IONIC RARE EARTHS LIMITED — Annual Report 2009

Aug 30, 2009

Appendix 4E Preliminary final report

APPENDIX 4E

Preliminary final report

EZENET LIMITED

ABN 84 083 646 477

1. Reporting Period

Year ended : 30 June 2009

2. Results for announcement to the market

2.Results for announcement to the market	2.Results for announcement to the market	2.Results for announcement to the market
2.1 Revenues from ordinary activities 2.2 Loss from ordinary activities after tax attributable to members 2.3 Net loss for the period attributable to members	Down 10.0% to $3,649,644 Down to ($2,720,280) Down to ($2,720,280)
2.4 Dividends	Amount per security	Franked amount per security
Final dividend	Nil¢	Nil¢
Previous corresponding year	Nil¢	Nil¢
2.5 Record date for determining entitlements to the dividend Not Applicable 2.6 During the financial period the company sought and received shareholder approval for the sale of its 100% owned subsidiary Ezestream Pty Ltd. Ezestream Pty Ltd carried on the business of providing digital movie services to the hospitality and mining industries. That sale was effective 30 April 2009, consequently the result of the Group include the results for Ezestream Pty Ltd for the ten month period ending 30 April 2009 against a 12 month period for the previous year. In addition, the Global Financial Crises has had a severe impact on the value of the Groups investments in companies (both listed and unlisted on recognised stock exchanges) active in the resources sector. As a result an impairment loss of $2,767,495 has been made against the carrying value of those investments. Ezenet Limited will continue its business of investing in the resources sector either directly or indirectly through the investment in companies active in the resource sector.
	Not Applicable

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Appendix 4E Preliminary final report

3. Consolidated income statement

Note Continuing operations Revenue from ordinary sales 3.1(a) Cost of Sales 3.1(b) Gross Profit Other Income Marketing and distribution expenses Occupancy expenses Administrative expenses Profit on sale of subsidiary Borrowing expenses 3.1(c) Other operating expenses 3.1(d) Profit/(Loss) before income tax expense Income tax benefit/(expense) Profit/(Loss) after tax from continuing operations Net Profit (Loss) attributable to members of Ezenet Limited	2009 $	2008 $
	3,649,644 (1,197,260)	4,053,034 (1,028,769)
	2,452,384	3,024,265
	(275,342) (65,511) (229,886) 280,035 (240,397) (4,770,992)	- (311,534) (86,265) (244,994) - (236,723) (2,006,455)
	(2,849,709) 129,429	138,296 (6,786)
	(2,720,280)	131,510
	(2,720,280)	131,510

Earnings per security (EPS)	Cents	Cents
Basic earnings/(loss) per share Diluted earnings/(loss) per share	(3.24) (3.24)	0.16 0.16

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3.1 Notes to the consolidated income statement

3.1(a) Other Operating Revenue

Sale of Services Sale of equipment Interest received or receivable from other bodies corporate

Revenue from ordinary sales

2009 $	2008 $
3,638,771 - 10,873	3,837,117 187,124 28,793
3,649,644	4,053,034

	3.1(b) Cost of Sales Film Licenses and Movies Cost Installation Costs Cost of Equipment Cost of sales 3.1(c) Borrowing Expenses Interest expense Other borrowing expenses Total borrowing costs Less borrowing costs capitalised Total borrowing costs expensed	2009 $	2008 $
		1,007,256 1,638 188,366	897,732 31,496 99,541
		1,197,260	1,028,769
		2009 $	2008 $
		240,397 -	236,723 -
		240,397 -	236,723 -
		240,397	236,723
	3.1(d) Other operating expenses Depreciation of plant and equipment Amortisation of film library Amortisation of Guest Video Inventory written off Salaries & wages expense Postage, couriers & freight Superannuation expenses Impairment of assets Other Operating lease rentals Defined contribution plan expense Provisions for employee entitlements Consultants and directors benefit expense Salaries & wages expense Bad Debts written off	2009 $	2008 $
		803,700 45,441 - - 756,255 8,029 64,106 2,767,495 325,966	764,795 52,680 6,246 16,000 740,039 123,282 70,560 - 232,853
		4,770,992	2,006,455
		64,026 63,103 12,366 95,361 756,255 12,685	78,962 70,560 20,230 66,852 740,039 5,913

