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Consolidated financial statements for the year ended 30 June 2015.
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 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.
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