Future Metals NL

Earnings Release • Mar 13, 2014

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RED EMPEROR RESOURCES NL - Half Yearly Report and Accounts

PR Newswire

London, March 13

                                                              13 March 2014           Red Emperor Resources NL ("Red Emperor" or "the Company")            Half Year Report for the Period Ending 31 December 2013Please see below extracts from the Company's Half Year Report for the periodended 31 December2013, being the: \* Directors' Report \* Consolidated Statement of Comprehensive Income \* Consolidated Statement of Financial Postion \* Consolidated Statement of CashflowsA copy of the entire Half Year Report is available on the Company's website:   www.redemperorresources.comForfurtherinformation please visit www.redemperorresources.com or contact:Red EmperorGreg Bandy                            +61 8 9225 2826Rebecca Sandford                      +44 20 7025 7040Fox-Davies Capital Limited (Nominated Adviser and Broker)Jonathan Evans /Daniel Fox-Davies     +44 20 3463 5000Directors'ReportYour directors present their report on the consolidated entity of Red EmperorResources NL and the entities it controlled at the end of, or during, the halfyear ended 31 December 2013.1. DirectorsThe persons who were directors of Red Emperor Resources NL during the half yearand up to the date of this report are: Mr Greg Bandy (Executive Director) Mr Jason Bontempo (Non Executive Director) Mr Stephen Brockhurst (Non Executive Director)2. Review of Operations for the Half Year ended 31 December 2013The Consolidated Statement of Profit or loss and Other Comprehensive Incomeshows a consolidated net loss for the half year ended 31 December 2013 tomembers of $307,914 (2012: net loss of $12,969).Georgian ProjectDuring the half year Red Emperor's Georgian Joint Venture partner, RangeResources Limited (Range) and Operator, Strait Oil & Gas UK (Strait) completedan extensive review of all geological data and finalised a program to proceedwith the development of blocks VIa and VIb.Red Emperor was advised that the State Agency for the Regulation of Oil and Gasagreed to the proposed timetable for a drilling campaign with the final workprogram passed by the Coordination Committee of the National Oil Corporation.This program involved the tenders for drilling rigs as well as the procurementof all associated well services and equipment, which is expected to befinalised by March 2014.Red Emperor's JV partners also advised that drilling permits were expected tobe obtained in Q2 2014 and after construction of the well sites the JointVenture expected to be in a position to start drilling in H2 2014. Initialtargets will be for oil and gas but it is anticipated that it will be necessaryto hydofrack the structures which lie in the Upper Bathonian section. Theoperator has also advised they will be determining the CBM potential of thereservoir. Red Emperor remains free carried for the next exploration well to bedrilled within either block, thus considerably reducing its expenditure on thisproposed program.The drill program has necessitated a revision of the PSA extending the drillingtimetable into 2015.As was previously announced, the Joint Venture continued to advance discussionswith potential farm-in and purchase participants. In the meantime the JVremains committed to progressing and meeting the commitments on the licenses.Puntland ProjectWhilst there was little on-ground activity carried out by the Joint Venture inPuntland during the half year, a number of key initiatives were outlined by RedEmperor's JV partner and operator, Horn Petroleum (TSXV: HRN) with somepreliminary work expected to commence in Q1, 2014. This work will include fieldresearch and reconnaissance across both sites, face-to-face liaison with keystakeholders and updated security assessments of both blocks (and potentialdrilling sites).As well as this proposed deployment, the Joint Venture was represented inJanuary by Horn Petroleum COO, Mark Dingley, at the Presidential Inaugurationof Puntland's newly elected fifth President, Dr Abdiweli Ali Gas. Dr Gas - whostudied at several US universities, including Harvard - defeated the incumbentAbdirahman Farole by one vote in the recently held election. Mr Farole accepteddefeat, saying the peaceful election was a model for the rest of Somalia.Red Emperor publicly thanked former President Farole for his time in officethat saw the first oil exploration wells drilled in Puntland in over 20 years.The company looks forward to a strong relationship with the new President andgovernment, which will hopefully see more incident free exploration in Puntlandover the coming years as well as commercial success.3. Subsequent EventsThere have been no subsequent events since the end of the reporting period.4. Auditors Independence DeclarationThe Auditor's Independence Declaration as required by Section 307C of theCorporations Act 2001 is set out on page 5.This report is signed in accordance with a resolution of the Board ofDirectors.Greg BandyExecutive DirectorPerth, Western Australia, 13 March 2014Consolidated Statement of Profit or Loss and Other Comprehensive