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Appendix 4E Preliminary final report

4. Consolidated balance sheet

Current assets Cash Receivables Inventory Other Total current assets	2009 $	2008 $
	1,285,948 513,459 - -	497,926 656,802 221,040 37,405
	**1,799,407 **	1,413,173
Non-current assets Property, plant and equipment Intangible assets Deferred tax assets Available-for-sale financial assets Interest in associate Total non-current assets	3,090 - - 703,252 -	2,946,147 102,899 - 5,843,763 -
	706,342	8,892,809
Total assets	2,505,749	10,305,982
Current liabilities Payables Interest bearing liabilities Provisions Total current liabilities	158,620 - -	557,095 1,871,480 60,738
	158,620	2,489,313
Non-current liabilities Deferred tax liabilities Provisions employee entitlements Interest-bearing liabilities Total non-current liabilities	- - -	755,429 11,613 209,913
	-	976,955
Total liabilities	158,620	3,466,268
Net assets	2,347,129	6,839,714
E it Contributed equity Reserves Retainedprofits	9,169,348 949,823 (7,772,042)	9,169,348 2,722,128 (5,051,762)
Equity attributable to members of the parent entity	2,347,129	6,839,714

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Appendix 4E Preliminary final report

5. Consolidated cash flow statement

Cash flows related to operating activities Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Income taxes paid Other Net operating cash flows	2009 $	2008 $
	3,755,651 (3,082,036) 10,873 (240,397) (8,875) -	3,664,151 (2,543,126) 28,793 (215,667) (295) 75,570
	415,216	1,009,426
Cash flows related to investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from subsidiary sale Payments for investments Net investing cash flows	(823,519) - 3,002,105 (60,000)	(1,548,330) (55,231) - (105,000)
	2,118,586	(1,708,561)
Cash flows related to financing activities Proceeds from issues of shares Proceeds from borrowings raised Repayment of borrowings: director’s loan other Other – Convertible notes repaid Net financing cash flows	100,548 - (136,328) (1,710,00)	- 390,710 - (97,443) (50,000)
	(1,745,780)	243,267
Net increase (decrease) in cash held Cash at beginning of financial year Effects of exchange rate changes on opening cash Cash at end of financial year	788,022 497,923 -	(455,868) 953,794 -
	1,285,948	497,926

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5.1(a) Reconciliation of cash	2009 $	2008 $
Cash on hand and at bank Short term deposit Total cash at end of period	1,285,948 -	445,971 51,955
	1,285,948	497,926
5.1(b) Reconciliation of loss from ordinary activities after income tax to net cash from operating activities	2009 $	2008 $
Profit/(Loss) from ordinary activities after income tax Depreciation and amortisation Inventory written off Provision for dimunition in investment Convertible finance costs Taxation Subsidiary sale Exchange rate fluctuations Bad Bebt Other Changes in assets and liabilities Receivables Prepayments Payables Inventory Employee entitlements Net operating cash flows	(2,720,280) 849,141 - 2,638,066 30,013 (13,140) (491,333) - - (20,304) 155,248 (20,616) (95,818) 91,874 12,365	131,510 823,721 16,000 - 14,452 6,786 - 4,064 647 64,131 (220,955) (28,310) 30,070 167,041 268
	415,216	1,009,426

5.1(c) Borrowing facilities and bank financial Accommodations	2009 $ Available	2009 $ Utilised	2008 $ Available	2008 $ Utilised
Convertible notes Bank loan Insurance finance Other	- - - -	- - - -	1,710,000 1,000,000 35,022 36,990	1,710,000 370,670 35,022 36,990
	-	-	2,782,012	2,152,682

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6. Dividends paid or declared

	2009	2008
	$	$
Dividends paid or declared for the year	Nil	Nil
Amount of frankingcredits available	Nil	Nil

7. Dividend reinvestment plan

There is no Dividend Reinvestment Plan currently in place .

