Wrap Text
Consolidated interim financial statements for the half year ended 31 December 2014.
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")
4 February 2014
ASX/JSE Release
Consolidated interim financial statements for the half year ended 31 December 2014.
Resource Generation Limited today released its consolidated interim financial
statements for the half year ended 31 December 2014.
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: Deloitte and 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
2014.
Review of Operations
During the half year ended 31 December 2014 the consolidated entity
recorded a net loss of $3.2 million (2013 loss $0.7 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 744.8 million tonnes of coal on 35%
of the tenements controlled by the Group.
The net loss for the half year to 31 December 2014 of $3.2 million
reflects employee expenses of $0.8 million, finance costs of $1.4
million and expenses relating to performance share rights of $0.8
million. Revenue has decreased as interest on the loan to the black
economic empowerment (BEE) partner, Fairy Wing Trading 136 (Pty)
Limited, has been deferred from 1 January 2014 until commencement of
coal production at the Boikarabelo mine.
Management has continued to pursue debt funding of approximately $400
million required to complete construction of site infrastructure and
the rail link. Although negotiations have been protracted, their
continuation indicates that all parties seek to agree a structure
that provides the funding. Noble Group's loans, USD $55.3 million for
the construction of the rail link and US$65 million for
infrastructure, may form part of a consortium's debt finance.
Key activities during the six months to 31 December 2014 were:-
In August 2014, a loan facility of up to US$113 million was
signed with Komatsu Financial Limited Partnership for the mobile
equipment fleet for the project. The term is 5 years from the
first utilisation date. In November 2014, a supply agreement was
signed with Komatsu Southern Africa Pty Limited. The agreements
will not be activated until the balance of debt required to
complete project construction has been secured.
In August 2014, an engineering, procurement and supply contract
was signed with FLSmidth Roymec (Pty) Limited, the South African
BEE subsidiary of FLSmidth & Co, the leading supplier of
complete plants, equipment and services for the global minerals
industry. A further contract in respect of the construction
management in respect of on-site mechanical and electrical
installations of the coal handling and preparation plant was
signed in October 2014. Commencement of fabrication and supply
is conditional upon completion of debt funding.
Construction activity continued at the Boikarabelo mine, while
debt funding is being finalised, in order to shorten the overall
construction time. This included:
construction camp for up to 1,320 persons;
rail link bridges;
power supply infrastructure;
rail network stabilisation facility (NSF);
earthworks relating to the construction offices, power supply
and the NSF;
permanent water supply infrastructure; and
13 kilometres of water pipeline for the Marapong Boikarabelo
Effluent Transfer Scheme.
At the construction camp, services, kitchen and dining
facilities have been installed for 1,320 people. Accommodation
units have been installed to allow 400 persons to take up
immediate occupation.
Construction of the first three bridges (total of seven) under
and over the rail line was completed in December 2014.
In October 2014 EHL Energy (Pty) Limited commenced erecting
power poles for the 132kv power transmission lines. Earthworks
for the substation and switch room were completed, and their
construction, which is funded by a deferred payment facility, is
scheduled for completion by October 2015.
The construction offices were completed and site personnel
moved in in December 2014.
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.
RESOURCE GENERATION LIMITED
Condensed consolidated statement of profit or loss and other
comprehensive income for the half year ended 31 December 2014
Half year ended
31-Dec-14 31-Dec-13
$'000 $'000
Revenue from continuing operations 467 1,406
Administrative, rent and corporate (418) (541)
Employee benefits expense (817) (705)
Depreciation of property, plant & equipment (161) (118)
Land management (61) (107)
Share based compensation (779) (135)
Finance expenditure (1,439) (521)
Loss before income tax expense (3,208) (721)
Income tax expense (1) (4)
Loss for the half year (3,209) (725)
Other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translation of foreign
operations 1,003 (480)
Total comprehensive income for the half year (2,206) (1,205)
Loss is attributable to:
Owners of Resource Generation Limited
(3,209) (725)
Total comprehensive income for the half year is
attributable to:
Owners of Resource Generation Limited (2,206) (1,205)
Earnings per share
From continuing operations Cents Cents
Basic earnings per share (0.55) (0.18)
Diluted earnings per share (0.55) (0.18)
Headline earnings per share (0.55) (0.18)
Diluted earnings per share (0.55) (0.18)
Add back development expenditure (0.0) (0.0)
Diluted headline earnings per share (0.55) (0.18)
RESOURCE GENERATION LIMITED
Condensed consolidated statement of financial position
As at 31 December 2014
31-Dec-14 30-Jun-14
$'000 $'000
Current assets
Cash and cash
equivalents 37,904 54,337
Trade and other
receivables 810 414
Deposits and
prepayments 123 140
38,837 54,891
Non-current assets
Property, plant
and equipment 45,388 45,269
