| Wed 15 Dec 2010, 10:10 | | RSG - Resource Generation Limited - Financial effects of the issue of new |
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RSG
RSG
RSG - Resource Generation Limited - Financial effects of the issue of new
ordinary shares by equity placement
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")
FINANCIAL EFFECTS OF THE ISSUE OF NEW ORDINARY SHARES BY EQUITY PLACEMENT
Notice is hereby given of the issue of 32,600,000 Resgen ordinary shares on 15
December 2010 representing the second tranche of the equity raising announced on
4 November 2010 and approved at a General Meeting of shareholders on 13 December
2010("the Transaction") at a price of $A0.50 per share.
The new issue of ordinary shares will simultaneously be listed on the Official
List of the Australian Stock Exchange ("ASX") and the JSE Limited ("JSE"). The
securities rank pari passu with Resgen`s other issued securities. Resgen has the
ability under the ASX Listing Rules to make this issue.
The proceeds of the Transaction will be used primarily for the development of
the company`s Boikarabelo Mine in South Africa and for working capital.
PRO FORMA FINANCIAL EFFECTS OF THE TRANSACTION
The unaudited pro forma financial effects of the Transaction, as set out below,
are based on Resgen`s results for the year ended 30 June 2010. The number of
shares on issue before the Transaction reflect the quantum as notified to the
ASX and JSE on 8 December of 1,220,000 ordinary shares pursuant to the Share
Purchase Plan and on 4 November 2010 following the first tranche of the equity
placement of 27,400,000 ordinary shares to institutions and sophisticated
investors, which was also after the earlier placement to Integrated Coal Mining
Limited as disclosed to the JSE on 21 September 2010.
The unaudited pro forma financial effects are presented for illustrative
purposes only, to provide information on the impact of the issue. Due to the
nature of the unaudited pro forma financial effects, they may not give a fair
representation of Resgen`s financial position and the results of its operations
after the Transaction.
Resgen`s directors are responsible for the preparation of the unaudited pro
forma financial information. The accounting policies of Resgen have been used in
preparing the pro forma financial effects of the Transaction.
The effects of the Transaction
Before the Transaction After the Transaction Percentage
- 30 June 2010 - 30 June 2010 change
(A$ cents) (A$ cents) %
Earnings per (1.8) (1.5) 16.7
share(1)
Headline earnings (1.8) (1.5) 16.7
per share(1)
Net asset value 42 36 (14.3)
per share(2)
Net tangible 42 36 (14.3)
asset value per
share(2)
Number of shares 211,300,530 243,900,530 15.4
in issue
Weighted average
number of shares 200,429,172 233,029,172 16.3
in issue
Notes:
1 The amounts in the "Before" column represent the earnings and headline
earnings per share as disclosed in the financial results for the year ended
30 June 2010 but after the earlier placements to Integrated Coal Mining
Limited as disclosed to the JSE on 21 September 2010 and after the first
tranche of the equity placement as disclosed to the JSE on 4 November 2010
and the issue of shares under the Share Purchase Plan on 8 December 2010.
The amounts in the "After" column represent the earnings and headline
earnings per share on the assumption that the Transaction was effective
from 1 July 2009.
2 The amounts in the "Before" column represent the net asset value and net
tangible asset value per share as disclosed in the financial results for
the year ended 30 June 2010 but after the earlier placement to Integrated
Coal Mining Limited as disclosed to the JSE on 21 September 2010 and after
the first tranche of the equity placement as disclosed to the JSE on 4
November 2010 and the issue of shares under the Share Purchase Plan on 8
December 2010. The amounts in the "After" column represent the net asset
value and net tangible asset value per share based on the financial results
for the year ended 30 June 2010 adjusted for the Transaction, had it been
effected on 30 June 2010.
3 Transaction costs of $nil have been taken into account.
4 Proceeds will be used primarily for the continuing development of the
company`s Boikarabelo Mine in South Africa and for working capital. We
have not assumed interest was theoretically earned on this money from 1
July 2009.
Sydney, Australia
15 December 2010
Sponsor
Deloitte & Touche Sponsor Services (Proprietary) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000034/07
Date: 15/12/2010 10:10:07 Produced by the JSE SENS Department.
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