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Consolidated interim financial statements for the half year ended 31 December 2013.
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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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