Mining tenements and mining development 133,249 114,913
Deposits and loan
receivables 18,224 16,923
196,861 177,105
TOTAL ASSETS 235,698 231,996
Current liabilities
Trade and other
payables 7,922 8,377
Provisions 914 826
8,836 9,203
Non-current liabilities
Borrowings 26,582 21,231
Royalties payable 2,698 2,553
29,280 23,784
TOTAL LIABILITIES 38,116 32,987
NET ASSETS 197,582 199,009
Equity
Issued Capital 221,305 221,305
Reserves 17,294 15,512
Accumulated losses (41,017) (37,808)
TOTAL EQUITY 197,582 199,009
Condensed consolidated statement of changes in equity
For the half year ended 31 December 2014
Attributable to owners of Resource Generation
Limited
Contributed Retained
equity Reserves earnings Total equity
$'000 $'000 $'000 $'000
Balance as 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
Balance at 1 July
2014 221,305 15,512 (37,808) 199,009
Loss for the period - - (3,209) ( 3,209)
Other comprehensive
income for the period - 1,003 - 1,003
Total comprehensive
income for the period
- 1,003 ( 3,209) ( 2,206)
Employee share options -
value of employee
services - 779 - 779
- 779 - 779
Balance at 31 December
2014 221,305 17,294 (41,017) 197,582
RESOURCE GENERATION LIMITED
Condensed consolidated statement of cash flows
For the half year ended 31 December 2014
Half year ended
31-Dec-14 31-Dec-13
$'000 $'000
Cash flows from operating activities
Payments to suppliers and employees
(inclusive of government charges) (1,277) (4,375)
Land management (72) (59)
Interest received 400 737
Interest/finance costs paid (104) (1,004)
Net cash outflow from operating
activities (1,053) (4,701)
Cash flows from investing activities
Payments for property, plant and
equipment (275) (948)
Receipts for government charges
associated with land acquisition
(refundable) - 330
Payments for licence deposits (64) -
Payments for acquisition of subsidiaries - (285)
Payments for mining tenements and mining
development (18,807) (7,113)
Net cash outflow from investing
activities (19,146) (8,016)
Cash flows from financing activities
Proceeds from issue of shares - 63,968
Equity raising costs - (1,056)
Repayment of debt - (20,000)
Loan to BEE partner (98) (1,918)
Net cash (outflow)/inflow from financing
activities (98) 40,994
Net (decrease)/increase in cash and cash
equivalents (20,297) 28,277
Cash and cash equivalents at the
beginning of the half year 54,337 21,428
Effects of exchange rate movements on
cash and cash equivalents 3,864 (44)
Cash and cash equivalents at the end of
the half year 37,904 49,661
RESOURCE GENERATION LIMITED
Notes to the condensed consolidated financial
statements
For the half year ended 31 December 2014
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 2014 has been
prepared in accordance with AASB 134 Interim
Financial Reporting and the Corporations Act 2001.
Compliance with AASB 134 ensures compliance with
International Financial Reporting Standard IAS 34
'Interim Financial Reporting'.
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 2014 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 interim financial report has been prepared on the
basis of historical cost except for the revaluation
of certain financial instruments. Cost is based on
the fair values of consideration given in exchange
for assets. All amounts are presented in Australian
Dollars, unless otherwise noted.
The accounting policies and methods of computation
adopted in the preparation of the half-year financial
report are consistent with those adopted and
disclosed in the company's 2014 annual financial
report for the year ended 30 June 2014, except for
the impact of the Standards and Interpretations
described below in particular the reclassification of
certain balances as set out in Note 10. These
accounting policies are consistent with Australian
Accounting Standards and with International Financial
Reporting Standards.
2. SEGMENT INFORMATION
(a) Description of segments
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 tenements and
exploration and corporate to be the critical reportable
segments. Corporate includes equity raisings and administration
costs.
(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.
Half year Mining Corporate Total
2014 tenements
Africa Australia
$'000 $'000 $'000
Total segment and
consolidated revenue 313 154 467
Loss before income tax (1,655) (1,553) (3,208)
Income tax expense (1) - (1)
Loss for the half year (1,656) (1,553) (3,209)
Mining Corporate Total
Half year
tenements
2013
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)
8. COMMITMENTS
Capital commitments
The Group has $14.1m in commitments in respect of the
development of the Boikarabelo mine.
10. RECLASSIFICATION OF PRIOR YEAR BALANCES
During the period ended 31 December 2014, 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).
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 Condensed
consolidated statement of financial position and the Condensed
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 Condensed
consolidated statement of profit or loss and other comprehensive income,
the Condensed 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 Reclassified 30-Jun-14
As previously stated As restated
$'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 - 177,105
Total Assets 213,996 - 213,996
Consolidated
statement of cash
flows
Payments for mining
tenements and
exploration (7,113) 7,113 -
Payments for mining
tenements and mining
development - (7,113) (7,113)
Net cash outflow
from investing
activities (8,016) - (8,016)
Date: 04/02/2015 02:53:00 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 