Income                                Note     Half Year           Half Year                                       31 December         31 December                                              2013                2012                                                 $                   $Revenue from continuingoperationsInterest income                            215,743             244,580Gain on derivative liability     11         19,573             450,257Administration expenses                  (165,931)           (302,375)Compliance and regulatory                (167,908)           (198,407)expensesDirector fees                            (130,800)           (161,049)Occupancy expense                         (15,559)            (13,552)Corporate advisory                        (60,000)            (50,000)Share of net loss of associate   7               -                   -Foreign exchange gain/(loss)               (3,032)              17,577for all applicable occurrencesLoss before income tax expense           (307,914)            (12,969)Income tax expense                               -                   -Loss for the half year                   (307,914)            (12,969)attributable to owners of theCompanyItems that may be reclassifiedto profit or loss:Exchange difference on                     903,757             367,675translation of foreignoperationsOther comprehensive income                 903,757             367,675Total comprehensive profit/                595,843             354,706(loss) for the half yearattributable to owners of theCompanyBasic loss per share (cents per            (0.001)             (0.005)share)Diluted loss per share (cents                  N/A                 N/Aper share)The above consolidated statement of profit or loss and other comprehensiveincome should be read in conjunction with the accompanying notes.Consolidated Statement of Financial Position                                        Note   31 December 2013 30 June 2013                                                      $               $ASSETSCurrent AssetsCash and cash equivalents                           11,097,298    11,984,410Trade and other receivables                 5           54,053        85,510Total Current Assets                                11,151,351    12,069,920Non-Current AssetsFinancial assets at fair value through                     400           400profit and lossProperty, plant and equipment                                -         5,398Investment accounted for using the          7        6,928,175     6,628,472equity methodExploration and evaluation expenditure      6       27,648,939    26,486,004Total Non-current Assets                            34,577,514    33,120,274TOTAL ASSETS                                        45,728,865    45,190,194LIABILITIESCurrent LiabilitiesTrade and other payables                                22,784        60,382Derivative financial liability             11            2,103        21,676Total Current Liabilities                               24,887        82,058TOTAL LIABILITIES                                       24,887        82,058NET ASSETS                                          45,703,978    45,108,136EQUITYIssued Capital                              3       49,646,732    49,646,733Accumulated losses                                (11,064,714)  (10,756,800)Reserves                                    8        7,121,960     6,218,203TOTAL EQUITY                                        45,703,978    45,108,136The above consolidated statement of financial position should be read inconjunction with the accompanying notes.Consolidated Statement of Cashflows                               Note       31 December 2013    31 December 2012                                                  $                   $CASH FLOWS FROM OPERATINGACTIVITIESPayments to suppliers and                       (543,921)           (829,355)employees (inclusive of GST)Finance and interest costs                          (385)               (782)Interest received                                 215,743             244,580Net cash (used in) operating                    (328,563)           (585,557)activitiesCASH FLOWS FROM INVESTINGACTIVITIESPayments for exploration and                    (558,549)         (6,882,140)evaluationProceeds from acquisition                               -             984,136escrow accountNet cash (used in) investing                    (558,549)         (5,898,004)activitiesCASH FLOW FROM FINANCINGACTIVITIESProceeds from issue of shares                           -           2,250,000and optionsPayments for share issue                                -           (135,000)costsNet cash provided by                                    -           2,115,000financing activitiesNet (decrease) in cash held                     (887,112)         (4,368,561)Cash and cash equivalents at                   11,984,410          18,139,777the beginning of thehalf-yearCash and cash equivalents at                   11,097,298          13,771,216end of half-yearThe above consolidated statement of cashflows should be read in conjunctionwith the accompanying notes.