8. Movements in retained earnings

Retained losses at beginning of financial year Net operating profit (loss) after income tax for the financial year Adjustment arising from adoption of new and revised accounting standards: Dividendspaid orpayable **Retained losses at end of financial year **	2009 $	2008 $
	(5,051,762) (2,720,280) - -	(5,183,272) 131,510 - -
	(7,772,042)	(5,051,762)

9. NTA backing

	2009	2008
Net tangible asset backing per ordinary security	2.79 cents	8.02 cents

10. Control gained or lost over entities having material effect

Effective 30 April 2009 the company sold its 100% interest in Ezestream Pty Ltd. During the financial year Ezestream contributed a profit from ordinary activities of $299,377 towards the Groups results against a contribution for the previous corresponding year of a profit of $570,272.

11. Available-for-sale financial assets

	2009 $	2008 $
Interest in Weatherly International plc	573,984	5,498,391
Interest in Allied Gold Limited	40,000	-
Interest in Island Gas (previously known as KP Renewables plc)	89,268	90,372
Interest in Ghazal Uranium	-	105,000
Interest in Carbine Resources Limited	-	150,000
Total Available for sale Assets	**703,252 **	5,873,762

12. Details of associates and joint ventures

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	2009 $	2008 $
	Ownership interest held by consolidated entity
Balance Date	2009	2008
GhazalUranium Limited 30 June2009	23%	36%

13. Other significant information

13.1 Issued and quoted securities at end of current year

	Total number	Number quoted	Issue price per share $	Amount paid up per share $
Ordinary shares Balance on issue at 1 July 2008 Increases during current year - options exercised Balance on issue at 30 June 2009 Options	83,989,367	83,989,367
	- 83,989,367	- 83,989,367
			Exercise Price $
Balance on issue at 1 July2008	-	-
Issued during current year	-	-
Exercised during current year	-	-
Balance on issue at 30 June 2009	-	-

13.2 Changes in contingent liability

Not applicable

14. Accounting standards for foreign entities

Not applicable

15. Commentary on the results for the financial year

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Appendix 4E Preliminary final report

During the financial period the company sought and received shareholder approval for the sale of its 100% owned subsidiary Ezestream Pty Ltd. Ezestream Pty Ltd carried on the business of providing digital movie services to the hospitality and mining industries. That sale was effective 30 April 2009, consequently the result of the Group include the results for Ezestream Pty Ltd for the ten month period ending 30 April 2009 against a 12 month period for the previous year. The purchaser of Ezestream Pty Ltd has made a claim of $120,000 against Ezenet Limited in regards to the loss of a contract to supply its services. Ezenet Limited has denied the claim.

In addition, the Global Financial Crises has had a severe impact on the value of the Groups investments in companies (both listed and unlisted on recognised stock exchanges) active in the resources sector. As a result an impairment loss of $2,767,495 has been made against the carrying value of those investments.

Ezenet Limited will continue its business of investing in the resources sector either directly or indirectly through the investment in companies active in the resource sector.

15.1 Segment reporting – reports for business and geographical segments

The company operates in one geographical segment being Australia and in the one industry being the investment in resource projects either directly or through the investment in companies that hold resource projects.

16. Basis of preparation

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) and the Urgent Issues Group that are relevant to its operations and effective for annual reporting periods beginning on 1 July 2008. The adoption of these new and revised Standards and Interpretations did not have any effect on the financial position or performance of the Group.

Certain Australian Accounting Standards and UIG Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Group, for the annual reporting period ended 30 June 2009. The directors have not adopted any of these new or amended standards or interpretations.

17. Compliance statement

This report is based on accounts which are in the process of being audited.

Signed: ............................................................ Date: ____ (Company Secretary)

Name: Brett Dickson

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