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Annual General Meeting 2019 Chairman’s Address
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”)
ANNUAL GENERAL MEETING 2019
CHAIRMAN’S ADDRESS
Ladies and Gentlemen
Thank you for attending this annual general meeting of Shareholders
In my Chairman’s Statement in the Annual Report this year, I referred to the positive news
that all three proposed lenders for the project finance required to construct the mine had
received their respective credit committee and board approvals and provided terms for
consideration by the Board. I also highlighted that the Management team was focussed, along
with the three proposed lenders and their legal advisers, on the considerable task of
assimilating the individual sets of terms into one common term sheet.
Whilst significant progress has been made in finalising a set of common terms with the
proposed lenders, unfortunately these negotiations remain incomplete at the date of this
meeting. I am however hopeful of being able to provide Shareholders with a further update
on progress within the coming week and would like to acknowledge the tireless efforts of all
involved in achieving the progress that has been made to date.
I think that it has become clear to everyone who has been involved in our funding process
that obtaining funding for a new coal mine, in the current environment, is not an easy task.
Resource Generation Limited (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (0) 11 010 6310 Fax +27 (0) 86 539 3792
Directors: Lulamile Xate (Chairman), Rob Croll, Dr. Konji Sebati, Colin Gilligan, Leapeetswe Molotsane, Greg Hunter, Michael Gray
Interim MD & CEO: Leapeetswe ‘Papi’ Molotsane
Company Secretary: Mike Meintjes www.resgen.com.au
In those circumstances, the fact that we are still in ongoing negotiations with the three
proposed lenders should be viewed as very encouraging.
In parallel with the process being followed to obtain project finance for construction of the
mine, substantial progress has also been made with regard to the other pillars of the total
funding package. The funding negotiations for the rail link from mouth of mine to the main rail
network are well progressed and an international bank guarantee for the ‘yellow goods’ is
likewise close to finalisation. Although the latter is the ultimate responsibility of the proposed
mining contractor, we have been much involved in that process.
I am also pleased that, as announced to the market on 21 November 2019, the Company's
subsidiary, Ledjada Coal Pty Limited, has now concluded a Transportation of Coal
Agreement with Transnet Freight Rail for delivery of 3.6mtpa of export quality coal to a
Richards Bay Terminal on the terms set out in our announcement, which we consider
reasonable in the circumstances. It is pleasing that the challenge of finding an avenue for
transporting our washed coal from the mine to the port has now been overcome.
Although progress with the process of obtaining project finance for construction of the mine
has, at times, been very slow due to a range of factors, a number of which were beyond our
control, I now sense that we have the right momentum to obtain the funding we are seeking
for our Project. I would like to take this opportunity to thank all those involved including my
colleagues on the Board, Management, Staff, our proposed lenders and professional
advisers.
I would also like to acknowledge the continuing support of Noble Group who, by extending a
working capital facility to the Company, have provided the financial means to allow us to
continue the pursuit of full funding of the Project.
Ladies and gentlemen, thank you once again for joining us here today, and for your sustained
interest in what we continue to believe is a great Project.
Lulamile Xate
Chairman
27 November 2019
JSE Sponsor:
Deloitte & Touche Sponsor Services (Pty) Limited
PAGE 2
Date: 27-11-2019 11:12:00
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