,655
NET ASSETS 124,783 86,516
Equity
Issued Capital 135,320 95,945
Reserves 22,459 20,025
Accumulated losses (33,024) (29,482)
Total parent entity interest 124,755 86,488
Non-controlling interest 28 28
TOTAL EQUITY 124,783 86,516
Condensed consolidated statement of changes in equity
For the Half Year Ended 31 December 2010
Attributable to owners of Resource
Generation Limited
Contri- Reserves Retained Total Non- Total
buted earnings controlling equity
equity interests
$`000 $`000 $`000 $`000 $`000 $`000
Bal 1/7/09 65,376 18,012 (26,202) 57,186 28 57,214
Loss for the - (1,017) ( - (1,017)
period - 1,017)
Other 306 - 306 - 306
comprehensive -
income for
the period
Total 306 ( 1,017) ( 711) - ( 711)
comprehensive -
income for
the period
Contributions - - 30,624 - 30,624
of equity, 30,624
net of
transaction
costs
Employee 278 - 278 - 278
share options -
- value of
emp services
278 - 30,902 - 30,902
30,624
Bal 31/12/09 96,000 18,596 (27,219) 87,377 28 87,405
Bal 1/7/10 95,945 20,025 (29,482) 86,488 28 86,516
Loss for the - (3,542) ( - (3,542)
period - 3,542)
Other 85 - 85 - 85
comprehensive -
income for
the period
Total 85 ( 3,542) ( - (
comprehensive - 3,457) 3,457)
income for
the period
Contributions - - 39,375 - 39,375
of equity, 39,375
net of
transaction
costs
Employee 2,349 - 2,349 - 2,349
share options -
- value of
emp services
2,349 - 41,724 - 41,724
39,375
Bal 31/12/10 135,320 22,459 (33,024) 124,755 28 124,783
Condensed consolidated cash flow statement
For the half year ended 31 December 2010
Half year
2010 2009
$`000 $`000
Cash flows from operating
activities
Receipts from customers 4 44
(Inclusive of goods and
services tax)
Payments to suppliers and (1,270) (544)
employees (inclusive of
goods and services tax)
Interest received 233 601
Interest paid (10) -
Net cash inflow (outflow) (1,043) 101
from operating activities
Cash flows from investing
activities
Payments for property, (3,478) (13,660)
plant and equipment
(Payments)/receipts for 1,120 (1,712)
government charges
associated with land
acquisition (refundable)
Payments for exploration (4,812) (2,029)
costs
Net cash (outflow) from (7,170) (17,401)
investing activities
Cash flows from financing
activities
Net proceeds from issue of 39,416 29,633
shares
Net cash inflow from 39,416 29,633
financing activities
Net increase in cash and 31,203 12,333
cash equivalents
Cash and cash equivalents 6,088 5,091
at the beginning of the
half year
Effects of exchange rate (67) 263
movements on cash and cash
equivalents
Cash and cash equivalents 37,224 17,687
at the end of the half year
Notes to the condensed financial statements
For the half year ended 31 December 2010
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 2010 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 30 June 2010 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 2010.
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
Prospective coal tenements in South Africa and Tasmania and
uranium tenements in Cameroon.
Geographical segments
The Company is domiciled in Australia. Exploration activities
are undertaken in South Africa and Tasmania. The Company has
established a presence in Mauritius.
(b) Primary reporting format - business segments
Half year Mining tenements Corporate Total
2010 Africa Australia Australia
$`000 $`000 $`000 $`000
Total segment and 129 236 365
consolidated -
revenue
Loss before (3) (539) (2,986) (3,528)
income tax
Income tax (14) (14)
expense - -
Loss for the half (17) (539) (2,986) (3,542)
year
Half year Mining tenements Corporate Total
2009 Africa Australia Australia
$`000 $`000 $`000 $`000
Total segment and - 630 630
consolidated -
revenue
Loss before (16) (34) (967) (1,017)
income tax
Income tax - -
expense - -
Loss for the half (16) (34) (967) (1,017)
year
3. COMMITMENTS
The Company has committed $7.9 million to acquire land in relation to the
development of the rail link.
4. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
On 31 January 2011 the Company confirmed that it has secured access for
its proposed rail link route from the Boikarabelo mine to the existing
Transnet rail line in the Waterberg region of South Africa. There are no
other matters of significance up to the date of this report that have not
been included in the interim financial statements.
Resource Generation has coal interests in South Africa and Tasmania. Its
current priority is to develop its resources in the Waterberg region of
South Africa.
Sydney, Australia
3 February 2011
Contacts
Paul Jury, Managing Director on +612 9376 9000 or
Steve Matthews, Company Secretary on +612 9376 9000
Media enquiries, Anthony Tregoning +612 8264 1000
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Date: 03/02/2011 11:11:13 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.
Sharenet Sites 
